How much would a person have to make to recieve 300K a year in interest?

Question

People have trust funds and that type of stuff. I have a friend that's making $300,000.00 a year (after taxes). I just wonder how this could be done and just how much would a person have to have in a bank to make that much.

I know he gets a lot from CDs.

Just wondering?

Thanks, Mike h.

Yes, I am nosey before you say it....

Answer 1

Before taxes he must be making between $400,000 and $450,000 to net $300,000.  At a 5% average rate of return he would need $8 million to $9 million.  At a 10% average rate of return he would need $4 million to $4.5 million.

This is very rough, but you get the idea.

Answer 2

Well what is his interest rate = assuming it is 5% he would have to have 6 MILLION!!!!!!!!

OMFG!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...