Personally, I'm looking to pay off my house, pay off the car, and then save up ~$2M in cash (Could happen quickly if the options in the startup I work at pay off, which based on current growth is very likely), then throw that $2M into an index fund and retire.
Maybe in retirement, I'll actually feel like I have the time to get some work done on personal projects. I have ideas for things I want to make that could make a couple dollars, but I'm tired all day and don't want to spend my limited free time working.
As a guesstimate for California…. If you get 5m, taxes will take a third of it, and a house will take 1-2m. Which leaves you +/- on the 2m to invest. If you’re not into heirs, you can reverse mortgage.
Remember, I'm operating under the assumption that the house is already paid off. Right now, I've got about $250K left in my mortgage. Property taxes aren't too bad, about $4K/year.
That $2M is also assumed to be after taxes from selling my options, but I acknowledge that any gains from the index fund will be taxed.
> But take a pro tip: health care costs add up.
Yeah, this is likely the expense I'm not planning enough for.
But also, as I said, I've got projects that could make money. Also, my wife has stated before that she wants to work to avoid boredom, so she'd keep working, though she'd cut her hours to work 2-3 days/week.
But on the other hand I do believe you can prevent blowing up if you are willing to live lean when the economy is doing bad (the standard assumption is that you keep increasing your spending in line with inflation even as your portfolio craters).
The thing is, money can be exchanged for just about everything else. So in peoples' thinking, money stands for everything else, and everyone has a "something else" that they want enough money to get.
I think, though, that people want four broad categories of general things. They want security, they want identity, they want satisfaction, and they want rest. The last two you can have enough money to be set for life. Security you kind of can, but (I suspect) you always worry about a big enough black swan and whether you're diversified enough.
But if you're looking for identity, money will never be enough. You're always looking up at someone else who has more money, or a bigger yacht, or a more successful sports team. (Or so it seems to me, someone with nowhere near enough money to try to find my identity there.)
I think the point is more. A lot of Money needs a lot of effort to manage it. Alone if you realize that optimizing taxes could have a huge impact, which kind of pushes people to choose tax friendly jurisdictions. I mean its like why should I pay billions of taxes if it is possible to avoid them. So the pressure is huge. Then if you are owning companies, that means a lot of management as well. So of course you could just say „fuck it“ , but it is not an easy call.
Retired people can contribute to their communities, in ways that return psycho-emotional rewards, supporting the real economy and themselves, and reducing waste from consumerist materialism.
I feel the same way, but... when I was younger I always thought that if I could ever get to the point where I made half what I currently make, I'd be "set for life". Now I make twice that much and... it's still somehow not enough. So maybe you and I think a billion is plenty and maybe they thought that until they got to that point.
CoL isn't too bad here, especially if you're operating under the assumption that the house is paid off.
the root of all evil is not money. the root of all evil, is requiring humans to have money to live.
i aspire to require the least amount of money to live happily ~ combined with some money, that's true freedom.
True, but there are plenty of safe investment options if you're willing to have lower yields (CDs, bonds, the S&P, given time). Of course anything can fail, but that applies to everything and everyone.
> you certainly can't leave it in cash otherwise, you'll lose 75% in just 14 years.
I'm not familiar with this stat. How is this calculated? Inflation and expenses?
Rule of 70: the formula goes like this 70/percent = # of years.
So if you assume inflation is 7% over the long term then 70/7= 10 years to loose half and 20 years to keep 1/2*1/2=1/4 (lose 75%)
You don't need $20Mil to live.
> lose 75% in just 14 years.
What currency had 400% inflation in 14 years?
I read his books and thought they were kind of interesting, but it always felt like he was just saying random absurd things that he didn't have to defend because it was his book.
When I started reading his twitter account I realized this is true. He makes ridiculous statements like he is an authority on all possible things, and blocks and berates anyone who dares to disagree with him in even the slightest way. He is basically a troll.
He basically made one lucky bet in his trading career and then pivoted to making money by telling everyone how smart he is.
He is probably a lot more bearable in person and drunk. (Provided that you don't stay sober either.)
I suppose most people are better in person than they are on twitter - I should stop reading people's twitter accounts :D
Too much confusion between fame and wealth - the author tried to disambiguate, but I don't think they succeeded.
"If you are "publicly rich" (think athletes, authors, movie stars, politicians, etc.), you no longer have a private life." - isn't this true for most public figures regardless of their wealth status?
https://mleverything.substack.com/p/whats-the-point-of-f-you...
