How I Would Spend $1,397,480.

As I sat back on Thursday night and watched the Green Bay Packers (my team) vs. the Seattle Seahawks play on national television, I wondered what it would be like to be an NFL player.  Between the two teams, the average yearly money being pushed through for the player salaries is 239 million dollars.  Taking 239 million / 106 (one 53-man roster per team) comes out to be 2,254,716 dollars per year, per player.  Taking that average and deducting approximately 38% for taxes, that leaves a net of 1,397,480.  Here’s how I think I would spend that money.

How I Would Spend $1,397,480:

1.  Pay off my student loan: 29,000

2.  Pay off my parent’s house, dad’s student loan, and buy them a garage: Est. 75,000

3.  Pay off my sister / brother-in-law’s house & student loans: Est. 90,000

4.  Assist in grandparent’s health care costs: Est. 25,000

5.  Donate to local animal shelters: 50,000

6.  Assist friends with various debts: 50,000

7.  50 years worth of $1000 college scholarships for my alma mater high-school: 50,000

8.  Pay off girlfriend’s student loan: 20,000

9.  Open my gym (finally!): 150,000 (539,000 : 858,480)

10.  Buy silver coins for emergency economic collapse: 30,000

11.  Purchase three (3) four (4) bedroom homes in my current college town: 330,000

12.  Purchase my own dream home: 150,000

13.  Purchase a solid, decent-MPG vehicle: 30,000

14.  Invest in a diverse, mixed-aggressiveness portfolio of high-dividend yield stocks: 318,480

15.  This is an option that I would most likely do, but it would elimate the “non-income” generating numbers 1-8 and 13, which could be made up with income generated over time.  BUY FARMLAND!: 419,000 – 42 Acres

And that does it… For now I can’t think of much else that I would include.  There are a few income opportunities included in these at numbers 9, 11 and 14 and 15.  Things like future parent medical bills, future help with my unborn children and sister’s children would be taken care of with the residual income as needed.  I will delve deeper into my expected earnings for income as well as a portfolio outlook below.

For the income aspects of it, here’s what I’m thinking:

– The three houses would be in a college town, They would rent at 1200/month or “advertised as” 300/room.  As a DIYer and with access to a Master DIYer in my father, I would put maintenance at an estimated 2400/yr per house, or 200/mo.  I would add 25% tax onto the gross rent total of 1200, and come out with 900.  Subtract the estimated 200 for maintenance and I get 700.  For 3 houses, that would net me 2100/month or 25,200/yr after tax and maintenance.  Gross would be 43,200 without tax or maintenance.

– My gym would be next.  The cost for this gym includes all equipment, land, and a brand new building of 60×100 feet.  Luckily there would be no loan, but I would put monthly utilities at around 500, and monthly insurance at around 1000.  If I were to have it as a 24-7 access, no staff would be needed as long as I put in 14-20 hours per week to maintain and clean everything up.  I would price membership below market average.  I would assume average (just from my experience) is at over 35/month.  If I were to price membership at 25/month, I would only need 60 members to cover costs.  This is very attainable.  Let’s put the membership at 100 and make 2500/month.  Subtract 1500 for costs and we bring in 1000 gross (12,000/yr) per month, or about 800 (9.600/yr) net per month.

– Farmland is something that I have always wanted to own and something you can make a killing and a living off of just renting it.  It’s nearly impossible to get without mountains of money, and as you can see even with 419,000 I would only be able to purchase about 42 acres.  Prime till land is going for about 10,000 per acre around my parts.  Average rent is 270 per year per acre.  Take that times my meager 42 acres, and it comes out as 11,340/year.

– Lastly comes the low-moderate-aggressive dividend portfolio. Stocks would ideally be diverse and well-established.  Some would be prototype funds that would include high-risk, but mostly a conservative portfolio.  I would put this portfolio at an average of 4% per year in dividend returns.  If the money wasn’t needed, the dividends would go into re-investment.  Included would be companies/stocks like TGT, SO, RAI, AEP, VNQ, ETR, FE, MO, MCD, PEP, PM, T, PFE, COP, EFC, WMT, JMI, NYMT, CVRR, CYS, ORC, ARP, AT, AI, ARR, NLY, AGNC, VVC, TEG, NWN, DBD, IEP, VZ, CSCO, UNP, GD, BA, DE, CMI. CAT, GE, NVDA, ATI, MSFT, AAPL, SDR (RISK), and RNO.  These are just a few of the many promising stocks out there that provide solid fundamentals in terms of solidiity and longevity, and also offer a strong dividend yield.  Take 318,480 x 4% and come out with 12739.  That’s approx 1060/month.  1060 by about 20% tax comes out as, let’s call it, 800/month.  That’s another 9,600 per year (same as the gym)… Meant to be?

Total income:
So, after all the fun and dandy, here’s what it comes out to be.  With 798,480 of the 1.397,480 invested, I come out with a yearly gross income of 67,939.  Add the farmland and it’s 79,279.  After taxes, maintenance, and other stuff, it comes out to be approximately 49,450 or 57,950 with the land.  This is with an approximate monthly expense of about 700.  This includes cell phone, property tax, food, gas, and entertainment.  So, after all basic monthly payments, I am making about 41,000/49,500 extra per year.  This means I would more than likely be able to re-invest all of the 9,600 per year of the portfolio, as well as hire more employees or trainers for the gym, bringing in more income and more people.  I do realize I would be missing things like health insurance, etc. but the general jist of things is there.  I would be making a great income with an investment of 800,000+, and I would also be attaining my main goal of financial freedom and the ability to spend most of my time with my family, eventual children, and  friends.

This was an awesome lesson and took me over two hours to completely accomplish.  I did a lot of thinking and it was very humbling to sit down and divvy out over a million dollars to have my way with.  It makes me think how extremely blessed those players are, as well as everyone else who makes that kind of money.  They are financially free, and in a world where money is king, they have the ultimate gift.  I hope they all take advantage of their situation and never take it for granted.

Take care readers and thanks for stopping in!

EDIT: I forgot one of the most important things, a Roth IRA.  I would of course dump the max into a new Roth IRA, which I think is 5500 a year.  So it wouldn’t be much but I would definitely do that, and then max it out each year following using my net income.


Welcome to myself and anyone who may be reading… So, probably just myself.  I’ve never done this blogging business before so I will just wing it and hope for the best.  It’s a new thing to try and I’m hoping it provides additional motivation and helps keep me on track of my goals.  I also hope to connect with other people like myself who are starting from a limited amount of income and  are planning on maximizing it.  I’ll start off with a little about my main goals and how I plan to achieve them.  It is my wish to eventually achieve “financial freedom” through various avenues of investment.  My definition of financial freedom is being able to live a happy (not particularly celebrity rich status) life and not have to worry about spending the majority of my time at work 40+ hours per week, like many other folks do.  The avenues I have in mind are more traditional; things like long term stock & dividend investment, bonds, precious metals, retirement funds, real-estate and land investment.  Other possibilities include investing in businesses, starting small businesses, publishing books, and others.

This is something I have wanted to do for a long time and it’s time to get started as soon as I can.  I was about to get this going recently but I just found out I am losing my job (thanks John Deere) so it’s going on a temporary hold until I can get something straightened out.  I do have some student loans, and low credit card debt with ZERO APR (I pay in full every month, unless I have 0% APR).  Besides that, I am debt-free.  I had a Roth 401k going via Fidelity but I will no longer be able to contribute to that thanks to my job loss.  I am starting a Vanguard Roth IRA in the near future once I have a steady job.  I have a small portfolio that I started a while ago (literally, tiny) and will continue to expand upon when the time is right.  I also have an incredibly wealthy friend who is on my side, and has given me experience with stock trading and is there for knowledge.

A little about myself.  I’m a college grad with a Criminology Bachelor’s Degree.  My aspirations were to go into law enforcement, and still are, but I am open to all avenues that life has to offer.  Especially one that would help contribute the most to my investing goals.  My main goal right now is to look for a means to an end; that is, the best job for me that allows me to rake in as much dough as possible to build up for my future retirement.  I am an Eagle Scout and a small town kid.  I am a massive Green Bay Packers fan and even have a Green Bay tattoo.  I love shooting guns, playing computer/PS3 (Madden), and drawing.  At 23 years, I’ve had plenty of life experience but have an incredible amount to still learn.  I’ve got an insane attachment to my friends, close family members, and my girlfriend.  Before all else, including money, comes those folks.  Life would be useless without them.  And what better motivation to succeed in my goals than knowing if I do, more time can be spent with them and less slaving away at a job?  It doesn’t get much more inspiring than that.

Thanks for reading.  Stay tuned.