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If I'm reading that right, that's a 5% earnings boost, not a 5% wealth boost. Reasonable wealth appreciation on a 5% "bonus" check / year is an incredible amou
by jvanderbot 5y ago
If I'm reading that right, that's a 5% earnings boost, not a 5% wealth boost.
Reasonable wealth appreciation on a 5% "bonus" check / year is an incredible amount of wealth.
Just for reference, investing 1 <currency>/year for 60 years at 6% returns is 533 <currencies>. A 5% boost might be an extra 10,000 USD for a high earner (like a 90th percentile earner). That's 5,330,000 USD earned in a lifetime just from investing that family name bonus. That kind of money would buy your grand-kids a nice college education.
That wealth has probably enabled a lot, including the increased opportunities that gives every single one of their descendants a 5% boost in income.
- jvanderbot 5y agoSo, where am I wrong?
- lumost 5y agoThe above math indicates that one generation with this 5% income boost gains enough wealth to move them up the wealth ladder. If this appreciation goes on for 6 Centuries then it amounts to wealth that makes working entirely optional. It also suggests that looking at wages is a misleading statistic, as wages do not typically make up the majority of money that a wealthy individual would gain in a given year.