If everyone is a millionaire, what will everyday things cost? What would happen to the USD?
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:o, right. I should re-read it before click reply…
The point is not that you are millionaire or not.
Itt is that you have a monthly incoming 2.9k monthly (withdraw 3.5 of that million) every month.
I tried to look for but not find it…
I will like to read the discussions there. can you share the link?
We tend to react emotionally to the word “millionaire”. In 2086 it is unlikely to be synonym of “rich”.
Perhaps we can see the problem like that:
- the yearly funding of Ackman’s solution is extremely easy (0.1% of US debt, which is anyway printed away by the Fed in 10 days)
- presently, the funding of pensions is a headache
So either Ackman is a genius, or there is a major weakness in his plan…
Indeed. Until 2002 everybody was a millionaire in liras in Italy…
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you can do a linked account with IB. As long as the invested sum > number accounts x 100000, there will be no additional fees
For people not at all close to that limit on IB what would you recommend? I’m also thinking about doing something for my 1yo daughter
That got me wondering how much you would need to get the social minimum (about 24’000 CHF, the official number is actually lower as far as I know) or a 40’000 CHF lifestyle at 65.
Assumptions : 5% real return, money is put once at birth using 4% rule
For 40’000 CHF lifestyle : just 42’000 CHF initial capital
For 24’000 CHF lifestyle : just 25’000 CHF initial capital
Not that much I think. There are about 88’500 births in Switzerland right now, that would be about 2’213 MCHF. As comparision, the AHV+ALV gets about 52’000 MCHF of income per y.
Now it got me thinking, how much money you would need to give everyone the social minimum using the 4% rule for 8.5 million people. Needed amount per y would 204’000 MCHF, invested capital needed 5’100’000 MCHF. Basically, we would need to 100 y of AHV+ALV contributions to get there and Switzerland could provide a baseline income for everyone from birth until end of life (assuming that every year, people get already paid out the benefits to hook them up for the system).
Imagine how it would ease up the bureaucracy, just to make sure that every person would have 24000 CHF at its disposal per y, including kids etc.
I started late but will hit that 40k lifestyle, before I hit 40. Would be nice if I could opt out of AHV. Would be a nice monthly ROI from getting the money that would‘ve gone towards AHV. I‘d hit my FU number a few years earlier as well.
The fix would be easy. Just change the law to allow children to also create a 3a account… With a yearly limit coupled to the ‘Familienzulagen’ or so.
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Probably easier to invest all together (in your name) and build above the 200k before gifting to her part of your ´stache or opening a linked account to start then. All in all much easier to manage until they’re 18 and start to declare taxes, open 3a etc themselves.
I took the risk to open in my kids names at 2-3y.o. since my family lives far away and everyone was sending them money for birthdays etc (i wanted to be transparent and show it was really for them). I’m looking more into it now, but so far i have been able to invest for them as their parent controlling their money until 18 but only in the funds offered at our cantonale bank where i have our mortgage. Better than cash but terrible commissions on the funds and droit de garde by the bank.
I’d love to find a way to invest in their name directly on ETFs and hopefully that PF is gonna let me as a bank/broker. Seemed open to the idea…
Ps. I stress the risk i took is consciencely taken…if they are crazy at 18, i have an issue that they’ll have access to this money…i simply preferred driving the outcome i want rather than stress what may happen…my son at 10 already has a « salaire de jeunesse » and is quite sharp on budgeting already. Start ´em early!