In fact, this question is not an out-of-the-box question. My colleagues around me often complain that they are too tired from work. They say that after selling a house and getting 5 million, I wonder if I can say goodbye to this miserable working life with this 5 million for the rest of my life.

Just use this question to do some calculations and satisfy your curiosity!

First, for the convenience of calculation, a series of assumptions are made: 1. Assume that an account with a total amount of 5 million yuan is established, and there is still a house without renting; 2. Assume that the current age is 40 years old and the life span is 100 years old; 3. Assume that every year

Or if you withdraw the same amount of living expenses from the account every month, there will be no penny left in the account when you are 100 years old. How much equal amount of living expenses can you withdraw every month or every year until you are 100 years old?

Solution: This problem can be regarded as a 60-year lump sum deposit and partial withdrawal method. The following calculations are based on the current one-year financial product income of at least 4%-5%: The required formula is as follows: First calculate based on the 4% interest rate: That is

5 million, calculated based on an interest rate of 4% per year, then in the next 60 years, 185,000 yuan can be obtained every year, which is about 15,400 yuan for monthly living expenses.

If calculated based on the fact that regular regular financial management products can easily achieve 5% income: then the annual withdrawal can be 210,400 yuan, and the monthly living expenses can reach 17,500 yuan.

Even if you meet a lazy person, you can directly buy the 5 million principal into a money fund, and then withdraw your living expenses every month. Calculated based on the annual rate of 3.5% of the money fund: you will still have 14,400 yuan available every month!

Seeing the above data, for most of my friends who are just a little rich, even if the inflation factor is taken into account, I believe that for a long time, they should be able to live a more enjoyable life!

The author wants to change his thinking to verify whether 5 million in cash is enough for a lifetime, without considering how long he can live, even if it is 100 years.

The safest way is to deposit money in a bank instead of financial products.

Because wealth management products may wipe out wealth, only by depositing it in a bank can the dividends be guaranteed forever, and it is best to deposit 500,000 yuan in ten different banks.

First, we will delve deeper into the two lines of interest rate changes and currency depreciation.

Based on the current five-year interest rate of 2.75%, the large certificate of deposit is estimated to increase by 50%, which means the annual interest rate is a little more than 4%.

The current M2 is about 8%, which means the annual currency depreciation rate is 8%.

Assume that the average interest rate in the first ten years is 4%, the interest rate in the second ten years is 3.5%, the interest rate in the third ten years is 2.5%, and the interest rate continues at 2.5% in the future.

For the same money supply M2, the money growth rate will be 8% in the next ten years, 6% in the second decade, 4% in the third decade, and will remain unchanged at 4% thereafter.

The currency growth rate is equal to the depreciation rate.

How much is five million worth, and is it enough?

A deposit of five million yuan can only be maintained and enjoyed by interest. Now the interest income is 200,000 yuan. I believe everyone will think that they can live a worry-free life.

But what will happen in 10 years, 20 years, 30 years... N years?

The interest will be less and the front will be smaller.

Today we use the present value method to analyze future earnings.

In the first year, with 200,000, you can live a carefree life.

In the 10th year, it was still 200,000, but the currency depreciated 2.15 times.

That is worth 93,000 yuan today.

Life will be somewhat difficult, but it will be manageable.

In the 20th year, due to the decrease in interest, it is adjusted to 175,000 yuan.

But the currency has depreciated 3.87 times, and 175,000 yuan is only worth 45,000 yuan.

You have to live like the most ordinary wage earner.

In the 30th year, the interest rate continues to decline and is adjusted to 2.5%, which means the interest rate is 125,000. This is not sensational. This is the interest rate level in developed countries today.

The currency has depreciated 5.7 times, and 125,000 yuan is only worth 22,000 yuan in current value.

That is, only the salary of retirees.

Occasionally, I would pick up some cheap vegetable leaves to make ends meet.

The 5 million in cash in the bank has also depreciated, and it is not as rich as the 1 million people today.

Therefore, we can tell you clearly that money does not increase in value by earning interest. Only by continuously making money generate money can we outperform currency depreciation.

Today’s 5 million can still live on 200,000 in interest, but in 10 years the interest will only be 93,000. Can you still live a comfortable life?

In 20 years, there is only 45,000/year interest left.

After 30 years, your money is no longer worth 1 million in present value, and the interest is only 20,000 yuan, which is not even the cost of basic living.

If necessary, you can continue counting until one hundred years.

All right!

Now I can tell you that in a hundred years it will depreciate 100 times, that is, 5 million is worth 50,000 today, and the interest is only 100 yuan/month, which is less than the poverty line of 1 US dollar/day.