3 ms·

You'd have to be really trying, in order to have no income with high wealth. You'd have to purposefully not lease your properties and try and keep all your mone

You'd have to be really trying, in order to have no income with high wealth. You'd have to purposefully not lease your properties and try and keep all your money somewhere you can't make interest and also refuse to invest in even the most risk averse prospects.

beamatronic 7y ago
Let’s say your stored your wealth as gold bars, diamonds, or Rolex watches. Good luck renting those out.
- thrwaway69 7y ago
  There is a whole market for buying/selling the old rolex watches at higher prices than they were retailed for. You may generate wealth by holding onto a diverse collection of them as a hedge bet for selling in future.
  - beamatronic 7y ago
    I worded that poorly, I was trying to illustrate a store of wealth that generates no cash flow or income.
jandrewrogers 7y ago
It is trivial to profitably invest wealth while producing no income: invest in companies that don't issue dividends, whether public or private. You can achieve excellent investment returns solely on appreciation. I know more than a few people with excellent investment returns and quite a bit of wealth that realize almost zero income from that wealth in a typical year. It is a common strategy, particularly if you do not need the wealth to produce income.
- aidenn0 7y ago
  I think the person you are replying to considers investment gains to be income (as do I). It's unrealized income, but income nevertheless.
- luckylion 7y ago
  > in a typical year And then they'll net very high income in other years. Take the average of all those years if you want useful information.
WalterBright 7y ago
> You'd have to be really trying, in order to have no income with high wealth. Invest heavily in a startup that goes bankrupt. Or go big into real estate right before the market dips. Same for stocks. You have no net taxable income if your losses exceed your income in a tax year.
- antisthenes 7y ago
  > Invest heavily in a startup that goes bankrupt. Or go big into real estate right before the market dips. Both of those things are gambling. If you're truly wealthy, your financial advisor won't let you do either one. So the OP was correct.
  - WalterBright 7y ago
    > If you're truly wealthy, your financial advisor won't let you do either one. So the OP was correct. You don't get wealthy without making risky investments. For example, I went to lunch with a billionaire once. He told me he made the money in stocks by mortgaging and margining everything he had, and buying volatile stocks. Do you think Musk's SpaceX and Tesla are low risk investments for him?

beamatronic 7y ago

Let’s say your stored your wealth as gold bars, diamonds, or Rolex watches. Good luck renting those out.

thrwaway69 7y ago
There is a whole market for buying/selling the old rolex watches at higher prices than they were retailed for. You may generate wealth by holding onto a diverse collection of them as a hedge bet for selling in future.
- beamatronic 7y ago
  I worded that poorly, I was trying to illustrate a store of wealth that generates no cash flow or income.

jandrewrogers 7y ago

It is trivial to profitably invest wealth while producing no income: invest in companies that don't issue dividends, whether public or private. You can achieve excellent investment returns solely on appreciation. I know more than a few people with excellent investment returns and quite a bit of wealth that realize almost zero income from that wealth in a typical year. It is a common strategy, particularly if you do not need the wealth to produce income.

aidenn0 7y ago
I think the person you are replying to considers investment gains to be income (as do I). It's unrealized income, but income nevertheless.
luckylion 7y ago
> in a typical year And then they'll net very high income in other years. Take the average of all those years if you want useful information.

WalterBright 7y ago

> You'd have to be really trying, in order to have no income with high wealth. Invest heavily in a startup that goes bankrupt. Or go big into real estate right before the market dips. Same for stocks. You have no net taxable income if your losses exceed your income in a tax year.

antisthenes 7y ago
> Invest heavily in a startup that goes bankrupt. Or go big into real estate right before the market dips. Both of those things are gambling. If you're truly wealthy, your financial advisor won't let you do either one. So the OP was correct.
- WalterBright 7y ago
  > If you're truly wealthy, your financial advisor won't let you do either one. So the OP was correct. You don't get wealthy without making risky investments. For example, I went to lunch with a billionaire once. He told me he made the money in stocks by mortgaging and margining everything he had, and buying volatile stocks. Do you think Musk's SpaceX and Tesla are low risk investments for him?