ilmscore | "I Won A $1M Lawsuit - What Do I Do"

"I Won A $1M Lawsuit - What Do I Do"

Published: 2024-07-20
Status: Available | Analyzed

Predictions from this Video

Total: 9
Correct: 0
Incorrect: 0
Pending: 9
Unrated: 0
Prediction
Topic
Status
The speaker anticipates receiving a $1 million settlement for a work injury after all expenses are paid.
"I had a work injury and my lawyer says I'll likely walk away with a million dollar after everything is paid."
Personal Injury Settlement
Pending
The initial investment strategy is to pay off all non-mortgage debt, estimated at $50,000, before any other actions.
"the first thing that I would do with this money if I was you is I would pay off all of my non-mortgage debt so I'm going to assume that you have $50 000 worth of student loans credit card debt car loans pay all of that off before you do anything else"
Investment Strategy
Pending
A recommendation to save 12 months of living expenses, estimated at $100,000 based on $8,000 monthly spending, in a savings account for emergencies.
"save some cash to protect me against anything in the future so figure out your monthly expenses pull out your bank statement and figure out how much money you're spending every single month on an average month and I'm going to assume that you're spending $8,000 a month I know a lot of money but we're just going to stick with that for this example Now take that number multiply by 12 which would be $96,000 so I'm going to round it up to $100,000 you're going to save 12 months worth of expenses in the savings account to protect you against an emergency"
Emergency Savings
Pending
After paying off debt and saving for emergencies from a $1 million settlement, the remaining $850,000 should be split equally: $425,000 to pay down the mortgage and $425,000 to invest.
"take that number divided by two so $850,000 by two is $425,000 and that means you're going to take $425,000 and you're going to use that to pay down your mortgage and then you're going to take the other $425,000 and you're going to put this money to work in your Investments"
Mortgage and Investment Allocation
Pending
An investment of $425,000 could potentially generate $42,500 in annual income if a 10% return is achieved.
"if you can produce 10% income which I know is high but just go with it for the sake at this example if you can produce 10% income under $425,000 invested well that's an additional $442,000 a year in income"
Investment Income Potential
Pending
An investment of $425,000 could generate approximately $21,250 in annual income at a 5% yield.
"if you can get a 5% income 5% yield 5% dividend 5% cash and cash return from your real estate which is possible well now you're talking about half of that $211,000 a year in income that you don't have to work to earn"
Investment Income Potential (Lower Yield)
Pending
The speaker predicts that the value of US dollars will continue to decrease over time.
"because our dollars are losing value each and every day"
Dollar Value Depreciation
Pending
A $1 million sum will last 10 years if $100,000 is spent annually, or 20 years if $50,000 is spent annually, not accounting for inflation.
"if you're spending $100,000 a year it's only going to last you 10 years if you're spending $50,000 a year it's only going to last you 20 years and that doesn't even factor in inflation"
Million Dollar Longevity
Pending
For a 40-year-old in the US, $1 million would only last 20 years if they spend $50,000 per year.
"if you're 40 years old today well that's only going to go so far if you're living in the United States because a million dollars at $50,000 a year is only 20 years"
Million Dollar Longevity (Age 40)
Pending