I suppose it depends on your lifestyle but if you aren't spending money like crazy or have an abnormally large family, then yes, that is generational wealth, especially if you are my age. That 40 million earning a conservative 7.5% a year would be making me 40+ million every year by the time I died.
I would say substantially less money than that would be considered generational wealth for anyone who isn't a total moron
You’d have to be a fucking idiot to blow all of that money without turning it into even more money so yes
I like playing the game where I imagine how I would live with x amount of money. $30 million invested, assuming a conservative rate of return of 5%, would be $1.5 million before capital gains taxes. You could live pretty comfortably off that if you don’t spend the other $10MM like an idiot and accrue a bunch of exorbitant recurring expenses.
Of course. You’d have to be monumentally stupid with money to not have that give your family wealth for generations to come. any moderately competent money manager would be able to have you live comfortably off interest and dividends without touching the principal (let alone growing it substantially).
Maybe I should’ve started with the most important question - what kind of candle budget are we dealing with here?
Absolutely should be. Look at professional athletes that have invested and were financially responsible.
Let's just say 3 kids and each have 2 kids, that's over a million in college tuition. 2 million in private school tuition. Let's say they're all girls, there's a million in wedding costs. Now we're broke
definitely, yes. but it's also within the range that you could rather easily blow it with mismanagement and poor spending.
Never heard of this poster and checked the post history. Should’ve known this idiocy originated in the shitpit.
I’d like to change my answer. $40 million is not generational wealth to the median Barstool sports fan due to all the legal fees and payouts from the myriad date rape allegations.
The actual claim was that selling a family business for $40mm wouldn’t result in generational wealth. So, we weren’t starting from a $0 net worth.
Dumping 40 million into a dividend paying index fund would pay you a minimum of 2 million dollars a year to do nothing 2 million a year should be enough to support anyone who isn’t a complete degenerate
I’m a reformed degenerate, but with that kind of money I would probably degenerate back into degeneracy.
Define generational I mean if I can make enough off it to pass it on to my one heir, that's a generation right there Say he starts a half way decent lawn mowing business and has 3 kids Investment money left from original, plus a fairly decent income from personal investment business etc, he's lived a pretty good life and been able to raise 3 kids in the upper tier of local society That's another generation Those kids all turn out to be shit heads, take all.money out of Investment and blow it on yacht trips and shit for their friends, yea well that's on them, but the initial 40 million made it through generations
One of my favorite lottery stories is the British sanitation worker that won the lottery, and blew through all of it on drugs and hookers over a few years and was then right back to picking up garbage. They asked him if he would’ve done anything differently in hindsight and he said no.
Are we under the assumption that the person/people in question are 1. Living a relatively normal lifestyle (something like $100k a year in expenses) and 2. Using the common financial tools available to increase that wealth (mutual funds/stocks/etc.)?
I mean I remember when Emmitt Smith was asked One year why he kept on playing for a different team, with nothing left to prove and only wear and tear on himself to gain His response was something along the lines of, if I can play one more year and set up one more set of grandkids for their life, I will do it every time