The never ending question of; “What would you do if you won a $1 million dollars?” seems to bring a lot of thoughts and different ideas to our head. Would your life be changed forever? Probably! But money being the root of all evil’s, can change your life for better or for worst. Hopefully the winnings would never change the person you are and everything you believe in, but that’s not the case with most of us. Years ago, my goal of what I would do with the million dollars would have been very different than what they are today. My perspective on money has changed drastically within the last year. My current perspectives on money is to live debt free, save for the future, invest for the future and invest in my self.
Here is what I would do with $1 million dollars:
1.Pay off my debt – $6,000
2. Pay off the remainder of my mortgage – $110,000
3. Pay off the remainder of my parents mortgage – $165,000
4. Purchase a new home – $475,000
5. Purchase a new car - $35,000
6. Deposit money into RRSP (Retirement Savings) – $70,000
7. Give away money (family & friends) – $25,000
8. Donate to charities – $10,000
9. Investments (Stocks, ETFs & Index Funds) – $85,000
10. Leave the remainder in cash (vacation(s) & day to day living) – $19,000
11. Continue working – $0
12. Never change who I am and my perspective on money – $0
TOTAL – $1,000,000
Due to winning $1 million dollars and the way I would distribute my money, here is the scenario I’d be left after all the money was distributed:
1. Investment Property
I would have one investment property paid off. Due to this investment property being paid off, I would have an additional $1,200 monthly in extra income.
2. Paid off primary residence
Since my primary residence would be paid off, I would have the full equity of the home.
I would have roughly $76,000 in my retirement fund (RRSP) to use towards my retirement, while continuing to contribute to it regularly.
By investing money in the stock market, ETFs & Index Funds, I would have over $88,000 invested (liquid.
5. Total Liquid Value of Investments
$160,000 – Rental property (current value of condo)
$475,000 – Primary residence (home paid in cash due to winnings)
$88,000 – Investment portfolio (total value, if it did not drop due to market)
$77,000 – Retirement fund
$25,000 – Cash
TOTAL – $ 825,000
What would you do if you won $1 million?