3 ms·

this is the crux. will it make your life any better? I'd say the law of diminishing returns applies here. 1 million will make you happy because you don't have

this is the crux. will it make your life any better? I'd say the law of diminishing returns applies here. 1 million will make you happy because you don't have to work anymore, 2 million will make you happier, but not twice as happy.

DaniFong 19y ago
It depends on what you're using it for. When I cash out, I'm considering putting much of my earnings into fusion research.
- huherto 19y ago
  Bad decision. You should diversify it is economy 101.
  - DaniFong 19y ago
    I meant I would fund my own research. Also, diversification is a decent passive strategy, but not one that you'd take if you were intent on making substantial gains. As Warren Buffet says, "no one ever got rich on their seventh best bet."
    - rms 19y ago
      Agreed, I want to get rich to fund my own research as well.
  - pchristensen 19y ago
    That sounds like funding a passion, not managing an investment. Your passions shouldn't be nearly as evenly diversified as your portfolio.
    - mattmaroon 19y ago
      Right. My thought is take $x, diversify to ensure that if all else goes wrong, I'm still set, then take the rest and do fusion research.
      - huherto 19y ago
        This sounds more sensible:-)
hhm 19y ago
Do you really think 1 million means you don't have to work any more? 1 million is 10.000 per month for less than ten years. Unless you invest them I'm not sure you can't stop working forever if you have that amount of money.
- suboptimal 19y ago
  I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the interest. Or if you can tolerate greater risk, pursue investments with higher returns, and/or expatriate yourself. The question is, could you stop working and retain your sanity? I wonder about people who achieve success too early in life--they have many years ahead of them and much to learn, and wealth in some ways may be a hindrance.
  - wschroter 19y ago
    People undervalue $1 million (or similar numbers) incredibly. It doesn't mean you don't have to work, but it pays for just about all of the things you end up working the first 15 years of your life for - house, furniture, "stuff". Once you've purchased all that crap, any money you make over and above that actually seems like a lot more because it's not going toward buying couches and bedroom sets. I made my first million when I was 22, and though it didn't keep me from working ever again, it basically paid for all of the things I needed. Anything beyond that has been incremental gains. It's a lifestyle changing amount of money.
    - hhm 19y ago
      Thanks you all for your interesting replies (all comenters replying to my original comment).
  - jey 19y ago
    Yes, but remember to subtract inflation from the expected return! 5% interest means you get like 2% post-inflation.

DaniFong 19y ago

It depends on what you're using it for. When I cash out, I'm considering putting much of my earnings into fusion research.

huherto 19y ago
Bad decision. You should diversify it is economy 101.
- DaniFong 19y ago
  I meant I would fund my own research. Also, diversification is a decent passive strategy, but not one that you'd take if you were intent on making substantial gains. As Warren Buffet says, "no one ever got rich on their seventh best bet."
  - rms 19y ago
    Agreed, I want to get rich to fund my own research as well.
- pchristensen 19y ago
  That sounds like funding a passion, not managing an investment. Your passions shouldn't be nearly as evenly diversified as your portfolio.
  - mattmaroon 19y ago
    Right. My thought is take $x, diversify to ensure that if all else goes wrong, I'm still set, then take the rest and do fusion research.
    - huherto 19y ago
      This sounds more sensible:-)

hhm 19y ago

Do you really think 1 million means you don't have to work any more? 1 million is 10.000 per month for less than ten years. Unless you invest them I'm not sure you can't stop working forever if you have that amount of money.

suboptimal 19y ago
I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the interest. Or if you can tolerate greater risk, pursue investments with higher returns, and/or expatriate yourself. The question is, could you stop working and retain your sanity? I wonder about people who achieve success too early in life--they have many years ahead of them and much to learn, and wealth in some ways may be a hindrance.
- wschroter 19y ago
  People undervalue $1 million (or similar numbers) incredibly. It doesn't mean you don't have to work, but it pays for just about all of the things you end up working the first 15 years of your life for - house, furniture, "stuff". Once you've purchased all that crap, any money you make over and above that actually seems like a lot more because it's not going toward buying couches and bedroom sets. I made my first million when I was 22, and though it didn't keep me from working ever again, it basically paid for all of the things I needed. Anything beyond that has been incremental gains. It's a lifestyle changing amount of money.
  - hhm 19y ago
    Thanks you all for your interesting replies (all comenters replying to my original comment).
- jey 19y ago
  Yes, but remember to subtract inflation from the expected return! 5% interest means you get like 2% post-inflation.