Re:The User Always Loses
by iamthrowaway on Saturday September 05, 2020 @02:18PM
(#24385661)
Well, as someone who just left a 750k USD a year at a FAANG with a clear path to making 2MM+ in 5 years or so, I disagree.
I am in my early 30s and have a wife and kids. At some point, your relationship with money changes. I am now more concerned about my own legacy and the example I’m giving my kids than whether my net worth in 10 years will be 2 or 20 million.
I’m also more deliberate about how I use my time. So I’m perfectly content in doing something that will net me “only” 250k or so a year.
The irony is that this might net me more if I decide to come back to a FAANG in the future.
> I am in my early 30s and have a wife and kids. At some point, your relationship with money changes. I am now more concerned about my own legacy and the example I’m giving my kids than whether my net worth in 10 years will be 2 or 20 million.
Narator: The median wealth of a 30-35 year old American is $30k.
Let's say you, a hopeful founder, could get $0.5M/yr at a BigCo. Instead you're going to start a company where you'll earn maybe $0.15M/yr for a decade then either get a payout (10%) or fail (90%). To make them even in expectation after that decade, you need $5M = $1.5M + 10% * payout, so payout = $35M. Maybe you and your cofounder each have 25% (?) of the company at that point , so the valuation needs to be 4x that $35M, so $140M.
To take a paycut from a really good alternative, you need a giant incentive. Maybe that just means that if you would start a business that'll "only" make you $0.5-1M/year if you succeed, then in solely a financial perspective, you should just join a BigCo.