4 ms·

$1m US gives a 5% roi over 10 years. That's $50k, not exactly a comfortable life for most people. $10m, sure, you should be able to net $200k while still toppi

$1m US gives a 5% roi over 10 years. That's $50k, not exactly a comfortable life for most people. $10m, sure, you should be able to net $200k while still topping up your fund to cope with inflation, so you'd be well off.

adrianN 8y ago
The median income where is live is lower than 50k. If I had ten million I'd just keep it under my mattress. I expect to live for another seventy to eighty years. I don't need 100k a year to be happy.
- kzrdude 8y ago
  Good point. A fraction as just money (10-25%), not invested in anything, is a careful and stable investing strategy anyway.
- isostatic 8y ago
  Aside from the risk of theft/fire etc, you're also running the risk of rampant inflation. You should have a variety of investments in different economies. If $bad_politician gets in and turns the US dollar into the Bolivar, your 10m will be worthless. If you've got 20% invested in other countries you're running a much smaller risk, likewise with investments in other assets Don't put all your eggs in one basket, don't put all your files on one raid, and don't put all your assets under the mattress.
- a008t 8y ago
  And is the median life comfortable?
  - adrianN 8y ago
    Yes. Especially if you get the median income not from work, but from your assets.
    - isostatic 8y ago
      It gives you a great safety net. It lets you speculate in the great game. 9 in 10 ideas will fail, but that's ok as you won't end on the streets. Those without the safety net have far more to risk, so are far less likely to succeed. For every richard Branson who starts up a company from the back of their van there's 9 who do that and fail, and are currently on minimum wage stacking shelves. For every millionaire actor there's a thousand waiting tables. For every musician there's 100 teachers. Very little to do with how good they are, all to do with the lucky break. Hell where your parents live makes a massive difference. When you start out with a job in the big city, you either live rent free with parents and thus save £10-15k a year, or you put your entire wage to paying bills. After 5 years you have 70k, enough for a confortable deposit on a house, or a few years of speculation, or investments that will grow to half a million by retirement. If your parents don't live close to where you start your career you're far more hand to mouth.
Danieru 8y ago
That five percent is net inflation already right?
jannyfer 8y ago
Index funds are closer to 7% per year, I believe.
- kzrdude 8y ago
  Great for the long run, but they also have bad years. Global index funds also gave net 0% in the interval 2006 to 2012, since the financial crisis hit there. Weighed up by good years giving far more than 7%, but one needs to have time.
  - namibj 8y ago
    You have to consider that not that few expenses can wait. Think of the new paint on the walls, or the new floor on the staircase. Or the new table, etc. Worst case you'll be stuck in a minimum-wage like lifestyle. Best case you're on your yacht in the Caribbean.

adrianN 8y ago

The median income where is live is lower than 50k. If I had ten million I'd just keep it under my mattress. I expect to live for another seventy to eighty years. I don't need 100k a year to be happy.

kzrdude 8y ago
Good point. A fraction as just money (10-25%), not invested in anything, is a careful and stable investing strategy anyway.
isostatic 8y ago
Aside from the risk of theft/fire etc, you're also running the risk of rampant inflation. You should have a variety of investments in different economies. If $bad_politician gets in and turns the US dollar into the Bolivar, your 10m will be worthless. If you've got 20% invested in other countries you're running a much smaller risk, likewise with investments in other assets Don't put all your eggs in one basket, don't put all your files on one raid, and don't put all your assets under the mattress.
a008t 8y ago
And is the median life comfortable?
- adrianN 8y ago
  Yes. Especially if you get the median income not from work, but from your assets.
  - isostatic 8y ago
    It gives you a great safety net. It lets you speculate in the great game. 9 in 10 ideas will fail, but that's ok as you won't end on the streets. Those without the safety net have far more to risk, so are far less likely to succeed. For every richard Branson who starts up a company from the back of their van there's 9 who do that and fail, and are currently on minimum wage stacking shelves. For every millionaire actor there's a thousand waiting tables. For every musician there's 100 teachers. Very little to do with how good they are, all to do with the lucky break. Hell where your parents live makes a massive difference. When you start out with a job in the big city, you either live rent free with parents and thus save £10-15k a year, or you put your entire wage to paying bills. After 5 years you have 70k, enough for a confortable deposit on a house, or a few years of speculation, or investments that will grow to half a million by retirement. If your parents don't live close to where you start your career you're far more hand to mouth.

Danieru 8y ago

That five percent is net inflation already right?

jannyfer 8y ago

Index funds are closer to 7% per year, I believe.

kzrdude 8y ago
Great for the long run, but they also have bad years. Global index funds also gave net 0% in the interval 2006 to 2012, since the financial crisis hit there. Weighed up by good years giving far more than 7%, but one needs to have time.
- namibj 8y ago
  You have to consider that not that few expenses can wait. Think of the new paint on the walls, or the new floor on the staircase. Or the new table, etc. Worst case you'll be stuck in a minimum-wage like lifestyle. Best case you're on your yacht in the Caribbean.