GA Flying Down 20%

Mxsmanic wrote:
Jay Honeck writes:

While it's not what it once was, a million bucks is enough to live on
quite comfortably for decades.

Decades? I think not. Not when a nice house alone costs more than a million
dollars, and a mediocre house costs half a million.

Adults can get credit.

$1M house ~ $3K/month

$1M/($3K*12) ~ 28 years

Adults can get interest.

$1M @ 5.75% annual yield = $57,500/year

House payment = $36,000/year

Net annual income $57.5K - $36K = $21.5K

Adults pay taxes.

The house payment is almost totally deductible, so the taxable
annual income is $21.5K, which is a negligable tax rate.

After 28 years, amount on hand (neglecting other expenses

$1M + 28 ($21.5K) ~ $1.6M.

Or you could spend ~$50K/year (in addition to the house payment)
and wind up with about $0 after 28 years.

You'll understand all this when you grow up.

--
Jim Pennino

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