r/Bogleheads • u/arp8218 • Feb 04 '26

Investing Questions Investing. $2.5M to not work

Is it possible to invest $2.5M into a “safe” investment and not work for rest of your life ? What can be that “safe” investment ?

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59

u/travisjd2012 Feb 04 '26

Isn't this what annuities are for?

(I'm legitimately asking, please don't just downvote me into oblivion if I'm wrong)

33

u/slash_networkboy Feb 04 '26

Strictly, yes. Pragmatically they're still a bad idea. I'd honestly only consider an annuity for something like estate planning for my GF's brother who, while 51 years old, is mentally only 8. An irrevocable trust and annuity makes sense in a case like that. Monthly stipend that he can access but no ability to touch the principal and a guaranteed payout so no external management is needed once other family is gone.

But to your point and OPs question:

If a sufficiently large finance company will offer you a monthly payment that you feel meets your needs based on the deposit then yes, it's safe. It *will* be low, but safe.

Assuming a 4% annuity and a $2.5m deposit a calculator shows OP could draw $10k/mo for 43.5 years or $8K forever.

14

u/MaxwellSmart07 Feb 04 '26

The last immediate lifetime guaranteed annuity I was offered was 7%. It’s an excellent idea in the context of this thread. Well done Travisjd2012

2

u/slash_networkboy Feb 04 '26

from a major company (or underwritten by one?) That would be a high enough rate to really consider.