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What Can I Do With 5 Million Dollars?? (Retire? Buy a Ferrari? A Yacht??)

Back in the day, $1 million was a lot of money. Not anymore. Now people are trying to save $2 million, $3 million, and sometimes $5 million before they retire. But with that $5 million figure becoming an ideal retirement number, many people are asking, “What can I do with 5 million dollars?? “Is a net worth of 5 million dollars good?” Will that amount of money allow you to retire the way you want to?

These are all great questions, and we’ll explore all of them (and more!) in this post.

So as we dive in, what do you think? What can you do with $5 million dollars? Is $5 million enough?

Is a Net Worth of 5 Million Dollars Good?

If you have that big pile of cash, is it big enough? Is it considered good to have a net worth of 5 million dollars? Are you ahead of the curve?

According to 2021 Schwab Modern Wealth Survey, most would consider you wealthy if your net worth was more than $1.9 million. So, no matter what your age or where you live, I would certainly say that a net worth of 5 million dollars is good (as would the thousands of others that were part of the survey)!

Does 5 Million Dollars Make You Rich?

Now, having $5 million might be good…but does 5 million dollars make you rich? 

This is where I like to reference my buddy Sam from Financial Samurai. He’s a pretty smart guy and is quite wealthy himself. He recently wrote a post titled, “The Top 1% Net Worth Amounts by Age“.

Within that post, he included the helpful chart below which outlines what it takes to be part of the upper 1% in income and net worth. Check out where a $5 million net worth lands here.  

top 1% wealth by age

In summary, in order to be considered part of the top 1%, you’d need to have a $5 million net worth by age 40. Certainly no easy feat!

And if you’re older than 40, you’d technically need to have more than $5 million to be in the upper echelons of society.

But do you need to be in the top 1% to be considered wealthy?

If you ask me, I’d say…Not necessarily…

Based on other pages I’ve thumbed through, the general consensus is that if you have a 5 million dollar net worth, you’re in the top 3% of everyone in the world. That’s pretty amazing, and based on that stat, I’d certainly consider you wealthy if you had $5 million dollars!

Related: What Is The Interest on 5 Million Dollars? (And Is It Overkill??)

What to Do With 5 Million Dollars

So it’s settled! If you have 5 million dollars, you’re a wealthy individual. But now what? You’re probably sitting there asking yourself, “What can I do with 5 million dollars?”

  • Is it enough where you no longer have to think about money and you can just spend it one whatever?
  • Do you still need to pinch your pennies a bit?
  • How much could you spend per year and still have plenty of money in the end?
  • How long will 5 million dollars last?

All great questions. But mainly, you’re just wondering what to do with $5 million dollars.

First, let’s hit the lifestyle of someone that has $5 million dollars. Then, we’ll talk about what $5 million can buy you. And finally, I’ll actually tell you what I would do with 5 million dollars!

Related: What Is the Interest on $4 Million? (…And Will It Last?)

What can you do with 5 million dollars? Retire extremely early?$5 Million Net Worth Lifestyle

What is it like to have millions of dollars in your account. Is a $5 million net worth lifestyle quite a bit different than the average human being?

You better believe it.

If you’re worth $5 million and you’re still working, then you’re likely earning $300k or more a year at your job. After all, it’s that healthy income that helped you amass your $5 million dollar net worth in the first place. 

So how do people likely live with a $300,000 income and a $5 million net worth?

  • They likely live in a house that’s worth a million dollars or more (and where I live, that’s a pretty big estate on lake-front property!)
  • Drive two brand new vehicles – likely luxury SUVs
  • They own a cottage on a lake
  • The recreate often – big golf excursions for the man and shopping trips for the Mrs.
  • And, they travel the world – likely a few trips a year all over the globe. 

A $5 million net worth lifestyle is pretty good if you’re still earning a solid income. There’s no reason NOT to recreate and live large!

Related: How to Make $2 Million Dollars (Realistically!)

What Can You Do With 5 Million Dollars?

What if, however, you’re not earning that $300k income? What if you have $5 million in investments, but you plan on retiring? Then how do you answer the question, “What can I do with 5 million dollars?

As you may have guessed, this is an entirely different scenario.

If you have $5 million in investments, you can’t just spend on whatever you want. You still need to pay attention and not spend wildly. Otherwise, you still could absolutely blow through that fabulous savings!

But, based on the article I wrote a few months back (“What is the Interest on 5 Million Dollars?“), you still can live pretty large and have your investments last you for 30 years!

  • If you earn 4% on your investments (which shouldn’t be hard AT ALL)
  • And withdraw $250,000 a year
  • Your money will last 30 years

It’s not living super large, but it’s still a pretty awesome retirement if you ask me!

Related: What Is The Interest on 10 Million Dollars? (And Is It At All Necessary?)

What could you do with 5 million dollarsWhat Can You Buy With 5 Million Dollars?

What if you’re not interested in having 5 million dollars last in retirement? What if you just wanted to blog 5 million bucks and keep on working? 

Here’s the answer to your inquisitive (but hopefully not serious) question, “What can I buy with 5 million dollars?“:

  • A 7 bedroom, 5 bath house directly on the shores of Lake Michigan (value: $1.65M)
  • A brand new Ferrari F8 Tributo (value: $280,000)
  • Porsche Macan SUV (value: $100,000)
  • Brand new 50′ Cruisers Yacht (value: $1.8M)
  • Cottage away from home with acreage (value: $1M)

….and you still have $170,000 to spare!

Dang, it would be pretty cool to blow 5 million dollars! But…you’d only be cool for a few months. Then, you’d struggle to pay the bills, most of your assets would go down in value, and you’d probably end up bankrupt… ๐Ÿ˜‰

Related: Can a Poor Person Become a Millionaire? (If so…how??)

What Would You Do With 5 Million Dollars?

Wondering what I would do with 5 million dollars? I’m a pretty simple guy, so I’m not often wanting for much. But here goes:

  • First, I’d quit my job and run this blog full-time (well…maybe part time). I might also start a consulting firm to help other companies improve their business and create more wealth! (this is fun for me…don’t ask me why. It just is.)
  • I’d probably build a pole barn and put up a basketball hoop inside along with a golf simulator.
  • I’d be super boring and invest a couple million dollars – probably in physical land nearby.
  • And then my wife and I would probably travel more – both with kids, and sometimes without. And the trips would be a bit more exotic than going to her mom’s cottage once in a while! ๐Ÿ˜‰ 

All in all, I’d spend a little bit, but save the majority of the money for future living. That’s the way to go! (Rather than blowing it all and not being able to maintain the costs that come with all those bad decisions!).

Related: What Is The Interest on 20 Million Dollars? (It’s Got to Be Big, Right??)

A car of a millionaireHow Much Interest Will I Earn on 5 Million Dollars?

If you have that infamous 5 million bucks, how much money will it actually generate? Said another way, how much interest will you earn on 5 million dollars?

  • 2% interest on $5 million dollars yields $100,000 per year
  • 4% yields $200,000 per year
  • 6% yields $300,000 per year
  • 8% yields $400,000 per year
  • 10% yields $500,000 per year

Not too shabby, that’s for sure!

Can You Live Off 5 Million Dollars?

The next question I hear all the time is, can you live off 5 million dollars?

For most, the answer is absolutely!

But for some that live in expensive areas and are used to living on $300k a year, it’s a valid question!

How long does $5 million last if you withdraw $250k a year?

As we stated before, if you have $5,000,000 and you invest it and earn 4% per year, you can withdraw $250,000 a year and your pile of money will last for 30 years.

Need the money to last for longer? 

You have two options:

  • withdraw less per year, or 
  • invest more aggressively and earn a higher interest rate each year

How long does $5 million last if you withdraw $300k a year?

If you’re used to living on $300k a year and you want to keep that lifestyle into retirement, how long would $5,000,000 last?

According to Bankrate’s Savings Withdrawal Calculator, at a 4% interest rate, your money will last just 25 years.

If you plan to retire at 65 years old, then your $5 million dollar nest egg will last till you’re 90 years old. 

Not comfortable with that?

Then I’d suggest bumping up your retirement fund target to $5.5 million. Then your money will last 30 years at that 4% interest rate!

How to Invest $5 Million Dollars

Here’s the next great question. Beyond asking yourself, “What can I do with 5 million dollars?” you should be searching for how to invest $5 million dollars so that your money stays relatively safe and so that it lasts for your entire life.

The key is to stay in your lane. Don’t try to become an instant expert in something you know nothing about.

Classic examples of investing outside your lane are…

  • Forex trading
  • Currency trading
  • Day trading
  • Crypto
  • Business ventures (when you know nothing about business)
  • House flipping
  • Penny stocks

And then anything where your buddy comes up to you with a sure-fire way to double your money in a matter of hours…

If you’re tempted to invest in something that promises to earn you FAR MORE than traditional investments, I suggest you either study up on it for years before investing or just run away immediately. 

How to invest 5 million dollarsInvest Your $5 Million in What You Know

If you only know about simple index funds, then put your money there. If you’ve been a businessman all your life and you only know about running a business, then invest your money there!

It’s incredibly easy to lose money. (Simply invest it quickly into something speculative.)

Go against the grain here. Instead, invest in what you know! Invest slowly, look for 8-10% returns, and when you win, just hit repeat!

How to Invest 5 Million Dollars For Income

Want to invest 5 million dollars for income? This is an AWESOME question! And one that I think about often.

Basically, you want your 5 million dollars to create a regenerative income so you don’t need to think so hard about making moves in the market or watching over a volatile business.

Some great ways to invest for income are:

  • Dividend stocks (stocks that pay a percentage payout each quarter just for you owning the shares)
  • Real Estate (my favorite! This could be a single family home, a multi-plex, an office building, or even a warehouse!)
  • Annuities (these are often through insurance companies. They’ll pay you 5% or more guaranteed, just by you providing them with a lump-sum amount)
  • Bonds (this is becoming my least favorite income investment, but it can be super-safe and earn you a better rate than a savings account)

And, as I mentioned earlier, if you already know something about business, then maybe an investment into a business venture is the right move for you! You could be a 10% owner of a business thanks to your capital, you could have minimal involvement, but still have earnings on the profits!

Be Sure to Diversify Your Investments

If you’re looking to invest 5 million dollars for income, there are plenty of things to invest in. Just be sure to invest in what you know, and also to spread your money around a little bit! Don’t invest all your money into just one thing!

With 5 million bucks, you should really be spreading that money into at least 10 different investments! That way, if one of your investments takes a dive, you’re not out on the street and broke. You’re merely inconvenienced and might need to cut your budget slightly for a few years.

Be smart. Invest wisely, and always be willing to shift your mindset on what investments make sense for you.

Related: How to Invest $1 Million (To Make Another Million!!)

smart investment optionsHow Much Income Will 5 Million Generate?

You’ve got a ton of money, and now you know how you can invest your 5 million dollars for income. But you’re wondering, “How much income will 5 million generate?” Is it enough for you to retire and no longer have to worry about money?

This is a bit of a recap from earlier in the post, but we’ll hit it again quickly.

If you invest $5 million dollars, it could generate the following incomes:

  • 2% interest on $5 million dollars yields $100,000 per year
  • 4% yields $200,000 per year
  • 6% yields $300,000 per year
  • 8% yields $400,000 per year
  • 10% yields $500,000 per year

If you’re investing in real estate, I would expect to earn at least 8% on your money, which means $400,000 per year (not to mention the growth on the asset itself).

If you put your money into the overall stock market (ie. S&P 500), you’ll likely yield around 10%, which means you’ll earn roughly $500,000 on your investments each year.

Or, you could scale it back a little bit, invest in an annuity at 5%, and earn $250,000 per year. 

That brings us back to the overall question of “What can I do with 5 million dollars?” — You could invest it wisely and live on that money for a very, very long time!!

(But, public service announcement here again, whatever you do, be sure to diversify and invest in many things. Don’t put all your eggs in one basket!)

Related: What Is The Interest on 1 Million Dollars? (…And How to Make It Last!)

Can You Retire at 30 With $5 Million Dollars?

Now let’s get more specific here. Let’s say you were a rock star and somehow you earned $5 million before the age of 30 (maybe you were a YouTube or Tik Tok sensation, or maybe you started a company, built it up, and sold it!). However you earned the $5 million, congrats!! You’re amazing!

So, now you’ve got a ton of cash and you’re wondering, “Can you retire at 30 with $5 million dollars?”

The short answer: yes. 

But, you might not want to because it may force you to budget…for life!

How to Make Money ProgrammingHow to Retire at 30 with 5 Million Dollars

If you want to make $5 million last for the rest of your life, you’re going to have to budget out your withdrawals each year…and if you’re 30 years old right now, that means you’ll need to watch your spending for the next 70 years (potentially)!!

So how much can you withdraw each year on 5 million and still have some money left when you die? 

The answer… Roughly $200,000 a year (assuming you can earn 4% interest each year…which really shouldn’t be that hard!).

At first, it sounds like a lot, and it is, but the purchasing power of $200,000 is less and less each year as inflation increases the cost of everything.

With an annual inflation rate of 3-4%, the costs of goods double every 20 years or so. 


  • in 20 years, your $200k will feel like $100k
  • in 40 years, your $200k will feel like $50k
  • And, in 60 years, that $200k, will feel like only $25k (this is why really old people still try to pay you with dimes and quarters)

So yes, you can retire pretty large early on with $5 million dollars, but it will feel WAY LESS LARGE later in life. 

Likely, a better way to retire at 30 with 5 million dollars would be to inflate your withdrawals with inflation:

  • Withdraw $150,000 a year for the first 20 years
  • Then, bump up your withdrawals to $300,000 for all the years thereafter

It’s still living good, but a bit more sensibly so you don’t have to live on breadcrumbs when you’re 97 years old! ๐Ÿ˜‰ 

Related: What to Do With $1 Million (Invest It? Pay Off Your House?…)

Can you live off 4 million dollars?Can I Retire at 50 With $5 Million Dollars?

Perhaps a more frequent question (than the one about retiring at 30 years old) is this one: “Can I retire at 50 with $5 million dollars?”

Well, if you can do it at 30 (as we discovered above), then I’d say you could certainly do it at age 50! But let’s figure out how together!

If you are 50 years old and have $5 million, you could make it last by withdrawing….

…$225,000 per year.

And, the best part, even after factoring in inflation, that amount would still feel like $62,000 a year in your final days of retirement! Not shabby at all!!

What to Do With 5 Million Dollars – What Will You Do?

So what can you do with 5 million dollars?? 


  • You could blow it all on big houses and fast cars
  • You could invest it all and earn a nice income of $500,000 a year
  • Or, you could do a little bit of both! Enjoy some of it and invest a fair share of it! Then you could live quite nicely today AND in the future!

I already told you what I would do with 5 million dollars! What would you do with it?? Invest it all? Blow it all? Tell us in the comments below!

Grow Rich Investing Money Retirement


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. Ah, always good to dream!

    I just want the world to get back to normal so we can spend more of our savings and investments. Let’s go!


    • Haha, right? We’re just going to blow our savings on our house (adding a master suite above the garage) once material prices come down a bit. After that, bring on the next rental purchase!!

      Oh hey, btw, I’m really enjoying your podcasts! Nice work! Do more! ๐Ÿ™‚

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