Why High Income Isn’t Enough
00:00:00.000 | one in 20 people are going to lose their job in the next two years is not that crazy of a stat,
00:00:03.200 | but that you do that over a long time. And this does affect people. So income is very fickle. Like
00:00:07.460 | I like looking at like professional athletes, how do they end up broke and a broke because they had
00:00:10.900 | five years of really high income, and they spent money based on their income, not on their wealth,
00:00:15.360 | they didn't accumulate wealth to keep sustaining that spending. And as a result, you end up one day
00:00:19.540 | end up bankrupt, because you don't have the flow after five to seven years that dries up. And then
00:00:23.340 | you have to live the rest of the life off that. So I think that's the difficulty with this stuff.
00:00:27.020 | Yeah, that's the argument. Everyone mathematically lottery winners should
00:00:30.840 | always take the lump sum. But I imagine that if you win the lottery and you take the payments over
00:00:36.120 | however many years, you are probably statistically likely to end up better off people that win the
00:00:40.280 | lottery, not most, but some large percentage of them end up without money.