Imagine for a second that you have $250,000 in the bank; in fact, imagine that everybody through some miracle started with that amount and that you withdrew $10,000 annually which was more than enough to live on… that last part may be hard to imagine for those who are used to consumerism, but for the sake of the argument, assume you were experienced in living quite well on that amount.
Now, suppose you were given a choice.
- Keep living this way.
- Spend the $250,000 on a house amongst many other things making it necessary to maintain employment or some other working income for the rest of your life.
Which would you find more scary? I think a lot of the fear of relying on investment income to “make” a living is simply due to a lack of familiarity with it. To me it seems a lot safer than relying on an employer.
Fear all depends on what one is used to. It is largely connected to uncertainty which is largely connected to ignorance. To become less ignorant, however, one must necessarily do things which seem scary at first.
Originally posted 2010-10-09 00:27:05.