Do you consider 1 million dollars to be a lot of money?

Feb 13th, 2021 12:17 pm

#1

Shoppersbeermart [OP]: Sr. Member; Dec 26, 2008; 602 posts; 342 upvotes

Feb 13th, 2021 12:17 pm

Do you consider 1 million dollars to be a lot of money?

It sounds like the height of arrogance to say it, but no I don't think 1 million dollars is a lot of money anymore. There are a lot of hungry people in Canada and millions more in the USA and around the world.

But there has also been a paradigm shift - the rich are getting richer but there's more new rich people than ever before.

The last 20 years has created all this, huge booms in real estate (If you own a house in Vancouver or Toronto, even a shitbox, you are basically a millionaire). The growth in Bitcoin. The Tech bubble of the late 1990's. Huge runs in oil in the early 2000s. The huge growth in the stock market. Recently, Marijuana stocks and Reddit popped stocks. I don't believe there has ever been another 20 year period where there has been more opportunity to get rich.

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Feb 13th, 2021 12:17 pm

#2

napoleonz: Sr. Member; Jul 1, 2005; 527 posts; 143 upvotes

Feb 13th, 2021 12:17 pm

No it's not. Not by a long shot.

+8

Feb 13th, 2021 1:09 pm

#3

Deepwater: Deal Addict; Feb 1, 2012; 1468 posts; 2046 upvotes; Thunder Bay, ON

Feb 13th, 2021 1:09 pm

Its not easy to make a million. Even with growth in tech, some people will be lucky millionaires, but others will lose big time.

A million is not a lot of money to retire on unless you have other sources of income.

Then there is various people's perception regarding the value of money. To a poor person, $100 is not much, but $1 million is a lot. To a rich person, $100 is a lot, but a million is not much. That's a roundabout way of saying many poor people stay that way because they are frivolous and cannot dream of being a millionaire, while many people get rich because the see the value of small savings and investments over time, while $1 million is hard to live on.

I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.

+8

Feb 13th, 2021 1:41 pm

#4

smartie: Deal Fanatic; Dec 5, 2006; 9209 posts; 4499 upvotes; Markham

Feb 13th, 2021 1:41 pm

You own 1 million house but have 800k mortgage, technically you are not millionaire

For regular Canadian, I think 1 million is a lot money. Might be not in RFD. Even in RFD, asking this question in finance forum can only give you sample bias.

+14

Feb 13th, 2021 1:46 pm

#5

catsoncoffee: Member; Apr 16, 2015; 203 posts; 286 upvotes

Feb 13th, 2021 1:46 pm

I don't have a million $, but I wouldn't consider those who do to be rich. $25 million is enough to live very comfortably off the annual interest without ever touching the principal - that's the marker for me.

+4

Feb 13th, 2021 1:47 pm

#6

MP3_SKY: Deal Guru; Jul 12, 2003; 11446 posts; 3712 upvotes; Toronto

Feb 13th, 2021 1:47 pm

No, even you give me 1 million dollar cash today, I will still keep my job and go to work next day.

Depends on people's living standard, some people spent majority of their live in wel fare, then of courses, 1 million is super BIG.

Retired Forum Moderator February 2009 - June 2015

+6

Feb 13th, 2021 1:48 pm

#7

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 1:48 pm

catsoncoffee wrote: ↑ I don't have a million $, but I wouldn't consider those who do to be rich. $25 million is enough to live very comfortably off the annual interest without ever touching the principal - that's the marker for me.

I just hope you're not talking about a savings account interest!

+2

Feb 13th, 2021 1:54 pm

#8

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 1:54 pm

As for my opinion on is $1M a lot of money?
Yes AND No.

There are plenty of things you can do with $1M. I for one, COULD live off of it. With well placed income investments and some growth it would easily allow my wife and I to live comfortably for the rest of our lives.
But is that the end goal? No.

In summary, I think that it is a lot. And should be the MINIMUM people strive for when they are younger.

+3

Feb 13th, 2021 1:55 pm

#9

catsoncoffee: Member; Apr 16, 2015; 203 posts; 286 upvotes

Feb 13th, 2021 1:55 pm

Valour002 wrote: ↑ I just hope you're not talking about a savings account interest!

Not strictly "interest", but earnings on a very conservative investment portfolio, earning 2-3%.

+3

Feb 13th, 2021 1:58 pm

#10

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 1:58 pm

catsoncoffee wrote: ↑ Not strictly "interest", but earnings on a very conservative investment portfolio, earning 2-3%.

That is certainly VERY conservative. I myself would aim for more 4-5% investments. Even the banks nowadays are averaging 5%. Others such as Bell, Enbridge, and MANY more would give you good safety AND a nice chunk of earnings.

+2

Feb 13th, 2021 1:58 pm

#11

ozzie16: Deal Addict; Oct 27, 2012; 2108 posts; 3265 upvotes; Toronto

Feb 13th, 2021 1:58 pm

Won't be able to buy you a loaf of bread by 2030 at the rate the ~~Zimbabwe~~ Canadian Dollar is going.

+13

Feb 13th, 2021 1:59 pm

#12

Wiseman: Deal Addict; Oct 18, 2004; 4740 posts; 1253 upvotes; Wat

Feb 13th, 2021 1:59 pm

We need a definition of "a lot of money".

+2

Feb 13th, 2021 2:00 pm

#13

catsoncoffee: Member; Apr 16, 2015; 203 posts; 286 upvotes

Feb 13th, 2021 2:00 pm

Valour002 wrote: ↑ That is certainly VERY conservative. I myself would aim for more 4-5% investments. Even the banks nowadays are averaging 5%. Others such as Bell, Enbridge, and MANY more would give you good safety AND a nice chunk of earnings.

I earn more than that with my real life savings, but if I had $25 million, I wouldn't feel the need to put the principle at risk in order to earn more than I need to live off of.

+3

Feb 13th, 2021 2:01 pm

#14

DaveTheDude: Deal Addict; Mar 3, 2018; 1843 posts; 1837 upvotes; GTA

Feb 13th, 2021 2:01 pm

There is a difference between $1M cash in the bank and owning a $1M property you live in which is a small basic house in the GTA. $1M in the bank means you basically can go on exotic vacations and drive luxury cars. Owning a $1M property means you just have a place to live and may actually be collecting GIS like many GTA seniors do to buy their groceries.

+10

Feb 13th, 2021 2:02 pm

#15

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 2:02 pm

catsoncoffee wrote: ↑ I earn more than that with my real life savings, but if I had $25 million, I wouldn't feel the need to put the principle at risk in order to earn more than I need to live off of.

Yes, I was referring to the $1M, not $25M. That is a wide difference. And even at $25M I would probably have the majority invested. Say... $22M

Feb 13th, 2021 2:03 pm

#16

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 2:03 pm

DaveTheDude wrote: ↑ There is a difference between $1M cash in the bank and owning a $1M property you live in which is a small basic house in the GTA. $1M in the bank means you basically can go on exotic vacations and drive luxury cars. Owning a $1M property means you just have a place to live and may actually be collecting GIS like many GTA seniors do to buy their groceries.

Yes, and pray the roof doesn't need fixed.

+2

Feb 13th, 2021 2:03 pm

#17

someweirdo: Sr. Member; Jul 16, 2019; 939 posts; 953 upvotes

Feb 13th, 2021 2:03 pm

Of course $1 000 000 is a ton of money. If you disagree, you have fallen victim to lifestyle creep.

catsoncoffee wrote: ↑ Not strictly "interest", but earnings on a very conservative investment portfolio, earning 2-3%.

2% interest on $25 000 000 is $500 000/year. If you think you need that much to live comfortably, you are out of touch.

catsoncoffee wrote: ↑ I earn more than that with my real life savings, but if I had $25 million, I wouldn't feel the need to put the principle at risk in order to earn more than I need to live off of.

I'd feel the opposite way. If I was filthy rich, I'd feel emboldened to make riskier investments. Because if the market crashed, I'd still be rich.

+10

Feb 13th, 2021 2:09 pm

#18

catsoncoffee: Member; Apr 16, 2015; 203 posts; 286 upvotes

Feb 13th, 2021 2:09 pm

someweirdo wrote: ↑ 2% interest on $25 000 000 is $500 000/year. If you think you need that much to live comfortably, you are out of touch.

I can live "comfortably" on 1/4 of that, but I wouldn't have enough to live extravagantly. We are daydreaming here after all

+1

Feb 13th, 2021 2:13 pm

#19

Valour002: Newbie; Jul 22, 2015; 26 posts; 52 upvotes; Aurora, ON

Feb 13th, 2021 2:13 pm

catsoncoffee wrote: ↑ I can live "comfortably" on 1/4 of that, but I wouldn't have enough to live extravagantly. We are daydreaming here after all

Personally, I believe I would live extravagantly (moderately) on about $1.5M. But my expenses are fairly low and my wife and I do not spend frivolously. So, having that would be incredible.

+1

Feb 13th, 2021 2:14 pm

#20

Shoppersbeermart [OP]: Sr. Member; Dec 26, 2008; 602 posts; 342 upvotes

Feb 13th, 2021 2:14 pm

Deepwater wrote: ↑ Its not easy to make a million. Even with growth in tech, some people will be lucky millionaires, but others will lose big time.

A million is not a lot of money to retire on unless you have other sources of income.

Then there is various people's perception regarding the value of money. To a poor person, $100 is not much, but $1 million is a lot. To a rich person, $100 is a lot, but a million is not much. That's a roundabout way of saying many poor people stay that way because they are frivolous and cannot dream of being a millionaire, while many people get rich because the see the value of small savings and investments over time, while $1 million is hard to live on.

I have to disagree, it's ok to save every nickel when you're younger. But when you are retired and have millions, I don't see the point of haggling over 5 or 10 dollars here and there. It's a waste of time. It's a sign of Hubris. "I'm rich and I shouldn't have to pay service charges". Can't stand it.

+9