Quote · Modern Wisdom
Why Everyone Is Drowning In Debt (and how to get out) - Caleb Hammer - #1123
Where this was said
What Financial Milestone Makes People Happiest?
At 52:12 · chapter starts 49:24
A clip from the Iced Coffee Hour featuring Kevin O'Leary is played, in which O'Leary argues that $5 million liquid in T-bills is the only true marker that an entrepreneur has made it and safeguarded their family. Caleb largely agrees with the $5M target — applying the 4% rule, that yields roughly $60,000 a year and lets you survive almost any emergency including a serious illness — but pushes back on T-bills as the vehicle. [1] — Caleb Hammer "$5M liquid = financial security milestone: Caleb Hammer argues that $5 million liquid is the key financial milestone for true security — en…" 49:31 For anyone with time on their side, index funds averaging 8-10% real returns will grow that million far faster than low-yield government securities. He also makes the broader philosophical point that the only genuine happiness money can buy is security: the knowledge that almost nothing life throws at you is financially catastrophic. Luxury and fun spending are moments of happiness, not the durable kind. That $5M number is the threshold where security becomes real.
Caleb Hammer argues that $5 million liquid is the key financial milestone for true security — enough to weather almost any emergency including a serious illness, while generating ~$60K/year via the 4% rule.
