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20110107

If I Won a Million Dollars...

Real estate & gold & silver certificates are great for investment.

If I won $1,000,000 in the lottery, then I'd pay off my debts ($25,000), and later pay taxes on my winnings ($150,000).

This would leave me with $825,000 which is enough to buy a duplex for $750,000 in suburban Metro Vancouver.

I could then use $25,000 to furnish and secure both suites, living in one-half of it and rent out the other half for $2000 / month.

This will leave me with $10,000 to pay for food, utilities, cable, and telephone for at least two years.

With the remaining $40,000 I could put half of it in a RRSP over four years, and use the remaining $20,000 to cover extra taxes.

Yes, I know this is unrealistic, but it's a what-if scenario. The taxes on $24,000 a year for rental income would be $1,215. That leave an income of $23,785 annually.

For sure, I'd screen my tenants and ask prospective tenants for a list of references, including employer's contact information.

The real world threats to this scenario would be physical illness, scam artists, and changes in income tax and property rates.

One thing I will not be doing is gambling any of my money; I'd probably donate to worthy causes, instead.

Reality check: I feel that I would need to take an extensive course in alternative health education to make this all happen.

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