So a few things. Since we’re in the weeds at this point I want to remind us both that the original point was that a millionaire and a billionaire both have the same general relationship to living and labor which is ‘they don’t have to worry about selling their labor to have their basic needs met’. This is still true. I was also talking in terms of individual wealth not household wealth but the figures aren’t really that different because housing is such a large share of expenses.
The retirement scenario you’re describing is a very comfortable one. 3% is a conservative drawdown, 3.5% is considered safe, and higher is typical if you can be flexible in spending. Retired households do not have the expenses associated with commuting and most do not have the expenses of childcare. Being able to afford living near employment centers is a luxury for a retired household, not a need. So a retired household with the income of a median working age household is doing quite well.
That’s fine to want to retire moderately well off but once your income is based on rents from capital your class interests are not aligned with the working class.
So a few things. Since we’re in the weeds at this point I want to remind us both that the original point was that a millionaire and a billionaire both have the same general relationship to living and labor which is ‘they don’t have to worry about selling their labor to have their basic needs met’. This is still true. I was also talking in terms of individual wealth not household wealth but the figures aren’t really that different because housing is such a large share of expenses.
The retirement scenario you’re describing is a very comfortable one. 3% is a conservative drawdown, 3.5% is considered safe, and higher is typical if you can be flexible in spending. Retired households do not have the expenses associated with commuting and most do not have the expenses of childcare. Being able to afford living near employment centers is a luxury for a retired household, not a need. So a retired household with the income of a median working age household is doing quite well.
That’s fine to want to retire moderately well off but once your income is based on rents from capital your class interests are not aligned with the working class.