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that is incorrect, the 0.1% (>50m) live purely off capital. the 1% are still mostly highly paid specialized labor and despite high savings their capital would
by 33MHz-i486 4mo ago
that is incorrect, the 0.1% (>50m) live purely off capital. the 1% are still mostly highly paid specialized labor and despite high savings their capital would not sustain their lifestyle outside a brief retirement.
- daemonologist 4mo agoIn the US, 99th percentile household wealth is ~$14M, which at historical rates of return is enough to live opulently indefinitely. (Of course although we're discussing a scenario where capital holds most of the cards, who knows if those returns would be dependable.)
- 33MHz-i486 4mo agoif you dig into whats actual safe to distribute after inflation and taxes, or conservative FIRE mid-life recommendations, its around 1-2% of principal per year . From 14m, 10-20k/month, about the budget of the white collar household in a major metro. Which is nice but hardly opulent. Rent, healthcare, and kids (or some expensive hobbies) eat that up in hurry.
- jp_sc 4mo agoYes, but it’s 20k and all the time in the world.
- confidantlake 4mo ago20k a month being the budget of a white-collar household? We obviously live in very different worlds.
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