I recently received a question that boils down to this: How do you know when you have enough money? And once you do, when is it time to shift from chasing excess returns to simply maintaining what you have?

There are several ways to approach this question, which I’ll explore in this post. I’ve come up with a framework that I think makes sense for those who think they truly have enough.

Here’s the question presented from a reader.

Hi Sam,

I just finished your piece on risk-free passive income—really well done. A very accurate depiction of the trade-offs between the two approaches.

I have a question for you: You illustrate the comparison using a $5 million portfolio. I’m curious—at what wealth level does the appeal of building more wealth start to fade, and when does preserving capital with 2%–3% returns plus inflation protection become the primary objective?

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