This is the way

Marginal utility at near-zero

After the house and two cars are paid for and your property and auto maintenance, insurance, and utility bills cost $100,000 a year, how much would you spend in a day?

$250? $500? $1,000?

Even at the luxurious level of $1,000 per day, you're total annual after-tax spending is under $500,000. Let's say you travel a lot. If you're content with not having a private jet, then your insane expenditures will still be under one million for the year. For you, going from $25 million to $50 million will likely result in zero! additional expenditures. You might just buy a property or two in a foreign land for safety and diversification but that's about it.

So, the math checks out. $20 million, especially at current interest rates, will last forever if your annual bills are under $1 million.


Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)