[Are there any] Billionaire Boglehead!!!
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[Are there any] Billionaire Boglehead!!!
Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
Re: Billionaire Boglehead!!!
The Bogleheads have not existed long enough to account for several generations of wealth building. Given enough time--or high enough inflation--there will be some billionaires in our ranks.
Victoria
Victoria
Inventor of the Bogleheads Secret Handshake |
Winner of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
Re: Billionaire Boglehead!!!
Seems a bit high. Even if a million dollars fell into your lap and then you had 40 years to invest it, you'd need a CAGR of almost 19% to make a billion.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
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Re: Billionaire Boglehead!!!
We had a net worth vs age poll a year ago which was insightful.
I don't seem to recall any reported net worth values over $100M but perhaps those outliers got truncated?
I don't seem to recall any reported net worth values over $100M but perhaps those outliers got truncated?
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Re: Billionaire Boglehead!!!
Given enough inflation, I'm sure all of our descendants could eventually become billionaires.
Sarah
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Re: Billionaire Boglehead!!!
linenfort wrote:Seems a bit high. Even if a million dollars fell into your lap and then you had 40 years to invest it, you'd need a CAGR of almost 19% to make a billion.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
linenfort:
I am talking over 1-2 Generations... Meaning 100+ years of saving/compounding... Now just 40 years to invest...
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Re: Billionaire Boglehead!!!
NO Hi-Jacking Please... This is unrelated, please move this to another thread [I moved it, see: [Billionaire Boglehead!!! How to allocate your portfolio?] --admin LadyGeek]friar1610 wrote:Here's a related question that I've thought about from time-to-time. (I don't mean to hijack this thread, so if it's appropriate to move to another thread, the moderator should do so.)
What if you are a Boglehead - three fund port or a slice-and-dicer with perhaps no more than 6-8 funds - and also fairly frugal. You hit one of the really Powerball or Megabucks jackpots and end up with, let's say,
a $50M lump-sum after taxes. Do you just allocate that humungous amount across your Boglehead portfolio or do you now need "professional" money management where you pay a fee to have someone put you in more sophisticated investments?
This is a dilemma I would love to have personally.
Re: Billionaire Boglehead!!!
I guess it's like Victoria said. We haven't had enough generations yet.
And of course not every fortunate heir to a Boglehead will stick with the plan, but it's only a matter of time before someone does.
And of course not every fortunate heir to a Boglehead will stick with the plan, but it's only a matter of time before someone does.
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Re: Billionaire Boglehead!!!
All we have to do is get Sergey Brin to sign up here and swear allegiance to Staying the Course and we've got one.
How hard can that be?
And the OP is asking about billionaire right now, 2013, not five years from now...
How hard can that be?
And the OP is asking about billionaire right now, 2013, not five years from now...
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Re: Billionaire Boglehead!!!
Ill have my great-grandson update the thread in the year 2110 or so and let you know3) Ideas, thoughts welcome!
(im 31 years old)
Re: Billionaire Boglehead!!!
I don't care to be the richest corpse in the graveyard. At this point, I'm still focused on getting to the point of having more than I need. I hope to someday be trying to figure out how to create a legacy, but that's putting the cart before the horse.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: Billionaire Boglehead!!!
What is the point? Being worth a billion and living frugally doesn't sound like all that much fun. I would much rather build a nice nest egg for myself and family and enjoy life. Lord knows no one makes it out of this life alive, why not enjoy yourself?Canogapark66 wrote:Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
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Re: Billionaire Boglehead!!!
One of the rules to win a lottery is to buy a ticket, which contradicts to the definition of the "frugal Boglehead".friar1610 wrote: What if you are a Boglehead - three fund port or a slice-and-dicer with perhaps no more than 6-8 funds - and also fairly frugal. You hit one of the really Powerball or Megabucks jackpots and end up with, let's say,
a $50M lump-sum after taxes.
Re: Billionaire Boglehead!!!
Not exactly a downfall, but some Bogleheads might choose not to give the bulk of their wealth to their offspring, like Bill Gates has chosen not to.The OP wrote: 2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
Well that's the confusing part. The opening statement isThe Wizard wrote:And the OP is asking about billionaire right now, 2013, not five years from now...
However, a good part of the rest of the text seems to be concerned with the future. Not right now. Not 2013.Are there any Billionaire Bogleheads?
My parents invested in the 500 index fund pretty early on. They're still alive and well, knock on wood. So, there has not been any wealth transfer from them to me, let alone to the next generation. If the Vanguard Group was founded in 1975 and you want to talk about 2013, exactly how many generations are we supposed to squeeze out of this time frame? Or are we supposed to find Boglehead-like investors whose investments predate index funds?
Last edited by linenfort on Mon Dec 23, 2013 2:25 pm, edited 2 times in total.
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Re: Billionaire Boglehead!!!
I think its possible to do both, I am 28 yrs old and have a very nice sized portfolio and I plan to build wealth for me and my family, but am also planning to help my children and their future family build wealth by setting guidelines for keeping and continuing to build wealth.bucksfan2 wrote:What is the point? Being worth a billion and living frugally doesn't sound like all that much fun. I would much rather build a nice nest egg for myself and family and enjoy life. Lord knows no one makes it out of this life alive, why not enjoy yourself?Canogapark66 wrote:Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
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Re: Billionaire Boglehead!!!
Even though other mutual fund founders have become multi-billionaires, Jack Bogle is not one of them. The way he set up Vanguard means that the billions that could have been in his pocket are now in our pockets, because we the Vanguard shareholders are the owners and beneficiaries of Jack's largess.linenfort wrote:Seems a bit high. Even if a million dollars fell into your lap and then you had 40 years to invest it, you'd need a CAGR of almost 19% to make a billion.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
Best Regards - Mel |
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Semper Fi
Re: Billionaire Boglehead!!!
There are books that discuss this kind of thing, i.e. intergenerational wealth transfers, and how to make sure family wealth is durable. They don't have an explicit goal of growing family money to a billion, that would make their books "get rich quick"-y.
A couple of interesting ones I read a few years ago are:
- Wealth: Grow It and Protect It by Lucas.
- Family Wealth: Keeping It in the Family--How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations by James E. Hughes
I forget which one it is, I think it may be the one by Hughes, where he talks about how to prepare the next generation for wealth, so they don't fritter it away. Both of these books are written for people who already have a lot of money. If you look at them on amazon, you'll see a lot of similar books recommended to you. This appears to be a flourishing but low-key sub-genre of financial literature.
A couple of interesting ones I read a few years ago are:
- Wealth: Grow It and Protect It by Lucas.
- Family Wealth: Keeping It in the Family--How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations by James E. Hughes
I forget which one it is, I think it may be the one by Hughes, where he talks about how to prepare the next generation for wealth, so they don't fritter it away. Both of these books are written for people who already have a lot of money. If you look at them on amazon, you'll see a lot of similar books recommended to you. This appears to be a flourishing but low-key sub-genre of financial literature.
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Re: Billionaire Boglehead!!!
Some Bogleheads could get to the next decimal point down (100 million) by the time they check out.
364
Re: Billionaire Boglehead!!!
Is there a form I could check to get my 100 mil?travellight wrote:Some Bogleheads could get to the next decimal point down (100 million) by the time they check out.
Victoria
Inventor of the Bogleheads Secret Handshake |
Winner of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
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Re: Billionaire Boglehead!!!
lol, Victoria... I was being a bit too brief and pithy.
I ran some firecalc numbers and someone with a 48 year horizon who is worth 4 million has a chance of getting over 100 million in net worth. And that is spending a lavish 80k per year.
I ran some firecalc numbers and someone with a 48 year horizon who is worth 4 million has a chance of getting over 100 million in net worth. And that is spending a lavish 80k per year.
364
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Re: Billionaire Boglehead!!!
Actually, we have plenty of generations if you start counting in 1930 or thereabouts.linenfort wrote:I guess it's like Victoria said. We haven't had enough generations yet.
And of course not every fortunate heir to a Boglehead will stick with the plan, but it's only a matter of time before someone does.
Of course Bogleheads and mutual funds weren't around then, but you have to start someplace.
Best way to become a billionaire (in 2013 dollars) is to start a big company like US Steel, Microsoft, or Google.
Even if one had a million dollar salary starting in 2000, it would be practically impossible to grow it to $1 Billion in forty years without the multiplier effect that comes from starting a successful company.
And that's the way it is...
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Re: Billionaire Boglehead!!!
As The Wizard, you have special powers to bypass both working for a company and starting a company. A billion should be yours in a snap.The Wizard wrote:Actually, we have plenty of generations if you start counting in 1930 or thereabouts.linenfort wrote:I guess it's like Victoria said. We haven't had enough generations yet.
And of course not every fortunate heir to a Boglehead will stick with the plan, but it's only a matter of time before someone does.
Of course Bogleheads and mutual funds weren't around then, but you have to start someplace.
Best way to become a billionaire (in 2013 dollars) is to start a big company like US Steel, Microsoft, or Google.
Even if one had a million dollar salary starting in 2000, it would be practically impossible to grow it to $1 Billion in forty years without the multiplier effect that comes from starting a successful company.
And that's the way it is...
Victoria
Inventor of the Bogleheads Secret Handshake |
Winner of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
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Re: Billionaire Boglehead!!!
You might think so, but actually, I have very little entrepreneurial vigor.VictoriaF wrote:
As The Wizard, you have special powers to bypass both working for a company and starting a company. A billion should be yours in a snap.
Victoria
There are times when I just like to get away and go for a hike...
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Re: Billionaire Boglehead!!!
@CanogaPark, I wonder whether there are any billionnaires -- Bogleheads or not -- who hail from Canoga Park. I lived there way back when (1950's), even attended Canoga Elementary for a few years. But people tended to move to the edges of the S.F. Valley. Some of the original founders of the Valley were anything but Boglehead in their thinking. Think "Chinatown" more than what the good man Jack has done.
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Re: Billionaire Boglehead!!!
Well that's the confusing part. The opening statement isThe Wizard wrote:And the OP is asking about billionaire right now, 2013, not five years from now...
However, a good part of the rest of the text seems to be concerned with the future. Not right now. Not 2013.Are there any Billionaire Bogleheads?
Talking about the future, not right now. I haven't heard of or found any long term index fund market holding type bogleheads that have held for long enough.
Re: Billionaire Boglehead!!!
Is he not a single-billion billionaire? Whether he is or not, I will count him as one generation before my parents, since he made all this possible. (Dad loved stocks before he discovered index funds).Mel Lindauer wrote:Even though other mutual fund founders have become multi-billionaires, Jack Bogle is not one of them. The way he set up Vanguard means that the billions that could have been in his pocket are now in our pockets, because we the Vanguard shareholders are the owners and beneficiaries of Jack's largess.linenfort wrote:Seems a bit high. Even if a million dollars fell into your lap and then you had 40 years to invest it, you'd need a CAGR of almost 19% to make a billion.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
I love that Vanguard investors are co-owners of the funds. It's one of the reasons Vanguard is my main brokerage house.
----
One of the posts above mentions Canoga Park. Ever since I saw canogapark66's user name, I have wondered (before this thread) if s/he has seen the tourist ad parody on youtube.
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Re: Billionaire Boglehead!!!
He's not even close to being a billionaire. I think he's openly said his wealth is in the low eight figures. He gives half of his income to charity, so he's definitely not aiming for billionaire status.linenfort wrote:Is he not a single-billion billionaire? Whether he is or not, I will count him as one generation before my parents, since he made all this possible. (Dad loved stocks before he discovered index funds).Mel Lindauer wrote:Even though other mutual fund founders have become multi-billionaires, Jack Bogle is not one of them. The way he set up Vanguard means that the billions that could have been in his pocket are now in our pockets, because we the Vanguard shareholders are the owners and beneficiaries of Jack's largess.linenfort wrote:Seems a bit high. Even if a million dollars fell into your lap and then you had 40 years to invest it, you'd need a CAGR of almost 19% to make a billion.
http://www.moneychimp.com/calculator/di ... ulator.htm
Well there is a billionaire Bogle.
I love that Vanguard investors are co-owners of the funds. It's one of the reasons Vanguard is my main brokerage house.
----
One of the posts above mentions Canoga Park. Ever since I saw canogapark66's user name, I have wondered (before this thread) if s/he has seen the tourist ad parody on youtube.
Best Regards - Mel |
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Re: Billionaire Boglehead!!!
To me, being a Boglehead is knowing when you have enough which is something many billionaires will never have.Canogapark66 wrote:Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
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Re: Billionaire Boglehead!!!
Anyone with mega millions or billions is better off building their own portfolio with individual stocks. Just think about how much they would save in fees.
0.05% may not seem like a lot, but it is at that level.
0.05% may not seem like a lot, but it is at that level.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
Re: Billionaire Boglehead!!!
Thanks for asking. Are you kidding me? That billion is one billion miles away, but the goal should be to reach the land of critical mass, that point in your life when you work because you want to and not because you have to. Thanks for reading and have a Merry Christmas.
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Re: Billionaire Boglehead!!!
You can set guidelines but you can't force people to follow them. That's the biggest impediment to building wealth for future generations. Being given wealth and being able to handle it well are often incompatible with one another.Canogapark66 wrote:[I think its possible to do both, I am 28 yrs old and have a very nice sized portfolio and I plan to build wealth for me and my family, but am also planning to help my children and their future family build wealth by setting guidelines for keeping and continuing to build wealth.
Have a plan, stay the course and simplify. Then ignore the noise!
Re: Billionaire Boglehead!!!
In making hypothetical calculations for multiple generation accumulation don't forget estate tax implications.
Re: Billionaire Boglehead!!!
It's more interesting to me to hear about someone who died with say 5 million, but no one knew he had it than to hear about someone who died and had a billion. I don't know why. Maybe it's because I never related to a billion. It's just not going to happen. After I die, I don't really care.
Slow and steady wins the race.
Re: Billionaire Boglehead!!!
People who have billions don't die.Abe wrote:It's more interesting to me to hear about someone who died with say 5 million, but no one knew he had it than to hear about someone who died and had a billion. I don't know why. Maybe it's because I never related to a billion. It's just not going to happen. After I die, I don't really care.
Victoria
Inventor of the Bogleheads Secret Handshake |
Winner of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
Re: [Are there any] Billionaire Boglehead!!!
FYI - I moved one attempted thread hijack into a new thread (by request): [Billionaire Boglehead!!! How to allocate your portfolio?]. Also, I retitled this thread.
Please try to stay focused on the investing aspects.
Please try to stay focused on the investing aspects.
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Re: [Are there any] Billionaire Boglehead!!!
You can say that, but I still stand by my point: no one gets to billionaire status by investing in index funds.LadyGeek wrote: ...Please try to stay focused on the investing aspects.
You get there by building a new empire of some sort...
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Re: [Are there any] Billionaire Boglehead!!!
There are under 1,500 Billionaires in the world according to Forbes.Canogapark66 wrote:Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
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Re: Billionaire Boglehead!!!
But they are beheaded and the brain frozen in liquid nitrogen.VictoriaF wrote:People who have billions don't die.Abe wrote:It's more interesting to me to hear about someone who died with say 5 million, but no one knew he had it than to hear about someone who died and had a billion. I don't know why. Maybe it's because I never related to a billion. It's just not going to happen. After I die, I don't really care.
Victoria
(I wish I was joking...)
Re: [Are there any] Billionaire Boglehead!!!
Agree. It's bad enough just being a frugal Millionaire.What is the point? Being worth a billion and living frugally doesn't sound like all that much fun.
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Re: [Are there any] Billionaire Boglehead!!!
I can't relate to a Billionaire!
Is Donald Trump a billionaire or millionaire?
Is Donald Trump a billionaire or millionaire?
John C. Bogle: “Simplicity is the master key to financial success."
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Re: [Are there any] Billionaire Boglehead!!!
http://www.forbes.com/profile/donald-trump/abuss368 wrote:I can't relate to a Billionaire!
Is Donald Trump a billionaire or millionaire?
According to Forbes he is worth $3.5 Billion.
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Re: [Are there any] Billionaire Boglehead!!!
I thoughts it was $6 Billion and over one half of that is the intangible asset related to his brand and name?StarbuxInvestor wrote:http://www.forbes.com/profile/donald-trump/abuss368 wrote:I can't relate to a Billionaire!
Is Donald Trump a billionaire or millionaire?
According to Forbes he is worth $3.5 Billion.
John C. Bogle: “Simplicity is the master key to financial success."
Re: Billionaire Boglehead!!!
+1bucksfan2 wrote:What is the point? Being worth a billion and living frugally doesn't sound like all that much fun. I would much rather build a nice nest egg for myself and family and enjoy life. Lord knows no one makes it out of this life alive, why not enjoy yourself?Canogapark66 wrote:Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is:
1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long?
2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan?
3) Ideas, thoughts welcome!
Thanks!
Re: [Are there any] Billionaire Boglehead!!!
I think this theoretically could work if each generation has only one child. Otherwise, the dilution factor of dividing the wealth by more and more family members with each successive generation could have an insurmountable impact.
Let's say on average each family member has two children at age of 25, that means the portfolio value will have to double in real terms every 25 years just to stay even. If you want it to grow, you'll need at least two doublings every 25 years. That's about 6% real return annually (guesstimate doing math in my head). That's theoretically doable if no taxes and no one actually wants to spend any of the money. Once you take these last two factors into account, you could see why it is difficult for an inheritance to grow from generation to generation. Given inheritance taxes and the fact that in a taxable portfolio dividends would be taxed at regular income rates, the tax piece alone could break the plan even if all heirs become frugal bogleheads.
I don't know of any billionaire heirs to the Rockefeller, Morgan, or Carnegie fortunes... And they started with a much much larger portfolio than you or I.
-K
Let's say on average each family member has two children at age of 25, that means the portfolio value will have to double in real terms every 25 years just to stay even. If you want it to grow, you'll need at least two doublings every 25 years. That's about 6% real return annually (guesstimate doing math in my head). That's theoretically doable if no taxes and no one actually wants to spend any of the money. Once you take these last two factors into account, you could see why it is difficult for an inheritance to grow from generation to generation. Given inheritance taxes and the fact that in a taxable portfolio dividends would be taxed at regular income rates, the tax piece alone could break the plan even if all heirs become frugal bogleheads.
I don't know of any billionaire heirs to the Rockefeller, Morgan, or Carnegie fortunes... And they started with a much much larger portfolio than you or I.
-K
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Re: [Are there any] Billionaire Boglehead!!!
He is both. He has millions and billions.abuss368 wrote:Is Donald Trump a billionaire or millionaire?
Victoria
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Winner of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
Re: Billionaire Boglehead!!!
What a beautiful human being is Jack! Bogleheads and many others have benefited from his wisdom and compassion.He's not even close to being a billionaire. I think he's openly said his wealth is in the low eight figures. He gives half of his income to charity, so he's definitely not aiming for billionaire status.
Merry Christmas everyone!
Norris
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Re: [Are there any] Billionaire Boglehead!!!
czeckers wrote:I think this theoretically could work if each generation has only one child. Otherwise, the dilution factor of dividing the wealth by more and more family members with each successive generation could have an insurmountable impact.
Let's say on average each family member has two children at age of 25, that means the portfolio value will have to double in real terms every 25 years just to stay even. If you want it to grow, you'll need at least two doublings every 25 years. That's about 6% real return annually (guesstimate doing math in my head). That's theoretically doable if no taxes and no one actually wants to spend any of the money. Once you take these last two factors into account, you could see why it is difficult for an inheritance to grow from generation to generation. Given inheritance taxes and the fact that in a taxable portfolio dividends would be taxed at regular income rates, the tax piece alone could break the plan even if all heirs become frugal bogleheads.
I don't know of any billionaire heirs to the Rockefeller, Morgan, or Carnegie fortunes... And they started with a much much larger portfolio than you or I.
-K
Yes, it seems the tax part of it will make it very difficult... As lets say portfolio reaches $100 Million and Dividends are 4%, that's 4 Million Taxable Income that year, most likely a portion of those dividends or portfolio would have to be sold off yearly and used to pay taxes... Unless of course once the portfolio reached a certain level where tax implications started require selling of portfolio the family then moved to Monaco or another tax haven which would help cancel out selling of portfolio.
Thoughts?
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Re: [Are there any] Billionaire Boglehead!!!
Didn't you hear...it's not cool to be a billionaire (according to Sean Parker):
http://www.huffingtonpost.com/2011/03/0 ... 32409.html
http://www.huffingtonpost.com/2011/03/0 ... 32409.html
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
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Re: [Are there any] Billionaire Boglehead!!!
Let's run some real numbers.The Wizard wrote:You can say that, but I still stand by my point: no one gets to billionaire status by investing in index funds.LadyGeek wrote: ...Please try to stay focused on the investing aspects.
You get there by building a new empire of some sort...
Save $100,000 annually for 50 years (say, age 20-70). With a 10% nominal return you end up with $116,000,000 nominal.
Now draw down 1% per year, and live for 30 years. Stay invested in a 100% equity portfolio.
According to firecalc, several scenarios would have grown as high as $1,980,000,000 at the end of the period, with perhaps a dozen over $1,000,000,000.
Of course it's nominal, but at that point - who's counting?
So I'd say it is in fact possible to become a billionaire investing only in index funds. Not for everyone.