SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Politics for Pros- moderated
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: kech who wrote (101693)2/23/2005 6:56:04 AM
From: Lane3  Read Replies (2) of 793743
 
OT OT OT Do you (or anyone) know what your income is if you live off your assets? This question has been nagging me for a while and I haven't found an answer.

Say you have ten million dollars in assets and no employment. Maybe you're a trust fund baby or retired or widowed. Say that none of your assets are invested in income-producing vehicles, but instead you sell off your assets as you need money. And say someone (survey, broker, real estate salesman, etc.) asks the amount your income, what do you say? Do you say it's zero? Or do you set the figure at whatever amount of assets you typically convert to cash each year, which would make your income equal to your expenses? Or is it the amount of income that your assets would provide if they were invested in income-producing vehicles?

Those are wildly different numbers. The first would register as poor, the second as middle or upper class depending on your lifestyle, and the last as wealthy. The first two are more technically accurate but they're very misleading.

I knew one person, a widow, who was actually in this situation. I met her when we were in the same tour group in China. She would visit her accountant periodically and they would decide what to liquidate. Or you might have a retiree collecting SS as his only income but he may be liquidating a huge nest egg and consider his SS merely pocket change. How would these people answer the income question? Any ideas?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News