(August 26, 2013 at 6:21 pm)pocaracas Wrote: $1m.... put it in a savings account at ~5% yearly interest rate.
Depends on where you are. Interest rates on savings accounts in the US are somewhere between 1% and fuck-all.
Put it into a diverse bag of dividend-paying investments and you can live off of the gains while growing the initial capital (as long as you make smart choices, anyway). That or go the boring --if reliable-- route of buying up ETFs on some kind of percentage split and then re-balancing every X months. Less compounding, but better able to weather the ups and downs... theoretically.
"Well, evolution is a theory. It is also a fact. And facts and theories are different things, not rungs in a hierarchy of increasing certainty. Facts are the world's data. Theories are structures of ideas that explain and interpret facts. Facts don't go away when scientists debate rival theories to explain them. Einstein's theory of gravitation replaced Newton's in this century, but apples didn't suspend themselves in midair, pending the outcome. And humans evolved from ape- like ancestors whether they did so by Darwin's proposed mechanism or by some other yet to be discovered."
-Stephen Jay Gould
-Stephen Jay Gould
