I won’t have a lot of money. At just $1,000,000 – I will only be able to devote $500,000 to an investment fund. This will be my only source of income, and I will live above being low income, but everything will be a struggle in order to make ends meet. My investment fund (only source of income), and my house (only place to live) will cost ¾ of my income. This is a significant hit. Now, an average risk investment is about 9% which is per year. With that said, this is how I do my calculation:
$500,000 (investment) × .09 (9%) = $45,000 per year (gross)
$45,000 ÷ 12 (months) = $3,750 (gross) per month
$3,750 × .25 (taxes) = $937.50
$2,750 × .75 (net) = $2,8121.50
So for kicks and giggles, I have $2,800 per month for my income source. As you can see, I have also set aside money for taxes, and at $45,000 per year, there isn’t much to work with. This will be why owning a small 2B house as essential for living. I will not have a room mate. I had room mates before, and they are more trouble than value. I can live off of $2,800 – although it would be tough. Even if they didn’t count the investment fund, I will not qualify for things like Medicaid, or SNAP.