Comment by asib
16 hours ago
1 mil is not generational wealth in the US. It is a big chunk of money, no doubt. It’ll buy a reasonable 2-3 bedroom house in the city I live in, with nothing left over. No one’s definition of generational wealth involves not touching the money for two generations…
A house you own outright is already generational wealth
The median home price is around $400K. You don't have to live somewhere stupid expensive.
Sure, but that's not generational wealth.
We must be operating on different definitions. Generational wealth means you have enough money to meaningfully improve the lives of your kids and give them a leg-up on life. A million dollars is enough to buy a house for each of your 2.5 kids.
If getting a million dollars wouldn't affect how much money you can leave your kids, you already have generational wealth.
7 replies →
I have to agree, yurishimo's assumption of returns is wildly optimistic.
At a more sane expected return of 5% annually, you get $50k a year to live off of to just keep what you have (or rather, watch it slowly erode in value due to inflation).
That is basically a one person income, maybe two adults if you pinch pennies and live in a crappy apartment or a low-end house in a midwestern suburb.
You can get a lot more lucky with a million bucks than you can with 10k if you gamble, but there are no guarantees. Risk tolerance is the most impactful variable. For those in the low risk tolerance group, I think you'd need at least 2 mil these days. And that's with being frugal, as well as probably not having much left over for kids.