Curious what people think is the better financial decision in this scenario.
You receive $1 million today and must choose between:
Buying a home outright for your partner and two children to live in for the rest of your lives
or
Investing the full $1 million and attempting to build enough wealth/income to eventually live off the returns
Assumptions:
- They are 20 years away from retirement
- They have no debt
- They currently have no retirement savings
- The children have no education savings
- Both adults are employed
If you choose investing, the goal would be to potentially retire early
If you choose the home purchase, the full $1M is used, leaving no mortgage and no remaining cash
From a strictly financial standpoint, which option would you choose and why?