Quote:
Originally Posted by Mc2guy
You better be prepared to live off less than that chief. Uncle Sam and the state want their cut, which of $3,000,000 assuming you are using interest or dividends, not selling equity is taxed at standard income rates, so there goes 35%, plus SSI, plus state tax, so there is 50% out the door up front.
Oh yeah, did you have that money with an wealth management firm like a Schwab or Jones or Edelman, whoops, there goes another 1-2% in asset management fees, plus the fees from the mutual fund managers where your money is actually invested, which is another 1% minimum.
Wow, your 3% return just turned into a loss, all for a measly $1.5M in net cash flow.
Is it any wonder "rich" people don't put their money in MMA's or CD's. There is no return, which is why most people of "significant" wealth, have personal investment advisors/staff to carefully invest in both securities and equity projects. Holding on to wealth is not as easy as it sounds.
I would be willing to bet if you took a random sampling of 1000 Americans, pulled them off the street and handed them a check for $100M; 75% would be broke in 10 years or less. Most people simply are not prepared to handle that kind of money.
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Investment ROIs on funds like money market or bonds are typically net of fees. And I was assuming gross income of $3 million, which even after taxes can support 3 houses and cars galore.
22% of America still approved of George Bush, even at his lowest approval point. There's a significant % who don't graduate from high school. I think it's fair to say a big portion of Americans aren't very intelligent.
I don't know about your 75% number, but I get your point. It's an indictment on the intelligence of the general populace more than anything.
If you piss through $100M in 10 years or less, I'm sorry, you ain't smart.