Is 500,000 Enough to Change Lifestyle?
TV ClubHouse: Archive: USA 2002:
General Discussion:
Is 500,000 Enough to Change Lifestyle?
Twintown | Tuesday, October 01, 2002 - 12:01 pm     I'm not certain what tax bracket is involved on the 500k, but I'm guessing 20%. So, deduct 100k from that 500k and we start off with 400k. I'm by no means a great money manager or economist, but I do know that the basic tax break for her would be to buy a home to claim the interest. I'm not sure where she's from or will settle in (I'm thinking she may have delusions of being a minor media celebrity) so will opt for the bright lights of L.A. In that case, a basic condo of any decency is going to be a minimum of 250k. So 20% down would be another 50k. So she's down to 350k. But she still has to stay on top of the IRS or she will be penalized. I just don't think for the most part, 500k is "lifestyle changing" money. |
Denecee | Tuesday, October 01, 2002 - 12:10 pm     Well, it sure helps. I think, after taxes, Lisa will only end up with about $350k. I wouldn't quit my job if I won $500K but then I'm not a bartender/waitress. |
Gina8642 | Tuesday, October 01, 2002 - 12:42 pm     It would certainly change my lifestyle. I'm not saying I'd never have to work again. But it sure would ease the lifestyle quite a bit!!!!!! |
Sonia | Tuesday, October 01, 2002 - 12:44 pm     So true. I wouldn't quit my job neither for 350K and I agree about your points Twintown. But maybe Lisa had little salary as a waitress and she prefer to reorientate her career as a photograph now. Is she a good enough photograph to earn her living with it? I don't know, I had never seen her pictures. Do somebody had ever seen? About 350K, personnaly, I could share it with my family (parents, brothers and sisters, and my long time best friend. I'm also the godmother of my 17 years old niece and I would like to help her for her studies. So to share it with 9 persons, maybe buy a house, pay studies to my niece, make a trip, I agree than after that, 350K is not that big and not really enough to leave my job personnaly. But it always depend of situation of course and I understand many persons would be interested to leave their job for 350K. I'm conscient that I actually have the chance to 90% happy at my job (what was not always the case, I would leave my job at other previous jobs I had) and I don't have kids on my responsability. It depends of so many factors and of our personnal choices if 350K may decide to leave job or not. |
Draheid | Tuesday, October 01, 2002 - 01:07 pm     I'd invest it in *MY* future - by putting all my kids through college ... that way they can afford to take care of ME when I'm old(er)! So, yes, I think it could change my life!!  |
Gidget | Tuesday, October 01, 2002 - 01:25 pm     I think once you're over about $120K you're in the 38% bracket. I can't really remember exactly. So $350 sounds about right. But you have to consider she had income from the first 6 months of the year, too. I would not want to be a bartender but I know several and they hang onto those jobs hard. They say the money is very good and I'm not talking about trendy club bars either. I'm sure Lisa was making more money than we might suspect, but I also get the feeling she was not thrilled with her job. I could do a lot with $350 but not quit my job. But then I'm not 20 something. If I was Lisa I'd take about $100K, invest it conservatively and let it build for the rest of my life. She'd probably have about $2MM to retire on without putting another cent in. The rest is gravy and if she's careful with it she could have some fun then set herself up quite nicely. I'm concerned if she intends to buy real estate in the LA area tho. Isn't that area in a bubble right now? Might be worth renting another year or two. The tax advantages to owning a home are grossly overstated plus homeowners have a lot of expenses and responsibilities that renters do not. The only advantage to owning a home for a girl Lisa's age is to build equity but that is only worth doing if she plans to stay put for 3-5 years or longer or rent the property if she moves out. I hope she has the sense to call her new friend Amy for some advise. While Amy is into appraisal, she is in the general field and probably can give Lisa some sound advise. |
Sisalou | Tuesday, October 01, 2002 - 01:44 pm     Great idea Draheid! |
What555456 | Tuesday, October 01, 2002 - 01:45 pm     Add 10% more for the State of California and she loses another $50,000. Figure she walks away with $300,000. Not bad for three months work, but hardly a fortune to live off of. If she invests it and gets a 10% return each year, that is only $30,000 per year -- minus the taxes on that. Worth quitting her bartending job? Probably. Life changing? Hardly. |
Woodpecke® | Tuesday, October 01, 2002 - 04:31 pm     $500,000 is life changing unless you already have $500,000. |
Lancecrossfire | Tuesday, October 01, 2002 - 04:43 pm     Let's look at everything before taxes, as that is how salaries are usually talked about. If a person makes 50K a year (that is usually spoken of pre-tax), then winning 500K is equal to getting 10 year's worth of salary in one fell swoop. Life could sure be worse! |
Myriads | Tuesday, October 01, 2002 - 05:00 pm     The after tax 300K is enough to allow her to make some life changes (it can fund and support her while she goes to school) or it can provide the seed money for a business. But beyond those basic levers it can't alter a life all that much in the long term. (especially one that is located in the expensive SoCal area) Not that it's anything to sneeze at :-) If Lisa was of a mind to (and it sounds like she's thought it over, and she's not up for it, good for her!) she could probably pick up a big chunk of change from Playboy, perhaps doubling her win. She's cover material right now, and for the next few months. She has the height and looks to spare to be a print or video medium model And as an aspiring photographer she could do a lot worse then becoming an active model and then keep her eyes open as the pros shoot her and 'learn on the job'. If she's attentive and polite, most pro's will be happy to indulge her interests and teach her. Everyone enjoys talking about their work to someone who seems to truly want to learn. Myriads |
Ocean_Islands | Tuesday, October 01, 2002 - 05:14 pm     If she's smart, she won't make any life changes. The money should be put into savings. Studies show that people who come into inheritances and prizes such as this spend it all, and in the end are not better for their good fortune. |
Woodpecke® | Tuesday, October 01, 2002 - 05:20 pm     I hope she plays blackjack for $1000 a hand and doubles it in one weekend. |
Sonia | Wednesday, October 02, 2002 - 06:53 am     Myriads, I agree that Lisa definitly has the look and the style for modeling. After their BB exposure, Josh and Brit from BB1, Hardy and Shannon from BB2 did modeling. (Maybe they did before anyway, I don't really know about it.) Lisa is very photogenic, she looks well in almost all the pictures I saw of her in any BB site, no matter what clothes she wear, where she is, make up or not, hair style or not. She would certainly be a good model for fashion pictures, and I would not be surprise to see pic. of her on some fashion magazine, if she's interested, of course. |
Fruitbat | Wednesday, October 02, 2002 - 07:21 am     I am not sure she can get a 10% return anywhere these days. It is a great opportunity to invest in something secure like bonds and hold onto it. How wonderful to have enough money to buy a house when she finds herself ready to settle somewhere. |
Spunky | Wednesday, October 02, 2002 - 06:34 pm     Definitely!!! Especially when you're only 26!!! That's the age I turned my life around and with 0 money in the bank. I hope she'll use it wisely. |
Bmh | Wednesday, October 02, 2002 - 06:42 pm     ya I would take the 500G's..it would change my life most definitely! |
Oregonfire | Wednesday, October 02, 2002 - 07:21 pm     I'd like them to up the ante to 1 million (1st place)and $100,000 (2nd place), so they get more people to apply was are actually interested in playing the game, not summer camp or minor-celebrity face time. (Unless, of course, pretending it's summer camp is part of their strategy!) Ed.to Add: With more challenging challenges too! |
Cmore | Wednesday, October 02, 2002 - 08:20 pm     500K by itself is not a life changing amount of money, but..... with some wise investments and time, it could be. I think Lisa said she would buy a new car for her brother, nice gifts for friends ect. If she has a good game plan, like say 100K to spend in any manner she chooses and then tuck the 250K into some good investments, she could still enjoy winning now and have a bright future. If she goes crazy with the loot, she will find herself right back where she was in a short time. I hope she is wise about it. |
Sabbatia | Wednesday, October 02, 2002 - 09:43 pm     500K for me would be a life changing amount of money...eventually. You figure getting 350K after taxes, and invest it, even if you only get say 6% return on your investment, that's $21,000 per year without touching your principal. I can't remember right off hand, but I believe it was the rule of six that says leave your money in at six percent compound interest for six yrs, and it doubles. (or maybe that was the rule of 8...it's been a long time.) Anyway, when it came time fore retirement, which I'd LOVE to do, it would be a nice little nest egg that would enable me to retire much earlier. If you chose to spend your interest, an extra 21K per yr would certainly change your standard of living. |
Mrdisguise | Thursday, October 03, 2002 - 06:31 am     Lisa is a pretty girl BUT I don't expect to see her as a model. Nor do I think that Hugh Hefner would ask her to pose for Playboy. Lisa will probably buy a condo or travel. |
Jagger | Thursday, October 03, 2002 - 07:07 am     If I won that kind of money it would definitly be life changing. I would be able to quit my job, however I would continue to work part time for the health benifets and spending money. I would be able to buy myself an OK home, nothing to spectacular, and still have some money to invest for the future. |
Costacat | Thursday, October 03, 2002 - 12:23 pm     I wouldn't say it's life changing. The net $300K is not going to provide enough interest income on which to live, so I don't think that quitting a job forever is an option. I figure she'd get maybe $15K/year in interest income, if she's lucky. Hopefully, Lisa will invest a good portion of it (I know she's planning on spending some on gifts for family and friends). It would not be life changing for me; not at all. But it would certainly make a nice cushion on which to retire (and possibly even retire early). Of course, I'm about 20 years older than Lisa... (and own my home, a brand new car... a lot more committments than I think she may have). |
Pugholio | Thursday, October 03, 2002 - 03:48 pm     If it isn't life changing, I need to learn that lesson firsthand..... |
Missy2 | Friday, October 04, 2002 - 05:58 am     It would change my life, to be able to pay off debts, have money to invest and maybe put down on a home. That is definitely life changing. |
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