This being Boston - which means we have the world's most savvy providers and hobbyists, I had a little fun with a spreadsheet.
Lily von Shtupp - our favorite provider (5'10", blonde, blue peepers and 38GGs) commands the Boston average ($400/hour) for companionship. Being a smart girl, she puts away 10% of her gross in a good mutual fund (4% return; these are lean times and I do not see us getting back to 12%-20% rates soon). She plans to work as a companion for twenty years. What will her nest egg look like when she walks away in the sunset?
The answer - as you all know depends on the # of days worked and the # of clients per day. Now, we all know there is a single variable (total $/per day) in addition to the days worked, so lets run the numbers for a couple of examples:
Total $/day Nest egg @ 20 years & 100 days/year Nest egg @ 20 years & 150 days/year
1,200 357,300 536,000
1,600 476,450 714,670
2,000 595,560 893,340
2,400 714,670 1,072,100 (six clients/day)
And let's assume for the sake of argument that Lilly pays no taxes (I would never advocate this!) and instead puts another 20% (2/3 of a "medium" tax rate) into her nest egg. Working 100 days/year and seeing 4 clients/working day will give her $2,144,000 to take with her.
So, my fellow hobbyists: can you honestly say that you are doing better financially?
I sure hope that this reflects the average state of our lady friends (and maybe even understates it)
;-
Whether her money was in the blazing saddle! Outstanding.
How about she spends everything she makes just like the rest of us....IMHO
That's a great post. I would like to think that providers will see that and realize the great opportunity they have...although I tend to doubt it.
In an ideal world - for our favorite providers - the nest egg after 20 years and six clients a day might indeed amount to $1,072,100. But while a provider might try to avoid taxes, she's still subject to expenses that her clients' employers would cover.
Our provider will have medical expenses, dental expenses, legal expenses, and business expenses that the average wage earner doesn't have to pay. Our provider will incur business expenses unique to her profession: She's got to buy supplies (lube, condoms, wipes), cosmetics, outfits that the average office employee doesn't think about. She's got to pay for travel and advertising. She's going to eat out (no pun intended!) for both lunch and dinner, especially if she's going to be seeing six clients a day. She's got to pay for her hotel costs, which are anything but modest in Boston.
The median rate of return (not the average, which skews high) for 20-year periods since 1871 is actually 3.63%. There have been lots of 20-year periods where the return rate was less than 1%, just as there have been lots of periods where it has been over 10%. If the rate of return is 4% but the 20-year return rate is 3% rather than 4%, a provider will need to work an extra 5 or 10 years to make sure that her cushion lasts the length of her projected life expectancy.
We can't ignore inflation. If the actual rate of return is 4% and the inflation rate is 3%, the nest egg turns out to be closer to $250,000 rather than $1,072,100 - in 2034 dollars (20 years from today).
Remember that the provider will have made no contributions social security. So exactly how much money does $250,000 throw off each year at a 4% rate of return? Not much!
By the way, a provider who starts seeing clients in her twenties is probably not going to be able to charge quite the same amount to clients 20 years later.
A provider who sees 6 clients a day for 150 days each year will see 900 clients a year, or 18,000 clients over the course of 20 years. Many will be repeat clients; many will not be.
The provider will receive no social security and will certainly have a different life - a more expensive life - than women in more traditional jobs. Will she find a spouse (male or female) who will be comfortable with her choice of profession? If not, she'll have no safety net in the event that catastrophe strikes during her working life . . . no partner who can help support her.
Many clients may not want to see a provider during that proverbial time of the month; many providers may choose to refrain from seeing clients during the days that Aunt Flo is particularly heavy.
Precautions can be taken but there are STD's that a condom does not protect against. In addition to the costs of medical treatment, some dermatological conditions effectively make a provider unable to entertain clients.
I can think of a few Boston-area agencies that charge clients between $250 and $375. With the advent of the Internet, there is simply a lot more competition for clients than there used to be. With the advent of the Great Recession and its aftermath, there are simply a lot fewer clients able to afford $250 than there used to be.
In sum, there are probably more than a few providers who will indeed reap the benefits of a nest egg of over a $1 million 20 years from now. But those are providers who, IMHO, are in the top 5% of providers. Most gals will undoubtedly wind up with a lot less than that, and more likely closer to a third of that amount.
But only time - and the actual vicissitudes of the economy - will tell.
BostonBob
bb7353
I earned a bachelor of arts degree in economics. The reason they call it a bachelor of arts is because economics is by no means a science. Economic models and analysis are based on rational thought and actions. A majority of individuals do not act rationally 100% of the time when it comes to money. This behavior is even more prevalent in the underground economy.
I have recently spent time with a couple of savvy young ladies and both had similar stories: "I just bought my second house." Granted, they were touring in Boston and NY and their houses were in much less expensive markets, but it shows that they are thinking about the future and not just spending in the here and now
I've never seen 6 guys, can I...of course. Seriously, but by 3 I'm done with bullshit from guys like you.
Your theory, extremely skewed, assumes we are *on* 365/24/7...you're kidding, right?
Are you the type that calls in the middle of the night and sends pics of your privates believing that gets us off.
Why do you care how much $$$ we have?
BTW, any smart lady pays taxes, duh
Now that's funny .. U go girl !!!!
Your theory, extremely skewed, assumes we are *on* 365/24/7...you're kidding, right?
Are you the type that calls in the middle of the night and sends pics of your privates believing that gets us off.
Why do you care how much $$$ we have?
BTW, any smart lady pays taxes, duh
I've rarely seen 6 guys in a WEEK... I think the most I've ever seen in one day is 3, and that was pretty rare. These days I average 2 or 3 a week.
Whoa everyone... nothing like having a little fun with the numbers. Working 100 days a year is working only 2 days per week. As Hillary says "what difference does it make"? I WOULD HATE TO SEE someone figure out how much disposable income your average client spends seeing one lady per month over a thirty year period....DOH!
I find your post kind of insulting. I personally never take six appointments a day. Some days are busier and some slower. So to have an average of 6 clients a day a provider would really need to see more than six on a number of days to make your average of six. Also i don't see where you are taking account expenses such as hotels, food while traveling and even traveling expenses. And 20 years is a long time to be in this business.
Also how would your lilly be able to put her money into an interest bearing account and not pay taxes
Why don't you put down your calculator and book with a pretty girl and have some fun. It sounds like you need it.
wow you really are over simplyfing things and likely pissing off these wonderful providers too