Are you worth your weight in gold?

Posted by Ian Holsman Tue, 10 Oct 2006 06:32:00 GMT

while I was waiting for a call, I decided to find out.

Step #1 : figure out how much that is

US Spot price: 578/ounce

Weight: 110k

Value of me in gold: ~$US2.2m

Step #2: figure out how many working years I have left till 65

Working years: 28

Step #3: figure out a discount rate/inflation rate you expect to get

say 4%

now.. plug these numbers into your annuity calculator and you will get the answer.

I need to earn ~$USD 135k/year to be worth my weight in gold.

obviously working out and being younger would help as well…

so next time someone says you are worth your weight in gold you will know exactly if it is a good thing or not !

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  1. Avatar Ian said 38 minutes later:

    argh.. I used the wrong conversion rate of ounces to grams.

    gold is measured in ‘troy ounces’ not ‘regular ounces’ so you should be using a conversion rate of 1 ounce = 31.1 grams instead of 1 ounce = 28.3 grams.

  2. Avatar jdagna said 1 day later:

    I don’t want to make things too much more depressing for you, but you mustn’t forget taxes. If the government keeps 30% of what you make (and at $135k/year in the United States, that would be really optimistic), then you really have to be making closer to $193k per year.

    You should also figure in your current net worth. Since that’s something negative for many people, it probably makes matters worse.

  3. Avatar Ian said 1 day later:

    Thanks jdagna.

    but you would need to pay tax on the lump sum as well, so I thought it would even out.

    I’ll tell you what if someone actually does make me the offer I’ll hire a tax accountant ;-)

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