I'd take another look at your statement. I am at or below average in many respects and I have about 1/3 of a mill in assets. Mainly it is tied up in real estate and that's volatile.
Many people think this but look at what a million dollar home looks like now compared to 10 yrs ago? Hell, a million dollar home is a reasonable 2500 sq ft within toronto proper (WITH a very small lot too).
Look at it this way: You win a million, hey you're a millionaire! Time for a nice house, nice car, nice furnishings, etc.
Any reasonably sized home in the GTA is going to run you 1/3 to 1/2 mill. If you want a loft downtown you're looking at 5 easy. Ok, say you move out of town, still a 3000 sq ft home is going to be in the 400 range but you will get a bigger lot.
Ok, right off the bat you've tossed half your winnings.
Nice car: 70K plus. Hell, my reasonably equipped truck is $46K.
Furnish the house: Well,unless you shop at United Furniture Warehouse or the bargain bin at the Brick you're probably going to spend 2 grand per room (a little on the low side) so you're probably looking at 15 to 20 grand in furnishings.
Now we've just spent half your winnings.
Add upkeep insurance etc on your assets so add another 5 or 10 grand. (and that's PER year)
Take a nice trip somewhere, 5 - 10 grand.
If you quit your job (which many do) you're going to need an income of at least 30 grand just to be at the poverty line. That's only 10 yrs if you don't watch your spending.
Sure you will get interest on your money but add up the above, a mill ain't nothing anymore. Hell without even trying too hard I just spent a million......now what if something happens unexpected? either you've got to get a job to cover it or you break into your savings. If you do, that cuts down your retirement from work.
