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I have had a similar calculation in mind as others here: $4 million invested at a very conservative 2.5% return gives you 100k pre-tax to live on. Any returns a
by spankalee 13y ago
I have had a similar calculation in mind as others here: $4 million invested at a very conservative 2.5% return gives you 100k pre-tax to live on. Any returns above that will just grow the nest egg. That's pretty nice, and happens to be my retirement target.
When thinking about a startup exit, lottery win, or finding out that I'm a long lost heir to a fortune though, I'd like to be able to buy a house and start or buy a small local business (restaurant, cafe, club, etc.) with the $4M left over. In SF that probably puts me in the $6-8M range.
- VLM 13y ago"start or buy a small local business (restaurant, cafe, club, etc.)" Looking at the life experience of local pro athletes, the most likely way to retire with a very small fortune while owning a small business is to start it with a very large fortune. There's actually a business model oriented around taking money from athletes and home equity loan cash out refinancer types, then buying the asset back for pennies on the dollar at the bankruptcy to resell back to the next sucker with some money. At least in the cash businesses, you can never undercut the people who are a front for laundering money, like the recently busted local candle (and weed) store. Also the experience seems to bifurcate where the owners are either stuck working 80 hour weeks, or they hire someone else to be the general manager in which case owning the business but having nothing to do with day to day operations has all the interest and excitement of buying stock online.
- spankalee 13y agoYeah, but I'm less interested in the type of place that's usually associated with pro-athletes and more into neighborhood / family type places. When I say "club" I really mean music venue.