# $70 million Sask lotto win



## james4beach (Nov 15, 2012)

This lucky guy in Regina won $70 million.

For his sake, I really hope he gets some good quality advice from professionals... that's a lot of money to suddenly have.

One approach might be to put it entirely in XIC, the Canadian index. The annual dividends would be roughly $1.7 million, mostly eligible dividends. That would give him roughly *$1 million to $1.2 million after tax, every year, forever*. Pretty tax efficient actually!

Or 50/50 in XIC and XAW would do it too. Less tax efficient but better diversified.

I posted this kind of for fun, but I seriously wonder whether a "wealth management firm" can do better than XIC and XAW. I'm sure someone is going to charge him 2% annual fees and make it a lot more complicated, probably for worse performance.


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## peterk (May 16, 2010)

What are the chances though that if he goes seeking "good quality advice from professionals" that he'll end up in XIC?


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## james4beach (Nov 15, 2012)

peterk said:


> What are the chances though that if he goes seeking "good quality advice from professionals" that he'll end up in XIC?


Realistically there are legit reasons to go through planners or wealth management firms. For something this large, he might want to set up a trust and then have the trust manage the money and make payments to various family members.

That might actually be good for him, to protect him against behavioural mistakes or terrible decisions. But such services will come for a fee of course.


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## Fisherman30 (Dec 5, 2018)

In Regina, you could have a nice new 30 unit apartment complex built with cash and still have a tonne of money left over.


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## james4beach (Nov 15, 2012)

Fisherman30 said:


> In Regina, you could have a nice new 30 unit apartment complex built with cash and still have a tonne of money left over.


I don't quite understand why he'd do this, unless he's in the property management business.


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## Beaver101 (Nov 14, 2011)

^ Life is gonna to get verry verry verry busy for this guy. For one, everyone is gonna to come out of the wood-works wanting to be his "friend" including those he unfriends on FakeBook.

I sincerely hope he make a difference, doing some good for society with some of those winnings.


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## Ukrainiandude (Aug 25, 2020)

Is this before or after taxes?


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## Beaver101 (Nov 14, 2011)

^ Lottery winnings are tax-free in Canada. Investments from the winnings are then taxable.


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## cainvest (May 1, 2013)

james4beach said:


> This lucky guy in Regina won $70 million.
> 
> For his sake, I really hope he gets some good quality advice from professionals... that's a lot of money to suddenly have.


With $70 million he doesn't need investment advice other than don't blow it all before you die.


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## diharv (Apr 19, 2011)

After taking care of family on my side and my wife's, including third world cousins, we'd probably be left with half.


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## milhouse (Nov 16, 2016)

Beaver101 said:


> ^ Life is gonna to get verry verry verry busy for this guy. For one, everyone is gonna to come out of the wood-works wanting to be his "friend" including those he unfriends on FakeBook.


One of my coworker's close friends won a few million from the top prize of one of the lotteries. While it wasn't surprising that our coworker said that his friend got innundated with calls from long lost friends, relatives, and strangers asking for money, apparently they also got a lot of threats from people angry that he won, didn't deserve to win, wasn't the rightful winner, etc. Kind of scary stuff and no wonder many people don't want their identities published even thought that's part of the deal.


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## Money172375 (Jun 29, 2018)

james4beach said:


> This lucky guy in Regina won $70 million.
> 
> For his sake, I really hope he gets some good quality advice from professionals... that's a lot of money to suddenly have.
> 
> ...


Lol. No CMF users would ever recommend an advisor. 

An account that Big would have fees under 1% in my estimation. With that much money, it’s not all about performance. Who cares about a few percentage points. You want piece of mind, tax advice, estate planning…….and someone to tell you do not look at the market every day.


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## Beaver101 (Nov 14, 2011)

milhouse said:


> One of my coworker's close friends won a few million from the top prize of one of the lotteries. While it wasn't surprising that our coworker said that his friend got innundated with calls from long lost friends, relatives, and strangers asking for money, apparently they also got a lot of threats from people angry that he won, didn't deserve to win, wasn't the rightful winner, etc. Kind of scary stuff and no wonder many people don't want their identities published even thought that's part of the deal.


 ... I'm aware of 2 individuals thru friends of friends of acquaintances who won the lottery "jackpot = a few millions" some years ago.

Did their lives improve? One became a slumlord who let those monies get to her head. The other not far from the first, declared bankruptcy after a few years via winnings "investments". I say both sold their souls to the money devil.


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## MK7GTI (Mar 4, 2019)

Is it really as difficult to handle 70 million as you think? Especially for those of us on this forum? I already know what my first 7-10 steps would be. Step one, without question, would be to take a year long vacation somewhere.


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## MrMatt (Dec 21, 2011)

Money172375 said:


> Lol. No CMF users would ever recommend an advisor.
> 
> An account that Big would have fees under 1% in my estimation. With that much money, it’s not all about performance. Who cares about a few percentage points. You want piece of mind, tax advice, estate planning…….and someone to tell you do not look at the market every day.


Not true, I'd definately recommend a fee based financial advisor.
I had family who was looking at a buyout offer, early retirement etc.
Their LondonLife/Freedom 55 guy wasn't very good with a financial plan (no surprise)

So I told them to find a fee based planner/advisor, and get a consult. They went in and in a basic consult, they developed their entire financial plan for end of career and retirement. 
Being fee base he didn't try to sell anything, or even tell them to ditch their current providers.

Also 1% of $70M is $700k/yr, that's a lot of money, of course if you're making 5%, or almost $10k/day, you might want to pay to not have money get in the way of your life.


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## sags (May 15, 2010)

I would keep it simple with one main thought in mind......especially for people with kids.

I would put all the money, except for $10 million into a trust fund holding 120 Berkshire A shares and let them invest it for me.

I would distribute $5 million of the money among family and friends. I would keep the other $5 million for ourselves to enjoy life, fund charities etc.

My main concern would be to end up with kids who didn't care about money and get into serious trouble, which often happens with that kind of money.

The trust fund could be set up to sell shares every so often to distribute more cash. I would set it up so it can never be collapsed at one time.

As the shares are sold off, the remaining shares are likely worth more over time, and eventually the trust may run out of money......generations into the future.

People want more money........sorry it is locked up. Kids want more money.......sorry it is locked up. Charities want more money......sorry it is locked up.

If three generations from now the money runs out........sorry it is gone.


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## HappilyRetired (Nov 14, 2021)

milhouse said:


> One of my coworker's close friends won a few million from the top prize of one of the lotteries. While it wasn't surprising that our coworker said that his friend got innundated with calls from long lost friends, relatives, and strangers asking for money, apparently they also got a lot of threats from people angry that he won, didn't deserve to win, wasn't the rightful winner, etc. Kind of scary stuff and no wonder many people don't want their identities published even thought that's part of the deal.


That's true. I used to work with someone whose brother won $16 million. By far the worst were the distant relatives and "friends" they hadn't seen in years or decades looking for a handout. A lot of them had the nerve to get upset when they were turned down.


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## Plugging Along (Jan 3, 2011)

Money172375 said:


> Lol. No CMF users would ever recommend an advisor.
> 
> An account that Big would have fees under 1% in my estimation. With that much money, it’s not all about performance. Who cares about a few percentage points. You want piece of mind, tax advice, estate planning…….and someone to tell you do not look at the market every day.


I have been one to recommend a good advisor. Some of the wealthiest people I know use advisors. When you are talking bigger amounts of money lets say $10 mil, it's worth it to have a team help you for all the things you mentioned. Taxed, estate planning, trusts, kids, legal, you name it. Our amounts are much smaller, but I still use advisors. I definately would for a lottery win.



Beaver101 said:


> ... I'm aware of 2 individuals thru friends of friends of acquaintances who won the lottery "jackpot = a few millions" some years ago.
> 
> Did their lives improve? One became a slumlord who let those monies get to her head. The other not far from the first, declared bankruptcy after a few years via winnings "investments". I say both sold their souls to the money devil.


I know quite a few people that hit it big. In two instances, it was the lottery, and the rest were hitting it really big on start up companies (a little different as there was work and investment involved) but interesting to see how they things have panned out.
One lottery winner was one of the staff and my dad's restaurant. He won just over $4 mil in the late 70's. However, he didn't tell any one for years. He kept working though he didn't take too many extra shifts, he would go away on vacations with his family, but never told any one where he went. Going on vacation with 4 kids, we just assumed road trips because vacationing was pretty rare for an immigrant, especially back then. His kids worked really hard at school, and all went into highly regarded professions. His wife did quite her labour job to raise the kids, which wasn't odd for the time. The lived typical modest immigrant lower middle class life. Then when the last kid graduated university, he quit, and gifted each child there own home. He had purchased 4 (maybe more) homes in the 80's with cash when prices were low, gifted them a home and took the rest and retired around 89 or 90. He didn't give any of the kids a home until the last one was done, because only he and his wife knew how much money they had. They wanted to kids to not be spoiled, but still have all their major first (university, house, wedding, modest car,) paid for. He still and his wife still live in their little place for years. His whole thing was setting up his kids for the future. We were all pretty surprised that he still worked for so long. He said if he quit, he knew that people would believe that he had enough to retire, and didn't want people to ask him for money. He had his plans, he was just able to do it a lot earlier.

The other winner was someone on my floor at work. Won a $7 mil in the late 90's Came in, made a big celebration, gave the boss some quarters and told him to call some one who cared and left. I didn't know person very well, b ut I saw there linked in a few years ago, looking for work.

The others I know who made alot of money were through a big sale of company that was one of the largest in Canada that year. The smallest payout was just under $4mil the largest almost $40. I knew alot of them. 2 of them took the money and invested and made more money and I would say are beyond rich now. They were always the ones that understood money and had a clear head for money. 3 of them just called it quits for working a decided that they had enough money, would invest it but more to live off off. They live in nice houses, their kids are in good schools, and they are just living the upper middle class life and able to spend time with their family. The remaining 6, just spent like there was no tomorrow. One went bankrupt but was fortunate to be in another start that went well, until they went bankrupt, 2 have addictions and lost touch (they had issues before), and the remaining are back the workforce.

From what I heard and could see, getting large sums of money is often just an accelerator of your life projectory. If you are already mindful, and have your head on straight understand money, getting more will just help you get to your goals faster. If you don't have discipline or your life in order, chances are money can be a detriment.




MK7GTI said:


> Is it really as difficult to handle 70 million as you think? Especially for those of us on this forum? I already know what my first 7-10 steps would be. Step one, without question, would be to take a year long vacation somewhere.


I agree, I think most here would be just continual on with they plans, maybe do things a little bigger a little faster, but it would more life accelerating vs changing.

Mine first step after I get the money is call my accountant, financial advisor, then lawyer in that order. Then take my family and extended family for a family reunion. Then it would be invest in the kids future. 

I also have told the higher powers (to which ever one will listen) is I will go and do good with it in helping others. I have a list depending on how much it is. Then setting up the rest to live off of the passive income and set up trust and estates. The higher powers have not bestowed on me a lottery winning yet, so I will continue with my current plans.


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## afulldeck (Mar 28, 2012)

james4beach said:


> This lucky guy in Regina won $70 million.
> 
> For his sake, I really hope he gets some good quality advice from professionals... that's a lot of money to suddenly have.
> 
> ...


Hey that mainly my portfolio....XIC/XAW but with a small slice of AUVU....Seems like a great answer...


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## KaeJS (Sep 28, 2010)

70 million... Sign me up.
Nothing would make me happier.

And I would never use an advisor.

Any intelligent person would split it up.

A home. A second home in a different country. A cottage. Maybe 10 mill in GICs and savings and fixed income. The rest in the markets.

You'd never lose. Just keep your expenses under 1 million a year (which should be easy) and you're good to go.

Honestly, if I won that much money, I'd probably even buy a safe and get as much cash as I could, maybe 500k if possible, and go bury it somewhere in a forest and put the coordinates on a hard drive and also in the cloud.

I have no sympathy for people who go broke with that much money. You have to be a moron. Seriously.


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## Gumball (Dec 22, 2011)

james4beach said:


> This lucky guy in Regina won $70 million.
> 
> For his sake, I really hope he gets some good quality advice from professionals... that's a lot of money to suddenly have.
> 
> ...


james based off your logic on another post, should this guy be forced to donate some money to people who dont have houses yet? 😁


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## james4beach (Nov 15, 2012)

Gumball said:


> james based off your logic on another post, should this guy be forced to donate some money to people who dont have houses yet? 😁


It seems you didn't understand my other thread, so I'll correct your misunderstanding.

Property investors are freeloaders who were riding a wave of free money (credit) thanks to the Government of Canada. They are government-subsidized. The government has bent over backwards to make sure that *leveraged* property buyers/investors/speculators get to have very cheap mortgages. The government subsidizes lenders to make sure they hand out mortgages like candy. The Bank of Canada additionally subsidizes property investors with free money (extremely low interest rates).

The market conditions we've seen in mortgages and RE isn't normal. It's been acting like this because your Big Daddy Government (your friends Justin Trudeau and Tiff Macklem) have been stimulating and juicing up the housing market.

The Bank of Canada amped things up, with even more stimulus into housing & mortgages during the pandemic. Rates were dropped even further and the mortgage market was directly supported by government intervention.

Because I'm a generous man, I'm going out of my way to clue-in the property investors to something they are probably haven't understood yet. Market conditions are changing. CASH OUT NOW. Liquidate your properties and deleverage while you still have a chance to have an orderly exit.

You property investors and speculators have gotten enough free government money. Why don't you go and create a legitimate business for a change, instead of just freeloading off the backs of taxpayers like me?


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## Thal81 (Sep 5, 2017)

It's so wasteful to give this amount to a single person. I'd rather they made 70 winners of $1 million.
If I was to become rich, I figure that anything over 5 million would not make a difference in my standard of living.


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## KaeJS (Sep 28, 2010)

Thal81 said:


> It's so wasteful to give this amount to a single person. I'd rather they made 70 winners of $1 million.
> If I was to become rich, I figure that anything over 5 million would not make a difference in my standard of living.


Same.

I think the difference between 3 mill and 5 mill is not that different. Definitely anything over 5 mill is not necessary. After that, it's just wasting things on overpriced services, rolexes, etc.


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## cainvest (May 1, 2013)

Thal81 said:


> It's so wasteful to give this amount to a single person. I'd rather they made 70 winners of $1 million.
> If I was to become rich, I figure that anything over 5 million would not make a difference in my standard of living.


Well if you win the $70M you can certainly give away $65M of it ... your choice! 

I know I'd be giving away a boat load of it to people I know.


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## MrMatt (Dec 21, 2011)

james4beach said:


> You property investors and speculators have gotten enough free government money. Why don't you go and create a legitimate business for a change, instead of just freeloading off the backs of taxpayers like me?


Properly development is a legitimate business.
I bought my house from a developer.
A friend of mine just moved across the country, thanks to developers a property was sitting there available, move in ready in 2 weeks.

Developers and speculators help increase supply and increase liquidity in the market, these are both good things.


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## afulldeck (Mar 28, 2012)

Thal81 said:


> It's so wasteful to give this amount to a single person. I'd rather they made 70 winners of $1 million.
> If I was to become rich, I figure that anything over 5 million would not make a difference in my standard of living.


Why would you make that type of judgement? Perhaps the winner would be of the entrepreneur class interested in making business and not interested in putting the feet up.


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## MrBlackhill (Jun 10, 2020)

Best way to win a guaranteed $100k at retirement: don't buy lottery tickets every week and invest that money

Best way to win a guaranteed $200k at retirement: don't drink coffee daily and invest that money

Best way to win a guaranteed $300k at retirement: don't drink beer daily and invest that money

Best way to win a guaranteed $400k at retirement: don't drink wine daily and invest that money

Best way to win a guaranteed $1M at retirement: do all of the above


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## Beaver101 (Nov 14, 2011)

^ Let's take your beer example to come up with $300K. 

What's the rate of compounding and how many years will it take to achieve that if say beer was $3 average a bottle? 

I think most people will stick with their current habits when they see the actual numbers required.


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## MrBlackhill (Jun 10, 2020)

Beaver101 said:


> ^ Let's take your beer example to come up with $300K.
> 
> What's the rate of compounding and how many years will it take to achieve that if say beer was $3 average a bottle?
> 
> I think most people will stick with their current habits when they see the actual numbers required.


10x $3 beers per week for 40 years at 5% real rate.


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## Beaver101 (Nov 14, 2011)

^ Even I compound that 5% rate "daily", I only get $184K which is far less than $300K. What am I missing? The wines?


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## cainvest (May 1, 2013)

MrBlackhill said:


> Best way to win a guaranteed $1M at retirement: do all of the above


I'd say the best way to get to $1M
1> Make a good income
2> Always spend less than you make


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## MrBlackhill (Jun 10, 2020)

Beaver101 said:


> ^ Even I compound that 5% rate "daily", I only get $184K which is far less than $300K. What am I missing?


Beer price inflation over the 40 years.


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## KaeJS (Sep 28, 2010)

MrBlackhill said:


> Best way to win a guaranteed $100k at retirement: don't buy lottery tickets every week and invest that money
> 
> Best way to win a guaranteed $200k at retirement: don't drink coffee daily and invest that money
> 
> ...


Funny.

But in all seriousness, some of the best advice you can give.

Unfortunately for me, I drink at least 10 beers a week. But I'd probably lose my sanity and kill myself if I didn't, so it's worth it to me.


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## KaeJS (Sep 28, 2010)

MrBlackhill said:


> Beer price inflation over the 40 years.


😂


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## Beaver101 (Nov 14, 2011)

MrBlackhill said:


> Beer price inflation over the 40 years.


 ... in which case, every one of those items in your post #28 will have to be updated of which case, you'll require 2M bucks to fund retirement.


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## MrBlackhill (Jun 10, 2020)

Beaver101 said:


> ... in which case, every one of those items in your post #28 will have to be updated of which case, you'll require 2M bucks to fund retirement.


Yes, but by using a compound of 5% real return, the $1M still holds. One would likely make more than 5% pre-inflation.


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## Beaver101 (Nov 14, 2011)

MrBlackhill said:


> Yes, but by using a compound of 5% real return, the $1M still holds. One would likely make more than 5% pre-inflation.


 ... of course, one would make waaaay more than 5% pre-inflation if they bought and sold AARK, BTC, Shopify, GameStop, and the likes. But where're you gonna to find a 5% real return that's compounded "daily" (not sure what's your compounding frequency) as per my original post #31?

And keep in mind, giving up "beers" ain't the only item one has to give up to reach $1M as per your original post #28. One also has to give up daily coffee (what, no THI in minus 30c weather?!), daily wine (what, after a long day kissing the bosses' ***?!) and the occasional(?) lottery ticket (what, miss out on tax free winnings?!) also.


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## MrBlackhill (Jun 10, 2020)

Beaver101 said:


> But where're you gonna to find a 5% real return


From Monte Carlo simulations based on historical data of the past 50 years, you have about 75% probability of at least 5% real return from monthly contributions over 40 years.



Beaver101 said:


> One also has to give up daily coffee (what, no THI in minus 30c weather?!), daily wine (what, after a long day kissing the bosses' ***?!) and the occasional(?) lottery ticket (what, miss out on tax free winnings?!) also.


I don't have coffee, beer nor wine at home. Only drink beer or wine when there's a worthy social event. I never buy lottery tickets.

I don't have chips, cookies, snacks, or any other processed foods either. I cook from raw and fresh ingredients.

I don't have Cable TV either. I mean, I don't even have a TV.

I read books, they're all free at the library. I go out at the parks, it's free and healthy to go outside. I gather with friends, laughing is free. Life doesn't need much more than nature, friends, love and health.


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## cainvest (May 1, 2013)

MrBlackhill said:


> Life doesn't need much more than nature, friends, love and health.


And a couple of motorcycles plus a dog ...


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## Gator13 (Jan 5, 2020)

cainvest said:


> And a couple of motorcycles plus a dog ...


Awesome!! This response makes it obvious that cainvest is a stand up guy.


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## afulldeck (Mar 28, 2012)

cainvest said:


> And a couple of motorcycles plus a dog ...


Or a motorcycle and a couple of dogs


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## KaeJS (Sep 28, 2010)

MrBlackhill said:


> I don't have Cable TV either. I mean, I don't even have a TV.


You don't have a TV?

That's f_ucked up.


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## MrBlackhill (Jun 10, 2020)

KaeJS said:


> You don't have a TV?
> 
> That's f_ucked up.


I'm in my mid 30s and never had a TV for the past 8 years. Last time I "had" a TV is because my ex had a TV and I moved with her. Otherwise, never in my life have I ever bought a TV.

It's a huge time-waster and I anyways I never had time to watch TV. I've watched a couple of things on Netflix though on my phone or laptop, mainly as a language-learning tool and some documentaries.

And anyways there's enough time to be wasted on our phones nowadays with YouTube and social medias. I hate most social medias. Sometimes there's good content on YouTube, as long as you don't get trapped by algorithms trying to steal more of your precious time.

Anyways, if I truly want to watch a movie, I can still go to theatres, right?

In my living room instead of having a couch in front of a TV, we have a couch in front of... another couch. Makes much more sense when we gather friends at our place.

If you remove TV and social media from your life, you'll notice that you have plenty of time to do things worthy of being lived. Life's short. Why waste so much of it? We're so lucky to have that chance to enjoy life.


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## Beaver101 (Nov 14, 2011)

MrBlackhill said:


> From Monte Carlo simulations based on historical data of the past 50 years, you have about 75% probability of at least 5% real return from monthly contributions over 40 years.


 ... I'm not disputing about the "5% real return" (or the need of fancy pancy MC simulations to verify) as I'm sure you can get more than that. Instead of chopping my original question off - I was asking about your compounding frequency with that 5% real return to achieve the $300K after 40 years. Even with double inflation.



> I don't have coffee, beer nor wine at home. Only drink beer or wine when there's a worthy social event. I never buy lottery tickets.
> 
> I don't have chips, cookies, snacks, or any other processed foods either. I cook from raw and fresh ingredients.
> 
> ...


... I'm afraid some folks here will label you as a big B as BORING despite I'm in total agreement with your last sentence.


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