Saving 100 million dollars may take a lifetime while spending it can take any amount of time. Through this article, we aim to learn how long it would take someone to spend 100 million dollars. We will also explore some ideas on how to save and invest his large sum of money. 

How Long Would It Take To Spend 100 Million Dollars? 

How long it takes to spend 100 million dollars depends on what type of investments one is making. Some of these include the following:

  • You may be tempted to put all of your money into stocks because they offer the highest interest rates. However, they also come with a lot of risks. 
  • Real estate is a much more stable investment. Unlike stocks, there are no daily fluctuations in the value of the investment.
  • Bonds are a lower-risk investment. They are a much safer investment than stocks, but they also don’t pay as high of an interest rate.

However, if someone intends to live off 100 million dollars without investing or saving it, the amount may not last them for long. If you spend $1,000 every day, you will spend 100 million dollars in three years.

How Can I Make Investments To Spend 100 Million Dollars?

You can invest in the stock market. However, if the stock market takes a dive and the value of your stocks falls, then you could lose some of that money. There is also the chance that you won’t see any type of return at all if the market is too volatile.

On the other hand real estate has a much lower risk of losing all of the money that you have put into it. Because it is a lower risk, you won’t get as high of an interest rate as you do when you invest in stocks.

You may also choose to purchase bonds as they are a safer investment as compared to stocks and the value is not volatile, unlike the real estate industry.

How Do I Save 100 Million Dollars?

When you save money for the future, you are hopefully putting it in a place that has a high rate of return. 

However, to get those benefits, you will have to sacrifice some liquidity. The tradeoff is that your savings account and other low-risk investments won’t give you as much interest as something like stocks or real estate.

To plan your savings, you can use an online Savings Goal Calculator.

Conclusion:

This article highlights how spending 100 million dollars can be done wisely through investment. However, if one merely spends the amount without saving or investing it partially, they might spend 100 million dollars in a matter of a few years.

References:

What is the Interest on 100 Million Dollars? (…Is It Insane? Or Necessary?)

Savings Goal Calculator | Investor.gov

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