Office Space is one of the most hilarious movies ever made. Not only is it pee-in-your-pants funny, it also gets you thinking about personal finance. In one scene Peter, the main character, asks his mulleted neighbor, Lawrence, what he would do if he had a million dollars. Warning: Adult language.
So, Lawrence would hook up with two chicks at the same time and Peter would do nothing. But as Lawrence wisely points out, you don’t need a million dollars to do nothing.
What would you do with a million dollars?
If I had a million dollars I would first pay off my wife’s and I’s student loans which is hovering at about $50,000 right now. That leaves me with $950,000 to play with.
Second, I would invest half- $450,000- in some index funds. If I left that money alone for 20 years, without adding anything to it, at a conservative 8% return, I would end up with a little over $2 million. Not too shabby.
I don’t know what I would do with the other $450,000. It would be nice to buy a house with cash. With low housing costs here in Oklahoma, it could be possible to do that with $450,000. I guess a good option would be to sock it away in a high yield savings account or perhaps invest in CDs or bonds. With such a huge principle I could have a decent amount of supplemental income each year from dividends. I would definitely use some of it and go on a nice vacation somewhere.
That’s what I would do with a million dollars. Now it’s your turn. What would you do if you had a million dollars? Drop a comment and add to the conversation.
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[tags]Office Space, Personal Finance [/tags]