• TheLameSauce@lemmy.world
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    9 months ago

    Also should be noted, if you took that 1 mil and just put it in a bunch of high-interest savings accounts, you’d be averaging a little over $3k/month just in the interest earned.

    It does make me wonder, at what point is the guaranteed $x a month a better call than one lump 1 mil?

    • KevonLooney@lemm.ee
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      9 months ago

      You don’t need a degree in finance to do this calculation. You are simply looking for the present value of a stream of income.

      It depends on what interest rate you think is “risk free”. Right now treasuries range from 5% to 3%. Just divide the yearly dividend (12 * 50) by that interest rate. $50 per month risk-free in perpetuity is worth $12,000 to $20,000.