saw some good Takes on this from @eigenrobot and @kendrictonn
my take: to even phrase the question this way is to make a mistake, in two ways:
1) "rich" is about stocks, not flows. Rich is a WEALTH level, not an income level.
2) if you work [ bc you need to ] you're not richhttps://twitter.com/medved_bjj/status/1412542117457580038 …
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2/ to decide what you mean by rich, take the free cash flow that THINK rich means ($400k/yr ? $2M ?) and backsolve to get the underlying wealth that generates that in perpetuity (flow x25 = stock is a good rule of thumb). $400k/yr income = $10M wealth $2M/yr income = $50M
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ⓘ Dogs don't have thumbs Retweeted Kendric Tonn
3/ "more formal, less folksy" is my brandhttps://twitter.com/kendrictonn/status/1412820682271072263 …
ⓘ Dogs don't have thumbs added,
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4/ There's no one objective answer to the question, but my own personal Take? $500k/yr after tax without ever needing to work is Rich (and if it's not Rich, it'll do til Rich gets here) $500k after tax -> $700k gross -> $17.5M in investments
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I'd set my personal threshold at maybe half that, but I agree with your framing. It's about a level of wealth that provides financial independence.
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If you can generate the average household income on safe, passive gains (say 1.5% yoy), I'd say that's rich. Puts income generating wealth anywhere between 4-7 million and total wealth probably in the ballpark of 5-10 million
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"generate average household income passively" is ... called "retirement" nice, but that's a different thing than "rich"
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Just to be a pedant: retirement is an incredibly recent phenomenon only tenable because.. Well because we're all pretty rich You're probably closer right from the colloquial understanding of "being rich"
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