Par4QC
Here's a small math problem for you.
Assume 1 Million per year earned for 15 years.
Assume a total composite tax rate of 43%.
Assume that yearly living expensives (mortgage , utility , food, etc) total out to 300k.
Take what's left and invest it in a high performing (as if this exists at this modest income level) fund that has an exact 10% YoY return.
Assume yearly inflation is 4%.
After those 15 years are done, he lives another 20 years at that lifestyle. Assume that no further income other than investment growth income is made. For how many years, assuming the same standard of living for 2 children, each with 2 children, each with 2 children, etc can the investment remain solvent before all of its funds are used?
If your answer is less than the 200 years, it isn't generational wealth.
