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Happy November!! Can y’all believe we made it this far? The longest year in recorded history! We can do it! 2021 is right around the corner. Now, if we can survive the election, the wildfires, murder bugs, zombies, dragons, maybe hell freezing over, a rabid unicorn invasion and anything else coming at us through December, we are going to be just ducky!
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5TH ANNUAL TYBEE ISLAND CHARITY REDFISH TOURNY
NOV 7-8, 2020
DRIVIN N CRYIN
NOV 7, 2020
How much money do you need to be wealthy? According to a poll conducted by Schwab last year, it’s about $2.3 million. Unsurprisingly, that number varies depending on the age of the respondent. Gen Z-ers think $1.5 million is wealthy. Millennials think it’s $2 million, and Gen X and Boomers think it’s up over $2.5 million. Interesting that all those numbers are pretty solid anchor points: one-and-a-half, two, two-and-a-half...psychologically speaking, it feels like the survey respondents just picked a random number out of thin air. The pre-k demographic wasn’t surveyed, but one can assume their response would be along the lines of “one thousand thousand million hundred thousand and nine.” Our answer: it depends.
First, a little semantics. What’s the difference between rich and wealthy? They both involve lots of money and so often end up conflated (such as in the poll above), but we would argue there’s a difference. Rich - as commonly used in the English language - has an association with transience. Tastes and sensations are described as “rich.” Winning the lottery or getting a big bonus or stimulus check might elicit cries of “I’m rich!” but definitely not “I’m wealthy!” “Wealth,’’ on the other hand, is associated with a kind of vague, undefinable durability.” A wealth of knowledge” or “information” or “resources”...you get the idea.
So let’s talk about being wealthy, about getting to the point where one has “durable money.” One definition we like is that wealth is having passive income that exceeds your expenses. (Side note: “passive income” is money that comes in without you actively working for it; most commonly, dividends and interest from investments and real estate rentals.) If you have enough assets such that the return on those assets covers your cost of living, you are wealthy. You can choose to work, or not. You’ve got the kind of money John Goodman talks about in The Gambler.
FT. PULASKI FREE DAYS
NOV 11, 2020
WHAT IS WEALTH?