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limacharley t1_j6bbzuf wrote

That day has come and gone.

To me, rich means never having to worry about money again. A million dollars isn't enough for that. You probably need at least ten million .

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iamr3d88 t1_j6cgteb wrote

3-5 should cut it for most people. 4% "safe" rate means 3mil can live on 120k forever. That's good money. Especially when you don't have to save anymore.

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Sir-Viette t1_j6cmkeo wrote

It depends on what the inflation rate is. In the US, it’s 6.5% per annum. If you earned 4% and didn’t spend any of it, you’d still be effectively losing money.

However, if someone is at the end of their life, perhaps it doesn’t matter so much.

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Irishbeast57 t1_j6cwnnw wrote

I think he is referring to the idea that you can safely withdraw 4% per annum and not lose your initial capital

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Sir-Viette t1_j6cx1ji wrote

Yes that's true. But inflation would mean that the same initial capital would buy 6.5% less every year.

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iamr3d88 t1_j6e84vn wrote

Over 20+ years, I you take 4% per year out while making 7-10% on average, your portfolio will grow with inflation. That's not guaranteed, but it pretty much works out that way.

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StrangeKnee7254 t1_j6d0e5l wrote

The 4% withdrawal rate takes inflation and bear markets into account.

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Moon-In-Leo t1_j6eprs3 wrote

if you put it in almost any investment except cash you will beat inflation

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thathandsomehandsome t1_j6cw1oh wrote

I agree that it has passed, but I’d say 2-3 million with no/low debt is “rich”.

There’s no point in having even 10 million, if you owe 10+ million. Living within your means is key.

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grasopper t1_j6g7w6u wrote

You can take the million dollars and move to a developing country and be rich there. That's my plan

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ExNihiloish t1_j6gj2i8 wrote

For us poor people, 1 mil is certainly enough to last a lifetime. I'll die having never earned that much.

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limacharley t1_j6j7sst wrote

Well yeah, you might stretch a million dollars to last a lifetime, but that doesn't make you rich. It just makes you less poor.

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ExNihiloish t1_j6j8fl4 wrote

Yeah. The disparity is so great that to us that have lived in and around poverty, 1 mil seems pretty rich. We could support a family of 4-5 for a lifetime. I understand it's not a lot for the middle class.

I think "rich" is subjective - based on perspective.

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Grinagh t1_j6ebwaq wrote

Agreed but more to the point, the future doesn't look very good considering all things emerging at the same time, robotics, AI, fusion, climate change, inverted population growth.

Already the cracks are appearing, COVID was just the first modern hurdle we faced and like a Fatman trying to launch over it we jammed our balls hard on the hurdle and ate pavement face first.

We are not going to have it any easier as disruptions become a regular way of life leaving billions poor, hungry and dumb. The society that will exist in 2100 will be unimaginable to us despite it only being a lifetime away.

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