I assume many “blow through it” by falling victim to a system specifically designed to extract that wealth from them just prior to death.
6 Likes
What happens way more than kids expect is parent 1 dies, marries someone else then dies with all the money going to spouse number 2 and/or their kids
1 Like
god you’re in a happy place today, huh?
1 Like
Ok but top 1% wealth (not income) is really hard to do with used cars or HVAC, unless the small amount of starting capital Riverman mentioned is actually really big. Basically the starting capital has to already be 1% wealth that belongs to the founder to begin with. Even with the founder having top 0.1% level of drive and being a socioatb
This happened to my dad’s dad. I found all the details going through his papers.
First wife died in 1960ish. Old man remarried. Married for 20 years or something. And died in 86.
He had explicit instructions that the house proceeds should go to all the grandkids (his plus new wife’s)
New wife died in 2003 or something. Proceeds go all her daughters with some token amount to the other grandkids.
I mean, I can even see why they would feel that was just. It was 25 years later and she had been living alone in the house getting care from the daughters.
Top 1% income is around 850k, top 1% in wealth is 5.8 million. Average car dealership owner in California makes 100k so you may need to readjust your plan. It probably is easier for someone who has the focus and drive to succeed than your average joe, but if it was trivial there would be a higher average income in California. And this is what the google says about HVAC:
“Most businesses in the HVAC contractor market are small, earning less than $1 million in revenue per year. According to ZipRecruiter, the average HVAC owner’s salary is $131,000 per year. The lowest 10% of HVAC business owners earned approximately $35,000.”
1 Like
Also. I mean this is basic economics.
The idea that there’s an industry with low barriers to entry, and outsize returns on capital, and it’s just sitting there and obvious…
I think that’s fair. There are definitely careers with higher variance than others, though, and the high variance careers, like starting a business, are going to produce more people at the top ends of the wealth distribution than more stable careers (like being a teacher) even though they both could have the same average earnings.
It’s trivially easy to amass $6 million but I don’t feel like it. Also, fuck those boomers for not giving me money.
6 Likes
These do exist if you are the kind of person that thinks that high levels of leverage aren’t actually risky. For example, amassing a portfolio of real estate rental properties really does have the characteristics you describe here, it just comes with two caveats:
- You need to have faith that real estate prices never go down so you can be leveraged with massive amounts of debt and it doesn’t matter. This is a risk, some people are comfortable ignoring it.
- @Riverman style, you have to be a massive prick to squeeze every last drop of blood from your tenants to maintain a healthy cash flow. This involves bullying tenants, forcing them out with the power of local law enforcement when it suits you, dragging out complaints and attempts by renters to enforce their rights, etc. etc.
this can’t possibly be correct
2 Likes
oh I guess this is including the guys who are grinding out used car hustles? I would guess a lot of them are barely scraping by, it seems like a brutal business.
A lot of them not even scraping by and going into debt.
How much does it cost to reasonably start a used car business? I looked up some for sale and all but the very cheapest (and we’ve all seen tiny lots in the middle of nowhere) are at least more than half a million dollars. If you start from scratch with no cars and no one knowing you exist? Eating through a million or close before you become profitable (if you ever do) seems like something you should plan for.
Something people who have played poker should understand is that people are hugely under rolled when they start businesses. They are like a bankroll of 1.5 buy ins with no way to move down.
2 Likes
That’s according to the google, probably a lot of little car lots offsetting the guys who own 6 dealerships…
Fyp
1 Like
hey now Nick Saban bought those 19 mercedes dealerships with his own money
1 Like
It is a trivially easy business
1 Like
well yeah I mean like running 100 yards is easy but making a living at it is pretty hard
3 Likes
Damn I was literally thinking along these lines before coming back and seeing your post
1 Like
Sometimes its funny how the algorithm at youtube works.
Makes you furious.
2 Likes