CLEC Investment & Wealth Database00450 December 27, 2023 How Much Do You Know About Wealth
00450 December 27, 2023 How Much Do You Know About Wealth
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How Much Wealth Is Enough? Casual Investment Talk on Clubhouse
Disclaimer
We are not professional tax experts or tax advisors. Our content is for reference only; please consult a professional accountant for tax questions.
We are not professional investment advisors (Certified Financial Advisor/Planner). The video content, comments, and sharing are for educational purposes only and are not investment advice.
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If you live in Taiwan and have one million TWD now, can you retire?
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If you live in the United States and have one million USD now, can you retire?
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What does one million mean?
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At an annualized 10%, it grows 117 times in 50 years. One million becomes 117 million, averaging about two million per year to spend.
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If you can live for 60 years, you would have 300 million, averaging six million per year to spend.
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So one million represents 100 million. No, 300 million. No, 500 million. No, one billion. No, 10 billion. It represents an unlimited scale of assets.
How to use future money for current spending is a kind of financial knowledge and operation
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When we have 100 million in assets and ask the bank to lend us one million per year, after 50 years we have only spent 50 million. The bank will certainly be willing.
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When we have 300 million in assets and ask the bank to lend us two million per year, after 60 years we have only spent 120 million. The bank will certainly be happy to lend us money.
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Over 200 years and five generations, one million is worth 190 trillion. The current U.S. market is around 70 trillion. Today's one million can support your family for generations without running out.
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The longer we live, the more money we can spend.
Borrowing 30,000 per year against one million at 5% interest: after 10 years, debt is 396,000 and assets are 2.59 million
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With 2.59 million in assets, borrow at 5% interest and spend 60,000 per year. After 20 years, debt is 1.3 million and assets are 6.73 million.
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With 6.73 million in assets, borrow at 5% interest and spend 100,000 per year. After 30 years, debt is 3.18 million and assets are 17.45 million.
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With 17.45 million in assets, borrow at 5% interest and spend 130,000 per year. After 40 years, debt is 5.36 million and assets are 45.25 million.
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With 45.25 million in assets, borrow at 5% interest and spend 220,000 per year. After 50 years, debt is 11,636,368 and assets are 117,390,852.88.