T master Posted February 28, 2022 Share Posted February 28, 2022 I know times they are a changing but it use to be if you were lucky enough to some how earn $1 million dollars that you could live a really decent life for a long time & have some left over to give to your kids but today is different & i know $1 million doesn't go as far as it use to especially if you live in a state that has state tax plus federal . I was reading a article today about Horrible Harry resigning with the Bills & it was said that he could resign a 2 year contract for around $10 million and although that wasn't generational money it was what he was worth . Okay i know Josh, Mahomes, & others are making what i call stupid money which should last them a generation plus but $10 million isn't chump change & could last a generation if you live with in your means . Then there are those like T.O. that during his career made some $80 million and was broke after he retired which i have no idea just how foolish you have to be to blow that kind of cash because $80 million i would consider generational money . But i'm pretty sure that if i had the chance to make $10 million plus what ever Harry made on his first contract i could live relatively comfortable for a really long long time and quite possibly a generation sure i won't be driving a Bentley or a Maserati but i'll have a nice 65 GTO or something like that I did notice Harry drives a newer 4 runner which is nice but with in his means . I don't know that even if i did have the kind of money that Josh or Mahomes makes that i would have some $40 million home & Bentleys, Maserati's, & all that of course money can & does change people & $258 million is a S**T TON of money but when does it change from just really comfortable pay to "Generational Money" ? $20 million - $30 million - $50 million ??? Quote Link to comment Share on other sites More sharing options...
H2o Posted February 28, 2022 Share Posted February 28, 2022 The question is what's your lifestyle and how do you spend that $$$? If you want to be out on the party scene rubbing elbows with the rest of the rich and famous, buying the latest Bentley, showing up to all these red carpet events, with $100K chains/watches, then it's going to be different than for those who live modestly. I could live off of $1M the rest of my life, but I'm 45 and live modestly. If you live within your means then $4-5M in your 20's could last you your whole life easily. But if your tastes are that of more extravagance, then you will need that $50M-$100M. Even then you see people mismanage that $$$ and end up broke. 3 Quote Link to comment Share on other sites More sharing options...
boater Posted February 28, 2022 Share Posted February 28, 2022 If you put 10 mil into a CD (the ultra-conservative option) you would get $82,000 a year in interest with even touching the principle. I know many of us here could live well on $82K. We'd have to buy a Toyota instead of a Lexus. 5 1 Quote Link to comment Share on other sites More sharing options...
mannc Posted February 28, 2022 Share Posted February 28, 2022 19 minutes ago, T master said: I know times they are a changing but it use to be if you were lucky enough to some how earn $1 million dollars that you could live a really decent life for a long time & have some left over to give to your kids but today is different & i know $1 million doesn't go as far as it use to especially if you live in a state that has state tax plus federal . I was reading a article today about Horrible Harry resigning with the Bills & it was said that he could resign a 2 year contract for around $10 million and although that wasn't generational money it was what he was worth . Okay i know Josh, Mahomes, & others are making what i call stupid money which should last them a generation plus but $10 million isn't chump change & could last a generation if you live with in your means . Then there are those like T.O. that during his career made some $80 million and was broke after he retired which i have no idea just how foolish you have to be to blow that kind of cash because $80 million i would consider generational money . But i'm pretty sure that if i had the chance to make $10 million plus what ever Harry made on his first contract i could live relatively comfortable for a really long long time and quite possibly a generation sure i won't be driving a Bentley or a Maserati but i'll have a nice 65 GTO or something like that I did notice Harry drives a newer 4 runner which is nice but with in his means . I don't know that even if i did have the kind of money that Josh or Mahomes makes that i would have some $40 million home & Bentleys, Maserati's, & all that of course money can & does change people & $258 million is a S**T TON of money but when does it change from just really comfortable pay to "Generational Money" ? $20 million - $30 million - $50 million ??? How about we do away with the term “generational”? it’s totally meaningless and I’m pretty sure it’s not even a real word… 2 Quote Link to comment Share on other sites More sharing options...
DrDawkinstein Posted February 28, 2022 Share Posted February 28, 2022 (edited) 16 minutes ago, boater said: If you put 10 mil into a CD (the ultra-conservative option) you would get $82,000 a year in interest with even touching the principle. I know many of us here could live well on $82K. We'd have to buy a Toyota instead of a Lexus. If you only earn $82,000 a year on a $10M principal, you dont deserve to have that money. Should easily be able to draw 3-4%/year, which is $300k-400k, and STILL have growth on the principal. So $10M is generational if you play it right. I know this because I've already planned on $10M being my "eff you" point if I ever hit the lottery or on crypto or whatever. Could do alright on $5M, but it would be close. Anything more than $10M is just gravy. Maybe ask @Chef Jim for advice. Edited February 28, 2022 by DrDawkinstein 1 1 Quote Link to comment Share on other sites More sharing options...
Chef Jim Posted February 28, 2022 Share Posted February 28, 2022 2 minutes ago, DrDawkinstein said: If you only earn $82,000 a year on a $10M principal, you dont deserve to have that money. Should easily be able to draw 3-4%/year, which is $300k-400k, and STILL have growth on the principal. So $10M is generational if you play it right. I know this because I've already planned on $10M being my "eff you" point if I ever hit the lottery or on crypto or whatever. Could do alright on $5M, but it would be close. Anything more than $10M is just gravy. Maybe ask @Chef Jim for advice. Well my advice would be......wait......how the ***** did I get on this part of the forum?? 4 Quote Link to comment Share on other sites More sharing options...
DrDawkinstein Posted February 28, 2022 Share Posted February 28, 2022 Just now, Chef Jim said: Well my advice would be......wait......how the ***** did I get on this part of the forum?? I went fishing and look what I hooked! Quote Link to comment Share on other sites More sharing options...
Chef Jim Posted February 28, 2022 Share Posted February 28, 2022 Just now, DrDawkinstein said: I went fishing and look what I hooked! Throw me back! Throw me baaaack!!! 1 Quote Link to comment Share on other sites More sharing options...
DrDawkinstein Posted February 28, 2022 Share Posted February 28, 2022 2 minutes ago, Chef Jim said: Throw me back! Throw me baaaack!!! I'll put you back in your muddy swamp after you tell us what someone should expect to make on $10M 1 Quote Link to comment Share on other sites More sharing options...
Chef Jim Posted February 28, 2022 Share Posted February 28, 2022 1 minute ago, DrDawkinstein said: I'll put you back in your muddy swamp after you tell us what someone should expect to make on $10M Depends. How did I get it? Is it net of taxes? Quote Link to comment Share on other sites More sharing options...
DrDawkinstein Posted February 28, 2022 Share Posted February 28, 2022 Just now, Chef Jim said: Depends. How did I get it? Is it net of taxes? $10M after taxes. How you got it is irrelevant for this hypothetical. The question is what could someone expect to make off it a year without draining the principal? Is a 4% draw reasonable? Quote Link to comment Share on other sites More sharing options...
teef Posted February 28, 2022 Share Posted February 28, 2022 as long as i was in physically good shape, and mentally still into it, i'd play as long as i could and earn as much as i could. you can never have enough cash. the only other way i'd consider walking away was if i had another passion that i wanted to follow. Quote Link to comment Share on other sites More sharing options...
Chef Jim Posted February 28, 2022 Share Posted February 28, 2022 Just now, DrDawkinstein said: $10M after taxes. How you got it is irrelevant for this hypothetical. The question is what could someone expect to make off it a year without draining the principal? Is a 4% draw reasonable? 4% is very reasonable. Now at my age of 60 this is what I'd do. Leave it in cash. It's all basis. I could live off of the principal risk free (other than inflation of course) quite nicely for the next 30-40 years I have on this planet. But here's the real reason why I'd do it this way. No more ***** taxes!! HA!! 1 1 Quote Link to comment Share on other sites More sharing options...
boater Posted February 28, 2022 Share Posted February 28, 2022 31 minutes ago, DrDawkinstein said: If you only earn $82,000 a year on a $10M principal, you dont deserve to have that money. Should easily be able to draw 3-4%/year, which is $300k-400k, and STILL have growth on the principal. So $10M is generational if you play it right. I know this because I've already planned on $10M being my "eff you" point if I ever hit the lottery or on crypto or whatever. Could do alright on $5M, but it would be close. Anything more than $10M is just gravy. Maybe ask @Chef Jim for advice. Like I said in the post..CDs were the ultra-conservative approach. If it were me, I'd invest in the S&P 500 which returned 9% over the last 10 years. 1 Quote Link to comment Share on other sites More sharing options...
Chef Jim Posted February 28, 2022 Share Posted February 28, 2022 37 minutes ago, DrDawkinstein said: $10M after taxes. How you got it is irrelevant for this hypothetical. The question is what could someone expect to make off it a year without draining the principal? Is a 4% draw reasonable? And don't get me started on the whole 4% decumulation "rule". Quote Link to comment Share on other sites More sharing options...
dpberr Posted February 28, 2022 Share Posted February 28, 2022 Aren't we really discussing generational "wealth"? I don't think there's such a thing as generational money. Money is an input into wealth but it's not the only input. It's just the income. You can make $10 million dollars a year. The person who blows it all on conspicuous consumption is a different wealthy from the one that hides it all in the walls of his house as cash or the one who takes that same money and invests it into real estate, the stock market, etc. The wealthy in this country, even historically, weren't Scrooge McDuck swimming in a room full of greenbacks. Their wealth was in lots of things. Any NFL player can be generationally wealthy - it depends on what he does with that income. Quote Link to comment Share on other sites More sharing options...
NewEra Posted February 28, 2022 Share Posted February 28, 2022 1 hour ago, mannc said: How about we do away with the term “generational”? it’s totally meaningless and I’m pretty sure it’s not even a real word… gen·er·a·tion·al /ˌjenəˈrāSH(ə)nəl/ Learn to pronounce adjective relating to or characteristic of all the people born and living at about the same time, regarded collectively. "generational differences in television usage" relating to the different generations of a particular family. "a compelling generational saga" it’s a word. Why is this even a thing? 1 1 Quote Link to comment Share on other sites More sharing options...
MJS Posted February 28, 2022 Share Posted February 28, 2022 It's all about what you do with it. I have a multi millionaire acquaintance and he told me that getting the first million is really hard, but after that it starts really compounding and getting your next few million is a lot easier. You just have to know how to use money to make money. The key is developing a lot of passive income so eventually you don't need to work at all, or at least very minimally, to be making money. So, real estate is a great thing because real estate appreciates. If I had a million dollars right now I'd go invest in a few short-term and long-term rentals, continue to scale that, and be set for life. Rich people also use their homes as a way to generate wealth. Their homes are investments. Buy a huge mansion, live in it for a few years and let it appreciate, sell it for a big return. Rinse and repeat. 1 Quote Link to comment Share on other sites More sharing options...
Old Coot Posted February 28, 2022 Share Posted February 28, 2022 1 hour ago, NewEra said: gen·er·a·tion·al /ˌjenəˈrāSH(ə)nəl/ Learn to pronounce adjective relating to or characteristic of all the people born and living at about the same time, regarded collectively. "generational differences in television usage" relating to the different generations of a particular family. "a compelling generational saga" it’s a word. Why is this even a thing? It's a perfectly cromulent word. 2 1 1 Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted February 28, 2022 Share Posted February 28, 2022 10 minutes ago, Old Coot said: It's a perfectly cromulent word. A noble 4% return embiggens even the smallest portfolio. 2 1 Quote Link to comment Share on other sites More sharing options...
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