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What net worth is required for you to have the mindset “money is just a number”? multimillionaire? decamillionaire? billionaire? TC: 250k
At ~$250k right now, single and already feel this way. Einstein said the collection of wealth is the most contemptible thing and I totally agree now.
I used to feel the same way and never bothered about money. But once I started a family and experienced some burnout I am realizing the importance of wealth accumulation
Nobody wants to have to work until they die. Einstein was probably fine with that life path for himself though
It depends on your personal threshold in which what you earn vastly exceeds what you'd like to spend. I probably passed this threshold around 150K/yr.
Single person? Like 1.5+ million. Family of 4? 5 million. From 10 million, 10% increase in a year is $1 million.
As cool as $10M sounds like, I feel that it won't be enough to retire on these days
It's only May and S&P500 is up 8.2% YTD. That's $820k increase in 5 months. Last year with dividends was 26.29% so $2.629 million if you have $10 million. Uh... The median 25 year CAGR including recessions is 10.4% CAGR. So average of $1+ million a year return when you factor in down markets. Just what lifestyle do you need to live to retire? Presuming 3.5% inflation adjusted withdrawal would basically be pertual, that's $350k a year. And this is LTCG, not income tax. So the money goes much further. Unless your retirement lifestyle is yachts and private islands (in which case, you need hundreds of millions), everything else is far below $10 million lifestyle.
Crucial mistake in this calculation is that while stocks appear to increase your NW, inflation increases prices as well, negating much of your gains
$10M - you can live a comfortable life and never run out of money. A million dollars per year falls from the sky into your bank account. $100M - you and your children can live extremely comfortable lives and never run out of money. Ten million per year and your NW doesn't go down. $1B - your great grandchildren can live extremely comfortable lives and never run out of money. Your yacht is in Monaco, your private jet is in the Hamptons.
They come with their cons 10m - you don't really feel rich, but you know you are wealthy. You are scared by lifestyle creep and might become obsessed with other or neighbors more rich and successful . High risk of "if I just had x more" 100m - the hedonistic treadmill has nothing more for you. Without purpose you risk depression. You are likely constantly challenged by fear of being assaulted or taken advantage of, and always worrying about your and your family safety. You either find meaning or you'll freak out thinking that one day it'll end and you'll be a handful of soil like everyone else. Connecting at human level is harder because of your status. Your peers are probably a few tens of thousands, so you need to embrace and follow that circle and habits 1b - all the above, plus likely more existential crisis and worries about your descendants and how much you'll lose when you are old and then pass away. Your peers are in the thousands world wide and with less diverse mindset and background Tldr; more money more problems. Personally I think the sweet spot is 5-10m in a mcol. Far from rat race, no financial stress but you are still ok living like a middle class
Yes, individual results may vary. I'm confident I could make the best of any of those three. Others might not.
At some point it’s a nuisance, somewhere between 10 and 100.
30 to 100 is when it earns faster than you can easily spend.
If you plot current NW versus what that person thinks it takes to retire, you'll see a correlation I suspect. Something like 5x of current NW.
-10M