What if you had 50 million dollars? What is the interest on 50 million dollars? Is it just an insane amount of money? Or should it actually be your target for retirement? There are so many questions around the 50 million dollar amount, and we’re going to answer as many of them as we can in this post.
So without further ado, let’s hit it! Everything you want to know about having $50 million!
Is $50 million dollars rich?
Can you believe people ask this question? Seems a bit ludicrous. But regardless, they want to know if they are considered rich if they are worth 50 million dollars.
Per the chart below, if you were worth just $1 million, you’d be in the top 10% of the population. In other words, if you had a million bucks, I’d consider you rich! And, if you were worth $50 million, you’d easily be in the top 1% of people in the United States (probably more like the top 0.1% honestly!).
Again, I’d definitely consider an individual rich if they had 50 million dollars!
What does 50 million look like?
What does the number 50 million actually look like? And what is it like to have 50 million dollars?
The number $50 million looks like this:
So what does $50 million dollars look like all stacked up?
Below is a picture of $1 million all stacked up. If you pile up 1,000 of those hundred dollars bills, that’s $100,000. Put 10 piles together and that’s 1 million dollars!
What can you buy with 50 million dollars?
So, what if you had $50 million? What could you buy with 50 million dollars?
- A private jet: $2 million
- A private 60 foot yacht: $2.5 million
- 4,600 square foot house on Long Beach: $4.5 million
- Lamborghini Huracan: $291,000
- Porsche Cayenne Turbo GT: $180,000
So that’s pretty much anyone would need right (I say “need” in air quotes by the way! ;))? Well everything above is still less than $10 million! You still have $40 million left to spend!
You could buy a bazillion acres of land, many businesses, heck…you could even buy your own island with what you have left!
$50 million is a LOT of money. If you can amass $50 million, you’ll certainly be set for life!
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And that segues us perfectly into this category… Can you live off 50 million dollars?
Of course you can!
I’m getting a little ahead of myself here, but if you invested that $50 million and earned just 1% interest per year, you could spend $500,000 and still not touch the principle! And pretty much no matter where you live, you could pretty easily survive on $500k a year.
What should you do with 50 million dollars?
We’ve talked about if having $50 million makes you rich (it does). We discussed what you could buy if you had 50 million dollars. And we even touched base on what living on 1% of $50 million would look like…
…But what should you actually do with 50 million dollars? How can you have fun with it AND make it last?
What to do with 50 million dollars
Wondering what to do with 50 million dollars?
You should basically do two things:
- have fun with your dollars (go on trips, donate some money, buy some cool stuff)
- and, invest your money so you can live on the interest.
How to invest 50 million dollars
How much money would you like to live on per year?
Does $500,000 sound good? Then all you need to earn is 1% per year. You can do this with a simple savings account.
Maybe you want $1.5 million per year. Then you’d need to earn 3% annual interest. You can probably do that with a US Treasury Bond.
Want to earn even more? What if you earned 10% on 50 million dollars? That would earn you $5 million per year.
Now that would be living large! How could you do it?
Well, on average, the S&P Index Fund has earned roughly 10% per year. If you’re investing for the long term, this average may continue and earn you that average of 10% a year! (Just remember, the stock market is risky and there are no guarantees.)
Other ways to invest 50 million dollars
When you have a ton of money like this, the key is not to get carried away. Sure, maybe your buddy earns 20% per year buying and selling precious gems… But that doesn’t mean you can. You know nothing about gems! Instead, stick with what you know.
If all you know how to do is put your money in savings, then start with that.
If you earned your 50 million dollars by building and selling a business, then perhaps you should try to do that again (ie. invest in start-ups and build them into something HUGE!).
And here are some more ideas that you can invest in:
- Buy rental property (maybe buy up many houses in one area and build up and improve that area!)
- Invest in land
- Commercial real estate
We already took a sneak peek into this one, but what could you earn from this wad of cash? What is the interest on 50 million dollars?
You first might be asking yourself the question, “How much will institutions pay you in interest on this money?” In other words, how much interest would a bank pay on 50 million dollars? It’s honestly still pretty lousy compared to what you could get years ago.
According to the Lake Michigan Credit Union site…
- Their standard interest rate on a regular savings account is 0.10%
- If you have $100,000 or more, you could earn 0.50%
- And, if you have $250,000 or more, you could earn 0.65%
Beyond the $250,000 amount, there are no more increases to the interest rate.
So, let’s say you put all your money in the bank. What would the interest be on 50 million dollars? …How much would it earn with a 0.65% interest rate?
The answer, $325,000 a year.
That’s okay, but it sure seems like you could earn more with $50 million at your disposal.
Couldn’t you earn a much higher interest rate and a much higher income with $50 million?
Absolutely you can. Keep reading and we’ll show you the options.
How much interest does 50 million earn?
With 50 million dollars, you could earn big money, but it’s really up to you. The amount of interest you earn all depends on what you invest in.
If you invest nothing and keep all the money in your house, your earnings would be $0.
If however, you invest in a thriving business that you understand, your earnings could be much more! Perhaps 15% or more.
How much interest does 50 million make if you earn 15%?
Whoa. That’s pretty impressive!
Want to know more? See below for the yearly interest amounts on 50 million dollars.
The question of ‘how much can 50 million dollars generate per year is a great one, but it’s not the easiest answer to give since there are so many investment options. Based on my research and my experience, you can expect to get the below rates for the respective investments.
- Savings: 0.65%
- Certificate of Deposit: 1.0%
- Corporate bond: 2-3%
- Annuity: 3.5%
- Real Estate: 7%
- S&P 500 Index Fund: 10%
The real estate percentage is my estimate based on the crazy price of homes today (rental rates have not kept up with housing prices). And, the S&P 500 is based on the historical average when including dividend reinvestment.
So now to answer the question of “What is the yearly interest on 50 million dollars?”
- With a 0.65% savings account: $325,000 a year
- 1% Certificate of Deposit: $500,000 a year
- 3.5% annuity: $1,700,000 a year
- 7% real estate: $3,500,000 a year
- And, 10% in S&P 500: $5,000,000 per year
So what is the interest on 50 million dollars annually? On average…about $1.5M-$2M a year.
The savings account earnings of $325,000 seems like a waste of time and the S&P 500 earnings looks CRAZY! I mean, earn $5,000,000 a year??! Dang, that would be pretty nice!
Before you go with one option or the other, be sure to factor in the risk element.
A savings account is quite safe. The stock market is definitely less safe, and you could lose 40% of your money in a very short period of time (remember 2020?)!
While you don’t want to be super safe and earn next-to-nothing in interest, you also don’t want to shoot for the moon and put your money at risk of a huge loss! Be sure to mix it up with your investments to stay relatively safe, but earn more than 0.65% a year!
What is the monthly interest on 50 million dollars?
What do all these amounts equate to in the shorter term? Like, what is the interest on 50 million dollars per month?
Using the same investment figures as above, here’s how much you would earn each month on 50 million dollars:
- 0.65% savings account: $27,083 a month
- 1% Certificate of Deposit: $41,667 a month
- 3.5% annuity: $58,333 a month
- 7% real estate: $141,667 a month
- And, 10% in S&P 500: $416,667 per month
What Would Be the Interest on 50 million pounds?
What if we get away from the US Dollar at the moment? How about British Pounds?
What would the interest be on 50 million pounds?
Honestly, it’s the same as the above, just in pounds instead of dollars.
So, if you had 50 million pounds and you earned 1% interest, you’d earn yourself 500,000 pounds a year.
If you earned 10% interest on 50 million pounds, you’d earn 5 million pounds per year.
I bet you could live on that! 🙂
I might say you’re crazy, but what if you thought 50 million dollars wasn’t enough to live on? What if you wanted to target 100 million dollars?
How much is the interest on 100 million?
Again, based on research I’ve done in the past, these are the likely rates per investment type:
- Savings: 0.5%
- Certificate of Deposit: 0.65%
- Short term government bond: 1%
- Short term corporate bond: 2-3%
- Annuity: 3%
- Real Estate: 7%
- S&P 500 Index Fund: 10%
Those are the interest percentages, so what does that mean in terms of dollars when investing $100 million?
What is the yearly interest on 100 million dollars?
What would the interest be on 100 million per year?
- With 1% interest, you’d make $1 million a year. That’s just for the money to sit there and collect!
- At 3% interest, you’d earn $3 million per year.
- At the annual rate of return of 8%, that’s $8 million a year!
So what would the yearly interest on $100 million dollars be? Could be anywhere in between $1 million and $8 million (or perhaps more if you an find a better investment!). It all depends on how you invest your money!
What is the Interest on 50 Million Dollars? In Summary…
So what do you think? Now that you know what the interest is on $50 million, do you think it’s the right amount for you?
If you invested $50 million and earned 10% per year, you’d have $5 million coming in EVERY YEAR. That’s pretty insane to think about honestly. You could buy a brand new jet every year and still have $3 million to live on. It’s just an insane amount of money!
What do you think? When you look at how much money $50 million could earn, is that your preferred amount for retirement?
*Personal Capital Advisors Corporation (“PCAC”) compensates LAM Finances for new leads. LAM Finances is not an investment client of PCAC.
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.