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this post was submitted on 15 Dec 2024
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United States | News & Politics
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No dude you mixed some numbers up - 5%/yr of 440 billion is 22 BILLION dollars per year.
Unless you meant he could put 0.1% of his wealth (440 mil) to pull 22 million a year.
In fact, he could put less than half of his total net worth, 200 bil, into a basic savings account returning 0.5% a year and live off of a billion dollars a year, which is equivalent to the median income of 16,666 others.
While you were writing this comment I was updating my original comment because I messed up! Correct: 22 BILLION.
Market 10 year average is 11%. 400B at 11% for 30 years left of his life. That's not 1 trillion dollars, not 2... Not 3... It's over 9 trillion.
His money if allowed to be passed down and kept in the market, would make more than 1T dollars a year at that point.
Yeah but his net worth is tied mostly in specific stocks.
And beyond that broad market withdrawal rates mean you can really only safely pull about 4% without eating into the nest egg.
But yeah it's all true - he's on track to a trillion before he dies.
He doesn't really need to sell though does he. Like imagine if ceo's came out to trade and give public announcements beforehand to build trust. For instance an Apple Executive trading directly with Musk equal valued shares and telling the populous it is a good thing as these executives are showing that they believe strongly in these other companies. Next thing you know he's got his investments varied across every field, and should maintain a portfolio matching the market average whether one field struggles for a bit or not. It "looks" like they are all showing faith in each other's future gains, but in reality is is diversifying their portfolio to ensure no large setbacks