How to retire early? - Page 5

#81 22.02.2010, 23:59

	Quote:	22 yards
	Oh. It seems I made the wrong career choice. But life isn't just about money, right? Right????!!

The f* you money is nice. You don't need to be nice. You don't need to smile to your idiotic boss. That's priceless.

Yopo · #82 23.02.2010, 10:01

	Quote:	economisto
	Some hedge funds have performance fees of up to 50%. Even if it's a relatively normal 25% and the $3bn hedge fund has a lucky year and makes a 30% return(about $1bn), that's $250M in extra fees that year. If there are 20 traders, that's split between all of them but very unevenly, it depends on the hand they had in the making of the profit. That bonus is high, but only the percentage has to do with skill and worth, not the absolute amount. In effect it's like having a share in the company.

Now I really feel like a slave.

Phil_MCR · #83 23.02.2010, 10:35

	Quote:	22 yards
	Yikes! Is your post infused with exaggerations or hyperbole? Is it, in fact, a total fabrication? Scarily ridiculous sums. Surely no single employee is worth that much. I know I'd take the job for half that sort of bonus.

sorry. no exaggeration this time. in fact, i was thinking, if i could guarantee winning the UK lottery every single week, it would still take me one and a half years to 'win' his total bonus.

exercise for the reader: calculate how much longer it would take to match his winnings + interest assuming 5% annual return.

#84 23.02.2010, 12:40

New exercise for the reader. If his bonus was £150M and if we assume a money manager can get 6% per year on average taking very little risk and if we further assume inflation to be around 3%, that means he can keep his 150M in real value and still spend that 3% (which will in turn grow with inflation). This means that if he earns nothing else, he'll have £4.5M per year to spend, likely pay no tax on this, and his descendents will have exactly the same income in real terms until the end of time. So when they say the rich stay rich, they know what they're talking about.