Let’s do a thought experiment. Everything is hypothetical so please don’t drill me on the small details. Okay here we go: - You own 30,000 shares of company Z. - The company files to go for IPO. Out the gates the price is $30 per share. Boom, overnight you’re nearly a millionaire if you’re decide to sell (before taxes). - But you understand that the price is supposed to go up exponentially in the following years; it’s almost a 90% chance that the price by next year is $300. You’d have nearly 10M before taxes... So here’s my question for all you Blinders, what would you do? Take the near 1M, or wait for the 10M? I’m curious is 10M even that much in today’s world? I mean everything in California is so expensive, for a good sized house in SoCal you are looking at 2M. Then there’s the cost of living, IRA, taxes... I just feel like no matter what we will be working forever, so light as well just take the 1M and run instead of waiting for 10M? Thoughts? This is probably not written out very well
You could take the $10m move to a low cost living area and live like a king
But let’s assume your whole life exists in that high COL and you don’t want to move
That’s just stupid
Oh this is a brilliant question. Considering the described circumstances and the rising cost of living, I'd start working on my spiritual self, learning about what matters in life and what brings us happiness. Because as you said (and you're correct on that one) it'll never feel "enough" for luxurious life. Do you think when you'll have 5 villas and a private jet, you'll feel good and accomplished? Wrong.. IMHO we should concentrate on the aspects of life that really matter (family\friends\compassion\contribution to others\gratefulness for what we have). TC 140, yoe 12. Happy and don't want 1M or 10M neither. =) . Want 200-250 though. Lol I'm not spiritual enough as well 😂 gotta keep working on that. But hey I'm almost there.
This is so anecdotal though. I don’t care if I’m shallow. Money me a money money
I’ll probably cash most of it out at 6-7 million, call it a day and move to Bali. My nerves won’t hold all the way up till 10 mil.
But why man, america is pretty great to live in
😆 lol
I do not believe a stock exists that has a 90% chance of going up 10x in a year. Any investment that had these sort of odds would be a no brainer to go all in on. That being said, the more realistic situation is you believe that the company will do well in the future. In this case you would keep a percent of your holdings in company stock and sell a large chunk of it realizing your gain. Take that money and put it in a diversified portfolio.
I disagree with your premise, 90% chance of anything happening is unrealistic. Regardless you ain't for 100m and settle for 10 if you have to. 1m doesn't do anything other than cover a down payment on a mid tier house.
So really if I’m not gunning for 100m then it’s not worth it
Once you have 10 you will quickly realize how much you need 100 :)
10MM = 400k per year at 4% safe withdrawal. That puts you in the top 1% income just with passive income.
That’s only 25 years of 400k withdrawal. What do you do when you run out
https://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ Over the entire history of the stock market, including al financial crises, you can withdraw 4% while your money grows, on average, at 7-8%
Cash out half and ride the other half for another 5 million.
Have fun now on half and inflation proof the other half. With the high housing inflation and health Care etc inflation and tariff inflation, you will need the other 5 million
Wait for like 2M, buy a 250k apartment, invest in index funds and take like 65k/year in interest payments and work part time as a reporter. I'm rich and doing what I want. Sounds good to me.
Why reporter though? O_o
That was my dream job in college! Had to give it up because family/kids but it's great to go a lot of places and meet new people and write all day long. I love it and would love to do it professionally if it paid well.
I guess what I mean is how much do you need to live ‘luxuriously comfortable’? As in, how much does it take to own a sizable house in high COL, not work, still shop at Whole Foods and travel the world for fun???
Why bother living in high COL though? Once you no longer need to work, might as well find somewhere you like that isn't obscenely expensive
Lets assume your whole life is there and you don’t want to move