There's more to the story... If you're talking about "really rich"... many of those avoid paying taxes by investing in crappy things (incentivised by tax law) which blow up... they don't pay the taxes, but they don't ever get the benefit of the money either. America will not be the America our past generations have known until each of us pays our fair share. That means some sort of flat tax and/or VAT. The graduated income tax SUCKS THE LIFE OUT OF THE COUNTRY!!
If you knew you were going to live another 60 years would you blow all your cash next week and get in so much debt it would take 20 years to pay it all off?
The $25/hr that you assume should be placed on his time is arbitrary. Employers don't value your time outside of work. Otherwise, they'd pay for your commute. This forum is obviously popular with traders, and most don't see the value in home ownership or real estate investing in general, because it doesn't provide instant liquidity. Despite that, real estate is the better investment. You're far better off, IN THE LONG RUN, commuting to a home that you own rather than an apartment close to the city. The rent you'd be paying on the apartment keeps pace with inflation. It's tough to build wealth when your housing costs keep rising almost every year. The key here is to pay cash for an older car and maintain it, or utilize Metra (if you're near Chicago) or some other regional rail.
I'm a Vietnam War veteran. How young does that make me? Young enough that I don't know "come here" from "sick 'em"?
Now the whole USA is on Debts because of multi-trillion bail-outs to bankrupt giant companies. That's true American dream.
so, it is you, Gnome! you have done much better than most vets. were you drafted or did you volunteer?
Car culture in the USA has had a magnificent run, but is coming to a close. Autos have become too expensive in relation to other goods. One positive though is the longevity and durability of some brands in comparison to years past. This should help bring back frugality.