Originally Posted by Bostonian
Since wealth depends on cumulative income over the years, it is implausible that the slope of wealth vs. IQ is much smaller than annual income vs. IQ. It should be larger. I think the following slope estimates are more plausible. If one SD of IQ corresponds to an income differential of $30K, that is $30K/15 = $2K per IQ point.

Not really.

Wealth, if you are talking about baby amounts of savings like $20K per year, depends on the increase in value of your savings, which depends on the interest rate and/or valuation of the stock market and/or your ability to accumulate your own capital in your own enterprise.

Right now, you can expect your $20,000 to grow to about....$20,250 next year, if you bought a nice 30-year treasury. (Are they even selling these new ones of these right now? I can't remember.)

Now, if you decided to buy $20K worth of say, 30 year treasuries in, say, 1990, you would have gotten $20,850 (about).



Because of the magic of exponents, you get $41,900 in 30 years if you bought today by 2045.

However, the 1990 interest rate will get you about $231,000 by 2020.