Tuesday, March 8, 2011

Million Dollar Meme

I love this meme that's going around the blogosphere! Give Me Back My Five Bucks did it, and so did Fig. Here's what I'd do if I won a million dollars today:

1. Pay taxes (estimated at 30%): $300,000
2. Pay off student loans: $35,000
3. Max out two Roth IRAs for 2011: $10,000
4. Max out 401(k) for 2011: $16,500
5. Max out SEP IRA for 2011: $10,000? (It's a percentage of your net profit for the year)
6. Buy property: $150,000
7. Remodel property: $100,000
8. Take a really amazing vacation: $30,000
9. Invest the rest: 348,500

I wonder how many of those items Peanut would agree with me about?

4 comments:

  1. Ooh, tell us more about this fabulous vacation that would cost $30,000? I can't even fathom something like that.

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  2. If you earned a million dollars, you'd still be only abel to contribute to one of your IRAs at the max (unless you are married and you are talking about also contributing to your spouse's IRA). Also, your AGI would limit whether you could actually contribute to your Roth.

    When you say 'Invest the rest' aren't you already investing most of it in 3, 4, 5 and 6?

    What would you invest it in?

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  3. @InvestingNewbie, the $30,000 vacation would probably be more accurately described as "bumming around the world for a year". (And not sleeping in hostels necessarily!)

    @Anonymous, yes - I was thinking of maxing out a Roth for both me and my husband, plus my 401(k) and his SEP IRA. Your points about the income limits are good though! The investments in number 9 would be straight up mutual funds.

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  4. ironic that you posted this. my daughter, who is a senior in high school, is applying for a scholarship from a local bank. the essay question is this, "If you were given a million dollars and had only 30 days to give it away, what would you do with it?"

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Thanks for commenting!