Originally Posted by diredesire
FDIC Insurance might cover 100K of your sum. You'd only be making ~3% at the HIGHEST interest rate savings account. More realistically, you'd be making <1% at the current rates.
You'd pretty much LOSE value if you kept it in a savings account. Consider the rule of thumb to be ~3% each year on inflation. The "salary" you pay yourself from the interest would be worth less and less YOY.
You'd need to invest it in the stock market to get higher gains, although the risk is much higher. You could diversify to mitigate risk, but if you're happy with a 5K/month (which is realistically higher than the interest you'd get in a savings account), you could reserve a 10 year or so portion of 5M
10*5*12 = 600K and then invest the rest into the stock market in however you want.
At the volatile period the market is right now, you'd realistically be buying shares at a huge discount. Again, you'd want to diversify, and you'd ideally be relatively young in order to have the reward be worth the risk. Otherwise you could just invest in bonds and/or mutual funds.
There are other simple tricks you can do with your money, but that is the simple skeleton i'd approach with.
sure, but you do realize that the stock market is essentially a ponzi schema, right? realistically the only reason why one buys stocks is the hope that he will be able to sell it at higher price in the future. I mean this is literally no different than buying baseball cards - the stock/cards themselves have no real value whatsoever. It's not like stocks represent any meaningful 'percentage' of the company assets - it's all made up. Hardly any company pays meaningful dividends, your whole and only hope is that someone will buy those stocks from you in the future. Just like with baseball cards. Or vintage tennis rackets.