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> The more money you have, the more you have to loose. When you're worth 20 Mil. you've got to worry about where it's invested and hope it doesn't all go down t
by jjice 5y ago
> The more money you have, the more you have to loose. When you're worth 20 Mil. you've got to worry about where it's invested and hope it doesn't all go down the drain
True, but there are plenty of safe investment options if you're willing to have lower yields (CDs, bonds, the S&P, given time). Of course anything can fail, but that applies to everything and everyone.
> you certainly can't leave it in cash otherwise, you'll lose 75% in just 14 years.
I'm not familiar with this stat. How is this calculated? Inflation and expenses?
- throw8383833jj 5y ago10% inflation over 7 years will 1/2 it's worth. Rule of 70: the formula goes like this 70/percent = # of years. So if you assume inflation is 7% over the long term then 70/7= 10 years to loose half and 20 years to keep 1/2*1/2=1/4 (lose 75%)