^^dido^^
acouple million dollars sounds alot and good, but if not used/invested properly, isn't very much.
lets face it, even if you have your own home already, you're gonna wanna move into or build a nicer home that isn't a shoe box in a nice area. and then furnish it, with that said, there goes an easy million! beleive it or not, that still won't get you into the upper part of town! hehehe. but thats ok, just somewhere nice would suit me.
then comes investments, i don't want to work for the rest of my life, who does? some investment in stocks would be needed, but what to look for. are you looking for growth or returns? you'll need abit of both to out way market fluctuations so you'll receive a return. but, you need to research as alot of large companies that have paid out dividends in the past may not pay out in the future years, or pay out very little. and its hard to get good financial advice from planners who don't have freinds that won't profit from the advice they'll give you!
most large dividend companys trade upwards of $55@share. and only payout about .22cents-$1.50@share.
so, on top of market investments, i'll need a cash investment too. rental propeties are always are sound investment, but also carry expenses, so any gross profit i can expect from property, i can be sure to subtract upwards of 55% for repairs,bills and tax's.
maybe buy a business, sounds good, but i don't want to work so it would have to be managed for me. so i can only expect maybe 10% of total takings after wages and expenses, remembering it would be a low cap business as i have less than a million to buy it.
then i'll have to take into consideration my overall income for tax time.
most fully franked dividends are payed upto 30%. i may have to pay more tax on them.
so, divisification is the way to go, but i don't want to work for the rest of my life!....so is acouple million dollars enough?........nope! but it would make life alot easier and happier, could maybe drop down to only working 2days a week instead of 6! and retirement would be sweet.