00:00$1 million can generate roughly $30,000 to $50,000 per year in relatively low-risk income
00:06today, or more with added risk. The exact figure depends entirely on which instrument
00:11holds the money. As of early September 2026, the 10-year Treasury note yield sits around 4.78%,
00:18meaning $1 million in 10-year Treasuries generates about $47,800 per year in interest,
00:26and top high-yield savings accounts pay up to roughly 4.21% APY, yielding about $42,100 per year,
00:35though rates are variable and can drop. Ranked by risk and typical yield.
00:391. High-yield savings account, 4.2% APY. Fully liquid, FDIC insured up to $250,000 per bank,
00:48best for capital preservation, $1.4200 slash year, but rate can change monthly.
00:552. U.S. Treasuries, 10-year, 4.78%, 30-year, 5.25%, government-backed, fixed for the term if held
01:06to maturity, $1.47, 800-$1.52, 500 slash year, locks money up or requires selling at a market
01:14price
01:15if you need it early. 3. Dividend-paying stock portfolio, historical average 2-4% yield,
01:21roughly $20,000 to $40,000 per year in dividends plus potential capital appreciation, but principal
01:28value fluctuates and isn't guaranteed. 4. Rental real estate, typical 4-8% net
01:35yield after expenses, $40,000 to $80,000 per year is possible, but requires active management,
01:42has vacancy slash maintenance risk, and isn't liquid. 5. Annuities can offer contracted income
01:49streams, but fees are often high and terms vary too much by provider to give one number.
01:54This changes with context. A retiree prioritizing stable income leans toward treasuries or savings.
02:01A younger investor with a longer horizon can accept the volatility of stocks for potentially higher
02:07long-term returns, and someone outside the U.S. faces entirely different rate environments
02:12and tax treatment. Note that these figures are current as of this week and move with each Fed
02:18decision. Next announcement September 16, 2026. So treat them as a snapshot, not a fixed number.
02:25Practical step. Decide your time horizon and risk tolerance first. Then split the $1 million
02:31across two to three of these categories rather than putting it all in one, and revisit the allocation
02:37as rates shift. Finally, remember that everything we discussed today is for educational purposes only
02:43and does not constitute financial advice. Good luck to everyone, and see you in the next video.
