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>I need to draw 2 million a year because my Porsche, Hummer, NetJets subscription, mansion and constant vacations are expensive and you said I'd have 2mill on a

>I need to draw 2 million a year because my Porsche, Hummer, NetJets subscription, mansion and constant vacations are expensive and you said I'd have 2mill on average. I'm really not sure what point you think you're making here? Yes, if you spend too much, you'll lose your money. So don't spend too much.

IanDrake 9y ago
I'm not really sure how else to explain it to you. If you were given 25 million right now what would you do? Your initial claim was you could put it in the SP500 and "make an average of 2 million per year (8%) without doing anything". But then I showed you that market timing plays a major part in how well that average will work out for you. So, what are you going to do with that money to live the rest of your life with no work and how much will you spend per year knowing that huge income volatility isn't a realistic life style? My point is, it's not nearly as easy as you've expressed.
- deleted 9y ago
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- IanDrake 9y ago
  @aninhumer I guess "making" money and income are somehow different in your book. You're sighting a lot of conventional wisdom that I've heard before. You won't find many success stories that followed your advise. If you ever talk to people who actually live off their wealth don't be suprized if you find that they're not sitting back on the SP500 with a 4% drawdown. They're most likely active investors working hard (not physically, as none of us do here anyway) to make money with money. Edit: this was in response to a post that has been deleted.
  - aninhumer 9y ago
    Sorry, I deleted my comment because I was going to reply to another one you made with a clearer argument. >I guess "making" money and income are somehow different in your book. I guess I should say consumption or drawdown rather than income. (My point is the capital still grows by an average of 8% even if you shouldn't spend all of that.) >You won't find many success stories that followed your advise. Do you have evidence that people who are doing this are failing, or do you just mean that I won't find evidence of success?

IanDrake 9y ago

I'm not really sure how else to explain it to you. If you were given 25 million right now what would you do? Your initial claim was you could put it in the SP500 and "make an average of 2 million per year (8%) without doing anything". But then I showed you that market timing plays a major part in how well that average will work out for you. So, what are you going to do with that money to live the rest of your life with no work and how much will you spend per year knowing that huge income volatility isn't a realistic life style? My point is, it's not nearly as easy as you've expressed.

deleted 9y ago
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IanDrake 9y ago
@aninhumer I guess "making" money and income are somehow different in your book. You're sighting a lot of conventional wisdom that I've heard before. You won't find many success stories that followed your advise. If you ever talk to people who actually live off their wealth don't be suprized if you find that they're not sitting back on the SP500 with a 4% drawdown. They're most likely active investors working hard (not physically, as none of us do here anyway) to make money with money. Edit: this was in response to a post that has been deleted.
- aninhumer 9y ago
  Sorry, I deleted my comment because I was going to reply to another one you made with a clearer argument. >I guess "making" money and income are somehow different in your book. I guess I should say consumption or drawdown rather than income. (My point is the capital still grows by an average of 8% even if you shouldn't spend all of that.) >You won't find many success stories that followed your advise. Do you have evidence that people who are doing this are failing, or do you just mean that I won't find evidence of success?