It probably depends on how big the family is. Rule of 4s says you could take out $1.6 million out per year without reducing the principal. Let's say you can make another 2% in dividends with an indexed etf...that would be $2.4 million and it should outpace the withdrawals. It's generational wealth in that a lot of people would be able to get a lot of money indefinitely. Probably not enough for generations of kids to live without working though
You can't reference the "rule of 4" and then also magically assume you have allocation into dividend-yielding assets. That's not how this works. That's not how any of this works.
Had it on my to do list today to do this exact math even down to using 1M take out in my example. TYFYS, but you forgot to include how much college costs by the time the money gets to the grandkids. Also, kinda unreal to know this math and how often people squander this exact scenario within 20-30 years. Although TBH, I’m not sure I’d go to the grave with 40M still in the tank. There’d be some fuck it spending along the way.
I agree with Japan. Japanese culture is really amazing. I do not agree with NYC or Paris. Paris and France as a whole might be the only place I’ve ever been with people more unhappy at all times than New York.
Sure you can. I acknowledge that it's lazy math and not how the rule was constructed. Since 1980, the s&p has had 15 years with less than 6% returns. 26 with double digit returns, 14 with 20+% returns. 10 years had negative returns. I'd be comfortable throwing it all into a dividend yielding, passively managed s&p etf, and taking the 4% + the dividends. I'm not a broker recommending someone else do it... just saying I'd like my chances.
Yeah, wasn’t a big fan of Paris and that was a big reason — general grumpiness and overall inefficiency.
There's a high chance College in 80 years will consume most of the half trillion in the primary trust. Checkmate ha Yeah, compounding interest is amazing. Once it gets to a certain point you can be a little more frivolous with your spending. But at 84k a month pre capital gains taxes, you're living a fucking life
you'll certainly see a fraction of it might be a very small fraction when Joby hits it big I'll tell you all how I'm spending my millions
Slow pace in eating and hanging out at cafes is fine. Running out of beer at the center court concession stand during the second set of Alcaraz-Korda was not fine.
If you’ve got $40M and don’t get a Tuscan villa, you’re doing it wrong. Gelato, pasta, and wine all day ery day. The most beautiful countryside I’ve ever visited.
If I’m the executor in charge of expenditures, yes. My children’s children will be set. If my wife has the keys, we’re all working until retirement age. I’m seriously considering poisoning the well and having the “why don’t you leave your money to your grandson?” Conversation with my in laws.
So are you the second or third generation in your previous hypothetical? If it’s third then I have some opportunities for you.
My point was that I understand it deviates from how it was constructed, but I'd feel just fine with the math for my own money based on everything I posted.
the math was very unrealistic but the principle he is communicating is true some people itt too reliant on future value calculators which assume unrealistic linear growth. Idk where you'd find a free site or app that does Monte Carlos but that would produce a much more realistic result (as well as software that would take taxes into account).
It's so true though I know several people whose family's sit on hundreds of millions of dollars in land and they can barely afford to keep a decent car running One family I know, the patriarch is finally considering selling the 500 acres of land that currently 4 generations of family live on (has been in the family since like 1900, but he is trying to figure out how and where to buy a similar sized piece of land just farther out with literally all the money he sells it for so they can all move their trailer houses out to it