Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Is becoming a day trader/long term investor when you have accumulated several million in savings more lucrative than working a 9-5?

Let's say you inherited $5 million dollars at 18 years old from your family. Would it be a complete waste of time to try to go to college and work a 9-5 job that pays $50,000 starting and maybe jumps up to $120k a year by 40, when you can make $500,000 a year just in the growth of the $5 million dollars letting sit in a mutual fund? Or potentially make more by becoming a day trader (although more risk)?

Update:

Or getting into commercial real estate, etc etc. Basically being an investor vs. working a standard 9-5 when you come into millions of dollars at a young age

Update 2:

I feel like investing scales with wealth, but wages are stagnant and don't scale with wealth, and require actual work, when you can just have your money work for you

8 Answers

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  • Anonymous
    1 month ago

    If I were you I would go to college and pursue a career that most closely resonate with who I am without thinking of pay backs!! 

    Don't you think having money should give you that freedom? 

    Focus on finding what you really want to do in 5-10 years time!! 

  • Anonymous
    1 month ago

    Why bother working?

  • 1 month ago

    If you have to ask, not for you. In fact, SUCCESSFUL day traders don't take that much time off.

  • Dave
    Lv 5
    1 month ago

    Probably..........................then you have the rest of your life and making a difference, you might want to read The Purpose Driven Life by Rich Warren, because no amount of money will replace that.............but you probably could invest it and not "work"........................BUT YOU STILL HAVE TO HAVE PURPOSE.

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  • 1 month ago

    At age 18 you could lose big bucks as a day trader. With a job you have health insurance - which can be worth big bucks (heart attack, fighting cancer, etc). And, at today's 1% (or less, and before taxes !) your $5m would only return $50,000 (I learned math in a college accounting course.)  You might also make friends at college, and maybe even find your soulmate. P S Your $5m drops to $4m if you buy a nice house. 

  • Bill
    Lv 6
    1 month ago

    Day trading will likely not make money so skip that.  Conservatively invested, $5M will easily generate $200K in income every year and the principle will grow.  If you want to invest in real estate, put some of your money in REITs.  Do NOT let some friend of a friend manage the money.  Go with a big outfit.  

  • Anonymous
    1 month ago

    Why bother working?

  • y
    Lv 7
    1 month ago

    If one at that young of an age inherits that sort of money. Then they should definitely go to college. Just for the fact that it exposes one to new idea's, can open up ones mind to what is really out there.  They can then go to work in an area that is also their passion, something they enjoy. The paycheck doesn't matter at that time, It's about feeling good about what one is doing, usually involves helping others.  Those that just do their thing, the socialite scene, the partying, the popularity and such. Will feel empty in a short time, will feel like they have wasted or are wasting their lives.

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