you'd notice 2 main things:

#1 - primary residence + real estate as a % of wealth decreases over time

#2 - financial assets (in blue) increase over time

bonus notes: rich people do not depend on retirement schemes

>

let's talk house

primary residence peaks at ~45% for people with 100k networth and continually dives down as people get richer, why?

the ceiling for primary residences essentially caps out worldwide at ~$50M

yeah, there's some crazy exepensive houses, but those are outliers

>

my personal opinion is that one's budget to real estate (primary residence + holiday homes) should never exceed 30% of one's networth

and it should be viewed as normal that the % drops as one's NW increases as the 30% is a category cap, not a target

homes do not generate wealth

>

bonus points about RE

people obsessed with owning portfolios of real estate "passive income" quickly get jaded about that when they realize its not very passive at all, risks are concentrated, unlevered returns are meh, its illiquid and high friction

>

financial assets

i have maintained that end game builds are almost exclusively focusing on deploying capital, rather than selling personal labor at high rates

being the highest paid employee doesnt get you richy rich

owning equity in companies gets you richy rich

>

why is the largest asset business interest and not stonks?

the answer is probably because only a minority of people get rich purely through finance, while majority of the ultra rich did so through running a business

the people at 1m-1b are growing their own existing businesses

>

it is no secret that in many markets in the world, except the US as a beautiful strange exception

businesses that are highly profitable do not get listed, but rather stays within the family and gets passed down as their trump card

its the shit ones that gets put up for sale kek

>

interestingly, the assets of a pure financier can look normalized as well, as they funnel and wrap assets into family offices for optimized returns and estate planning purposes

its almost always better to bequeth to heirs a company holding assets, rather than the assets directly

>

bonus notes

fixed income investments always remains tiny - their main use in rich people's portfolio is to produce income to match expenses that worries them

liquidity is always present, but dwindles as additional ways to access liquidity are unlocked (borrowing against assets)

>

thread content created by discussing with a rich fren of mine

personally i only have 1 ETH, but now i have a clearer picture now of how i'd want my asset allocation to look like when i finally make it

WAGMI

you'd notice 2 main things:

#1 - primary residence + real estate as a % of wealth decreases over time

#2 - financial assets (in blue) increase over time

bonus notes: rich people do not depend on retirement schemes

>

let's talk house

primary residence peaks at ~45% for people with 100k networth and continually dives down as people get richer, why?

the ceiling for primary residences essentially caps out worldwide at ~$50M

yeah, there's some crazy exepensive houses, but those are outliers

>

my personal opinion is that one's budget to real estate (primary residence + holiday homes) should never exceed 30% of one's networth

and it should be viewed as normal that the % drops as one's NW increases as the 30% is a category cap, not a target

homes do not generate wealth

>

bonus points about RE

people obsessed with owning portfolios of real estate "passive income" quickly get jaded about that when they realize its not very passive at all, risks are concentrated, unlevered returns are meh, its illiquid and high friction

>

financial assets

i have maintained that end game builds are almost exclusively focusing on deploying capital, rather than selling personal labor at high rates

being the highest paid employee doesnt get you richy rich

owning equity in companies gets you richy rich

>

why is the largest asset business interest and not stonks?

the answer is probably because only a minority of people get rich purely through finance, while majority of the ultra rich did so through running a business

the people at 1m-1b are growing their own existing businesses

>

it is no secret that in many markets in the world, except the US as a beautiful strange exception

businesses that are highly profitable do not get listed, but rather stays within the family and gets passed down as their trump card

its the shit ones that gets put up for sale kek

>

interestingly, the assets of a pure financier can look normalized as well, as they funnel and wrap assets into family offices for optimized returns and estate planning purposes

its almost always better to bequeth to heirs a company holding assets, rather than the assets directly

>

bonus notes

fixed income investments always remains tiny - their main use in rich people's portfolio is to produce income to match expenses that worries them

liquidity is always present, but dwindles as additional ways to access liquidity are unlocked (borrowing against assets)

>

thread content created by discussing with a rich fren of mine

personally i only have 1 ETH, but now i have a clearer picture now of how i'd want my asset allocation to look like when i finally make it

WAGMI