5 ms·
It's well known that, once you acquire enough money, you can live off the proceeds of that money. If you inherited a million dollars and put it in bog-standard
by juliangregorian 11y ago
It's well known that, once you acquire enough money, you can live off the proceeds of that money. If you inherited a million dollars and put it in bog-standard funds, you'd get ~$75,000 a year for doing absolutely nothing. How that factors into your theory, I'd love to know.
- philh 11y agoIn (at least) two ways. One, you'd be lending wealth to other people so that they can create more wealth. Without your investment, less wealth would be created. Two, your parents acquired money by producing wealth, and one of the things that they chose to spend that money on was their progeny. (NB. This does not claim that the allocation of money for value produced is perfectly fair, or just, or economically optimal, or whatever.)
- AndrewKemendo 11y agoNot the OP but your assumption is that 1. That "investment" mechanism will hold up forever and 2. That you don't put that money in the system at the wrong time assuming it is a random walk.
- juliangregorian 11y agoWell, that's pretty much how ETFs work. I don't quite understand what you mean about a random walk, though.
- AndrewKemendo 11y agoYou're missing the point. Any investment, ETFs or otherwise, work, when the market is going up or sideways. It falls apart if you needed money in - oh say 2008 or 2009. Or at any of the other points in time when things were shit. It also falls apart 200 years from now - so it's not like it's a law that this is a system that will remain in place.
- deleted 11y ago[deleted]
- juliangregorian 11y agoYou're being rather argumentative, don't you think? Did you have something worth elaborating with the bit about the random walk? I would still be curious to know.
- AndrewKemendo 11y agoOh, I just overlooked that part...not intending to be argumentative. See: http://www.jstor.org/stable/4479810 http://www.jstor.org/stable/4479810