Can The Clients Live off Interest on a Million Dollars?

Yes, clients of mortgage brokers do have the potential to successfully live off of the interest on one million dollars. In fact, one million dollars is typically considered the amount required for an individual to successfully retire and live off of interest. However, this answer will vary based on the amount being invested over a varying time period. 

If one million dollars is deposited by a client through a term deposit, they can potentially earn a fixed interest rate. It would be a good decision to invest funds for as long as possible to achieve the highest interest rate possible. Unfortunately, if an individual decides to frequently receive the interest incurred rather than letting it accumulate, they will face lowered interest rates. 

A client who has deposited one million dollars into a savings account and let their interest accumulate for five years can earn up to $41,500. One million dollars deposited into a savings account with a high-interest rate can earn up to $100,000 in five years. 

Lending establishments and mortgage experts across Australia highly recommend that an individual meets with a financial professional before making any big decisions with an amount of money as large as one million dollars. A financial expert will be able to assist with researching and comparing the various interest rates and investment options to successfully locate the best option that matches the client’s retirement plans and goals.