This is just another way of describing inflationary pressures, isn’t it?
Many people I know may be “millionaires” by certain ways of calculating net worth, but it takes a lot more than $1M in assets to afford a lifestyle commensurate to what people envision when they hear the word “millionaire”…
but it takes a lot more than $1M in assets to afford a lifestyle commensurate to what people envision when they hear the word “millionaire”…
Being “a millionaire” ain’t what it used to be. If you wanted to quit your job right now and just live off the dividends of your $1m, you could safely pull about $44k/year and never touch your $1m, meaning you’d never run out of money and always be able to take out $44k/year.
On one hand: “thats awesome! Money forever!” True.
On the other hand: $44k/year is equivalent to a job that pays $22/hour. Certainly not horrible, but that’s not livin’ large.
Further, inflation will continue to eat away at the value of your money and you’re taking all your earning every year, so it will never grow. My guess is, 40 years from now $44k/year would be considered wages below the poverty line.
Keep in mind, this is the path if you never want to touch your $1m. If you’re willing to “pick a date when you will run out of money” you can take larger withdraws greater than that $44k/year. This is the big challenge for retirees. You have to decide when you’re going to die so you don’t run out of money before that.
You can’t retire comfortably in many parts of the US with only $1M in your investment portfolio.
I asked 32,000 homeless veterans about how they felt about this, and they all were super-psyched!
How many more poors did we mint?
Pfft…
Millionaires are a dime a dozen these days…
Get over $500M, now you’re starting to get somewhere.
🤡 🫏 🖕 💩
deleted by creator
Gotta love that inflation
Likely the result of the last 2 years of gangbuster returns on the stock market.
Lets say on Jan 1 of 2023 you had $633,362 invested in the boring S&P500. Without putting another penny invested it would look like this:
- at the end of 2023 your investment was worth $799,872
- at the end of 2024 your investment was worth $1,000,001
c/nottheonion
The US has nothing on Zimbabwe.
So, over half of all new millionaires worldwide were in the U.S. Wow!
