I have a friend who got 7 million inheritance from a trust from his grandfather. I know this isn't huge money but he's never worked since graduating college 4 years ago and owns a house.
I don't want to ask him, but just to estimate, because he does complain about being broke which gets on everyones nerve, what would you want to be withdrawing from that if you are about 27 and want to make it last til death, 75 or so. I'm guessing like 40k a year after taxes? Any thoughts?
>>1139481
It is huge money, though. It's not just a small loan of 1m Dollars. It's solid money.
Put 5m into vanguard at 4% and live comfortably for the rest of your life
>>1139484
Definitely, but it's not enough to fund a lavish lifestyle for the rest of his life, especially since he majored in the liberal arts and has no lucrative skills to add to it nor the business acumen to invest it in real estate or something to make more money, and will have even more trouble entering the workforce after 4 years of basically watching tv and reading comics. I've asked him about the investment strategy but he seems pretty clueless and other people handle it, he just cashes the checks each month. How much are these checks each month?
Being guaranteed a modest middle class lifestyle without working is obviously nothing to sneeze at, but having to pay full price for health insurance not through an employer and all that will definitely eat into it.
>>1139487
Yea I assume it's in something like that. How much is he pulling out each year?
>>1139481
>I know this isn't huge money
>>1139487
>>1139484
http://www.bankrate.com/calculators/savings/savings-withdrawal-calculator-tool.aspx
actually I plugged the numbers into this calculator and even pulling out 100k a year the principle still goes up if you assume a 4% growth rate. Goddamn, my intial estimate was really off. I wonder why in the world he chooses to be depressed and stay in the small town where he lives feeling sorry for himself, rarely traveling and just spending money on vinyl records and comics.
>>1139498
He just wants to keep living the life he's living man
>>1139502
I guess but I'll have much less sympathy for him when he says he's broke because I thought he was making like 50k a year. He's not happy. Everyday on twitter it's "I'm too much of a pussy to even message a girl on Tinder, just kill me now, senpai." He always gets shot down in real life and has just given up. Do they know he's making as much as a doctor without ever having to work? Jesus Christ his little self pity thing rustles my jimmies in a way it never did before.
>>1139481
>7 million inheritance from a trust from his grandfather
>this isn't huge money
>>1139505
Stop being friends with him, you're having a pitty party right now in this thread. Your buddy is depressed judging by how you described him. Get different friends if you're getting this upset over it. You want to help him like a good friend? Get him to a therapist and an accountant.
>>1139481
your jealousy is poisoning you. don't know how close you are but you probably could change him if it's worth it to you. otherwise, you're just gonna keep feeling bitter watching some guy waste all these things you'd make so much better use of.
there's probably a lesson in that experience somewhere.
>>1139487
>vanguard at 4%
>vanguard
>4%
>choose one
Index stock funds average 10.1% with dividends reinvested, and even a 100% ultra-hyper-conservative index bond fund averages 5.4%
You faggots with your "muh vanguard shitty performance" can get fucked.
https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations
>>1140106
What is inflation. The point is to live on 4% of current value so that the 2-3% extra yield can make your yearly income grow.
>tfw $300k trust fund.
Most of it is locked away in the account until I turn 30 though, and I don't know a better way to turn it into millions except buying lottery tickets.
>>1140146
Develop a skill or trade and become proficient by the time you get the money to open a business or become an entrepreneur with your skill
>>1139498
I can give you an alternate viewpoint coming from someone who was depressed and who inherited 1/7th of what your friend did at 24.
>why he choose to be depressed and stay in the small town
Whats the point in me spending money on flying to another part of the world just so i can be depressed over there? What exactly is going to happen if I just fly to another country? Im suddenly going to be happy? I'd probably just feel even more alone watching these people from across the globe interact with each other and form meaningful bonds. . At the end of the day im still going to be alone. Why has this fucking traveling maymay continued to exist .
>spending money on vinyl records and comics
hes buying what he likes
>he always says hes broke
He probably is. He doesn't have 7 million dollars in a checking account. He most likely has a trust fund that gives him a monthly allowance. If he spent the money before his next disbursement it would make sense that he has no no money he has direct access too.
>>1140156
problem is I'm stuck in SoCal. White collar/food service businesses are prohibitively expensive to start here, and the blue collar businesses are saturated with Mexicans and truck teams already.
>>1140160
300k should allow you to afford a home in SoCal. There you go. You don't even have to have skills to be financially secure (once you have some chunk of money)
this is the dumbest shit that I've ever read
7mm is enough to conservatively have 300k a year in income from investments
your friend is lying to you or he's a complete retard or both
>>1140160
Excuses. What a bunch of crap. "I'm stuck in one of the most affluent places in the rochest country on Earth." Boohoo fuck off you'll never make it
>I know this isn't huge money
AAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHH
I'M FUCKING RAGING RIGHT NOW
>>1140162
more specifically I'm in LA with no car, license or place to park car even if. A good condo anywhere around here costs at least $650k. I realize that I do have some amount of money, but also not enough to actually break into lifelong passive sustainable wealth. If I tried getting a car and my own apartment as a prerequisite to even begin the process of getting my shit together, whatever it is might not work out, and then I'll lose most of my money and be actual poor and broke.
>>1140182
The whole idea is to have enough wealth or passive income so you don't have to compete in the system, be a wagecuck or careerslave, instead just do what you love in life and not worry about whether it makes money... cause most things don't if you're just doing them for fun, and aren't super talented and competitive.
>>1140106
It might perform that well but you have to consider how much draw downs impact the overall performance. 4% is realistic while allowing it to grow. Think about things before you speak.
>isn't huge money
You faggots are delusional. None of you will ever have that amount of wealth. Not even in total net worth.
>what would you want to be withdrawing from that if you are about 2
Being very conservative at 2% annual interest the guy has a freaking $140,000 in yearly income. And that's without account for compound interest. And he could probably be getting upwards of 4% in interest annual.
There is no way the guy is actually broke. He just doesn't want you to get crazy ideas about him giving you any money.
>>1139481
>I know this isn't huge money
Oh fuck off
What exactly is "huge money" then?
>>1140160
>problem is I'm stuck in SoCal
fucking bullshit pussy excuses fuck off
>>1140290
100 million is quite a lot IMO
>>1140298
yes I am a pussy and I hate competition. Got a better idea for how to prepare to turn $300k trust fund into millions?
>>1140645
Machine slots :^)
https://www.youtube.com/watch?v=-paxK11Dk5E
Is it just normal for middle class white people to all have massive trust funds set up? People around here just casually mention that they have hundreds of thousands of dollars waiting in inheritance.
>>1140744
On /biz/ it is. We are all millionaires here.
>>1140143
>>1140252
Please learn the difference between the rate of return on a portfolio and a safe withdrawal rate. They are not remotely the same thing.
The comment I responded to specifically referred to the rate of return on an investment (Vanguard funds) not a withdrawal rate.
4% is fine as a safe withdrawal rate, although 3% is getting more support among academics recently.
It will always boggle my mind how people flat out don't understand the concept of compounding interest.
Somehow 7 mill is "not alot of money".
Spread the money around in the following asset classes: blue chip stocks, etfs, index funds, listed property, bonds.
Set aside some money to purchase some property which you can manage full time yourself.
Set aside some smaller amounts for more exotic investments; hedge fund, go in on private equity deals, commodity funds, high-risk debt.
No way you couldn't produce net yearly returns between 8 -15%. No way you couldn't have double digits ina decade or two, while still withdrawing "reasonable" amounts to live on.
Bizarre board.
>>1139512
this
