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I am thinking liquid not net worth.

• snowwrestler 1y ago
  Yes, exactly, a person with $5 million liquid can afford to buy maybe 1 luxury home. Sure they probably already own a home, but 2nd homes are not uncommon luxuries. As a reminder you said “almost anything highend / luxury becomes a commodity.” Or look at this way: $5 million throws off $200k/year (pre-tax) with a “safe” pull rate of 4%. Ok so now you want to buy a luxury car, that’s over $100k. You’ve spent most of your annual income on one car. Hardly a commodity! $5 million is enough to sustain an upper class income in most metro regions. But a long way from commodifying luxury.
  • Suppafly 1y ago
    >Ok so now you want to buy a luxury car, that’s over $100k. There is a reason rich people lease a lot of times and buy things with borrowed money that they'll never have to pay back.