Jimmy Wales Wants To Buy Wickedfire?
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Yes, I know 16 Million can get you $320,000/y in passive income and in Indian Stock Exchange you can get 30-45% easily. But there are a few things you are forgetting --
1. You are forgetting the inflation. So lets say that you get 2% gain and the annual US Inflation Rate for the 12 months that ended in September, 2010 was 1.14% -- so your total gain is 0.86% in real value.
2. Then you are forgetting the taxes - here you will be paying roughly 30% of your income in taxes (well lets not make it complex by talking about tax saving - you will have to give some of your income in taxes!) which takes you gain down to 0.6% in real value.
3. You better be building some solid assets than just investing in high yield market investments. Stuff like stocks, bonds, real estate -- all were demonstrated to be capable of taking an ass raping in last few years. Best asset is usually your business -- you don't get that by "retiring" or "playing golf whole day".
4. Money is relative, understand that. If you are making 60K a year from a random job then $320,000 is a big amount for you. But then lets face it, you are not even going to have anything that you sell for 16 million -- unless you get very very lucky. But then you know the old saying - a fool and his money are soon parted.
If you are someone with a good business operation, making lets say 4 million a year -- then that 16 million is just 4 years worth of revenue at no growth. I am not sure what sort of entrepreneur would not want a business growing.
If you go to someone like Rupert Murdoch or Gates or Ellison or Mittal (28.7 Billion worth of personal fortune) -- do you think they can "retire" on 16 million?
Seriously -- one of the biggest pet peeves of mine is when someone says they can retire on XYZ. You are really delusional if you actually believe that. Hell yeah, why even care to work to make that 16 million when you can easily retire on 60K annual for your current lifestyle?
I remember reading back in Fortune magazine when a reporter goes to a wallstreet trader and asks one of them why they are running after billions? If she made 100 million she would quit her job and retire on it. To that he replied - that is why you will never make 100 million in first place.
Hell, I am not saying that 16 million is a small number -- but if you plan to stick to that 16 million dollar figure and want to retire on it, you are not thinking right. In any case, enough blabbing and I am back to work.
1. You are forgetting the inflation. So lets say that you get 2% gain and the annual US Inflation Rate for the 12 months that ended in September, 2010 was 1.14% -- so your total gain is 0.86% in real value.
2. Then you are forgetting the taxes - here you will be paying roughly 30% of your income in taxes (well lets not make it complex by talking about tax saving - you will have to give some of your income in taxes!) which takes you gain down to 0.6% in real value.
3. You better be building some solid assets than just investing in high yield market investments. Stuff like stocks, bonds, real estate -- all were demonstrated to be capable of taking an ass raping in last few years. Best asset is usually your business -- you don't get that by "retiring" or "playing golf whole day".
4. Money is relative, understand that. If you are making 60K a year from a random job then $320,000 is a big amount for you. But then lets face it, you are not even going to have anything that you sell for 16 million -- unless you get very very lucky. But then you know the old saying - a fool and his money are soon parted.
If you are someone with a good business operation, making lets say 4 million a year -- then that 16 million is just 4 years worth of revenue at no growth. I am not sure what sort of entrepreneur would not want a business growing.
If you go to someone like Rupert Murdoch or Gates or Ellison or Mittal (28.7 Billion worth of personal fortune) -- do you think they can "retire" on 16 million?
Seriously -- one of the biggest pet peeves of mine is when someone says they can retire on XYZ. You are really delusional if you actually believe that. Hell yeah, why even care to work to make that 16 million when you can easily retire on 60K annual for your current lifestyle?
I remember reading back in Fortune magazine when a reporter goes to a wallstreet trader and asks one of them why they are running after billions? If she made 100 million she would quit her job and retire on it. To that he replied - that is why you will never make 100 million in first place.
Hell, I am not saying that 16 million is a small number -- but if you plan to stick to that 16 million dollar figure and want to retire on it, you are not thinking right. In any case, enough blabbing and I am back to work.
Dunno what your smoking, but give me 16 million dollars any day and ill retire and live life no problem.
Same. I could understand if it was maybe 1 mil or around there, but I'm quite sure I could live off of 16 mil.
I always get a yuk from stories about po' folk who win the lottery and blow it on blow and ho's. If you wanna be like one of them, $16M is not enough for you. There is a price to pay for the 4th Beemer you wrecked, the mansion you bought for your 2nd cousin who just got out of prison, bling for your mistress and paying damages to the dive bar where you were brawling. A fun weekend getaway in Vegas cost you $300,000, but hey! You're a millionaire!
^^Typical scenario of new lotto millionaires.^^
OTOH....
Buying a nice but reasonably-sized house and investing your cash in stable accounts would leave you more than enough to live on. You'd be able to buy your children homes, put them through college and leave them enough to become millionaires themselves. This is how billionaire Warren Buffet lives.
The point is, it depends on what your expectations are and how you manage your money. How much ego-stroking from living a flashy lifestyle do you need?
^^Typical scenario of new lotto millionaires.^^
OTOH....
Buying a nice but reasonably-sized house and investing your cash in stable accounts would leave you more than enough to live on. You'd be able to buy your children homes, put them through college and leave them enough to become millionaires themselves. This is how billionaire Warren Buffet lives.
The point is, it depends on what your expectations are and how you manage your money. How much ego-stroking from living a flashy lifestyle do you need?
precisely! The question is what drives you, what makes your life worth living and what makes you work your ass off. For you it might be domestic bliss - but for some of us that may be a definition of torture. I am at a family vacation and hating every minute of it - if I have to live my whole life like that I would not even bother.
So what you are trying to do is to generalise everyone in same category - everyones reality and mindset is different. If I like living a different lifestyle it is exactly that - different. Rights or wrongs or awesome or yucks are subjective. Chances are your definition of ideal way to spend that money is yuck for me.
