How much is a fortune?

[Perfection]

If you have enough money, you can hire people to be responsible for you

But you have to be responsible in who you hire and how you supervise them.

 

[Birdjaguar]

There's a number called critical mass. This is the amount of money it takes to make at leas 30 grand a year off of completely safe investments. Cds, jenny mays and what not. Basically its the amount that earns 30 grand a year at 3% interest. If I'm correct thats about 3 mil+ a little bit at the moment. That is wha defines a fortue in the US, or anywhere fr that matter. Aka: You never have to work again.

Critical mass is enough money that allows you to not work and live the lifestyle you chose. It is not a fixed amount. A typical rule of thumb puts the return at 5%. So a million dollars in GNMAs will net you about $50,000 per year (today) without using up your initial million. Once you reach critical mass is is smart to keep it safe, but that is not required. If you had $500,000 and were 85 years old in poor health, you might choose to spend $100,000 a year and hope to die before your turned 90.

If all you 20 year olds saved a lot early in your working life, you could reach critical mass in your fifties without a lot of effort.

 

[Elta]

If all you 20 year olds saved a lot early in your working life, you could reach critical mass in your fifties without a lot of effort.

I am 19 so I guess I'll take that to Heart

 

[7ronin]

We have lots of millionaires in California but it's all in the value of their homes. I think it's generally considered that to have a "fortune" you have to have at least a million dollars in assets not including your tangible property (house, cars, furniture, etc.) and after subtracting any debt.

 

[Grisu]

If all you 20 year olds saved a lot early in your working life, you could reach critical mass in your fifties without a lot of effort.

maybe, but to achieve that you'd have to do without a lot of nice things in your youth, so I doubt that it'd be worth it.
And having kids are probably out of the question as well...

 

[Paradigne]

Every time Bill Gates wakes up he is $4 million richer than when he went to bed... THAT is a fortune

 

[Veritass]

If you have enough money, you can hire people to be responsible for you

Note: this is the quickest way to lose that fortune. Ask any number of celebrities that have lost their fortunes on the bad decisions or outright corruption of their business managers or agents. Always sign the checks yourself.

As far as preparing for the future, don't forget to adjust for inflation. That $30,000 or $50,000 or even $100,000 per year might seem like plenty right now, but what about twenty years from now? Forty years? My parents retired in 1984 thinking they had plenty, but it's a little tight now with everything costing twice as much, and health care costing ten times as much.

 

[Raisin Bran]

Every time Bill Gates wakes up he is $4 million richer than when he went to bed... THAT is a fortune

When he buys a ferrari at 250,000$ its like he spent a quarter, ajusted to us mere mortals!

 

[.Shane.]

When he buys a ferrari at 250,000$ its like he spent a quarter, ajusted to us mere mortals!

ROFL!

Shane's gumball = Gates' Ferrari.

I'll look at gumballs in a whole new light now.