adjusted by inflation the stock market only grew by 34.10% between 1900 and 1982 when adjusted and even if dividends were reinvested. And that's total growth, annualized was barely 0.36%
Their wealth wouldn't have increase at all during that period, especially if they wanted to spend 2% each year.
Of course it accelerated massively in the 80s (1900-2024 was 2.48% annualized) but using the average would make no sense.
If you were still very rich in 1982 you would have made a massive amount of money since then. e.g. somebody like Trump invested all of his inherited wealth (and everything his dad gave him before) into the stock market instead of pretending that he was a very "successful" businessman he would have been much, much richer than he was in 2016 and wouldn't have had to be so ashamed about realising his tax returns.
How is that possible, though?
e.g. according to
https://ofdollarsanddata.com/sp500-calculator/
adjusted by inflation the stock market only grew by 34.10% between 1900 and 1982 when adjusted and even if dividends were reinvested. And that's total growth, annualized was barely 0.36%
Their wealth wouldn't have increase at all during that period, especially if they wanted to spend 2% each year.
Of course it accelerated massively in the 80s (1900-2024 was 2.48% annualized) but using the average would make no sense.
If you were still very rich in 1982 you would have made a massive amount of money since then. e.g. somebody like Trump invested all of his inherited wealth (and everything his dad gave him before) into the stock market instead of pretending that he was a very "successful" businessman he would have been much, much richer than he was in 2016 and wouldn't have had to be so ashamed about realising his tax returns.