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How do you get high wealth with no income? Unless you get it inherited or something similar.
by yibg 7y ago
How do you get high wealth with no income? Unless you get it inherited or something similar.
- scarejunba 7y agoSome of my friends started a startup together post our company's IPO. They're fairly wealthy. They make no money yet. Unless you're counting unrealized capital gains.
- yibg 7y agoWouldn’t capital gains be considered income? Especially if it’s received as part of some work, either working for someone else and getting equity or your own startup and getting equity. Sure it’s not salary income but it’s typically be considered part of total compensation for work.
- scarejunba 7y agoUnrealized capital gains are generally not considered income. It's only when they're realized that they become income.
- WalterBright 7y agoHaving wealth does indeed require having income in the past. But simply having wealth does not imply having current income. Just like being 5 miles away has no implication for how fast you're going.
- yibg 7y agoSure but that’s like saying anyone that’s worked for 40 years and saved up a nest egg is wealthy without income, or a CEO between jobs is wealthy without income. There most certainly was income at some point.
- WalterBright 7y agoMy phrase was "have income" in present tense, not "had income" in the past.
- yibg 7y agoYou wrote “Having wealth does indeed require having income in the past.”
- epistasis 7y agoThere are lots of elderly people in California that never had high incomes, but now have a few million in wealth. They often don't feel wealthy because they often don't feel comfortable using the financial tools that would give them some liquidity.