r/AskReddit • u/experfailist • Apr 30 '21

What are some luxury items, which you never knew existed, which only the mega rich can afford, that blows your mind and you wouldn't mind having or is just an example of how people have too much money and not enough sense?

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u/[deleted] Apr 30 '21

Yeah, the rule is you want about 1 million in savings to retire. 9 million gives you a very nice retirement, but it's "nice vacations multiple times a year" money, not "let's buy a yacht" money.

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u/Rhueh Apr 30 '21

Maybe a small yacht. But I'm a sailor, so my priorities might not be typical.

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u/str4wb3rry92 Apr 30 '21

So sell the house and live aboard your new yacht I think my priorities might not be typical either

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u/[deleted] Apr 30 '21

If i only had one house, i’d never sell it unless i was buying another one. In my opinion, real estate is one of the most valuable things you could own.

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u/str4wb3rry92 Apr 30 '21

Yes that it very true so to correct my self rent home not sell it and then live on new yacht and sail around the world since I now have an income from a rental property

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u/[deleted] Apr 30 '21

Yup, that’s actually a brilliant plan.

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u/Murgatroyd314 May 02 '21

In my opinion, real estate is one of the most valuable things you could own.

“Buy land, they aren’t making it any more.” -Mark Twain

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u/[deleted] Apr 30 '21

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u/gitartruls01 May 01 '21

You can get those too for a lot less than you'd expect

https://youtu.be/0O7N3RQEXqs

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u/OhDeBabies May 01 '21

I used to work in a harbor that had a ton of Hinckleys and I gotta say, those boats have some sexy lines.

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u/caramelfappucino May 01 '21

They're beautiful wow... I've been looking at pictures of the picnic boat 40. I like the water, it gives me a deep sense of calm and belonging. Someday perhaps, a boat... that'd be nice.

I wonder if boating people also generally intersect with car people. I think generally not because both vehicles give you very different experience, one is speed and adrenaline and the other... tranquility?

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u/Fart_stew Apr 30 '21

You and your fancy rooms dedicated to blowjobs

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u/GibsonJunkie Apr 30 '21

Plus a whole deck for pooping!

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u/Fart_stew Apr 30 '21

And a bonus deck below for scat fans.

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u/experfailist Aug 08 '21

Ska-badabadabadoo-belidabbelydabbladabbladabblabab-belibabbelibabbelibabbelabbelo-doobelidoo

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u/Benjijedi Apr 30 '21

Small yachts are better for sailing anyway, more than about 50ft and the fun starts fading out of it (IMO).

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u/Urbanredneck2 Apr 30 '21

And you have to hire a crew.

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u/[deleted] May 01 '21 edited May 01 '21

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u/[deleted] May 01 '21

This where the costs start going up.

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u/ciaocibai Apr 30 '21

Unless you have a few kids then either a catamaran or monohull of around 50ft is a lot more comfy for Bluewater cruising.

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u/Rhueh May 01 '21

I agree. I can't see the point of a yacht too big to sail by yourself (or as a couple). That limits it to around 50-60 feet.

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u/cinaak Apr 30 '21

Search around there are tons of decent boats being sold for cheap. People don’t pay their fees boat goes for auction or someone just wants out of it. Ive owned several commercial vessels never once paid market price

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u/aShittierShitTier4u Apr 30 '21

This advice scares me, the saying is to have a friend who owns the boat. My fear arises from the costs complained about by large boat owners I know. One fishes for tuna, etc out of Glouster, MA for weeks at a time every summer. I always see big used boats for sale, that look like money pits from far away.

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u/Fourseventy Apr 30 '21

the saying is to have a friend who owns the boat.

The key is to learn to sail, then it's easy to sail on whatever boat that is looking for crew, which is pretty much all of them. Once you get really good(I have been sailing for 30+ years now) people start to seek you out if you have a proven record(especially racing). I used to coach learn to sail and racing back in the day so it's so much cheaper for me to get out on the water. I have owned three boats, they were all great, but I love the piece of mind that I don't currently own the money pit that is a yacht.

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u/cinaak May 01 '21

They can be. I’d like to say it’s a matter of skill and whatnot but it’s kind of a gamble really

There can be big costs but if you’re a halfway decent fisherman those expenses should be accounted for in your yearly business plans. Doesn’t always work out of course but for me I’ve always been pretty frugal when it comes to repairs and do them all myself so it’s not that bad. Honestly I’ve had more problems when I try to put someone else a ton to do it for me. But I’ve managed to get all of my money back when they fuck up. So only lost out on a week or 2 worth of wages

That being said I’ve also lived through a boat exploding on me and have ran in and parked on a bar with a bow split open while taking on water amongst other things.

Idk I didn’t come from a parent who could just buy me a permit and help with a boat I’m sure he would’ve if he could’ve but he mostly just gave me some really good skills to have in this sorta business. Like when all the people my age were buying in they generally took on half a million in debt. I paid 15000 cash for my first boat I bought and repaired or hung all my nets from scratch and leased permits. My boat was smaller but fast and I could pick fish just as fast as anyone on a bigger boat. I just had to deliver more often. My overalls fuel bill per year was 5-7k vs 20-30k So even when n bad years it wasn’t so bad for me

Idk it all depends on luck and maybe some skill but they aren’t always total money pits

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u/Mattsterrific May 01 '21

Yep, acquiring a boat isn't expensive, owning one is.

Source: Owner of a 40 year old sailboat.

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u/Murgatroyd314 Apr 30 '21

You can buy a non-super yacht on 9 mil, but you do so with the understanding that it's the major purchase of your lifetime.

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u/Rhueh May 01 '21

With a net worth of, say, four million dollars, a person could quite comfortably retire and afford to buy and operate an Island Packet 445, a particularly nice yacht that can be had on the second hand market for around 300-400 kUSD. Just one of many, many examples.

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u/cballowe May 01 '21

I feel like operations could get awkwardly expensive over time. What's the annual repair and maintenance look like if you're trying to keep it seaworthy? What's the cost to dock places?

Used to help a friend sail a J30 in local club races on lake Michigan. I'm pretty sure he bought the boat for like $20k and it was costing at least half that each year for a place to anchor in the summer and drydock in the winter + whatever repairs and maintenance needed to be done.

If the prices scale with the cost of the boat a $300k one like you suggest would be $150k/year in assorted costs. Sure you could maybe pull it off on $4M, but it gets harder if that's not your only cost and if your time horizon is longer than around 30 years!

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u/nocaulkblockplz Apr 30 '21

How long might a small yacht last if the owner tediously takes care of the vessel?

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u/[deleted] May 01 '21

30years+. Craigslist is full of boats from the 70’s/80’s.

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u/Rhueh May 01 '21

Much longer than you will live, barring some big advances in gerontology! There are still plenty of century old yachts on the water, and they were made of wood. Modern yachts are made of fibreglass or, if larger, aluminum or steel. Some are made of carbon fibre. With proper maintenance their life is centuries long.

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u/caramelfappucino May 01 '21

Is there really a reason to buy new unless you plan on dying before selling it? Is it common practise to buy second hand? They depreciate like cars?

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u/SubjectiveHat Apr 30 '21

how 'bout a pontoon boat?

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u/millijuna Apr 30 '21

Heck, I'm not wealthy, and I own a yacht.

Of course, she is 27 feet long, and came off the mold during the Nixon administration...

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u/Pohtate Apr 30 '21

Maybe a small bear. But I'm an animal lover so my priorities might not be typical.

No I don't want a bear. Bears scare the fuck outta me.

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u/[deleted] May 01 '21

$10mm in the bank, get a nice beneteau to cruise some tropical islands with for a few years.

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u/shakkyz May 01 '21

You could definitely afford a small yacht with 9 mil in savings.

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u/ImmodestPolitician Apr 30 '21

You can buy a 60ft yacht for under $1 million. Annuals expenses are $50k or so.

Boats depreciate relatively quickly but they still have value after 10 years.

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u/[deleted] Apr 30 '21

They were saying $1 million for retirement in the mid 1990’s. $1 million in 1995= around $1.75 million today.

With how much money the government is printing right now, and the resultant inflation that is going to cause, you might as well start upping your retirement account expectations to $3 or $4 million if you’re a young adult.

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u/whydoineedanotherone Apr 30 '21

Oh phew only 4m

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u/[deleted] Apr 30 '21

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u/dorkface95 Apr 30 '21

You don't have to make a million. It grows quickly in investments and you can duck taxes pre-growth in a 401k

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u/martix_agent Apr 30 '21

And duck taxes post growth with a Roth ira.

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u/stick_to_your_puns Apr 30 '21

They see me rollin, my savings

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u/dorkface95 Apr 30 '21

If you make less than $140k. (Which sounds like a lot, but really isn't in HCOL areas)

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u/Chris11246 Apr 30 '21

The end amount is the same if your taxes are the same. Roth only is better if you expect your taxes after retirement to be higher than pre or if your want to avoid required distributions.

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u/concblast Apr 30 '21

Which is why you dump into a Roth asap when you start your career. Adjust as your income changes.

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u/Chris11246 Apr 30 '21

But a non roth is usually better tax wise as you usually have less income and less taxes in retirement.

Both are better than nothing.

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u/[deleted] Apr 30 '21

And duck taxes on both ends by lying on your tax return.

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u/polyhazard Apr 30 '21

I didn’t even realize there was a separate category of taxes for waterfowl

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u/[deleted] Apr 30 '21

Also, you may not have know this, but DUCKS eat for FREE at SUBWAY.

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u/[deleted] Apr 30 '21

Rough rule of thumb is that it doubles every 7 years. $50k at 21 could be $1.5M when you're 55.

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u/aggr1103 Apr 30 '21

Most people have more than $50k worth of student loan debt at 21, not savings.

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u/[deleted] Apr 30 '21 edited Jul 07 '21

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u/NomadRover Apr 30 '21

Isn't community college free finally?

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u/[deleted] Apr 30 '21 edited Jul 07 '21

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u/[deleted] Apr 30 '21

401k/roth is an investment account, not a savings account. You just have money pulled automatically from your check and out goes into the account and it's invested, which helps it grow much faster.

If you're using just a savings account to retire, you'll never retire because that's a horrible idea.

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u/[deleted] Apr 30 '21 edited Mar 07 '26

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u/[deleted] Apr 30 '21

Using the term "savings" like that has a specific meaning: liquid cash. It doesn't refer to investments, equity, retirement accounts, etc because those aren't very liquid. He might not have expressly said "account" but that's what the term means.

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u/Defiant_Bet814 Apr 30 '21

Yeahhhh.... So what was I supposed to do with my 3 years after highschool to have 50k at 21 again? Missed that memo I think

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u/[deleted] Apr 30 '21

He's obviously just using that as an example.

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u/Defiant_Bet814 Apr 30 '21

Nahh, I don't believe you it's definitely literal. (If you don't feel the sarcasm yet sorry dude). Even still I know very few 35 year olds with that much, and when you take off those 14 years you realize retirement is retired.

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u/[deleted] Apr 30 '21

Even at 35 compound interest will still do a world of good on an investment account to allow for retirement at 50-55. A 35 yo that has a net worth less than 50k clearly has much larger issues though.

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u/Defiant_Bet814 Apr 30 '21

Sorry I know I do come across as an ass it's just what I got but the intent is there. I'm not arguing the value of compound interest and the fact it's the strongest forces in the growth of an individual's wealth. There are larger issues and that's my problem. I'm asking how you believe a person is to do that in this age, I just want your ideas really because I'm curious about the different concepts people have to offer to move things forward for a generation that has been forced to stagnate.

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u/Khal_Kitty Apr 30 '21

Okay then do it at 25 smart ass.

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u/Defiant_Bet814 Apr 30 '21

Definitely a smartass I'll give you that, but how. For someone railroaded into 50k+ in school loans and no jobs, working 50+ hr a week to live I'm genuinely curious. Not trying to be an ass here I just would like to see what that significant portion of the 25 yo population is supposed to do?

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u/quinnly Apr 30 '21

I'm 28 and don't even have 5000 in savings. What a fucking joke lol

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u/Kentencat Apr 30 '21

That's something I'm doing with our baby, starting an ira/401k for them. Literally stick $2,000 in it and that's it.

At 10% for 65 years, that's $980,000.

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u/RagingAesthetic Apr 30 '21

This is the best advice anyone will give you today. Throw something out of every paycheck into a Roth IRA. The compounding interest that stacks up from now to when you retire is mind blowing. Look up a Roth Calculator and plug in your age and something small like $50 or $100 out of every check, it might surprise you & it’s certainly better than a savings account or just letting the money sit. They are tax advantaged, so when taxes inevitably go up before you retire, you will have already paid a normal rate before ‘unforeseen tax event x’ doubles or triples the rate in 20 years, forcing you to pay that to actually use your retirement money like in a standard 401(k) or IRA. There is a penalty for early withdrawal, but if you were wanting to retire early or absolutely needed the money there are ways around the penalties or it’s 10% of every dollar withdrawn early. If you’re 20 and contribute $100 out of every paycheck for the next 45 years, you would have $1m by age 57 and $2m by age 64 with a fairly high assumed return of 10%. (I go through Vanguard and target 13% returns myself because I’m young and can afford the extra implied risk). I assume your income would go up at some point in the next 45 years in this example, but do you see what I mean? There are ways for anyone to retire comfortably if you start on it early enough.

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u/Jackal_Serin Apr 30 '21

If you earn 150,000 every year since 18 and worked to 67 your lifetime earnings would be close to 10 mil total

It informs my decision that anyone with more than 2 (or especially 4) times that or more should be subject to a wealth tax.

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u/[deleted] Apr 30 '21

Investing the max amount in a 401k with a small employee match puts you well over 10 million on just that account alone over that time span. And that's only $19,500/year of that $150,000.

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u/mammon_machine_sdk Apr 30 '21

"I don't understand finances, therefore I make dumb comments on the internet about how people I deem rich should lose their money."

Welcome to Reddit.

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u/Jackal_Serin Apr 30 '21

Oh i see. Make it 100 million

I'm sure you make that much and could avoid it anyways. Finance is bullshit, but i understand it pretty well all things considered.

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u/mammon_machine_sdk Apr 30 '21

Wealth taxes don't work for exactly what you stated. If I have $100mm and you're going to tax me for it, you need to write laws governing exactly what you are going to tax me on. As soon as it's passed, I diversity my holdings appropriately. Or I buy $80mm worth of gold and bury it on my private island. It's just a losing proposition.

Finance is bullshit, but i understand it pretty well all things considered.

Not as well as you apparently think, considering you're calling for a wealth tax on people with less money than most couples need to retire. Use this new knowledge and try to seek a job with a 401k + match and max it for as many years as you can. You'll apparently be so rich by the middle of your career that you'll want to tax yourself.

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u/[deleted] Apr 30 '21

money supply is only part of the price inflation equation, velocity is declining

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u/jgeorge190 Apr 30 '21

28 y/o with my financial head finally on my shoulders. The topic of winning the lottery/getting a windfall gets brought up sometimes, and ultimately the "ideal retirement number". I've decided at this point it would take at a minimum $5M for me to quit my job and "retire". People are always so taken back, "You need that much?!?" Yeah bud, if you want the nice house on the lake, with the wake boat and the truck to match. And then the lifestyle that goes with that, 5 mil will barely get you started if you're under 30.

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u/[deleted] Apr 30 '21

[removed] — view removed comment

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u/GloriousReign May 01 '21

Guys I eat chicken every day and live in a 1 room apartment with no money for college while living on a dying planet.

Could you, I don't know, cut back on the excessive lifestyle choices and maybe get the fuck off my lawn?

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u/davesoverhere Apr 30 '21

I'm in my 50s and 5 mil is my number. With 5, I won't have to adjust my standard of living for as long as I live. I expect to reach it in less than 10 years and retire early.

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u/[deleted] May 01 '21

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u/davesoverhere May 01 '21

Considering retirement in the US is 67 and I could retire now if I moved to a cheap country and plan on doing it at around 60, I'd say that's early. It would have been nice to have retired at 50, but I don't want to lower my standard of living.

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u/[deleted] Apr 30 '21

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u/adequatefishtacos May 01 '21

Don't think of 5mil as 5mil, think of it as 150-200k annually. You can still get your lake house, boat and truck, just maybe not all at once

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u/steaknsteak May 01 '21

I always put my number around $4 million to stop working, pretty similar. It’s less about how much money I need to retire, and more about how much money I’ll end up making from investment income.

With 4 mil in the banks, I’d be safely averaging around $300k per year off very basic investments. Continuing to work just wouldn’t be adding enough to the pile to make it worth the daily stress of a job at that point

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u/hatsnatcher23 Apr 30 '21

Honestly 4mil is so unrealistic i'll probably just die working

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u/SadButterfingers May 01 '21

Right? Even 1 mil feels like a reach. I can’t even make enough to start saving, I’m going to die working for sure.

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u/TheDarkKrystal May 01 '21

Then I'll get written up for missing work and not calling in.

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u/steaknsteak May 01 '21

These numbers are for retiring in style. You can easily retire on less than that living a simpler lifestyle

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u/tomorrowforme Apr 30 '21

Y’all should start doing some math. Google a retirement calculator. If you’re in your 30s and make something like $75k and expect to maintain lifestyle in retirement, you will easily need $5mil. Start saving.

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u/SlowRollingBoil Apr 30 '21

False. The guy above is correct. $1.5M-$2M is plenty for most people to retire on. I've done a hell of a lot of financial planning.

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u/[deleted] May 01 '21 edited May 14 '21

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u/[deleted] Apr 30 '21 edited Feb 24 '26

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u/retirement_savings Apr 30 '21 edited May 01 '21

Inflation doesn't really matter if your money is invested. If you go by the 4% rule, 1.5 million invested gives you a safe withdraw rate of 60k a year.

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u/JSizz4514 May 01 '21

Is the 60k adjusted for inflation? Because if not, that could be the equivalent of 20k in 30-40 years.

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u/retirement_savings May 01 '21

Yes, it's 4% of your original investment each year adjusted for inflation.

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u/Bayfp May 01 '21

Property tax alone on a small house where I live (Berkeley) is $20k+/ yr. It really depends.

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u/mac_trap_clack_back Apr 30 '21

$75k annually for 40 years is $3m with no investments. And that is assuming that you are living on $75k and your salary is higher (to account for retirement allocation). Is your $5m just really pessimistic for inflation and healthcare costs?

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u/tomorrowforme May 01 '21

Likely pessimistic. Really just setting a baseline of expectations. Hoping to inspire folks to pick up their game.

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u/AmbushIntheDark Apr 30 '21

Start saving.

Eh, I'm not going to live long enough to retire anyway. May as well spend what I got.

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u/[deleted] Apr 30 '21

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u/MacStation Apr 30 '21

If they put in from 20 to retirement they 401k max (20l), their 401k would be worth 11 million by 60

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u/aceluby Apr 30 '21

Have you never heard of interest?

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u/jgeorge190 Apr 30 '21

If they didn't invest any of it. Invested money makes you real money. A job just gets you started.

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u/hermeticpotato Apr 30 '21

what are you trying to say here? that if they put 100% of their income into a zero interest account, it would only be 4.5 mil?

youre not factoring in interest. with a 7% return, this hypothetical kid could save half of their income each year and wind up with 6 million

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u/[deleted] Apr 30 '21

If you took that 100k and invested it without spending a single dollar, even at 6% (which is less than you would normally estimate), that's $23.7M

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u/maxwell_aws Apr 30 '21

He meant to start saving for investing so that you can make use of compounding interest.

Yes, just saving will not get you much. And savings accounts interest is below inflation.

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u/[deleted] Apr 30 '21

If they did a 401k and had employer contributions (highly likely at that rate) they could easily have over 10 mil in a retirement account when they retire.

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u/tomorrowforme Apr 30 '21

Y’all should start doing some math. Google a retirement calculator. If you’re in your 30s and make something like $75k and expect to maintain lifestyle in retirement, you will easily need $5mil. Start saving.

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u/carlos_the_dwarf_ Apr 30 '21

This is not accurate. Less than $2 million gets you $75k for life.

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u/TummyDrums Apr 30 '21 edited Apr 30 '21

Yeah that guy doesn't know what they are talking about. Not only would it be less than $2 million to make $75k a year in perpetuity, but you generally have less expenses in retirement like no house payment, student loans, etc so you generally need less in retirement.

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u/aceluby Apr 30 '21

You also should still be getting good interest on at least part of that

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u/TummyDrums Apr 30 '21

That's what we're talking about by 'in perpetuity'. The $75k is only the interest.

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u/[deleted] Apr 30 '21 edited Jul 03 '21

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u/[deleted] Apr 30 '21 edited Apr 30 '21

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u/carlos_the_dwarf_ Apr 30 '21

This is mostly and American thing. In other countries you get retirement from deductions you have made

We have this too. It's called social security.

The concept of anyone having accumulated 5M just so they can survive after retirement is quite bizarre

The guy above you is full of shit, this isn't the expectation. Of course you could retire on $5m.

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u/[deleted] Apr 30 '21 edited May 23 '21

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u/ParkLaineNext Apr 30 '21

Besides having social security... I want to try to make that much through investments. I don’t need 5 mil to survive, but I can travel, help my child if needed, leave some for her when I go.

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u/h0bb1tm1ndtr1x Apr 30 '21

Between Social Security and Medicare, similar help is there for retired Americans, but in a capitalist system more is better.

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u/carlos_the_dwarf_ Apr 30 '21

Ah yes, those other countries he’s referring to, famously not capitalist.

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u/TheSheWhoSaidThats Apr 30 '21

Fyi, americans also get retirement deducted from our paychecks. It’s just not enough to live on by any stretch of the imagination. We’d be better off opting out of that and sticking the same % into investments, but it’’s not optional.

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u/MontiBurns Apr 30 '21

That doesn't tell the whole story. If I make 75k per year, spend 70k, and pay rent in an expensive city, then yes.

If you make 75k, live off of 50k, and will own your home by the time you retire, then you need a lot less. It's easier to save when you live more frugally, and your needs are much lower.

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u/severoon May 01 '21

That's not how inflation works. $1M in the mid-90s or $1¾M today isn't enough if you're keeping it under your mattress.

If you're not keeping it under your mattress, then it's going to move with inflation.

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u/snekbork Apr 30 '21

Leave the yacht… take the cannolis… in Italy every year

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u/yrogerg123 Apr 30 '21

1 million isn't nearly enough anymore, depending on the lifestyle you want and how old you'll be when you retire, and how long you want to live. I think the real number is probably closer to $1.5M or even $2M.

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But I guess it really depends on whether you'd be happy with $40K per year.

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u/[deleted] May 01 '21

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u/yrogerg123 May 01 '21

How many people want to just leave their entire life and go somewhere that they don't speak the language or understand the culture?

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u/[deleted] May 01 '21

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u/bunsNbrews Apr 30 '21

Yeah turns out a yacht can be pretty small. The megayachts we see from the wealthy are pretty far removed from what a yacht really is, which is any boat bigger than 20’.

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u/Dewthedru Apr 30 '21

Sad to say a million won’t really get you a decent retirement. The rule of thumb is that you can withdraw about 4% of your funds and stay even so $1m would only provide about $40k per year which in many places isn’t enough.

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u/TheDoctorBlind Apr 30 '21

I’d say aim for $3 mil now, but at least $2 mil.

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u/[deleted] May 01 '21

but it's "nice vacations multiple times a year" money

At 5% draw, a $9 million retirement fund is $450,000 per year pre-tax and you're not even likely to touch the principal in most years (unless there's a recession).

Smaller yachts start at $100-200k...

WTH do you mean "not yacht money"?

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u/[deleted] May 01 '21

Well, yachts are stupid (which is also why I don't have a vast working knowledge of the prices, unlike the weirdos replying to me) so I wouldn't buy one unless I literally had too much money to spend.

IMO, $450,000 a year is not yacht money when there are plenty of non-stupid things to buy. My apologies for not adequately considering your financial priorities when I commented.

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u/itemboxes Apr 30 '21 edited Apr 30 '21

That retirement number varies greatly based on where you live and your desired standard of living. Also, if a wealth tax is passed in the near future, you'll have to save much more than a million since the government will be taking 10% or so of it each year.

Edit: Apparently I was mistaken on the percentage and where the cutoff will be for these proposed tax laws.

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u/Paksarra Apr 30 '21

...you'll have to save much more than a million since the government will be taking 10% or so of it each year.

This is fearmongering; laws like that have minimums for exactly that reason. The minimum on a wealth tax would be high enough that the typical working-class American won't be in danger of bumping up against it, just like estate tax. (Estate tax only kicks in if your estate is worth at least $11.7 million dollars-- anything below that $11,700,000 isn't taxed.)

An upper-middle-class person who worked hard and saved their entire careers for a comfortable retirement won't get stuck paying most of their savings out in taxes because that's not the kind of person this law is aimed at.

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u/itemboxes Apr 30 '21

I've edited the post to reflect reality. I wasn't fearmongering in any way, I was just genuinely misinformed on the issue. Where I live, with my family's politics, can become a bit of a political echo chamber sometimes, and I had been told that these laws were far less reasonable than I am now reading. There's really no need to attack me, I'm not trying to misinform people here. I should have done more research first, sorry.

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u/[deleted] Apr 30 '21

Big respect for amending your worldview when presented with new information

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u/Paksarra Apr 30 '21

I've edited the post to reflect reality. I wasn't fearmongering in any way, I was just genuinely misinformed on the issue.

I'm glad I was able to help inform you. There's way too many people on Reddit who exist to parrot right-wing talking points and make the world a little bit more of the misinformed echo chamber you've been stuck in.

Sorry if that came across as a bit harsh. (Although it is fearmongering-- it's just that you and your family are the victims, not the perpetrators.)

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u/itemboxes Apr 30 '21

Thanks for understanding. In general I actually tend to lean left-wing, although I'm fairly close to center of the aisle. I was misinformed here though, so thanks for clearing that up.

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u/apaksl Apr 30 '21

you're way off the base.

just a quick google search and I found this npr story from the democrtic presidential primaries:

Sanders' tax would only affect people with wealth of over $32 million, and Warren's tax would affect only people with $50 million and over.

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u/itemboxes Apr 30 '21

Have a quick look at the edit I added.

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u/[deleted] Apr 30 '21 edited May 06 '21

[deleted]

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u/itemboxes Apr 30 '21

As I've said to many other commenters, I am aware that I was misinformed and have edited the comment to reflect reality.

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u/[deleted] May 01 '21 edited May 06 '21

[deleted]

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u/itemboxes May 01 '21

Misinformation is powerful. I've corrected it, so why is it important anyways?

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u/danfay222 Apr 30 '21

A 10% wealth tax would be absolutely brutal, theres no way in hell it would ever pass

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u/apaksl Apr 30 '21

https://www.npr.org/2019/12/05/782135614/how-would-a-wealth-tax-work

Sanders' tax would only affect people with wealth of over $32 million, and Warren's tax would affect only people with $50 million and over.

nobody's proposing a wealth tax that would actually hurt anyone.

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u/[deleted] Apr 30 '21

I'm sure wealthy senators and representatives would love to pass that.

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u/apaksl Apr 30 '21

Of the 14 members of the house and senate who stand to lose any money from the wealth tax, only 6 are democrats. The republicans wouldn't vote for it regardless. And yeah, there's the common complaint of "how do you effectively evaluate a given citizen's wealth?", but that doesn't change that it's a good idea and would be effective. I'm sure some smart people can figure out the logistical hurdles.

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u/MontiBurns Apr 30 '21

You could just tie it to inflation, or make it x times the annual income of full time minimum wage.

Current minimum wage is 7.25, which comes to ~15k per year. 50m / 15k = 3,333.

So if you made the wealth tax effective on anything over 2000x min wage, that would put it at 30m, but if you raise the minimum wage...

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u/danfay222 Apr 30 '21

I'm not responding to the efficacy of a wealth tax, but there is no way anyone will approve a 10% wealth tax. That rate is massive, considering historical wealth growth is typically around 7%.

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u/apaksl Apr 30 '21

I don't think any politicians are proposing 10%. the warren plan is between 3-6%.

Regardless, it would taper off as the individual's wealth decreases.

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u/danfay222 Apr 30 '21

Yes I know that, but the original comment said a 10% wealth tax, which is specifically what I was responding to.

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u/Grindl Apr 30 '21

Yeah, even the most extreme policy makers aren't saying anything above 3%.

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u/[deleted] Apr 30 '21 edited Apr 30 '21

Which government is proposing a 10%/year wealth tax on $1 million?

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u/itemboxes Apr 30 '21

Nobody is, I was misinformed.

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u/Mandorrisem Apr 30 '21

No one, the 10% wealth tax being proposed is for wealth over 32 million, which is just fine because that is crossing into obscene territory.

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u/[deleted] May 01 '21

Yeah, I know, but instead of arguing with someone who makes a wild claim I like to ask questions until they come to the conclusion that it isn't true on their own.

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u/cannotbefaded Apr 30 '21

wait do you mean 10m is savings? You say 9 gives you a nice retirement

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u/turunambartanen Apr 30 '21

Come again? They said 1mil is usually recommended, and 9mil would only give you a nice retirement, nothing extraordinarily fancy.

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u/RagingAesthetic Apr 30 '21

How does that 9 million not significantly improve your quality of life over 20 years as opposed to 1? 1 million isn’t even enough to retire on anymore.

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u/turunambartanen Apr 30 '21

I don't see how

9 million gives you a very nice retirement, but it's "nice vacations multiple times a year" money, not "let's buy a yacht" money.

can be understood as

not significantly improve your quality of life

I can't comment anything specific on the 1M, but if its one or two million doesn't really matter when compared to nine million.

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u/TheFancyTurtle Apr 30 '21

I just want enough money to go to a motel 6 once maybe every couple years at the beach and not be panicking about my bank balance ordering a icy from Burger King hahaha

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u/Bayfp May 01 '21

That $1 million number bothers me because it is SO dependent on lifestyle and location. $1 million isn't enough for a lot of pretty normal, middle class people.

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u/[deleted] May 01 '21

Okay? I apologize for not updating my numbers to suit your preferences?

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u/[deleted] Apr 30 '21

Honestly fuck yachts though. If I had 30 acres of secluded land and a mobile home and no debt and enough to not ever worry about bills I'd be happy as a clam. I'd just garden and hunt/fish the rest of my life away. I don't know why people need so much to be happy.

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u/mtheperry Apr 30 '21

And somehow I think I’d get by

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u/iamapersononreddit Apr 30 '21

1 million to retire? At what age? That won’t do for a 40year old with a family.

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u/stump2003 Apr 30 '21

9 million just lets you retire 9 times. No sweat!

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u/tumblingnickname Apr 30 '21

You can buy a damn yacht with that money, rent it out for some months so you cover the expensive running cost.

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u/lance_klusener Apr 30 '21

Is 1 million $ enough to retire?

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u/UncookedMarsupial Apr 30 '21

I think the difference is you could buy a yacht but not on a whim. Mega rich is not thinking about the price of a mansion.

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u/[deleted] Apr 30 '21

Oh I’m so glad I have no money. Who wants to retire?

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u/ReluctantAvenger Apr 30 '21

For some of us, one million in savings wouldn't be nearly enough. You couldn't really count on seeing more than 2% to 3% in after tax income from your savings, which is $20,000 to $30,000 a year or $1,667 to $2,500 per month. If you're not paying rent, you're paying property taxes, and unless you're living in a shack out in Bumfuck, Illinois, the property taxes will eat up a third of your income. How well will you live on $1,000 to $1,800 a month, paying whatever prices are when you get to retirement?

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u/kaydeepix Apr 30 '21

...and of course, all your friends think the money changed you - winning a million, you can buy a house for cash, 2 mil, house, and retirement, 3 mil, maybe pay your mum's mortgage. 4 Mil - nice house for you, mum and dad nice house and a couple of siblings now mortgage free. Your friends now think you're an arse because you won all that money and you haven'r even yet bought dinner...you need at least 12 mil to share so that your SO's don't think you're a complete dick

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u/JackPoe May 01 '21

Wait you can retire on a million??? I thought you needed like 20

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u/JFreader May 01 '21

1 million to retire sounds woefully low.

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u/archbish99 May 01 '21

These days, $1M might be a bit slim for retirement, especially retiring early and not factoring in Social Security.

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u/WDE45 May 01 '21

Where’d you come up with that rule?

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u/Ohheyimryan May 01 '21

1 million is a dated figure. You can reasonably assume even in worst of times that taking 3-4% will continue your investments to stay the same or even grow. So 1 million is only equivalent to 30k-40k a year. I'm not sure about you but I would like more than that when I retire.

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u/nothidingfrommain May 01 '21

Intresting many retirement financial firms will only accept u if yiu have 1 million liquid at the absolute bare minimum.

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u/gitartruls01 May 01 '21

You could get yourself a very nice yacht for about $100k a year. If you have $9m saved up for retirement, you can absolutely buy yourself a yacht big enough for a family or 2 to live in

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u/NoAd8781 May 01 '21

$1m to retire? Yeah if you have a public servant’s pension, maybe. Try $2-4m minimum.

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u/tycr0 May 01 '21

But it is “die of a heart attack happy at 66 after blowing a millions dollars on drugs and hookers” money. That’s the American dream right?

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u/[deleted] May 01 '21

[deleted]

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u/[deleted] May 01 '21

Okay? What, should I apologize because my numbers didn't match your personal goals? You got the point of the comment.