Yup, Warren Buffet surely isn't making generating any real income. He's just holding onto 'stay rich money'.
You're not Warren and most money managers aren't either. Good luck finding one if you do get that nest egg.
You also completely misunderstood what I said about the ultra rich. They have play money, investments, and stay rich money. The stay rich money is the reserve that they have in case everything craps out. It's purpose is not to generate a real return, only to preserve it's value.
You didn't mention that $8M was in 2055 dollars.
Otherwise, the rule of thumb when withdrawing from retirement funds is an annual 3%-4% rate, indexed for inflation. That means if you have $8M banked, you should withdraw anywhere from $240K to $320K, depending on how aggressive you want to be.
Its not 2055 dollars, it's 2015 dollars assuming 0 real return from investments after inflation and tax on any gains that make up for inflation. This is how I do planning for my retirement. If I have more left over in the end then good for my future kids, but at least I won't get caught short.
Last edited: