If a Million People Were Given a Million Dollars, Each...

and they were just picked at random across the country, what percentage of those people would have spent 90% or more after 10 years?

There is no right answer, just your guess.

I think a very high percentage, probably 95%, would be broke. Economics are not required learning anymore and what they teach now as economics is mostly garbage.

I found myself owing a lot more money than what I could have made in ten years time. Instead of declaring bankruptcy like most people do, I cashed out my retirement fund and invested instead of applying it to the bills. I made good investments and learned a lot along the way. Now the bill was paid in full, I’m quite comfortable and don’t have to worry about money. I’m only telling this to ask the same question. How many would have just declared bankruptcy?

I am risk aversion...so is my DH, IF I went to Vegas,I would take $100,if I lost 85% I would take my money
off the table and go to Cir D Solile (spg). We R conservative and probably to our detriment sometimes,BUT
we would hire a TERRIFIC financial advisor and follow investment advice....make it s-t-r-e-t-c-h and then will
what was left to a charity or relative..depending upon relative(we are all about the same age)...EXCEPTme,
I am the matriarch(2nd in line, my 89 y.o MIL is first)...everyone else is 60 ish. (I just read that last line,it
is STILL STUNNING to me)

So, to answer your question...we would STILL have many dollars,10 years later.(if the universe willing and the creek don't rise)

If the giveaway was done, the first beneficiary would be the tax collector, to the tune of:

Putting It All Together Adding the numbers, the total tax to be paid for $1 million is $439,000.45.
www.reference.com/business-finance/much-...ion-b781ab5e2fdff6c4

$439,000,450,000 in total.

EDIT the question...tax free Million....

Economists have studied people who have received sudden windfalls like this, mainly due to lotteries, most are broke within ten years.

Gamblers who get big windfalls are said to spend twice what they won. And they ignore losses they take.

I think most would spend it, but I think some would save it. One million really isn't that much anymore. I could see many older people locking it away as a safety fund. When we have received windfalls like this in the past, the wife and I will choose a certain amount of "mad money" we can spend on ourselves but save the rest. Like we would each get 100K of the one million.

I do wonder what is considered "spending". If you take that one million and buy your dream home, free and clear, which is likely to increase in value, are you wasting it?

I also think most people would be broke, unless they are people who have worked very hard, saved, and understand that money is security.

One of the reasons why I consider myself a conservative is because I believe in helping people to help themselves instead of taking from one and giving to another. I've seen too many situations where wealthy parents buy their kids nice cars and whatever they want, then are shocked when the kid trashes the car and blows the allowance on crap that won't be worth anything in a year.

I think we'll be seeing lots of handouts soon for select individuals based on their identity and I predict it will not be money well spent on the whole. Hope I'm wrong.

IT starts with the parenting of the child....No free ride,allowance means work in exchange,U want a new I pod
then U work and SAVE the coins till U have the cost of the I Pod. WARREN BUFFET is a superior example,
he payed college tuition for his children...saying that is ALL the free money U will get....the rest is up to U, with your educational experience. IF U were raised poor,U KNEW what the value of $$$ MEANT....shut off the light when U leave the room,beans and weenies were a stable, velvetta cheese, Banquet pot pies,SPAM.
School clothes ordered from a WARDS OR SEARS catalogue (THE place to shop in Alaska,circa 1950,60.)
1 family car, big garden, YES U WILL FINISH HIGH SCHOOL and get your diploma.

Warren Buffet also set up his kids to run his various charities. They are well paid for this. He might feel like he can trust them better to do the right thing with his money as opposed to strangers.