Re:Why do 70% of families lose their wealth in the 2nd gener...
by iso1210 on Saturday January 08, 2022 @11:26AM
(#29853150)
10m wouldn't be the house, you live in a normal 300k house and pay no rent, the 40k covers all your day to day expenses, and you don't need to work. In reality you can probably levarage your security and contacts to get yourself a nice cosy consulting job.
Of course you could decide "I have 10m, I'm going to spend it". Thats your choice.
With 10% growth and 2-3 kids you can pass that on indefinitely to all your children even if all you do is a typical middle class office job.
This doesn’t happen. People with $10 million net worth aren’t living on $40K per year.
Expensive houses aren’t cheap to maintain or furnish or keep upgraded.
> Crucially it's a great safety blanket too, you don't have to work 2 full time minimum wage jobs to afford to live,
Why is this a comparison? Minimum wage jobs are actually extremely rare right now, but it doesn’t make sense that a family with $10m net worth would even have minimum wage no-skill jobs on their radar.
I think you’re looking at this from an extreme early retirement (FIRE) scenario for the entire family, but that’s not how people do this at all. Even wealthy kids get (expensive) educations and go on to have productive careers. Wealthy families aren’t just opting out of society and FIREing with $40k of spending per year.