Wealth Target Doubles

A discussion on wealth targets and how people's desired "number" for financial freedom keeps increasing as they accumulate more wealth.

Key Wealth Target Dynamics

• People typically want double whatever their current wealth level is
• The target keeps moving up as wealth increases
• Age is a crucial factor in wealth targets due to compounding potential

Evolution of Personal Wealth Targets

• Initial target: $6M

  • Based on covering life expenses with investment returns
  • Assumed could handle 2x current life burn rate
  • Others warned this target was too optimistic

• Revised target: $20M

  • Covers all obvious life needs
  • Provides significant financial buffer
  • Still may not feel like "enough" once achieved

• Future target speculation: $40M

  • Those at $20M often say $40M would be their number
  • Pattern suggests the target will keep moving

Wealth + Age Calculation

• At 7.5% annual returns:
  • $20M at age 30 becomes $40M at 40
  • Grows to $80M at 50
  • Reaches $160M at 60
  • Potentially hits $1B by 90

Key Insights

• Getting wealthy young is significant due to compounding potential
• Hard to lose wealth once you hit $15-20M at a young age
  • Can lose $10M and still have $10M
  • Doesn't support private jet lifestyle but ensures comfortable living
• Entrepreneurial types will likely keep working
  • Work becomes play
  • Those who can earn significant wealth young typically maintain earning ability