You’d be surprised, but one of the biggest things that brings people to my site is my commentary on what the interest rate on $1 million would be. So I figured I’d update everyone on what the current rates would be, since it’s one of my most popular posts.
At the time of writing of my post interest on a 5 year rolling CD with my credit union I would make $18,963 since a CD of that length had 1.88% interest.
The economy continues to suck, so we’re down to 1.50% percentage yield for a year (in case you didn’t know what APY meant). That means with $1 million in a CD currently you would only get about $15,000 a year in dividends. 2 million dollars would get you $30,000, and five-million would net you a whopping $75,000 a year in dividends.
So, in the original post I talked about Elin Nordegren, Tiger Woods’ now ex-wife, buying a $12 million mansion and tearing it down because she won a divorce settlement of $100 million dollars. In my example originally I figured she’d build an $18 million mansion in its place, leaving her with $70 million. That would give her…$1,050,152 a year in dividends; that’s over a million dollars in dividends per year.
If you had the full hundred million you’d get a full million and a half, that’s $1,500,000 as year in dividends.
Lung cancer? That sounds like the kind of problem I can throw money at to fix!
Keep in mind in my regular savings account only has a 0.2% interest rate, so the same amount of money in my regular bank account gets me…
$1 Million: $2,002
$2 Million: $4,004
$5 Million: $10,009
$10 Million: $20,018
$70 Million: $140,128
$100 Million: $200,183
Just an update on the economy. And a reminder of how I really wish I had about a hundred million dollars to live off of right now.
~RCS
Richard C. Shaffer 