Someone with 1 million dollars in the S&P 500 will earn more money **on average** per year from capital appreciation than the median US household income With 10 million invested you’re out earning the top 1% of wagiesThis is kind of fucked up desu. People say that 1 million isn’t a lot but if just having this enables you to become 50-100k wealthier every year from doing LITERALLY nothing, while average people slave 40-60 hrs a week and commute in shitty traffic or public transit every goddamn day, JUST to make the same as you, it really makes one ponder. This is why 7 figures at a young age is basically /making it/, your money is growing at a rate equal or greater to the annual salary of a middle class wagie.
this is a good thing
>Anon discovers the Cantillon effect
It's completely fucked up that you only have to get rich once (1) and you will just get richer and richer from that point on.Retarded boomers get lucky buying leveraged real estate at the bottom and act like they're financially savvy while shitting on young people from their country clubs and luxury cruises when they could never recreate it from scratch.
>>60972917It is GETTING that 1 million that is the problem.
>>60972917>50-100k wealthier every year from doing LITERALLY nothingThis is a common misconception. You are not doing nothing, you are owning risk that your capital could go down. You're also allowing others to utilize your capital which is helping them be more efficient with their labor.Imagine you tell a friend who is chopping down trees for a living "I'll let you use my chainsaw so you don't have to saw by hand, but you have to give me 1 tree for firewood out of every 10 you chop down" and then that friend comes screeching back to you at the end of the day "well yeah I chopped down 10x more trees because of your chainsaw but you did nothing all day so you don't deserve shit reeeee"
>>60973010Man. Rents sky high. Can't save more than 50 bucks a month.
>>60973014get a gf, share a bedroom, and make her pay half the rentit will be even cheaper if you have more roomates
>>60973013this, what about the year(s) you're 50-100k poorer?
Even if you save up and invest $25,000 then gain & withdrawal an average of 4% weekly your making more then most most wage slaves. If you can do that with $100,000 your upper middle class. 4% weekly is not insanely hard to do, you pretty much buy and sell stable coins and make that.
>>60973080>Even if you save up and invest $25,000 then gain & withdrawal an average of 4% weeklyWhere the fuck is this even possible
>>60973036>get a gf
>>60973036>get a gf, share a bedroom, and make her pay half the rentIf I live in a rent control apartment for years and I pay $1700/month but current market rent for the place is $2300/month, is it a good idea charge a gf $1150/month and pocket the difference?The only way she'd find out what I pay is if she saw my bank statement (unlikely) or if she saw the rent receipt they give me once a year on a random day, they just slide it under my door.
>>60973044It has its ups and downs but when averaged out over a long period you see 5-10% positive returns
>>60972917>Someone with 1 million dollars in the S&P 500 will earn more money **on average** per year from capital appreciation than the median US household incomelol noyou probably forgot about taxesits not possible to make it with only 1million
>>60973182Someone with investments that appreciate 100k will pay less in tax than a wagie who earns 100k
>>60973187You dont get a steady 10% gains every year and you will pay much more tax in the end. 1m is not enough
>>60973194Yeah no shit, it’s not steady but if you’re in the growth phase (not withdrawing at all) then volatility doesn’t matter very much, only thing that matters is averaged returns. The only way you’d pay a lot in taxes at the end is if you sold massive amounts in one year and if it was short term gains. Someone waging with a w2 income will always get screwed in taxes compared to an investor with the same income
>>60972917Yeah. Pretty neat huh.
>>60973204If you can get a million into a Roth IRA it is tax-free forever.Do everything you can to put everything you have into a Roth IRA.I want to retire a Roth IRA multimillionaire and live off of tax-free dividends and never have to even file a tax form again.Since technically you do not need to declare Roth IRA distributions as income, I can get on food stamps a have free lobster and steaks for the rest of my life.
>>60973135Lieing to your gf for your own financial gain isn't a healthy behavior. Might as well be pimping her at that point.
>>609729177 figures is making it, but it's technically not enough to retire. Even having like $100k or $200k in your 20's means your retirement account is going to appreciate into the millions even if you're flipping burgers for the rest of your life.
>>60972917It's by design, you can't even get a good job without some kind of automatic contribution plan that uses your money to pump the stock market and then every 9 or so years the lords reap their crop.
the legacy financial system will collapse entirely in the next 20-30 years. This "muh bonds and treasuring" meta will fall with it.
>>60972917yup, thats it exactly wagie, it feels amazing honestly but I worked my ass off to get here. resting till 1PM, long as I want to excersise, to stay up & game.kek wagies still getting up like they gotta goto school; humiliating kek
>>60973010The guy must've said this decades ago. What he means by 100k is 500k now.
>>60972917theres risk to buying the stock market. Actually since normgroids have all been parroting what you said for at least 5 years, we could be getting close. At some point soon buying the US stock market will be like buying Japanese stock indexes in the 80s, people will lose a lot and the ones that arent forced to sell will wait 30+ years to break even in nominal termsbuy the chinese stock market
>>60974112Yes, but it's somewhat true today because salaries haven't kept up with the cost of living. With 100k invested your portfolio will move more on a day to day basis than you can actually contribute.
>>60974137thats why i buy VT
>>60972917Exactly.This is why you put 100% of your money into PEPE instead.
But the catch is if you withdraw that full 7% a year then eventually your principal will be worth a lot less than inflation, so an actual early retirement amount will need to be almost double that at 2mm so you can withdraw about 70k safely while having your principal keep up with inflation.
>>60973182>he thinks the rich pay taxespoor detected. NGMI
>>60974067Who said anything about lying? I would just say her portion of the rent is $1150/month + half utilities, increasing 2% a year. Nowhere would I say or imply it's half the rent, just that's how much she owes. I'm the one who has lived here for so long that I get lower rent, so why should she be entitled to a discount?Would the situation change at all if it's a roommate instead of a gf? I'm taking on all the risk by being the only person on the lease as well.Half the market rate of rent seems only fair since that's what they'd be paying otherwise.
>>60973013Oh shut the fuck up. You’ve only ever lived in a line go up economy. What risk? It’s not particular to your case. If you’re so concentrated that you lose money as an investor that’s simple greed. If the market is affected in such capacity that well balanced investments are risk on, it means the working man is suffering. Actually suffering and dying. Investors take a ‘haircut’ blue collar takes a blow dryer to a bathtub after 12mo of life insurance. It’s not the same argument for someone that needs to break into a capital appreciation cycle. You are making the false equivalency that holding risk is work. As an argument that manages by investments is closer to working that not. I’ll hire 500 workers to cut down trees. Yes, I may wield that workforce power as capital, that doesn’t mean that I’m working the trees. It means I’m NOT working, that people ARE doing WORK for me. I benefit from this work, that I do not undertake. The structure of always go up, means nepotism is the prevailing market driver rather than merit. Yeah key to winning is to work not only smarter but also harder. But survivorship bias seems to ignore all of the fortune and luck involved; it’s the third essential element that separates you from the failures. Not your capacity for work. That’s why a billionaire can make your same argument and be just as invalid. Yeah capitalism is the ability to wield the labour market into a lever to generate economic stimulation, but it also relies on merit creating free market corrections not cronyism which is the only current state
Yes anon this why we keep saying over and over and overINVEST EARLY AND AGGRESSIVELYTIME AND COMPOUNDING ARE EVERYTHINGDON'T WASTE YOUR 20'S AND 30'SRelax in your 40's instead, as your wealth will work for you at that point
>>60974555Are you Jewish
>>60972917but allocating capital is doing somethingeven investing it all in VOO is a choice
>>60974625Right.. let’s take a 1990 case study.So a 16 year old, saves every dollar from 12-18. Invests at 18 with this advice straight into the GFC. Recovers and gets dumped on in 2012. Spends the next 7 years folio building with responsible advice, loses it in 2019. This advice is terrible and the largest factor into why retail traders lose at rates around 85-95%. Muh DCA is a meme, always has been. See the above post about trend trading. You’d have bought pets.com in the dot com bubble calling it a mortal lock. Shit bruh, you’d have dumped into bonds in the 70s, you’d have dumped into silver in the 80s, you’d have dumped into Enron and Exxon in the 90s. You straight up aren’t thinking what you say through.
>>60973014What hellhole state is the USA in, currently?I live at home and can save around 40% of my 1k euroruble wage, and I continuously feel like I'm missing out on big saving opportunities (I am).
>>60974670Oh my... poor child. You walked right into this one.https://www.wealthmorning.com/2023/09/15/648774/meet-bob-the-unluckiest-investor-ever/
>>60974583>Yes, I may wield that workforce power as capital, that doesn’t mean that I’m working the trees. It means I’m NOT working, that people ARE doing WORK for me. I benefit from this work, that I do not undertake.This sounds retarded, it takes work to hire 500 workers, it takes work to organize where people will cut trees and where to move them, it takes work to get all the gear and vehicles to make that possible. There's several different jobs there that aren't "cutting trees" but are still required for the treecutting to happen. If you keep stepping back and paying people to do the work so you have less direct involvement, at what point do you think does it become "no work"?Is the manager handling scheduling doing no work? Is the CEO directing teams and raising funding and planning future projects doing no work? Is the active investor that looked into the company and decided to directly invest $20 million in the company so they can fund more tree cutting operations and get a small profit from their investment doing no work? Is the passive index fund investor that buys fractions of a share in a large index as part of his retirement plan doing no work?At what point does it become a "bad nono" to you? and what is your idea of "fixing it"?
>>60974634I feel like old biz wouldn't have taken those posts seriously, it's just too comically greedy.
>>60974724Bob barely beat inflation and if he was living in todays world he would lose the buying opportunity to get into real estate and start a family. All the people who give advice like this talk as if your life starts at retirement, because they already had it all. The lived in a world where you could meet women just by living, they would be genuinely interested in you, you didn't have to have millions to afford them a house and children. Now you do to even stand a chance. What the fuck am I going to do with a million dollars at 65?
>>60974724“You could say that Bob’s story is mythical in the same way that Robert Kiyosaki’s Rich Dad Poor Dad is mythical. Or it’s mythical in the same way that Aesop’s The Hare & the Tortoise is mythical.”Bruh. You didn’t even read the page; if you want to gob him off and buy a children’s book then here’s the part for you“Your prosperity is our focus — which is why we are always working hard to uncover new opportunities beyond the radar for you.By the way, I have a small favour to ask:Would you like to write a review of our work here at Wealth Morning?Do you want to let us know if our stories have inspired you in a positive way?Do you want to let us know if our stories have helped you become a more successful investor?We truly value your feedback.It encourages us. It helps us to do better. It helps us to reach further.So, if you’d like to leave us a review, it’s quick and easy. It will only take two minutes of your time: Please click here to review us now on Trustpilot.Thank you so much in advance for your kindness and generosity.Your readership keeps us going!Regards,John LingAnalyst, Wealth Morning(This article is general in nature and should not be construed as any financial or investment advice. To obtain guidance for your specific situation, please seek independent financial advice.)”So did you buy the book and leave a review? Like I said, super mundane take. Entirely fictional arguments are made. Muh time in market DCA meme is just that. If it was as easy as parking money people would literally only buy bonds.
>>60974760If it's a practice gf I would do that desu
>>60974777people like you are so retarded now I understand how some people can end up homeless in the US
>>60974797Yup. Called it. Straight up rentoid. Unable to address the underlying causality of their misaligned ideas. You’re literally hitting yourself.
>>60974771>What the fuck am I going to do with a million dollars at 65?Be confused at people your age living paycheck to paycheck or somehow ending up in debt.I do this already at 30, so I'm getting practice despite not having 1m yet.
>>60974583imagine being this retarded, sounds like you've never worked a day in your life
This is what mortagage fags will never understand about why stocks are so vastly superior to their liabilityboxes
>>60974916explain
>>60974911What do you think you’re arguing against as a point? That doesn’t follow logically.
Mortgages >Eats up cash flow through payments, interest, taxes, insurance>Hidden upkeep costs: repairs, renovations, transaction fees>Locks money in walls — illiquid and hard to access, can't yield money >Ties you to one location, limiting flexibility>Housing prices can stagnate or fall — depreciation risk>Decades of debt = obligation on your future self>Early payments mostly go to the bank, not equity>Single concentrated bet on one asset in one placeLiquid Investments >Generate cash flow via dividends, interest, gains>Easy entry/exit with minimal transaction costs>No physical upkeep or surprise repairs>Wealth stays portable — live anywhere>Taxes can be managed or deferred with strategy>Money stays liquid and accessible>Diversify risk across assets, industries, and geographies>Build growth while keeping future options openThe exception is a mortage that you can cover WELL with starting equity and doesnt eat up your cash flow, otherwise a cheap rent is superior.
>>60975116>>60974925Im basing this on my experience with peers who all seem to max out their mortgages because they think this is the best form of investment due to gearing.
>>60975116I largely agree, except that I think there's more exceptions, a lot of it depends on your local RE market.Like if your mortgage is lower than rent, it's probably worth buying (assuming it's not like NH where property tax is insane).Or if I found a duplex at the right price I'd consider buying and renting half out, if that rent would cover the mortgage. You'd have a bit less cashflow than renting probably, and there's some risk of bad tenants, but the amount of equity you could get for free makes it worth it.
>>60974771>$180k invested turned into $1.1 million with the absolute worst luck possible>Bob barely beat inflation!!!!kys>>60974777Is this an AI response? Kys as wellIf you want to remain poor and stupid go ahead and do that. I led the horses to water, all they can do is drink, some don't, they're just spiteful little nigger donkeys.
>>60975116Based.
>>60974583>You’ve only ever lived in a line go up economy.I lived through the dotcom bubble and 2008. It’s not always like go up. I’m looking forward to Gen Z faggots finding out how shitty a recession actually is, it’ll put some manners on you.
>>60973080>4% weeklythis lil bud boughttta be crying>>60973135based. tax for all the free/easy shit they get and for BLOCKING THE DAMN BIKE LANE>>60974343just take some side gigs every now and then
>>60974771I've got 2m just about before 35. You are correct, it's over for the broke fags.Good luck even existing let alone having a family kek, health care bill. OH FUCK ITS OVER.
>>60972917Investing in S&P 500 is a risky strategy, you don't have to take so much risk. Simply put 4 million dollars into a cozy 4% savings account, and you will get $160k for doing nothing, with zero risk.>inb4 the bank can collapseYeah, but think about what will happen to S&P 500 long before that happens.
>>60975937Won’t protect your money from inflation at all, 4 million in 30 years will be like 1 million now
>>60973010>gets a cushy investment job handed to him from his nepotistic financier family and friends circleWOW! i just chose the wrong path at birth. my bad!
>>60975937Savings accounts are a guaranteed risk and L. It's funny all of the world's smartest, richest people are tits deep in equities and you guys are sitting here thinking you're big braining the system by "hiding from risk" in fucking cash and savings accounts.The "risk" is guaranteed. Your cash is worthless and can be devalued and debased at will by an institution that prizes equities above all. So wtf do you really think you're doing hiding from it?
>>60973014Nobody is going to pull you out of poverty but you. Gotta adopt a grind mindset. Pick up extra shifts. Do landscaping for your neighbors. Start upskilling and get a higher paid job. Cut out all non-essential expenses.
>>60972917total wagie death.
>>60973013>This is a common misconception. You are not doing nothing, you are owning risk that your capital could go down. You're also allowing others to utilize your capital which is helping them be more efficient with their labor.Yeah, you read that bullshit in a textbook. Grow up.
>>60972985This pains me so much. There are no more lakehouse properties for 10k anymore. They are now 2.5 million. There is nothing left for this country to do but rot.
>>60972917>while average people slave 40-60 hrs a week and commute in shitty traffic or public transit every goddamn day, JUST to make the same as you, it really makes one ponder.Yeah average people are retarded. If you're smart and poor you'll land a good job, grind a lot and save fuckloads of money while living semi-impoverished (just focus on the absolute basics to stay healthy and continue to make money. Just getting $10k, $100k will give you a huge amount of breathing room and also start to snowball to 1M, $10M by the time you're 40
>>60974771>What the fuck am I going to do with a million dollars at 65?
>>60972917You don't earn money unless you're getting dividends and sp500 doesn't pay dividends
>>60977633It does tho
>>60977142You and your parents and grand parents had 100 years to get rich.
>>60972917The American median household income is only $80k. Lmao. How poor are people?
>>60977142>There is nothing left for this country to do but rot.You forget about the families that OWN those 2.5 million dollar homes... recent history has been VERY VERY good to the wealthy. If anything they are getting even richer.Their slice of the pie keeps growing!
>>60973124>>get a gf>becomes financially obliterated
>>60977642you barely get anything from dividendsyou need to profitably swing your shares if you intend to live off the profitsright now all markets are doing very good, but let's see what happens later
>>60977711Yeah Ikr. This is why home ownership is such a wealth divide and especially in the nice areas too. 2.5M home is pretty much impossible for 95% of people. Apparently, in a big city, you need 250k income to get a mortgage on a 1M home.
>>60977711And those families have been multi millionaires for over a decade and are very far ahead of literally 97% of people. You pretty much need a networth of over 12M to buy a 2.5M home. It is so over. The slice isnt getting bigger. The bottom 97% gets a smaller slice each year.The rich owns the pie.
>>60977721Exactly. This is why the wealth divide is so big. Someone has 1 million, so what? and a home worth how much? And how much income does that person have? And withdrawal rate from investments?You need minimum 5M to feel comfortable. Thing is, a good home costs 2.5m. So now what? If you’re worth 5m, half of that is in your home?Lmao.The American Median Household income is 80k. Ffs.
I know most anons here are poor as are most people irl. But check out /henryfinanceIt is a sub for people earning over 500k a year. Once you move into a high sol and vhcol area aka an actual desirable place, you realize that 300k income is only middle class.
>>60977721You don’t need to “swing” your shares. It’s called a stock/bond split. When stocks are up you rebalance by selling off shares, when stocks are down you buy the dip with cash. 70/30 split is a very good balance that smooths out volatility and gives you a large cash buffer to weather down turns while your stocks continue to grow and outpace inflation over the long run. There’s no guessing game with this method, it’s a very simple rebalance
>>60977768Bro, it aint easy buying and selling and you know it. During bullruns, it keeps going up and youre gonna sell and end up buying higher.
>>60977768Your dumb. How much capital are you working with?If you’re worth millions, its better have part of it managed by a portfolio manager. In your example, selling high and buying low sounds easy but you might get sidelined when the market keeps moving up or down after you buy/sell.
>>60977753Eh. I make 300k and live in a townhouse I purchased for 450k several years ago. If I move very close to the city there are 2.5M homes but there’s no point because I don’t even work in the city. There are tons of decent houses at 1M or less these days unless you’re in SF or NYC
>>60972917> capital appreciation Pretty much. Yeah. A person worth 10 million already makes more income per year than 95% of Americans doing nothing.
>>60977786Do you even know what a stock/bond split is? Sounds like you don’t And you don’t need a portfolio manager for a few million dollars, lmao. $50M, maybe
>>60977800Cool, Mr Redditor. The idea is you cant afford a 2.5M home anyways. Unless your enslave yourself with a mortgage or some other sacrifices.
>>60977807Yeah you do and should. Trade and invest yourself and also have a wealth manager or managers. Saves you from taking too high risk. Wtf do you know? I live in a top 5% area. I am saying definitely get a a wealth manager. The average person will fuck it up. All the rich people I know literally dont give a fuck about recession or anything while I notice it but dont feel it. These are people who have been multi millionaires for over 20 years and they dont check the market ever.Market tanked 20-30 percent?They didnt bat an eye.
>>60977807I have a few portfolio managers. Reality is, millionaires are 5% of population in us. But lets say multimillionaires should definitely have wealth managers. If you dont need one, then you have an interest in the economy or something.
>>60977821>>60977826Warren Buffet had this to say to the trustee handling his wife's inheritance. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” Basically give her cash to ride out any stock downturns (never sell low)
>>60977847Yeah, I am saying dont buy and sell. I would rather have a few portfolio manager and a play account. Putting it all in s&p 500 runs the risk of trying to get bigger gains.
>>60977847Buying and selling the s&p500 isnt easy. Especially if youre handling a multi millionaire account.
>>60972917I got 350k, so All I need to do is get to a million?
>>60977891No, like 7 million. Op is more about capital appreciation only.
>>60972917Pretty lit right? We created a system where you just have to make a lot of money one time, and then you can retire. Beats being a communist slave until you die, doesn't it?
>>60972985So true dude, this absolutely insane blessing that was never true at any other time in history is really "so fucked up"
>>60977891Just buy spy calls. 500k end of year guaranteed.
>>60977107>low iq literally doesn’t understand basic concept of investing capital
>>60973182there are such things as tax free investment accounts in some countries, idk if burgers have that
>>60972917It's called capitalism, and its definition is, precisely, the fact that you can make money by "investing" it, be it by having someone produce and sell stuff for your profit, or by "lending" that money to banks or companies.It's fucked up but people like this system and even defend it, so there is no alternative.
