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If You Suddenly Came into More Than One Million Dollars and Have Exactly 10 Years Left to Live?

If You Suddenly Came into More Than One Million Dollars and Have Exactly 10 Years Left to Live?

“If you suddenly came into $20,000,000 and the same day you found out you have exactly 10 years left to live, how would you begin living your life?”

This is called the “20/10 question” and it’s one of my all-time favorites when working with clients.

Most people say things like “I’d quit my job and go traveling,” or “I would take my family around the world” and one very amusing response “I would buy my own cruise ship.”  Unfortunately for the last girl, we ran the numbers and found that $20 Million was NOT enough for her to enjoy a private cruise ship, though for the next ten years she could cruise almost non-stop and be okay.

What’s odd is what people who find themselves in this situation ACTUALLY do.

When someone gets this kind of money, they are far more likely to KEEP working than QUIT working.  The reason is quite simple: sitting around on vacation all the time is boring.  Very, VERY boring.

Sure, enjoying a drink on the beach for a couple of days is nice, but there’s only so much sun, swimming, and Anne Rice novels you can read.  After a while, you need something to DO.

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The second part of the question “10 years to live” provides a sense of urgency to the equation.  This helps us get rid of safe answers like “I’d invest in real estate/gold/tulips” or “pay off my house and put it away for retirement.”

If we know that our life is short, we choose to live a little more recklessly because we understand we can’t take that money with us.

Now, you may be wondering “Trent, what does this question actually DO for people?”

Why Should I Ask Myself This?

The answer is simple: it’s the way truly successful people approach life.

The vast majority of us will go to work with the plan to earn a steady pay check every week for the next forty years so we can retire and enjoy our grand-kids for the last 25 years we’re alive.  We might retire in Florida with other people in their “young 60s” and relax, but that’s usually the most exciting decision we’ve made in a long time.

We operate on the premise of “save now, play later.”

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This is a broken idea because it’s based on two flawed assumptions:

1) it is difficult to amass enough income early in our working years to enjoy ourselves without working constantly

2) we will have a “later” to enjoy

Let’s tackle the first assumption: earning enough income to enjoy your life early is difficult.  This isn’t really true, depending on what you consider a comfortable life.  Many times, we associate material possessions with happiness, so we work to buy “stuff.”

John goes to work at a job he doesn’t really like but which pays $70k/year.  With that money, he, his wife, and their three boys share a nice 3400 sq/ft brick home in a nice neighborhood.  He drives a nice car and his wife has the SUV.  After all the bills for said house, cars, kids, and other various bills add up, John can put back $7,000 year into investments for retirement (10%).

Does John sound like someone you know?  Maybe someone you see every day?  He should: he represents 60% of the American population.

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The problem with John is that there will never be enough money or “stuff” to provide the happiness he wants.  There will always be a new car or some nice addition to the house to purchase, which keeps him working at his less-than-satisfying-though-well-paying job.

The sad fact is, research has shown John would be just as happy living in a much cheaper 1800 sq/ft home with much cheaper vehicles.  People aren’t happier based on what they own; they are happier based on what they DO.

The second assumption: when we retire we will enjoy the benefits of a lifetime of hard work.

This is also false: depression is one of the major issues facing retirees.  When you’ve spent 30 years in a routine, even one you hate, finding yourself with nothing to do will leave you feeling useless.  No amount of Bridge can make up for a lack of purpose.  If you wait until retirement to enjoy the “fruits of your labor” you will miss out on life’s most enjoyable moments.

What’s the Solution to Life Enjoyment?

Do what successful people do: find something you would do for free and get so good at it people will pay you for it.

I have two friends which are stark examples of the effects of these philosophies.

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James is a very successful salesman.  He works for a company he doesn’t really like, dealing with issues he doesn’t really care about, and makes a very lucrative income doing it.  He diligently goes to work every day and his first thought is about when he will get to leave.  He has a very large house and nice cars, and his kids are taken care of.  He feels he’s “doing what he should.” If a company offers him better pay and benefits, he will probably take it to make some upgrades to his house and cars.

Kevin is on the opposite end of the spectrum.  After graduating college, he couldn’t find a job easily.  He started building furniture and signs in his shop as a way to pass the time.  He sold a few to friends and neighbors, eventually deciding to create a business out of his hobby.  He wakes up every day with ideas on what he will make and goes to work with excitement.  His wife is a schoolteacher who loves her job as well.  They live in a modest house with their little dog.  They love cooking together and hanging out with friends.  They don’t have a lot of extra money, but they can afford to live comfortable and take vacations during the summer.

Who do you think is happier?  Who stays awake at night stressed about work and dreading the alarm clock?

Now, here’s the million-dollar-question: which one sounds more like you?

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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