pull down to refresh
10 sats \ 4 replies \ @Bell_curve 15h \ parent \ on: How Much Money Exists in the World Per Person? econ
3 million sounds about right
I know people who live in 2 million dollar houses but they also financed half of it
People in general underestimate how much they need to fully retire.
Inflation is easily 4% per year....so you need to grow your nest-egg at least at that level to sustain your wealth.
That means that if you can earn ~9% in market, and re-invest 4% that gives you 5% per year to live on (about 150K per year).
reply
my mother is a 'millionaire' on paper but all of her wealth is tied in real estate. She gets cash flow from her real estate and also collects social security but she doesn't have 3 million in liquid assets. In addition she has to pay property taxes and has debt financing close to 600,000
The point is she is not 'rich' because of debt and lack of liquidity
reply
In the 90s, I knew someone whos parents owned something like 300 acres of land. It was farm land that they leased out to farmers....the made a decent income from rental but definitely only like middle-class income.
Their parents died and so was left to him. The "exemption" was something like 500K....and the 300 acres were probably valued at $1.5M....so he was hit with a tax bill on the $1M.
Obviously this forced him to sell off the land. Its how the gov destroys familial wealth.
Thankfully I think the exclusion is much higher now.
reply
the threshold for estate tax is now 13.9 million, set to revert to 5 million in 2026 unless Congress extends them
The estate tax should be repealed
reply