More money makes people act less human

[Momus]

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I think I am one of them! 🙁

Dang, to be the 1% you need $14M now? -.-;

 

[Praefectus]

The creation of wealth has been a result of improving technological standards. If anything, this generation of value has made us more human since we enjoy luxuries like running water, indoor plumbing, and central heating/cooling.

 

[Stroganoff]

The creation of wealth has been a result of improving technological standards. If anything, this generation of value has made us more human since we enjoy luxuries like running water, indoor plumbing, and central heating/cooling.

Read the article. 🙂

 

[xf3rn4nd3sx]

Dang, to be the 1% you need $14M now? -.-;

Source? That doesn't sound correct.

 

[Momus]

Source? That doesn't sound correct.

Just based on the article... but simple search will give you this.

 

[YetAnotherPre]

I could have told you this. Most of the people I know with money are jerks.

 

[xf3rn4nd3sx]

Just based on the article... but simple search will give you this.

Yes, as I thought, the number isn't correct. The income to enter the 1% is just over $500k. The article says the 99th percentile for net worth is 19.1m. That is a separate statistic. The 99th percentile of net worth includes people with income below that of the 1% (people who inherited large sums of money, don't invest, etc.) Common sense will tell you that a person earning $500k will likely never have a net worth of 19.1m. Taxes and spending will eliminate 30-40% of that income. No way you need that much just to enter the 1%. Maybe the .1%.

 

[Momus]

Yes, as I thought, the number isn't correct. The income to enter the 1% is just over $500k. The article says the 99th percentile for net worth is 19.1m. That is a separate statistic. The 99th percentile of net worth includes people with income below that of the 1% (people who inherited large sums of money, don't invest, etc.) Common sense will tell you that a person earning $500k will likely never have a net worth of 19.1m. Taxes and spending will eliminate 30-40% of that income. No way you need that much just to enter the 1%. Maybe the .1%.

I did NOT say income. To enter 1% u need 10M+ networth. Income is full of crock anyway... if I have $1 income/year with 20M capital gain/year... why my income matters? I was talking about 1% networth.

By the way, you are a neuro surgeon. If you save 20k/month and you can, 8% compound annually (200 years stock data), you will have $27M after a mere 30 years. Mind boggling isn't?

 

[xf3rn4nd3sx]

I did NOT say income. To enter 1% u need 10M+ networth. Income is full of crock anyway... if I have $1 income/year with 20M capital gain/year... why my income matters? I was talking about 1% networth.

By the way, you are a neuro surgeon. If you save 20k/month and you can, 8% compound annually (200 years stock data), you will have $27M after a mere 30 years. Mind boggling isn't?

Sorry, I thought you were referring to "the 1%" (what the occupy movement was following), not actually the 1% of net worth.

And yes I am aware, but there is absolutely no way to earn 8% annually in this market after inflation (which is what matters). Personally, if I could get 8% annually I would be retired well before 27m and 30 years. At 8% that's over 2 million a year income, which is way more than I need.

 

[Momus]

And yes I am aware, but there is absolutely no way to earn 8% annually in this market after inflation (which is what matters). Personally, if I could get 8% annually I would be retired well before 27m and 30 years. At 8% that's over 2 million a year income, which is way more than I need.

Jeremy Seigel's 200 years of data shows stocks return 8% annually. Roger Ibbotson's 83 years of data shows stocks return 9.4% annually. Does it account inflation? No, it does not but $27M is $27M. Ibbotson's data shows inflation is only 3%.

"The four most dangerous words in investing are: 'this time it's different.'" Sir John Templeton, legendary investor and philanthropist.


This year? Stocks returns 11% year to date. Nothing changes.

 

[EctopicFetus]

Jeremy Seigel's 200 years of data shows stocks return 8% annually. Roger Ibbotson's 83 years of data shows stocks return 9.4% annually. Does it account inflation? No, it does not but $27M is $27M. Ibbotson's data shows inflation is only 3%.

"The four most dangerous words in investing are: 'this time it's different.'" Sir John Templeton, legendary investor and philanthropist.


This year? Stocks returns 11% year to date. Nothing changes.

Yes but the S&P (net of dividends) has returned -5.27% over the past 5 years and that takes into account the 9.9% it is up YTD.

The Dow YTD is at 6.7% at 5Y it is down 1.7%

 

[Stroganoff]

What's the point of a 5 year statistic when we're talking about 30-40 year horizons?

 

[Momus]

What's the point of a 5 year statistic when we're talking about 30-40 year horizons?

Some people have recency bias and don't know it...

 

[Dr. USMLE]

Jeremy Seigel's 200 years of data shows stocks return 8% annually. Roger Ibbotson's 83 years of data shows stocks return 9.4% annually. Does it account inflation? No, it does not but $27M is $27M. Ibbotson's data shows inflation is only 3%.

"The four most dangerous words in investing are: 'this time it's different.'" Sir John Templeton, legendary investor and philanthropist.


This year? Stocks returns 11% year to date. Nothing changes.

I agree in general, but $27m is not $27m. Today's $27m is roughly worth half that in spending power in 30 years when accounting for inflation. And like fernandes pointed out, that's what actually matters. The number itself is trivial.

 

[Momus]

I agree in general, but $27m is not $27m. Today's $27m is roughly worth half that in spending power in 30 years when accounting for inflation. And like fernandes pointed out, that's what actually matters. The number itself is trivial.

So, as an attending later, you think a safe withdrawal 4% of $27M, which is $1,080,000/year is not enough to retire for you in 2042? I am assuming you would not retire when you have 27M in 30 years then LOL. There should be a number for anyone when you can say "enough is enough". I guess your target is $100M in 30 years. What do I know.