5 ms·

The sigma-male/get-rich-quick types (and their female equivalents in the MLM spaces) are parasites, but as with any parasite, they thrive in an unhealthy enviro

by danjac 4y ago

The sigma-male/get-rich-quick types (and their female equivalents in the MLM spaces) are parasites, but as with any parasite, they thrive in an unhealthy environment. Since the 1970s, the path to even modest generational wealth has been eroded. You can play the property casino, inherit your money, or maybe luck out with joining the right startup or making the right investment at the right time - or a combination thereof. The slow-and-steady path of working hard and saving frugally for a reasonably priced home and a pension, with a decent public education for your kids and decent free or reasonably priced healthcare and social protections, has been eroded in the turbocharged neoliberalism of the past few decades. If you are a young person looking at all of this, you could be forgiven for thinking the "study hard, work hard, have a family, buy a home, retire" ethic is for mugs, and the only way to carve out a decent lifestyle (not even talking about Lambos and mansions) is the Hustle.

kfrzcode 4y ago
The path to modest generational wealth is pretty straightforward, pay off all your debts, don't borrow money, invest at least 15% of your income toward retirement in stable low-risk index funds or managed mutuals and leave it alone. Don't waste on big toys and you'll be a millionaire in a couple decades. It's really really that simple. If your income is not enough to achieve the above state loop, then you'll need to put effort into increasing available income; whether by reducing expenses or increasing income by way of self education, career change, etc. It's not hard. Anyone in America with $35,000/yr is in the 1% of the world's economic strata.
- esprehn 4y ago
  > It's not hard. Anyone in America with $35,000/yr is in the 1% of the world's economic strata. That doesn't take into account the vastly different cost of living across the world. Sure, 35k USD is a lot compared to some countries, but it's barely scraping by in most US metros. US wages have not kept pace with the increase in cost of living and goods and services for decades. Even if folks somehow managed to save 15% of the 35k every year for 40 years (which is really hard) they're left just touching a million with a guaranteed 8% return, and that's their retirement funds. After using those funds to live for the next ~20+ years extremely modestly doesn't leave much of anything for "generational wealth". Unless you're already in the upper 20% the best bet remaining is to help your kids get through college and hope they get a higher paying job than you. Which is increasingly difficult as the cost of education has skyrocketed compared to wages.
  - kfrzcode 4y ago
    If those folks are only making $35k for 40 years they're losers with no impetus for self-growth or security. If they can make $35k a year they're capable enough to make $50k a year if they work hard to improve, start a business, create value.... if you don't, then enjoy your struggles. It's a dog eat dog world, right?

by danjac 4y ago

kfrzcode 4y ago

The path to modest generational wealth is pretty straightforward, pay off all your debts, don't borrow money, invest at least 15% of your income toward retirement in stable low-risk index funds or managed mutuals and leave it alone. Don't waste on big toys and you'll be a millionaire in a couple decades. It's really really that simple. If your income is not enough to achieve the above state loop, then you'll need to put effort into increasing available income; whether by reducing expenses or increasing income by way of self education, career change, etc. It's not hard. Anyone in America with $35,000/yr is in the 1% of the world's economic strata.

esprehn 4y ago
> It's not hard. Anyone in America with $35,000/yr is in the 1% of the world's economic strata. That doesn't take into account the vastly different cost of living across the world. Sure, 35k USD is a lot compared to some countries, but it's barely scraping by in most US metros. US wages have not kept pace with the increase in cost of living and goods and services for decades. Even if folks somehow managed to save 15% of the 35k every year for 40 years (which is really hard) they're left just touching a million with a guaranteed 8% return, and that's their retirement funds. After using those funds to live for the next ~20+ years extremely modestly doesn't leave much of anything for "generational wealth". Unless you're already in the upper 20% the best bet remaining is to help your kids get through college and hope they get a higher paying job than you. Which is increasingly difficult as the cost of education has skyrocketed compared to wages.
- kfrzcode 4y ago
  If those folks are only making $35k for 40 years they're losers with no impetus for self-growth or security. If they can make $35k a year they're capable enough to make $50k a year if they work hard to improve, start a business, create value.... if you don't, then enjoy your struggles. It's a dog eat dog world, right?