We already live in a country where owning capital generates more income than actually working. And this is rapidly getting worse. The GOP has sold the country on blaming minorities, and so things will get much, much worse before they can be better.
We already live in a country where owning capital generates more income than actually working. And this is rapidly getting worse. The GOP has sold the country on blaming minorities, and so things will get much, much worse before they can be better.
Know many countries with a political entiry known as "The GOP" that likes to blame minorities for everything wrong in society?
Pretty much any country. If you have $1m in assets you can simply stick it in a passive fund and earn more than the average wage in the highest earning countries. You can certainly live like a king in low cost countries.
You’re either using nominal, not real, returns, or assuming that passive fund is taking on a lot of risk/recency bias.
If you had said $2 million, I’d say that’s closer to accurate, although there’s still a conversation to be had about risk vs return.
Over the last 30 years the s&p with reinvested dividends has returned an average 9%, so fine, $90k off $1m assets.
Median wage in the USA is globally very high at just over $60k.
30 years corresponds to the biggest boom in equities the world has ever seen. There is no guarantee it will continue, a 100% stock portfolio is very risky to live off of.
4% is the generally accepted safe withdrawal rate (inflation adjusted) from a portfolio for 30 years holding a mix of bond funds and equities. If you’re trying to live off of it for 50-60 years, 3-3.5% is the recommendation.