Random fashion thoughts - Part II (A New Hope)

LA Guy said:

I think that it's also important to say that the 1% is highly heterogeneous. At the bottom of that top 1%, you are doing well, but you are hardly **** you rich, merely affuent. Things like sending your kids to university (and obviously, you will get no financial aid, period) will still be a burden. There are a lot of people in that category, and then you quickly rise to the "rich" and then the the "wealthy". Among wealth managers, those with at least $10MM to invest are considered "high value individuals". At $1MM in the bank, you are considered to be doing okay.

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But really, what's "**** you rich?" Say you've got enough stashed in a Vanguard S&P 500 passive index fund to draw on average 100k a year without lifting a finger, and you own your house free and clear. That's technically "**** you" money because you don't need to work to draw an income that many people would love to have and the house is already paid off so the bank can't take your home away.

Sure, it's definitely not 1% status and many things, like education for your kids, still takes planning. But it'd sure as **** be nice to not have to take orders from someone and also not have the possibility of foreclosure. I could do without true 1% street cred if I could achieve that just that level.

Yes, I know the fatal flaw is amassing enough investment stock in the first place to get the 100k passive income while paying off your house, but I'm just saying that different people have different calculations of freedom.

Gruff said:

But really, what's "**** you rich?" Say you've got enough stashed in a Vanguard S&P 500 passive index fund to draw on average 100k a year without lifting a finger, and you own your house free and clear. That's technically "**** you" money because you don't need to work to draw an income that many people would love to have and the house is already paid off so the bank can't take your home away.

Sure, it's definitely not 1% status and many things, like education for your kids, still takes planning. But it'd sure as **** be nice to not have to take orders from someone and also not have the possibility of foreclosure. I could do without true 1% street cred if I could achieve that just that level.

Yes, I know the fatal flaw is amassing enough investment stock in the first place to get the 100k passive income while paying off your house, but I'm just saying that different people have different calculations of freedom.

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So, in order to do that, assuming a 5% (on average) rate of return, and assuming that you take just 2.5% out every year so that you don't draw down your investment, that's $4MM in the bank. I would say that for most people, that's non-trivial. Also, you still have to pay taxes in your house.

Also, not having to take orders from people often means that you have have to negotiate with people and manage people, which, ime, can be pretty stressful.

i had a meeting with a multi-billionaire a while back (taxi drove around the block in central london for a while as we searched for the house until i realised.. the whole block was the house). he ended up complaining how difficult it was managing employees and in particular dealing with all the household staff. i asked if it wasn't possible to do without them for a few days. he seemed to consider it for a moment before sadly replying: "Do you know.. I don't think it is.".

LA Guy said:

So, in order to do that, assuming a 5% (on average) rate of return, and assuming that you take just 2.5% out every year so that you don't draw down your investment, that's $4MM in the bank. I would say that for most people, that's non-trivial. Also, you still have to pay taxes in your house.

Also, not having to take orders from people often means that you have have to negotiate with people and manage people, which, ime, can be pretty stressful.

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D'oh, forgot about the taxes (property, federal and state income, capital gains, etc).



Mulan said:

RFT: Fascinate has some of the best customer service I ever came across with an online retailer. Was very surprised how clear English communication was, considering this is a Japan based retailer. I just wished they stocked more than the run of the mill Japanese gothninja brand.  

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I love Fascinate. I pretty much shop there exclusively at this point ~_~;;



robinsongreen68 said:

i had a meeting with a multi-billionaire a while back (taxi drove around the block in central london for a while as we searched for the house until i realised.. the whole block was the house). he ended up complaining how difficult it was managing employees and in particular dealing with all the household staff. i asked if it wasn't possible to do without them for a few days. he seemed to consider it for a moment before sadly replying: "Do you know.. I don't think it is.".

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You need a big staff to take care of a big property. But it is possible to have a big bank account without a big property or any of the trappings that come with it.


RFT #1 - When somebody makes a "CPO shirt" what is the acronym short for?


RFT #2 - Would it be fun or at all useful to have a "rip-offs" [or "precedents"] thread?

Carven fw12, $1,095




Incotex fw15, $1,115



GoldenTribe said:

Would it be fun or at all useful to have a "rip-offs" thread?

Carven fw12, $1,095

Spoiler: Warning: Spoiler!

Incotex fw15, $1,115

Spoiler: Warning: Spoiler!

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The thread would be dominated by photos from iOffer and Shades of Grey by Micah Cohen.

Gruff said:

D'oh, forgot about the taxes (property, federal and state income, capital gains, etc).

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There are two possible explanations for that:

1:

2:52 No need to worry my accountant handles that.

2. I am a smalltimer.

Intense

cyc wid it said:

Intense

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For me? That's so thoughtful. Bring it when I am in San Francisco again. I'll feed you a burrito.



GoldenTribe said:

You need a big staff to take care of a big property. But it is possible to have a big bank account without a big property or any of the trappings that come with it.

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The guy who owned A.P. Møller and Mærsk (Mærsk Mc-Kinney Møller), had an estimated net worth above 20 billion dollars, he lived in a 7000 sq.ft. bungalow, valued at around 4 million dollars, so you can if you want.

LA Guy said:

There are two possible explanations for that:

1:

2:52 No need to worry my accountant handles that.

2. I am a smalltimer.

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Would like to claim 1, but reality says 2.

LA Guy said:

For me? That's so thoughtful. Bring it when I am in San Francisco again. I'll feed you a burrito.

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Find Finn said:

He and his peers are probably 50+ academics, who sit around discussing things, they don't experience or have no direct experience with, a bit like ministers, who get some great idea, which ends up being terrible.

As an entrepreneur myself, my peers and our experiences, who all are below 40, I think he is wrong, so my views come from what I would say is an experienced standpoint.

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Are you familiar with the term "anecdata"?

+1000