Home » General » 2 Million Bucks

2 Million Bucks

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 1,324 other followers

$2 million.  That’s all I need.  A lousy two million bucks.  All I need for what I hear you ask?  Well, that’s all I need to retire and live a comfortable lifestyle.  In the scheme of things, it’s not a lot of money in today’s day and age.  Here’s the math.

I only need $1 million in the bank to earn interest and live on.

I would use the other $1 million to pay off the house and perhaps slightly upgrade to a new one, roughly the same size as our current, but perhaps a bit larger.  I’m not after a mansion and I like the area we live in, so don’t expect me to move to the posh areas of my city.  This would cost about $500,000.   I would spend another $100,000 on better furnishings.  Pay off my current car which is a 2010 Mazda CX-7. That’s another $30,000.  Buy my wife a new car so that’s another $40,000.  Put the kids into private school and set up a trust fund for each of say $100,000 each.  That leaves approx $200,000 left.

I would place that $200,000 into a separate term deposit and use the interest to pay for a yearly holiday whether in Australia or overseas.  I say Australia, because it’s always important to travel within your own country and help support the economy and the tourist industry.  I do however want to visit the United States, Gallipoli, Egypt, Greece and Italy.

I would deposit the other $1 million in 2 of Australia’s largest banks to be safe.  Earning interest at the current rate of 6.85%, after tax that would earn me approx $54,000 a year in interest.

That is more than enough to live on in a modest lifestyle.  The house is paid off. The cars are paid off.  If I couldn’t continue to live on $1,000 a week then I am being wasteful.

So why am I telling you this?

Last week, one of Australia’s richest men, Ken Talbot, tragically died in a plane crash in the Congo along with 5 other mining industry executives.  At the time of Mr Talbot’s death he was valued at somewhere between $960,000,000 and $1,200,000,000.  In case the excessive zero’s are confusing you, that is around one billion dollars.  That is just 0.2% of the money I want to retire on.

Mr Talbot was on that ill fated flight, along with the other members of the board of the mining company he owned, visiting the site of a mining project he owned in Africa.  His private jet, was not able to be used as the airfield they were travelling too was too small to land on.  So instead, they boarded a chartered flight on a plane which may or may not have been well maintained with pilots they didn’t know who may or may not have been excellent pilots.

So a man worth approx one billion dollars takes a risk which ultimately cost him his life.  If it was me, I would have retired long ago after making my first $2 million.  Of course I could die going to the shops to buy milk.  But the chances of that happening are much less than flying on a dodgy plane in remote Africa.

So how much is too much money to retire with?  How could you possibly spend one billion dollars?  Even after paying tax on the interest that is still a nice tidy earning of $90,000 a day!

I remember when I was younger, that I said I would love to become an actor and get paid $5,000,000 for a movie.  Once I earnt that pay packet, that would be it.  Retire into a nice home in the suburbs and fade into obscurity.  So Tom Cruise, take the hint.  It’s time to bid adieu.  Thanks for the memories and by that I mean Top Gun and A Few Good Men.  That doesn’t include Eyes Wide Shut or Vanilla Sky.

Same with you J.K. Rowling.  No more Harry Potter thanks.  Let the boy wizard get laid already and spit out a couple of whiz kids and retire him to a farm in the rolling hills of England.

It’s amazing the amount of millionaires and billionaires who have made their money and then lost it in spectacular fashion.  Alan Bond and Christopher Skase, I’m looking at you.  We all know how well that turned out for Skase don’t we?  He became Australia’s most wanted man before his death in 2001 following the collapse of his Qintex empire.

As for Alan Bond, the man who successfully bank rolled Australia II’s winning America’s Cup campaign in 1983, he went to jail for a good portion of the 1990’s.  I understand he’s back in the rich lists again so if I was him, I would be pulling up stumps and finding a nice small farm to retire to and live off any interest he would be earning.

Two million bucks.  That is all I want and need.  Is that too much to ask?  I don’t think so.  So how do I get that much money?  Well at this stage I’m hoping my lucky numbers come up each week with my weekly lottery ticket.  Or I need a wealthy benefactor to come to my rescue and make a charitable donation to the McClane retirement fund.

I’m not picky.  Either way is fine with me but whatever way it comes to me, well, it better hurry up.  I’m getting impatient.

So how much money is enough for you to retire and live happily ever after?

Share With: Facebook | Digg | Del.icio.us | Stumbleupon | Reddit | Blinklist | Twitter | Technorati | Yahoo Buzz | Newsvine


  1. Michelle Messer says:

    Love it!

  2. sorayablu says:

    Jack, I’m loving your style. Your writing has evolved & rolls along nicely. Well done!

  3. Natasha Gillatt says:

    Love this post, working my way to similar goals. The funny thing about humans is we usually fall into ‘the more you earn the more you spend trap’. Then for some, particularly those ‘high flyer tycoons’, it’s not about the net worth of the money. It’s the challenge of bringing more in, kinda like an obsessive compulsive behaviour. Usually at the expense of their health, some times life and often in family relationships. A lot of those guys have so many busted marriages with kids involved they have to make that much to pay all the alimoney and child support. Enjoying your posts keep up the good work.

    • jackmcclane says:

      I know right! So many millionaires get married multiple times proving that money doesn’t buy you love. Then again, I wonder how many women (sorry for the sexist angle) only marry for the money. Take Geoffey Edelsten who at the age of 66, recently married 26 year old Brynne Gordon. Love may have played a role in this marriage. His love of young ladies with big boobs and her love of money.

      Your point about the more you earn the more you spend is accurate. I know I earn more than a lot of families but we are consistently waiting for the next pay cycle. Why, because we have full service health insurance, Foxtel etc. If I was earning 20 grand less a year I’m sure I wouldn’t have those luxuries!

      Thanks for your comment Tash. Glad to know someone is reading!

  4. Heather says:

    With quitting my job, I had talked to my dad (insurance agent and financial advisor) about retirement before I left. I have a looong way to go (especially with not contributing anything to the fund for a while!). Hard to really get that some (very few) people make in a day what I make in a year!

    Here’s hoping your numbers come up in the lotto 😉

    • jackmcclane says:

      Well Heather I went to check my Thursday and Saturday lotto today and nothing! Damn. Will need to keep on trying.

      In Australia our employers are legally required to pay a minimum 9% of our gross wage to our superannuation funds. For people my age, when we hit retirement age at age 67, there will be no old age pension like there is now for our elderly citizens.

      So unless I want my kids supporting me, I better win as I probably won’t have enough super when I retire. At least I’m looking that far forward. A lot of people have no idea. They live for now.

      Don’t you Americans have the 401K program? How does that work? I might need to speak to your old man!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: