A smart investor could use 400k tax free and set themselves up for life - would still need at least some part time work most likely, but it could work depending on your location. If you live somewhere that houses can be purchased for $100k, for example. Buy yourself a small one to live in, buy another one to rent. Maybe rent a room in your place for a while. After a few years buy another rental house. Within 10 years you would have 4-5 rental homes and your own house, all paid off, with enough income to pay all your bills and slowly build up savings.