re: the gap between a million dollars and a billion dollars

quote:

---

the gap between a million dollars and a billion dollars

---

now do a trillion.

quote:

---

I remember when I was younger those lottos or McDonald’s monopoly games that paid out $1M. Huge buzz about it and people dreaming of winning and quitting their jobs and retire if they won. then come to find out that $1M prize is paid out in 20 annual installments of $50k and you’re getting taxed on it too.

Hardly life changing money anymore!

---

No, but if you're good with money, it's a huge headstart. Back then, you could have multiple investment properties by the end of 20 years, making 3-5K in passive income per month. If I got that at 22, I would be easily able to retire by 45-50. As it is, I will be 55-60, but I am considering working until I get medicare at 65 (30 years from now).

A millionaire is really not that rich anymore, and close to 10% of Americans are millionaires IIRC. Most millionaires only make a six figure income in a given year.

quote:

---

If you earned:

* $50,000 a year

It would take:

* 20 years to make $1 million
* 20,000 years to make $1 billion

---

do you even compound interest baw?

quote:

---

do you even compound interest baw?

---

Baw financial calculator:

The present value of $1 million in 20years at 7% rate of return is $258,000. If you had $258,000 today invested at 7% for 20 yrs, you will have $1 million in 20 years.

The present value of $1 billion in 20years at 7% rate of return is $258,000,000. Same drill.

quote:

---

The present value of $1 million in 20years at 7% rate of return is $258,000. If you had $258,000 today invested at 7% for 20 yrs, you will have $1 million in 20 years.

---

and a return of 10% makes it a million in 14 years
a return of 15% gets you there in a little over 9 years

considering the AVERAGE rate of return of the stock market for the last 30 years is 10.5% you're intentionally low-balling the math

quote:

---

In terms of quality of life the millionaires have way more in common with billionaires than people who earn a mere 6 figure living.

---

I just can’t get over how stupid this statement is… anyone earning a 6 figure salary that is fiscally responsible can be a millionaire in short order. I have a net worth north of $1M and I have a quality of life no better than anyone else making 6 figures. Hell the ones that aren’t financially responsible probably have a ton of toys that I wish I had. Im only mid-30s so I will be working for a couple more decades at minimum, have to budget every single month and only take 2-3 vacations a year. Billionaires don’t have to worry about any of that shite.

Before the top of the hour you can count up all the billionaires there are in the entire world.

Can you give this to us in pounds of crawfish? Something most on this board will understand and identify with.

Thanks.