Reply: 1
From: Anonymous
Hello,
I love the idea of retiring at the age of 35.
But I'm going to take your idea a few steps further since I have a little time to relax and you have prompted me with the opportunity to have some fun.
Many times over dinner with friends, we have often speculated and free associated about what it would be like if every 18 year old high school graduate was automatically given $1,000,000 by the government. Those that invested it wisely and managed to accumulate at least $10 000 000 net worth by the time they were 35(not impossible if compounding for example) would be forever taxed at a flat minimum tax rate, say 10% for the rest of their lives irrespective of income(my capitalist mum's influence). Those that did not accumulate the $10 000 000 would forever be taxed at the maximum flat tax rate, say 50%. There would be many that would dedicate 100% of their time to the investing etc. but many, I would imagine would do both, investing while pursuing their chosen vocation. If all vocations/jobs paid the employee the same money, those that choose to become doctors for example, would get paid the same as a rubbish collector(my socialist dad's influence),thus ensuring the best people were in the right jobs. Since I truly believe that money is the main motivation for most people, if you removed it from this equation you would have a very happy work force as everybody would chose a career/vocation that they truly desired and believed in, and the standards would improve(poor dad). There would be no such thing as a pension, unemployment or any other type of current benefit(rich mum). With this system all citizens would be given an equal start in life(poor dad), and would be entirely in control(rich mum) of their destiny(apart from bad luck, beyond their control). Education on wealth creation and financial literacy would make up to 50% of all secondary school education(rich mum). Those that were frivolous with their money and spent it aimlessly would then have to bear the greater tax burden for their entire working/income producing life. Those that sought knowledge, worked smart/hard, and prolonged gratification, would be forever rewarded(rich mum). Of course social security would still exist(poor dad), but only for those that legitimately could not fend for themselves. I think this is a very fair and balanced system. Don't you agree?(for the sake of exchange, I hope you don't!) Think about the exponential increase in creativity in regard to investing, business systems,technology,working life in general, not to mention the standard of living etc etc.
Australia would quickly pull the majority of the world's available wealth(rich mum), and in no time the current era of the American Empire could end and it would be our turn. Imagine that! "The Australian Empire"! We certainly as a country have the intellectual and natural resources required. It is ambition, motivation and most importantly the financial resources that are missing.
For those starting to wonder, no, I am not on any mind altering or other drugs! Just amusing myself and hopefully putting a smile on some people's faces.
Ahhh! It's nice to dream. Who knows, maybe one day my dream will become a reality. In the mean time, I better get back to working, researching,planning,and implementing my investment strategies as I only have two years before I reach 35. Time is quickly running out! After re-reading this post, I would say my time is running out in more ways than one!
Cheers,
Topaz
