Getting $1Million, how to make it last

[cschin4]

Did the OP ever respond back or just trolling?

[LuxLiving]

shawn0811 has currently one and only one post.

[Broken Arrow]

Yes, the USD is a concern now. In fact, I don't think the USD is going to last very long and would likely go into default to be replaced by something else... maybe the Amero? That will probably allow the US to default on all of their USD based debt, thus wiping out the huge debt in one go. well, just my guess. But if a USD default really happens, we are all in trouble and that is the next big financial crisis that I wrote about in my other recent writings.

Ok, that may well be true, but what is the underlying thesis behind this?

As I've illustrated in other threads, we've been experiencing deflation since March 2009. In other words, despite the Fed's valiant attempts to deliberately weaken the Dollar, the Dollar has actually been strengthening!

Here's a quick chart if you want to look at it.

Also, while there have been talks of changing the trade of oil from Dollars to a basket of currencies (which I actually support by the way), the talks-- instigated by Russia and China no less-- have been voted down. Oil is still traded in Dollars, which still shows some global confidence in the currency.

It's also interesting to see that for a lot of Sovereign Wealth Funds (SWFs), their "flight to safety" still results in the mass buying of US Treasuries. Again, more concrete signs of confidence and buying into not just America's future prospects, but ultimately, the Dollar. To be fair, I hear that there is more talk of "diversification" now though, but those are considered aggressive plays, and most SWFs have already done that back in 2008....

These may seem like anecdotes, but nothing speaks louder than someone voting with their money.

Finally, in a different thread, I've also linked Kiplinger's take to the Dollar. While it is only an online news article, I think this one should not to be taken lightly. For example, it states that the slip in Dollar trading is systemic, despite the deflationary pressures and the subsequent strengthening of the Dollar. So why is this? The reason is NOT the loss in confidence of the Dollar itself, but rather, loss in confidence over a V-shaped economic recovery. There is a distinct difference.

It's true though that we have a lot to worry about. Our national deficit is reaching a point where I wonder if it is truly sustainable. But the issue is pretty simple and straightforward, and when it's all said and done, pretty much everything hinges on an economic recovery, which I am fairly optimistic about.

For example, at the very least, the economy has already "bottomed". The contraction ended when companies exhausted their inventories, causing a "rebound" of sorts. Now, with the marketplace having evolved due to the recession, the market now has to find a new footing to step back up towards genuine growth, and ideally, without relying on the old consumer model. We've got a lot of ground to cover, but this chapter of the story has yet to be written....

[disneysteve]

Last time I checked, all of these has expiration dates stamped on the cover... correct me if I am wrong.

Well, everything goes bad eventually, but properly stored, many food are good for years. "Expiration" dates usually aren't actually expiration dates. They don't mean the food can't be eaten after that date. They may mean the stuff may not be at it's peak or that the company won't guarantee quality after that date, but the food is still good. I know I've heard that canned foods can be good for 30 or 40 years. Vacuum sealed dehydrated stuff is probably good indefinitely.

[LuxLiving]

Jason, you (or someone else here) might be interested in reading up on food storage. A good place to start.

Using Your Food Storage

[kenyantykoon]

thats a really lucky break. I would suggest that you invest every single coin because you really do not need the cash as of now. Dont go crazy and spend it wildly good luck man

[thekid]

I'd just like to revisit this. You are still quite young and may feel like you are going with a conservative approach by only using monthly withdrawls. You are not. 1M$ is a lot of money, but at the same time it isn't. What it is mostly is opportunity, particularly at your age. Should you start using it now, it will be gone, most probably before you even get near retirement age. Nothing left for you and nothing left for your children. You would have squandered it.

I would honnestly encourage you to rethink this and view this opportunity not as a short/medium term windfall, but as the occasion to build something lasting for you and your family. My family is in a similar position. From my wife's and my parents, we stand to receive considerable amounts. We're both very focused on furthering what has been built, both for the sake of preserving our security and freedom and for our kids. This is also what we wish to teach our kids. Money is fleeting. Most accumulated wealth is disipated within one to two generations. The way you are approaching this, with monthly withdrawls from age 24 ensures that all of it will be gone within a number of years. My personal opinion on the subject is that as the recipiant of this privilege, you have the duty to preserve it and make it bloom.

I would seriously suggest that you look not to augment your monthly income during the next few years and invest the capital and returns with long term growth in mind. Take this advice for what you will.

[Broken Arrow]

I would honnestly encourage you to rethink this and view this opportunity not as a short/medium term windfall, but as the occasion to build something lasting for you and your family.

Good advice. I'm glad that you see it that way, and I hope the OP will as well.

[jasonnoguchi]

seems like the OP is just creating buzz.

[GrimJack]

Well, there is a blog that a friend started when she inherited some money. She is about twice your age but if you start at the beginning of her blog (she started it around the time she learned of her inheritance), you will be able to follow her thinking/logic w/r/t how she handled the situation.

keepin' it fiscal 22/5. Maybe.baselle's Financial Diary - check it out - skim for good ideas.