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Where this is all going to fall apart is when the stock market goes down or inflation takes off. You really don't want to be retired, out of the workforce for 1
by danieltillett 8y ago
Where this is all going to fall apart is when the stock market goes down or inflation takes off. You really don't want to be retired, out of the workforce for 10 years, and only have a million dollars in assets if either of these happens.
- nostrademons 8y agoDepends what your assets are in. You really want to have ownership of monopoly assets that are low down on Maslow's hierarchy of needs if this happens. That could be apartment blocks in metro areas where demand exceeds supply, or it could be Google/Facebook/Amazon stock, or it could be defense stocks (war is usually the inevitable result of hyperinflation), or it could be a successful local medical practice. The people who get fucked by inflation, in order of screwedness, are a.) people who depend on cash savings or fixed-denomination bonds for survival b.) wage workers in non-differentiated industries c.) commodity small business owners (eg. restaurant or gas station owners) d.) salaried workers in differentiated professions and e.) monopoly business owners and executives. There's also a separate debtor => creditor axis where inflation benefits debtors much more than creditors.
- firebones 8y agoNot necessarily disputing your second paragraph's financial/economic points, but if you're owning apartments (and managing them) or have a medical practice, you're not retired. That does say to me that a lot of this early "retirement" mythos is merely a euphemism for "non-traditional career downsizing." Nothing wrong with that.