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  #1  
Old 06-20-2011, 07:01 AM
Idle Thoughts Idle Thoughts is online now
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How long would a million bucks last you (if you had to use it every time you paid for something)?

Suppose I gave you a million dollars, right now, in US funds.

You're allowed to spend the money any way you wish so as long as you spend it. Any/Every time you need to pay for something, it would come out of that million.
That means you're not allowed to invest it in any way that would make you more money or that would save it. Like I said above, you'd use that million every time you had to pay for something, until it's gone.


How long do you think it would it last you?

And as a bonus inquiry: What's the fastest time you'd be able to spend it in, you think?
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  #2  
Old 06-20-2011, 07:13 AM
Hakuna Matata Hakuna Matata is offline
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Well retirement conventional wisdom is a 4% withdrawal rate would give you $40,000 a year for 25 years, so if you could live off $40k then 25 years I would say! So unless I am doing my math wrong (and it is 5 am here and I haven't had a cup of coffee yet!) then 25 years or so. I could adjust to living off that I think if I had to. But the reality is that doesn't take into account inflation, and not going to figure that math out, so let's say 20 years at roughly $40k with the last years having inflation added in.

Fastest time. 4 years, I think I could easily spend $250k a year no problem.
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  #3  
Old 06-20-2011, 08:21 AM
Aspidistra Aspidistra is offline
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I'd buy a house with it. A nice but not particularly excessive house in my local neighborhood. Then it would be gone.

Just gimme a couple of days to find one...
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Old 06-20-2011, 08:35 AM
Moonlitherial Moonlitherial is online now
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Three answers really.

To make it last as long as possible without giving up my current house - about 23 years.
To maintain a version of my current lifestyle - 13 years.
As fast as I could? About a week but only because I would want to be sure of the house I chose. maybe longer for closing.
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  #5  
Old 06-20-2011, 08:53 AM
UncleRojelio UncleRojelio is offline
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At my current burn rate, 8 or 9 years.
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  #6  
Old 06-20-2011, 08:58 AM
Hypno-Toad Hypno-Toad is offline
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Based on my current salary minus what I save (approximately), I'd say about 30 years.

I live pretty cheaply.
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  #7  
Old 06-20-2011, 09:27 AM
Jack Batty Jack Batty is offline
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Two interpretations here;

1) Go about my usual daily life, but instead of using my bank account to pay for things, I use your million clams -- I'd guess about 16 years at my current rate of consumption.

B) Here's a million bucks -- spend it. I could lose that in about a day and a half if I put my mind to it.
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Old 06-20-2011, 09:37 AM
NinetyWt NinetyWt is offline
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Would we have to pay taxes on it? That'd make a big difference.
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  #9  
Old 06-20-2011, 10:20 AM
Yorikke Yorikke is offline
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Right now, it would last a very long time. I could quit my job, my wife could use her salary to pay for rent / mortgage and car payments, etc, and invest the rest of HER money. I could pay for everything else with the million. Hell, it'd last forever.

If I paid for EVERYTHING moving forward, and she invested every penny of her salary, I'd estimate, right now, we could budget a very comfortable $60,000 a year for expenses out of the million, so about 14 years.

If we moved from San Fran, it'd last longer.

If I were single, I could very easily never work again. I'd rent the cheapest studio apartment, have a good car, but pay it off, and use it mainly for grocery shopping, and spend maybe $150 a month on internet / TV / Phone. Easily a thousand months. Say 60 years, just to be conservative, at $1388 per month. I'll be 97 then, and likely dead.

As fast as possible? Pay off all bills and buy a house. So as long as it takes for the checks to clear.

Joe

Last edited by Yorikke; 06-20-2011 at 10:22 AM..
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  #10  
Old 06-20-2011, 11:22 AM
kittenblue kittenblue is offline
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I could buy my friend's really huge, lovely house for $165,000 and spend twice what I spend a year now, and the money would last over twenty years. And I'll be 75 then.

When can I expect the check to arrive?
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  #11  
Old 06-20-2011, 11:38 AM
JohnT JohnT is online now
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I'm assuming that I can take my current salary and invest it? Or am I supposed to spend that too?

At my current salary, I would try to make it last about 8-10 years. Then I'll have about another million, thereby repeating the process.
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  #12  
Old 06-20-2011, 12:03 PM
Manda JO Manda JO is offline
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At my current rate of expenditure, and budgeting for moderate but not terrible emergencies, it would last over 25 years.

However, I'm pregnant, so I expect that rate of expenditure to rise exponentially over the next 20 years, and while I am hoping/planning to raise this child pretty inexpensively, if I had a big pile of money and was piling up more money by saving my salary, I'd probably chose to provide more luxuries--like lessons, and trips, and college tuition--for my child. So the money would probably go quite a bit more quickly than that.

This is all assuming no inflation, of course. Even 1-2% inflation would have a pretty significant impact on the value of a big old pile of money after ten or fifteen years.
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  #13  
Old 06-20-2011, 12:14 PM
Asimovian Asimovian is offline
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I'd say it would last 10-15 years if I'm living extremely comfortably. 20-25 if I'm being conservative for any reason.

I live in LA, so if I wanted to spend it as quickly as possible, I'd go buy a house near the beach or in the hills somewhere. It'd be gone just like that.
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  #14  
Old 06-20-2011, 12:50 PM
DonIn Florida DonIn Florida is offline
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There are several investments that can and will return a safe 10% With that in mind that is $100,000.00 a year a little more than twice my yearly salary so Living as I do now (maybe a little better) I would bank an additional $50,000 a year. Reinvesting this I would say It will last the remainder of my life
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  #15  
Old 06-20-2011, 12:57 PM
tdn tdn is offline
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Assuming I quit my job, didn't invest a cent, halted inflation, and kept living my current lifestyle, I could keep going for about 13 years.

If I had to get rid of it in a few weeks, I'd have a house and a boat in short order.

If I had to get rid of it in the next ten minutes, I'd make some charity very happy.
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  #16  
Old 06-20-2011, 12:57 PM
perfectparanoia perfectparanoia is offline
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At the current burn rate (excluding investing, I presume just expenditures)...10 years maybe?

If I had to spend it, it would take me a while. I would want to buy a house with it so it would be until it closed.

Honestly, one million wouldn't be a life-changer at this point. We would need about 2.5 or so to be able to make any life changes.
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  #17  
Old 06-20-2011, 01:00 PM
Asimovian Asimovian is offline
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Quote:
Originally Posted by DonIn Florida View Post
There are several investments that can and will return a safe 10% With that in mind that is $100,000.00 a year a little more than twice my yearly salary so Living as I do now (maybe a little better) I would bank an additional $50,000 a year. Reinvesting this I would say It will last the remainder of my life
Except that the OP said...

Quote:
Originally Posted by Idle Thoughts View Post
Any/Every time you need to pay for something, it would come out of that million.
That means you're not allowed to invest it in any way that would make you more money or that would save it. Like I said above, you'd use that million every time you had to pay for something, until it's gone.
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  #18  
Old 06-20-2011, 01:07 PM
etv78 etv78 is offline
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Living my normal life: 12-15 years
Spending it like it was going out of style: Depends how many times I can go from Boston to Minneapolis. (Mall of America)
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  #19  
Old 06-20-2011, 01:16 PM
Patty O'Furniture Patty O'Furniture is offline
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I'm assuming you mean that I quit my job and have no other income. Quick, back o' the napkin calculations:

My monthly operating budget is about $1750. Assuming I use $125K of the 1 mil right away to pay off my mortgage, my monthly outflows would drop to about $850.

So unless I went on a shopping spree or suddenly got a Fabergé egg habit, I could make $875K last about 85 years. Since I only expect to live about 50 more years at most, I'd have to come up with excuses to overspend (new house, vacations, etc).

Last edited by Patty O'Furniture; 06-20-2011 at 01:18 PM..
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  #20  
Old 06-20-2011, 02:50 PM
Mama Zappa Mama Zappa is offline
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What are the parameters regarding, say, taking out an auto loan? Would we use the money for a down payment and monthly payments, or would we need to pay cash for the car?

What about money we currently save for retirement? Can we exclude that from the picture?

Assuming our current net take-home pay (after retirement / taxes) remains the same, and that we normally spend all of that every month, and our spending level remains the same:
- If we paid off the mortgage up front, it'd be 6ish years til the million was gone.
- If we did NOT pay off the mortgage, it'd be 8ish years til the million was gone.

Note that the next 8 years, for us, will be unusually expensive: we'll have kids in college from 2012 through 2019.

Egad, this is rather depressing!!!

If we did prepay the mortgage, however, we're looking at substantially decreased spending after 2019.

Just for shits'n'giggles I did a spreadsheet. If we bump the money up to 2 million, with paying off the mortgage we run out of cash in the 19th year. With no prepayment of the mortgage, we run out in the 17th year.
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  #21  
Old 06-20-2011, 03:12 PM
Ravenman Ravenman is online now
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Paying off my house and then spending at the same rate would equal about a dozen years of living. Maybe a little less, probably not much more.
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  #22  
Old 06-21-2011, 01:03 AM
panache45 panache45 is offline
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I could live comfortably on a million bucks for the rest of my life (I'm 65 now).
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  #23  
Old 06-21-2011, 01:10 AM
An Gadaí An Gadaí is offline
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18 years if I wasn't strictly budgeting. Significantly longer if I were.
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  #24  
Old 06-21-2011, 01:10 AM
elfkin477 elfkin477 is offline
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Unless I have/adopt a bunch of kids, it'd last at least 20 years. OTOH, I would neither be inclined to quit my job or go on wild spending sprees.

But if I were, per the bonus question, I think it'd take me a year to spend it all down. Not because I couldn't think of what to buy, but it'd take that long to get over my hang ups about spending a lot of money. (truthfully, I find the idea of spending large sums more than a little scary)
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  #25  
Old 06-21-2011, 03:00 AM
guestchaz guestchaz is offline
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living about a day's drive from the nevada border, saaaaay day and a half, tops? Maybe two days. Unless I decided to donate it to the local rescue mission, then probably about a month (I think thats how long it takes to get through the red tape a large donations generates)
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  #26  
Old 06-21-2011, 06:46 AM
BleizDu BleizDu is offline
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At our current lifestyle, 50 years. About 40 years if splurging.
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  #27  
Old 06-21-2011, 07:02 AM
Idle Thoughts Idle Thoughts is online now
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Realistically, for me, it'd last about 10-15 years.

The way I meant for the circumstances to be is that every time you pay for anything, it comes out of the million. So, monthly rent/mortgage? It comes out of the million. Time to make a payment on your car? It comes out of the million. Every time you go shopping, every time you go out to eat, every time you get something for entertainment purposes or luxury, every time you have to go to the doctor's or have anything medically-related done, every bill you have to pay...it comes out of the million. Your or your kids education future? All of it comes out of that million. You are totally dependent on that million until it's gone. You can't use any other money until it's gone.

So yeah, about 10 years for me.
Fastest I could spend it would probably be a week.
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  #28  
Old 06-21-2011, 08:29 AM
Quartz Quartz is offline
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Are people accounting for inflation?
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  #29  
Old 06-21-2011, 10:18 AM
Khendrask Khendrask is offline
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Tax free?
It would last me 17 years at a very comfy standard of living, if I spent everything out of the 1M initial deposit. I would also continue to work, probably for that 17 years, which would allow me to dump all of my income into retirement accounts, and be able to retire at 62 and continue to live well.

The fastest I could spend it? Hrm... Without going all "Brewster's Millions", I'd say by buying some toys that I would really like to have, but would never want to finance, it would take me between two and three years so spend the entire amount. Note, that that would not include any additional real estate, but would probably include leveling my current house and building a new one on the same site.
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  #30  
Old 06-21-2011, 03:17 PM
EvilTOJ EvilTOJ is offline
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At my current burn rate, 20 years. Oh man you know what this means? I can make a million dollars in only 20 years (unless I spend some of it).
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  #31  
Old 06-21-2011, 03:25 PM
zoid zoid is online now
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6 years at my current burn rate.
Could stretch it to 7, maybe 8 but it would be hard.
Fastest - easily within a month.
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  #32  
Old 06-21-2011, 03:53 PM
Yeticus Rex Yeticus Rex is offline
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I personally could survive well on $20k per year if I have to.....so that would last me until I'm 98.

On the flip side:

I'm 2 hours from Vegas, and 5 minutes from securing a large bet in a private part of the casino.

You didn't say anything about gambling, just "no investing". If I win...cool! If I lose....I win the fastest way to burn a million dollars!
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  #33  
Old 06-21-2011, 09:31 PM
Sleel Sleel is offline
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With my current lifestyle, even without working at all, it'd probably last 15 years or more. With actual income of some kind to supplement or save it would easily last until I died.
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  #34  
Old 06-21-2011, 09:34 PM
Ludovic Ludovic is offline
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Probably 30 years. It would be more than 40 if you don't count inflation.
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  #35  
Old 06-22-2011, 08:25 PM
Autolycus Autolycus is offline
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A million on Red 6! C'mon baby Gil needs a new pair of shoes....
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  #36  
Old 06-22-2011, 08:37 PM
Desert Nomad Desert Nomad is online now
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Quote:
Originally Posted by DonIn Florida View Post
There are several investments that can and will return a safe 10% With that in mind that is $100,000.00 a year
Name one.
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  #37  
Old 06-22-2011, 08:43 PM
Jack Batty Jack Batty is offline
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Amway!
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  #38  
Old 06-22-2011, 10:56 PM
RickJay RickJay is offline
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It's a neat question, really.

Suppose I currently burn about $50,000 a year, which is a pretty good estimate. It'd last 20 years.

However, much of what I spend is money lost to interest.

I could make my money last longer by immediately buying a home for cash. My current domicile would cost about $250,000 so let's go with that. (It doesn't count as an "investment," according to the OP, unless I make money off it, which I never will if I never sell it at a profit.)

I would now have $750,000 left but have dramatically reduced my monthly cost of housing, by approximately $1400. So now - assuming no other changes in lifestyle - I'm eating $33,200 a year, so my money will last 22.5 years. And that's with interest rates being low right now.
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  #39  
Old 06-22-2011, 11:21 PM
pulykamell pulykamell is online now
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Quote:
Originally Posted by Desert Nomad View Post
Name one.
I'm glad somebody finally said it. Hey, I got a lot riding in investments, but I can't think of a single one that could return 10% consistently and safely, especially if you need a constant 10% a year, every year.
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  #40  
Old 06-23-2011, 12:15 AM
Cyberhwk Cyberhwk is offline
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Current Rate: 25 Years
Being Conservative: 30 Years
Trying: A week at most. Depends on how fast I could get some land, pay the contractor to build a house and get a Ferarri dealership on the phone.
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  #41  
Old 06-23-2011, 05:40 AM
pullin pullin is offline
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I think I could make it last 20 years, but only after the kids move outl

Last edited by pullin; 06-23-2011 at 05:41 AM..
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  #42  
Old 06-23-2011, 10:03 AM
BlackKnight BlackKnight is offline
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Between 25 and 30 years.
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  #43  
Old 06-23-2011, 10:10 AM
StusBlues StusBlues is offline
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I'd tend to splurge a bit, but I'd probably go about 20 years not adjusting for inflation.
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  #44  
Old 06-23-2011, 12:30 PM
Dr. Love Dr. Love is offline
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At my current (grad school) level of spending, and ignoring the effects of inflation, it would last around 65 years.
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  #45  
Old 06-23-2011, 01:07 PM
bump bump is online now
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Probably in the neighborhood of 8 years if it was my household expenditures, and more like 15 if it was just the stuff I sign the check/credit card slip on.

That's assuming I pay off the house in a lump sum, and my wife and I buy a 40k car each outright.

Last edited by bump; 06-23-2011 at 01:08 PM..
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  #46  
Old 06-23-2011, 01:20 PM
StGermain StGermain is offline
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No taxes, no inflation and at my current lifestyle? About 40 years. I owe about $30K on my mortgage and have no other debt presently, and live on my take-home. I'd pay off the house and make some much-needed improvements. I'm happy driving a POC car, although I'd like a POC truck for hauling horses and feed. A nice barn and indoor arena would be lovely, but not a nessecity. I might continue working and put the money towards those.

When can I expect the check?

StG

Last edited by StGermain; 06-23-2011 at 01:22 PM..
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  #47  
Old 06-23-2011, 01:34 PM
Giles Giles is offline
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Realistically, if I got $1,000,000 under those conditions, I'd spend it considerably faster than I spend money at present. So, I'd probably go through it in about 10 years -- then go back to my other capital and sources of income, which would have been accumulating nicely for my retirement.
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  #48  
Old 06-24-2011, 01:37 PM
guestchaz guestchaz is offline
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Quote:
Originally Posted by Yeticus Rex View Post

I'm 2 hours from Vegas, and 5 minutes from securing a large bet in a private part of the casino.

You didn't say anything about gambling, just "no investing". If I win...cool! If I lose....I win the fastest way to burn a million dollars!
too late, I already went to the local horse racing track, bet it all on some horse called "Baby Gil Needs Shoes"
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