Rachel sees a therapist every other week to help her manage the constant pressure she feels to provide for her family, outperform her peers, and outperform the markets. The market takes no prisoners and every month she starts with incredible anxiety. She’s only as good as her last month’s performance. This type of pressure has begun to pulverize what little peace and quiet she has left inside. She’s also recently begun to develop heart palpitations, which has her worried.
Colin also sees a therapist once a month to help him get through his feelings of unworthiness for being a stay at home father. Although he’s truly a great dad, he often feels gutted to have given up his management consulting job. None of his friends, who all work, understand what he’s going through. He feels isolated and often depressed. Sometimes he gets jealous of Rachel’s success, which leads to bitter fights.
Does everyone in NYC have a therapist? How come I don’t hear anyone here in BA have one?
For a base case net worth increase of roughly $1,600,000 without any appreciation in their investments or house. Assuming $106,666 in base case net worth growth over 15 years, no compensation increase during this time period, and a current $3,000,000 net worth, including the equity in their primary residence, the Chens will realistically have a $10,000,000 net worth by the time their youngest graduates from college using a 6.2% annual growth rate . She’ll be 60 years old and he’ll be 58.
Making $1M every year but only has $10M after all?
They must have very good therapists. I think we should mandate that everyone is entitled to a therapist everyone month
“Colin also sees a therapist once a month to help him get through his feelings of unworthiness for being a stay at home father. Although he’s truly a great dad, he often feels gutted to have given up his management consulting job. None of his friends, who all work, understand what he’s going through. He feels isolated and often depressed. Sometimes he gets jealous of Rachel’s success, which leads to bitter fights.”
BTW it’s not entirely mocking… OK some of it is. I am just using you as a stand-in for SV SWE’s. Like you mentioned in another thread most of your peers are buying in similar locations for similar prices.
I’m talking about current asset. Asset value at retirement is misleading since most of it is inflation. You buy a $2M house today and it becomes a $10M asset after 30 years. $10M in 2048 is more or less the same as $2M today. Actually $10M house in 2048 is worth less than $2M today due to the inflation tax on capital gains!
Inflation adjustment for capital gains tax. I’m sympathetic of Rachel and her husband
Let’s base everything on today’s dollars. If your house is worth 2M today no need to worry about inflation and what it be worth 30 years later and then rebase it again in today’s dollar. It’s 2M, by definition, if there’s no increase net of inflation.
For @tomato who’s buying a 4M house, it’s 4M in today’s dollars, by definition.
Now how much will it appreciate net of inflation? I bet it will be at least 2 to 3 times. The Cupertino house someone posted in another thread appreciated 8 times in real value for 50 years. 3x is not too much to ask for. So just that house alone will be worth 10M in today’s dollar.