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Quick back of the envelope: let's define angel as someone who can write 10, $25k checks a year. Let's say they have a yearly lifestyle expense of $250k, so they
by arohner 10y ago
Quick back of the envelope: let's define angel as someone who can write 10, $25k checks a year. Let's say they have a yearly lifestyle expense of $250k, so they need to make $500k/year off their wealth. Then, assume they make between 4-8%/year on their investments. so that's $6-12M in the bank.
- ThrustVectoring 10y agoI usually just multiply the yearly income stream by 20 rather than futzing with rate-of-return calculations. It's way easier for napkin math and gives about the same answer ($10M in this case).
- arohner 10y agoAgreed, I was just showing my work.