I can’t work, and no money will change that. Since my income is a needs based program, and having $5,000,000 no longer qualifies me as a needs based individual, I will need my own income. Even though I will have a lot of money does not mean I can magically work now. I will still be disabled. I will need to acquire income without working. I can’t put the entire $5,000,000 into an investment account, otherwise there will be no way I can acquire my significant purchases. My current apartment will be $2,500 for the rent if I no longer qualify for subsidized housing, and again – needs based program. My apartment is nice, but it’s not $2,500 nice. It is in my best interest to buy a place to live, and that would be a significant purchase.
I will have income from 2 sources. The first will be an Investment account. I will have $2,500,000 set in an investment account with average risk to generate 9% ROI, and I will be paid out monthly. As for taxes, I will assume 25% for capital gains tax. This will be standard based on both of my incomes. I will also have my apartment that would be renovated, and rented out. The monthly rent will be $2,250/month, and will include all of the utilities with exception of telephone, and premium television.
My investment is as follows:
$2,500,000 × .09 ÷ 12 = $18,750
100% – 25% (taxes) = 75%
$18,750 × .75 = $14,000
My rental income will be much less, and therefore not as essential. However, this will still be a guaranteed income that I would be able to rely on since I will imagine that the tenant will continue to wish to live here. My rental is as follows:
100% – 25% (taxes) = 75%
$2,500 (store-front) × .75 = $1,875
$2,250 (apartment) × .75 = $1,685
Total is $17,560. This is after taxes, and with this amount of money, I will be able to live comfortably. I may have to save for new major purchases, and while this is after taxes, this is not after bills and expenses. If I want to set money aside for property taxes, or eat – I will need to spend that money. It is that simple.