Permanent underclass

[Anonymous]

Do you think anyone with a net worth under the threshold to retire early will be part of the permanent underclass in a few years? This is what a lot of Silicon Valley white collar employees and fretting about lately

[Anonymous]

Anonymous wrote:Do you think anyone with a net worth under the threshold to retire early will be part of the permanent underclass in a few years? This is what a lot of Silicon Valley white collar employees and fretting about lately

Yes, I've worried about this. Not for me, but for my kids. I've got retire early money, but will my kids? Who knows.

[Anonymous]

Yes, we are headed to a two class society the haves and the have nots. Last chance to build generational wealth.

[Anonymous]

Early retirement is our goal #1. I retired early and my kids want it too.
There are several reason why I think they can retire early. I made it happen on very low income.

[Anonymous]

No. The idea that AI is taking jobs away is a scam. Which jobs?

[Anonymous]

Anonymous wrote:Yes, we are headed to a two class society the haves and the have nots. Last chance to build generational wealth.

We’ve been in a two class society for a long time already if you’ve been paying attention. Middle class has shrunk considerably over the last two decades due to globalization and bad policies coming out of Washington (both parties)

[Anonymous]

Anonymous wrote:Yes, we are headed to a two class society the haves and the have nots. Last chance to build generational wealth.

Fortunately, we’ve been able to accumulate generational wealth ($25M+) and have the proper trusts in place so it’s not squandered by the next two generations and protected as much as possible from estate taxes. But I’m definitely concerned for the next generation as a whole. Invest wisely as much as possible.

[Anonymous]

No, this argument makes no sense to me.

[Anonymous]

Anonymous wrote:Do you think anyone with a net worth under the threshold to retire early will be part of the permanent underclass in a few years? This is what a lot of Silicon Valley white collar employees and fretting about lately

No. They should have been investing during this run from 2010.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, we are headed to a two class society the haves and the have nots. Last chance to build generational wealth.

Fortunately, we’ve been able to accumulate generational wealth ($25M+) and have the proper trusts in place so it’s not squandered by the next two generations and protected as much as possible from estate taxes. But I’m definitely concerned for the next generation as a whole. Invest wisely as much as possible.

Is $25M generational wealth still? That number gets run down very quickly depending on how many kids future generations have, even if it stays invested aggressively.

[Anonymous]

We will not have grandchildren. The money only has to last for our one child. Anything else goes to charity so as to avoid taxes (for wars we would rather not pay for).

[Anonymous]

Some of it is cultural. Some of it is an unvoiced fear driven by predictable changes.

I consult with a group in San Jose. I'm in my late 30s. I've seen 3 major downturns in my career. They were each preceded by excessive hiring.

When vc money is flowing companies randomly hire people. Some major tech firms could cut 40 percent of current workers and not negatively impact productivity.

We also have a problem driven by the fact that survival in tech is driven by creativity. And we spent a decade encouraging people to go into tech who aren't creative. Our interns aren't coming up with ideas. They're trying to use ai to do their work and then they wonder why the human middleman gets cut out.

Lean into humanity and survive and thrive.

Real generational wealth involves a mindset. My family lost everything twice in Europe in the 20th century due to wars and hyperinflation. I'd say the mindset to rebuild from nothing and not die in 1945 is worth more than a trust fund. If you like to build, like to create, you will always be a tomorrow. If you exist to spend a trust fund it will be spent down.

[Anonymous]

Hyperinflation is coming for our measly $4-5M. I am the product of generational wealth but at this rate will not leave any behind.

My main plan for legacy is to die somewhat earlier than I otherwise would.

[Anonymous]

Anonymous wrote:Do you think anyone with a net worth under the threshold to retire early will be part of the permanent underclass in a few years? This is what a lot of Silicon Valley white collar employees and fretting about lately

No? I think retiring early is for rich/privileged people, so would assume someone who can't do that, but can retire on time, is middle class. Or is the premise here supposed to be that all white collar workers are going to lose their jobs and have to live on what they have?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes, we are headed to a two class society the haves and the have nots. Last chance to build generational wealth.

Fortunately, we’ve been able to accumulate generational wealth ($25M+) and have the proper trusts in place so it’s not squandered by the next two generations and protected as much as possible from estate taxes. But I’m definitely concerned for the next generation as a whole. Invest wisely as much as possible.

Is $25M generational wealth still? That number gets run down very quickly depending on how many kids future generations have, even if it stays invested aggressively.

Yes, with money in trust at this level and with it historically doubling every 7 years it can last. Beneficiaries who are debt free with even modest incomes augmented by trust distributions can live very comfortably while compounding builds for the next generation. Its not that all your descendents live like the super rich, and some might go bust financially, but it can give a debt free education and paid off home head start for several generations giving them foundational financial stability. Some could also go on to build their own fortunes helped by the leg up. It also takes stewardship and governance by responsible trustees.