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Started By
Message
We're all really three full generations away from creating real generational wealth on
Posted on 4/6/23 at 8:37 pm
Posted on 4/6/23 at 8:37 pm
average incomes. Simple lesson in compounding interest.
Start saving $300 a month for your child every day for 20 years. At 6% thats's $132K.
You roll that into an IRA. They contribute $300 a month, every month for 40 years. That's $2,000,000.
Their kids do the same. It's $25M.
Their kids do the same...$216M.
Start saving $300 a month for your child every day for 20 years. At 6% thats's $132K.
You roll that into an IRA. They contribute $300 a month, every month for 40 years. That's $2,000,000.
Their kids do the same. It's $25M.
Their kids do the same...$216M.
This post was edited on 4/6/23 at 8:39 pm
14
Posted on 4/6/23 at 8:46 pm to DiamondDog
quote:
You roll that into an IRA
I agree that compound interest and 100 years works, but what do you mean by “roll that into an IRA”?
Is there some secret way to “roll” random money to an IRA?
Posted on 4/6/23 at 8:53 pm to DiamondDog
You assume our empire lasts and empires never do.
You, or your children or their children will face extremely hard times. It's just history.
Venezuela was one of the richest countries in the world 50 years ago and now you can get a supermodel there to ride your ding dong for a $300 flight to Cancun.
You, or your children or their children will face extremely hard times. It's just history.
Venezuela was one of the richest countries in the world 50 years ago and now you can get a supermodel there to ride your ding dong for a $300 flight to Cancun.
Posted on 4/6/23 at 8:56 pm to DiamondDog
Principle aside (that I agree with), linear thinking is mythical.
Have to factor risk of the day, as well. Won’t behave so linear. Life ain’t so linear.
Have to factor risk of the day, as well. Won’t behave so linear. Life ain’t so linear.
This post was edited on 4/6/23 at 8:57 pm
Posted on 4/6/23 at 9:22 pm to DiamondDog
How much are eggs in 3 generations?
Posted on 4/6/23 at 9:35 pm to makersmark1
quote:
mean by “roll that into an IRA”?
If you have a 529 in LA, pretty sure it can convert/roll into an IRA
edit: The entire thread is doo doo with the IRA path. Apparently it's only $35K starting in 2024.
This post was edited on 4/6/23 at 9:48 pm
Posted on 4/6/23 at 9:39 pm to Turf Taint
quote:
Principle aside (that I agree with), linear thinking is mythical. Have to factor risk of the day, as well. Won’t behave so linear. Life ain’t so linear.
No, it's in a vacuum and you're right, there's always one turd that's bound to screw it up and spend it down early on.
But, I think that's what I'm going to try and do. Start that path. I'll be long dead by the time we find out but you got to try...
This post was edited on 4/6/23 at 9:40 pm
Posted on 4/7/23 at 8:46 am to DiamondDog
Or you could run for Congress.
Posted on 4/7/23 at 8:57 am to DiamondDog
I actually think this is why you currently see a lot of people in their mid-fifties dropping out of the workforce. We are in a time of hyper-increased inherited wealth. We’re reaching a point where lots of middle class families have had three or more generations of wealth building.
Posted on 4/7/23 at 9:07 am to Motownsix
quote:
I actually think this is why you currently see a lot of people in their mid-fifties dropping out of the workforce. We are in a time of hyper-increased inherited wealth. We’re reaching a point where lots of middle class families have had three or more generations of wealth building.
I’ve noticed that too. Are you aware of any data showing how many peo0le retire early?
Posted on 4/7/23 at 9:28 am to SaintsTiger
quote:
Venezuela was one of the richest countries in the world 50 years ago and now you can get a supermodel there to ride your ding dong for a $300 flight to Cancun.
Yep. And going further back, Argentina was our chief rival in the west. At least until they decided socialism was the way to go. Do not have the going rates for Buenos Aires bed thrashers.
Posted on 4/7/23 at 9:46 am to DiamondDog
Now apply an inflation calculation at 3.5-6% on the final figure, with the total number of years to achieve "generational wealth".
And, don't forget that pesky income tax calculation that never changes.
quote:
Simple lesson in compounding interest.
And, don't forget that pesky income tax calculation that never changes.
This post was edited on 4/7/23 at 9:49 am
Posted on 4/7/23 at 12:07 pm to BestBanker
All it takes is one person in this generational line to consider the inherited wealth “theirs” and this familial effort goes crumbling down.
It takes discipline from many generations. Add in the headwinds of inflation and taxes, as mentioned by BB, and you see why so few families make this concept work.
It takes discipline from many generations. Add in the headwinds of inflation and taxes, as mentioned by BB, and you see why so few families make this concept work.
Posted on 4/7/23 at 12:09 pm to makersmark1
quote:
Is there some secret way to “roll” random money to an IRA?
You can’t.
You could find a way to employ your children from a very young age, especially if you own your own business. A popular employment method is to employ your kids as childhood models for advertising your business and paying them $100/hr or so, but you actually have to take and use pictures of them for these purposes and file tax returns and all that.
Posted on 4/7/23 at 12:29 pm to I Love Bama
Lol at the doom and gloom.
The future is bright!
The future is bright!
Posted on 4/7/23 at 1:22 pm to stewie
An excellent point. I didn't want to include that in my math, but this really is the weakest link. Someone will blow it all.
Posted on 4/9/23 at 8:42 am to I Love Bama
quote:
Venezuela was one of the richest countries in the world 50 years ago and now you can get a supermodel there to ride your ding dong for a $300 flight to Cancun.
Sounds like you speak from experience sir.
Posted on 4/9/23 at 8:23 pm to I Love Bama
quote:
Venezuela was one of the richest countries in the world 50 years ago and now you can get a supermodel there to ride your ding dong for a $300 flight to Cancun.
Is that coach, business, or first class?
Posted on 4/9/23 at 8:38 pm to DiamondDog
quote:
Start saving $300 a month for your child every day for 20 years. At 6% thats's $132K.
You roll that into an IRA. They contribute $300 a month, every month for 40 years. That's $2,000,000.
Their kids do the same. It's $25M.
Their kids do the same...$216M.
Now do the same calculation including inflation.
Posted on 4/9/23 at 10:29 pm to DiamondDog
quote:
Start saving $300 a month for your child every day for 20 years
So if you have 4 kids thats 1,200.00 a month saving for their future?
ok
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