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Having $2 billion in assets, invested at the historic average of 7% after inflation, yields $14 million every year. The median household income is about $68k p
by MereInterest 5y ago
Having $2 billion in assets, invested at the historic average of 7% after inflation, yields $14 million every year. The median household income is about $68k per year. Therefore, the passive income just from having $2 billion of assets comes out to about the full income of 2000 households.
That's the only way I've come up with to visualize massive wealth, as it is so far beyond anything I have experience with. That the closest visualization is the size of a town that could be entirely devoted in perpetuity to the whims of the person with that wealth.
- k4tz 5y ago140 million
- jedberg 5y agoYour math is off by an order of magnitude. 7% of 2 billion is $140M.
- Jabbles 5y agoYour math is also off by an order of magnitude. It is $140M, but that makes it 2,000 households @$68k each.
- jedberg 5y agoYou're right. I'll be honest, I just assumed OP did the math after $14M correctly and added a 0. I didn't even think about how off it sounds. Fixed my comment, thanks for pointing that out.
- MereInterest 5y agoShoot, you're right. I miscounted the number of zeroes in the first step when copying from a python shell. All later numbers were computed from the initial values, which is why the order of magnitude was correct for the later values.
- pg_bot 5y agoIt yields 140 million