@Null watched your livestream finally from last week and you sent up my autistic signal for his investments. So I ran the numbers for you.
For these numbers, I made the following assumptions (basically made his savings account as beneficial as possible and the dividend ETF as terrible as possible).
-The investment started January 1st, 2020
-Contributions every month was $13,000 for 76 months (adds up to $988,000 of total contributions which is close enough to $1 million). This contribution amount allows for him to spend his money on daily life, taxes, insurance, booze, fast food, etc.
-The savings account is at 5% the entire time (laughable. Much of the past 5+ years was dealing with low interest rates and he would have to be moving this money from different accounts constantly to keep the interest rate at 5% while also splitting it up enough to be under the FDIC limit of $250,000)
-First run is with the $13,000 monthly contributions to match the Dividend ETF. Second run is with $1,000,000 deposited right away and not touched.
-The ETF chosen is the Schwab U.S. Dividend Equity ETF (SCHD) for more dividends and less growth
-Every $13,000 contribution would be deposited and buy the ETF the 1st of the month. It would also buy the ETF shares at the highest ETF share price for that day (giving him the lowest potential amount of shares in this scenario).
-Dividends payed out would be reinvested in the following month along with the $13,000.
Scenario A- Monthly deposit Savings Account
Total Contributions - $988,000
Total Interest Earned - $167,313.02
Total Value as of April 29th - $1,155,313.02
Scenario B- One lump sum deposit Savings Account
Total Contributions - $1,000,000
Total Interest Earned - $356,541.61
Total Value as of April 29th - $1,356,541.61
Scenario C- Dividend ETFs Monthly Contributions
Total Contributions - $988,000
Total Dividends - $137,174.37
Total Value as of April 29th- $1,399,329.25
Scenario D- For better comparison on the dividend ETFs vs Savings account, I also ran a 1 mil buy in at the same time with dividend reinvestment
Total Contributions - $1,000,000
Total Dividends - $307,482.53
Total Value as of April 29th- $1,959,500.22
Income for the rest of the year. Assuming he takes dividends out when he earns them and he takes out interest at the end of the year
Scenario A- $38,196.44
Scenario B- $44,849.35
Scenario C- $35,506.03
Scenario D- $49,719.59