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🇺🇸 Presidential Debate Right Now 🇺🇸
We all know that “the wealthy will only get more wealthy”. But how wealthy are we talking about? It feels like escape velocity today is set at 4-5mil. If you have less than 4mil, and you’re a college grad, how can you possibly catch up? Even if you worked hard, became a millionaire after 7 years of grinding in tech, by then those who had 4m now suddenly have 8mil You only have 1m. It’s nearly impossible to catch up unless you gamble all-in on things like NVDA or crypto. Let’s face it, short of interest rates suddenly dropping like a rock, no startup/IPO will happen anytime soon. So that option is out. Even if you grinded 10 more years to work as a principal engineer at FAANG, you’ll barely scratch 5m after income taxes. Meanwhile the 8mil guy grew to like 16m. And for the 16mil person, if you want to stay comfortable, you better not get divorced or have some black swan event in your life Tc: 🥜 #personal finance
What’s new about this? These events would have happened in the past too. Not everyone catches up, not everyone has to. Reality of life.
It’s not that it’s “new”. I’m thinking the phenomenon has gotten worse. Like saying - imagine back in 2000 when millionaire meant something. Your wages back then were better than they are today, relative to “escape velocity”. This is because tax rate is based on CPI, (and a slew of other things), which make it much harder to become wealthy today. Put it this way. Around 2000 McDonalds launched dollar menu. We literally had a show called “who wants to be a millionaire”. Now, the dollar menu items are $3. And 3mil has become the new “millionaire” status. But even then your purchasing power isn’t much But yeah you’re right that not everyone can either (statistically speaking). And there’s no need to But for those that “want” to, it’s even harder now than it was in the past 🤷♂️
Agree that it's harder for those who want to now more than ever
Why the f do you need 4~5 million? You do know the average income in even tier one cities like Beijing is less than $30k a year right? 1 million alone is perpetual $35k INFLATION adjusted money a year for the rest of your working life with 95% chance of you having money left over after you die. And 80% chance you have MORE money than you started out with when you pass away. Go get a dose of reality. By the time you have 3 million, you have perpetual 6 figure inflation adjusted income for the rest of your life. Who cares about catching up. Better to enjoy life. Don't make money your slave.
Hey by chance is that the average or the median? I think P50 in USA is only maybe like $300k net worth but the “average” American networth is already millionaire status Yes. But the Issue is, inflation is under-representative of actual desirable purchasing power. You can check median house prices throughout the decades if you don’t believe me. It’s true that over time, the same 2 bedroom house in 1950’s kept up with inflation. But how many people today want a 800 sq foot 2 bedroom house? The “median” home is like 1500 sq ft with 3 bedrooms Agree 100% on your last point. Don’t let the money tail wag the dog. I’m just thinking money is needed for freedom up to a certain point
Average. So higher than median (plus, I'm sure China would love to over report, not under report). Also, house values have shot up the roof in hcol areas. No denies there. But rent hasn't. House is something to worry about if you have a family and if you work in the Bay Area your significant other also has a high paying job anyways.
It’s doomed
Why are you comparing your wealth to what others have? . There is always someone who has more... When is enough? When will you stop? Focus on building your wealth and the life you want to live. Comparing your number to other is a stupid waste of time...
I didn’t list my wealth and my TC is 🥜 You’re prolly making more and you have more than me I’m just ball-parking an “escape velocity”
I misunderstood your post about "catching up"... to who? Anyway, I think 4-5M is a good number if you want to lazily/passively live off the interest... But 2-3M is probably realistic if you also actively reallocate & reinvest the interest...
On average people are poor. There is no middle class really. To live comfortably and have options yes, 4-5 million. We're not there yet, sadly.
The funny thing is that 4 years ago on this app, I was posting pics of my portfolio showing my $3M in liquid life savings. Everyone was in awe of that amount back then. Due to bad investments, my net worth is basically the same number, $3M, 4 years later. Nowadays on this app I see people saying they have $5M, $8M, $10M. It’s unreal. How can anyone catch up to that?
Fuck. I’m so sorry man. I’m in similar boat, but less than you. My returns have been absolutely horrendous since 2018. Many people bought the dip and continued to buy Nasdaq, and those people with 2m in 2019 basically pulled like a 3x or 4x, and its only going to get worse since their 8m can now compound at a 8-10% rate
how can i compound 10% rate POST-TAX?
Why do you care about catching up ? Are your spending really that out of control ? Keeping up with Jones is fine and all. But you should life for your self and stop spending energy be jealous of other. Unless you use that envy as motivation to start your business. Otherwise that envy have no productive outlet
I wanna strive for a good and comfortable life, with financial security being 1 of 4 pillars of the foundation of quality of life. I’m saying from the perspective of that new college grad, it’s REALLY difficult now, vs even 6 years ago. So my theory is like there’s definitely an escape velocity, where if you miss it, you’ll be behind and it’s even harder to play catchup I’m not the new grad, but I do recognize that there’s people with more and people with less. Happiness and contentment aside, I think it’s more like - you don’t wanna be the person who has to put in 3x more effort to achieve only half the outcome of the same people (who just happened to be born earlier)
The young tech millionaires are only a small fraction of millionaires. Most people have 4 million are dying. If you make 1% salaries for decades, you will become 1%. In 10 years, good college graduates will make 500k which is director salary 10 years ago. That’s how you catch up.
🤔 what fields or positions could college grads get that can make 500k? I’m guessing this is mostly HFTs? Or ML specialists? Actually, I thought 1% income gets taxed more throughout time, to the point where nowadays you have a harder time because tax rates haven’t budged much relative to how much your TC went up (meaning you hit top tax brackets much quicker than people in previous generations)
150k was a very good salary 10 years ago for fresh graduates, now I think 250k is not uncommon. So 10 years from now, it will be even higher.
The gap refers to poor and rich. Not rich and rich.
When will people on here learn that they ARE the rich lmao
But also what about proportional to the effort being put in?
Nsfw
Which part, the widening gap, or the balls squeezed?
Mind the gap