Ramit Sethi and a guest explore why having more money doesn't cure money anxiety, using examples like projected portfolios of $10.2 million by 55 and $14.5 million by 60. The real problem: most parents lack the financial literacy to manage large sums, and giving money to kids early often leads to reckless spending or deeper fear.
Your kids are fucked if that's what you do. Is this for real? The amount of money we're talking about is a substantial amount.
I've shown her the math for if we wanted to retire, and we've surpassed that now.
Yeah, 55, $10.2 million. Age 60, $14.5 million. You see how it turns into tens of millions? Did it change how you felt?
No, no, no, because it's just a number.
If you were to hand them the amount that we are talking about right now, considering you're only 40, so you're not going to hand them any substantial amount of money for at least 10 years, which means it's just compounding, compounding, compounding. Their parents do not know how to effectively use money.
What are they going to do with the money? Spend it.
Yeah. Or be scared and say, I just need to save more. Maybe I need more. Maybe I need more. The consequences of what you're doing today are actually kind of predictable, and they're not good.
