I only have one question - how did you make your $100,000,000??

Sounds like a story that is worth telling!

Or is this a hypothetical situation?

The answer is, of course you can. At a 2-6% return (depending on risk tolerance) you’d be generating between $2M-$6M dollars a year. If inflation is 2-3% you are ahead of the curve.

To be honest though, if this is hypothetical you are better off putting your mental energy and focus towards getting to that point as opposed to thinking about what you will do with the money once you’re there. It’s like deciding what colour Lambo you will get right now, even though you can’t afford one.

 

What color is your lambo??

 

I believe that person who has 100,000,000 wouldn't need to ask such question, as he/she would definitely know what to do with It. I am assuming this as It takes insane knowledge and experience to aquire that money and that knowledgeable and experienced person would have multiple different income streams that would mutliply his 100 millions many times until age 85.

 

Took the words right out of my mouth

 

This is #Landfill but if you can spend less than $6million per year, you can almost guarantee that you can live off the interest and still see some principle growth.

 

Why do you think you would get a deduction for inflation? Do you now? If not, why would you *when* you're rich?

 

You're missing the point. There's no point in going for the hundred million in 10 years if it's only worth 90 million in today's dollars.

 

Good point. Guess I won't get off my couch today then. Not even worth it for only $90 million.

 

Joking aside, this question is a little like the kid at batting practice worrying about if his agents going to screw him if he somehow gets signed by the Yankees in 10 years.

Don't worry about it, and just focus on the business you're working on.

 

You missed the entire point and now you are wasting everyone’s time.

By your own words, you have spent days researching this without an answer. What a waste of energy.

 

(Stolen from @jon.a )

Somebody should write a book and include a section on money systems...

 

Concentrate on growing your business and end this thread.

If you lack the capability to even two-minute google some of these hypotheticals, then you lack the capability to grow a $100M venture.

Stop being an idiot. Start working.

When you make your first $1M, come back and post this stupid thread again.

 

That's because there isn't an answer.

What will inflation be?
What assets will you own?
What form of income will you have? (passive? active?)
What tax deductible expenses will you have?
What business structure will you employ?
Which countries taxes will be applicable?
Which state's taxes (assuming USA) will be applicable?
How will tax laws change between now and then?

But overall, yeah. If you're not paying to fly super models out in your private jet for bottle service at the club on a nightly basis, you'd probably be just fine.

I could live on $100 million without touching the principal. (although I might have to adjust my current lifestyle down a bit lol)

 

There are in fact dumb questions, but you've gotten a couple of answers that would have helped steer you in a more productive direction.

If you're looking for a clear numerical answer, then the answer is always 7.

 

No.

You pay taxes on the capital gains. The inflation rate is just how much less your money is worth.

You'd only deduct the interest rate if you were running a net present value calculation on the annuity.

 

there are no stupid questions, just idiots that ask them thinking they are good questions.

 

That's not what he's doing.

He's saying that you'd have $50,000 from the interest, and after adjusting for a 3% inflation rate you have $17,200 equivalent spending power after taxes.

You would physically have the $50,000 to subtract tax from.

But you'd have the spending power of $20,000 to subtract tax from.

Let's say I have $100 and Snickers bars cost exactly $1

$100 = 100 Snickers Bars

Next year I have $100, but Snickers Bars have inflated to $2

$100 = 50 Snickers Bars

Same $100...less Snickers Bars for me.

Inflation = less Snickers Bars

The same money can buy less stuff

 

This is what he's saying, but that's not how you factor in inflation.
Just poor methodology all around.

 

Yep. But I didn't want to spend that much time on it haha

 

Here you go. If you had $100M in a bank account at 5%, you'd likely pay 40% taxes on it. So, $5M income @60% is what you have left. $3M a year. Now you have to decide if you can live on that.

Of course principal is not growing this way. And you don't realize this yet, but yes your question is stupid. You will come back in 5 years and agree.

How close are you to $100M, I'm assuming you must be at least over 1M?