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>What I walk away with: $3,700,000 in cash >practically speaking, never need to work again Yikes, does someone want to tell him?
by ianhawes 6y ago
>What I walk away with: $3,700,000 in cash
>practically speaking, never need to work again
Yikes, does someone want to tell him?
- isseu 6y agoHe lives in Alabama
- simonswords82 6y agoTell him what?
- maxlamb 6y agowhat, that's it's not enough? Sure if you plan on living in the Bay Area for the rest of your life but in most other places it's definitely true.
- steve-benjamins 6y agoYou seem pretty sure of yourself— you must know his existing savings and cost of living?
- Lionga 6y agoIn most places of the world 20% of that are enough never needing to work again.
- deleted 6y ago[deleted]
- KMnO4 6y agoLet’s say you work for a respectable $80k/year (more than enough to live comfortably in most of the world). If you get the job at 25 and retire at 65, that’s $3.2m. So yes, he can retire for life.
- bluedevil2k 6y agoI'm with OP - $3.7M seems like a lot, but it really isn't enough to retire on. I assume he'll need to pay taxes on that, a 20% long-term capital gains tax. Brings it down to about $3M. Being generous and giving him 3.5% return (real return) a year in fixed income, that's only $105,000 a year in income, which he'll need to pay taxes on as well. He'll net out around $85k a year.
- LandR 6y ago$85k a year is surely enough to live off without working? I'm in the UK, if I could earn a guaranteed £40k a year without working I'd be set for life and would have a pretty great life! That's would give me close to twice the national average salary. £80k a year would put you into the tiny percent of top earners.
- boyband6666 6y agoI agree it is plenty but remembering it is a household income I suspect, so yes is a very nice life, without being silly.
- bluedevil2k 6y agoDon’t forget in America he needs to spend $12k a year on health care. And that’s like a minimum, last time I checked Obamacare, those kind of plans had $8-10k max out of pocket too.
- M2Ys4U 6y agoSo even with health insurance deducted, that still works out, with current exchange rates, at £63k, which is quite a high income - 95th percentile in the UK income distribution after tax.
- fortydegrees 6y agoEven if he didn't earn any interest and never earned another penny, at an $85k/yr burn, that $3M will last 35 years. Seems alright?
- bluedevil2k 6y agoWhat happens when he lives 36 years?
- ceejayoz 6y ago> Even if he didn't earn any interest Hopefully he puts some of it in interest-earning stuff prior to that point.
- mtlynch 6y agoA $3.7M windfall is enough for most Americans to never work again. Assuming he keeps ~$3M after taxes and can earn a conservative return of 4%/yr in investments, that's $120k/yr just from his investments. Many Americans live on far less. Also, he lives in Alabama, where cost of living is quite low.
- andygcook 6y agoIt’s highly likely he gets to keep all or most of the $3.7M under the Qualified Small Business Stock (QSBS) tax exemption.
- simonebrunozzi 6y agoExactly. He will only pay state tax in Alabama on the capital gain. I think it's in the range of 3% to 4%, but I might be mistaken. For reference, in California it is ~10%.
- deleted 6y ago[deleted]
- joshmanders 6y ago> Yikes, does someone want to tell him? Someone should tell you that $85k/yr NET is top earnings in some parts of the country. Average household income in my state is $50k/yr.
- ec_developer 6y agoInvest in stocks that pay dividends. Get a 3-4% annual return. Move to Spain/Greece/Portugal. Enjoy life.