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The secret in life is that net worth is far more important than income. A janitor who invested his whole life and has 6 million in assets is actually better off than the investment banker even if his income is lower.
There are so many janitors with 6mm in the bank walking around
How much property/stocks/bonds/etc. should one have to be protected from the eventually automation of most jobs? (Basically at what point in wealth can you just live off your investments)?I know 1 million gives you about 50,000 a year or so in interest if you factor in a 3% inflation (8% average stock market returns). Would 3 or 4 million be enough to be shielded from the fallout of all unskilled jobs and most skilled jobs being replaced?
It's an odd thing: Investors become wealthier over time; savers become poorer.
It is strange and when I heard that years ago (1973) I had no reason to believe it but I have seen it.
Savers get used to saving everything. By the time they retire they are so used to saving everything that they have no skill at spending. And no way to know how much to spend. I watched my mother-in-law pinch pennies and do without until the day she died at age 94. She never made much more than minimum wage and died with $100,000 in the bank.
Investors find ways to make money work for them. Their years of practice and learning give them the tools that are needed to tip-toe through the financial minefield of investing. Many, many people have more money a few years after they retire than they had while working. They have learned how much to spend.
Gamblers? Ha! Lotsa luck.
But the answer to your question is, "It all depends on your lifestyle". But take it from me (age 69) handling large sums of money takes lots of practice.
Assuming that our economy will be automated also assumes that we have an infinite supply of energy that will power that automation. Unfortunately we have already hit peak petroleum and are on the downward slide of the supply bell curve. Geologists expect the hydrofracturing boom of natural gas to last another two to three years before it also peters out. That leaves us back in the same hole we were in several years ago, but with increased local demand for those dwindling resources and increased international competition from growing third world economies such as China. Essentially, our economy has to transition away from its dependence on fossil fuels AND away from its focus on growth. This new economy, whatever form it takes, will have little room for automation.
Assuming that our economy will be automated also assumes that we have an infinite supply of energy that will power that automation. Unfortunately we have already hit peak petroleum and are on the downward slide of the supply bell curve. Geologists expect the hydrofracturing boom of natural gas to last another two to three years before it also peters out. That leaves us back in the same hole we were in several years ago, but with increased local demand for those dwindling resources and increased international competition from growing third world economies such as China. Essentially, our economy has to transition away from its dependence on fossil fuels AND away from its focus on growth. This new economy, whatever form it takes, will have little room for automation.
Better save up on ammo there buddy! Peak oil end of days! Gasp
The secret in life is that net worth is far more important than income. A janitor who invested his whole life and has 6 million in assets is actually better off than the investment banker even if his income is lower.
Nah. The secret to life is happiness = love.
Money is a poor substitute for love, respect, accomplishments, etc. Health is more important anyway.
It's an odd thing: Investors become wealthier over time; savers become poorer.
It is strange and when I heard that years ago (1973) I had no reason to believe it but I have seen it.
Savers get used to saving everything. By the time they retire they are so used to saving everything that they have no skill at spending. And no way to know how much to spend. I watched my mother-in-law pinch pennies and do without until the day she died at age 94. She never made much more than minimum wage and died with $100,000 in the bank.
Investors find ways to make money work for them. Their years of practice and learning give them the tools that are needed to tip-toe through the financial minefield of investing. Many, many people have more money a few years after they retire than they had while working. They have learned how much to spend.
Gamblers? Ha! Lotsa luck.
But the answer to your question is, "It all depends on your lifestyle". But take it from me (age 69) handling large sums of money takes lots of practice.
the problem is many savers are not investors.
a penny saved is a penny earned but it is always a penny.
it is compounding over decades that grows wealth and that comes from investing.
many savers would be further ahead learning less about pinching pennies and more about investing.
Saving and investing are both important for retiring early.
There's wouldn't be money to invest if you're not saving much. Savings will depreciate without investing
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