You can retire on $1 million, invest it or buy some extravagant items. Your age, expenses, needs and wants play a critical role in how long the money will last over your remaining lifetime.
You could purchase anything from 25 frivolous parking spots in Manhattan to two blimps, but most people want to use $1 million to retire and have money for vacationing. Paying off your home is always a good investment and is highly recommended. Forbes recommends investing in up-and-coming stock sectors to see a return over time.
Retirement depends on your age when you come into the money and your level of expenses. If you are younger, your portfolio should become more aggressive and your risk tolerance should be higher. You cannot expect $1 million that you receive at the age of 20 to cover of your all expenses until turn 65. The most common mistake in retirement is failing to reduce expenses beforehand, leaving you scrambling for low-paying jobs or whatever work is available after you retire. Seventy percent of Americans who experience a windfall are broke a few short years after winning the lottery, according to the National Endowment for Financial Education. The best approach to handling the $1 million is a conservative approach.