Gnome Sayin said:

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I'm apart of Texag$ and we still haven't to limit going out to eat and value shop the crap out of groceries.

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english?

BlueSmoke said:

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Curious how much of that in the $1M +/- is tied up in equity, or whether this factors into the equation.

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I'm willing to bet a large chunk in the $1 to $5 million net worth range for individuals is tied up in real estate, retirement plans, 401(k)'s, IRA's, etc. Valuable yes, but not necessarily liquid.

On the surface it appears this study includes ALL personal assets (including real estate) - not just cash & securities, mutual funds, bonds, etc., on hand outside of retirement accounts. So liquidity definitely needs to be taken into consideration.

flown-the-coop said:

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oldord said:

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Sorry, $5 to $10M in net worth doesnt equal cash flow....It goes away quick unless you live in a small house with no luxury expenditures....

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if you can't sort a sustainable budget at $5M to $10M, then you probably inherited or some a lottery (legit or ghetto matters not).

In that range sitting on money markets and the like generates a pretty nice life.

Ski chalets, private jets and various amounts of hookers and blow dan eat it up fast though.

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How about boats, hunting, and cattle?

oldord said:

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flown-the-coop said:

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oldord said:

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Sorry, $5 to $10M in net worth doesnt equal cash flow....It goes away quick unless you live in a small house with no luxury expenditures....

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if you can't sort a sustainable budget at $5M to $10M, then you probably inherited or some a lottery (legit or ghetto matters not).

In that range sitting on money markets and the like generates a pretty nice life.

Ski chalets, private jets and various amounts of hookers and blow dan eat it up fast though.

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How about boats, hunting, and cattle?

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Although, if you have cash flowing business as part of that portfolio, you can keep it at neutral.

Hookers love boats but keep the blow away from hunting and cattle.




Trust me.

YouBet said:

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StandUpforAmerica said:

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lb3 said:

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torrid said:

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This is TexAgs. We're all millionaires.

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multi-millionaires.

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And all of our spouses are 10's.

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Gross. My spouse is an 11.

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Gratz to you. You can't go above a 10 without giving bonus points for flexibility or gag reflex.

YouBet said:

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aTm2004 said:

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backintexas2013 said:

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Not sure what life you are living but not everything I do every day is to make money. I have time for myself, gym, hobbies, and even volunteer.

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Exactly. Go to the B&I board and it's a different thought process over there. It seems they chase every penny available and give almost zero value to anything else in life. I'm convinced some of them would not pay for a necessary surgery because they could earn another $15,000 over 5 years investing their deductible.

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Totally false!!!! One of the biggest threads going is one long discussion on how people think about wealth, when to retire, how to retire, how to maximize life, what's really important, etc.

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I guess times have changed. I'm going off of getting chastised for doing a 15 year mortgage and having a paid off house by 52. All I heard is how dumb I am from all of them because I could invest the difference between a 15 and 30 payment over those 30 years and have more in retirement, and if I lost my job, my investments would be enough to cover the mortgage.

They couldn't comprehend that I didn't care. Being debt free before my kids graduate is priceless to me, and any money given up long-term is an opportunity cost I'm willing to give up.

Also, I started working in 2005 and I've worked through 2 recessions, a housing crisis, and a global plandemic/shutdown. I've watched markets tank in days and take years to recover, so if I did a 30 year and something happens when I'm 58, the extra I invested could be gone and I'm still paying a mortgage. Instead, I'll have a paid off house, which makes things much easier to navigate while the market recovers.

Ok now we are gettin' into the hookers & blo territory!

No mention of hookers and blow in this thread. TA has been going down the drain since 1999.

Biz Ag said:

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BlueSmoke said:

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Curious how much of that in the $1M +/- is tied up in equity, or whether this factors into the equation.

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I'm willing to bet a large chunk in the $1 to $5 million net worth range for individuals is tied up in real estate, retirement plans, 401(k)'s, IRA's, etc. Valuable yes, but not necessarily liquid.

On the surface it appears this study includes ALL personal assets (including real estate) - not just cash & securities, mutual funds, bonds, etc., on hand outside of retirement accounts. So liquidity definitely needs to be taken into consideration.

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Why would you advocate separating retirement accounts? Even early retirees can penalty free get into certain tax advantages retirement accounts at age 55.

I do understand the argument for not including primary residence in Net Worth calculations as generally "you cannot eat your home.".

MaroonStain said:

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No mention of hookers and blow in this thread. TA has been going down the drain since 1999.

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ftc had it covered, a few posts above yours.

BMX Bandit said:

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No kidding! I'd be pretty miserable if all I worried about was making money.


If you have $1 million, and are happy with your life, why would you care how many other Americans are also millionaires?


It seems like too many are not chasing their own happiness, but chasing what others have. Explains a lot of the jealousy.

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This is the entire leftist platform.

DrEvazanPhD said:

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lolpoors at 40mm

/texags

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Well yeah! That's only 0.04m!

fullback44 said:

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Kenneth_2003 said:

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fullback44 said:

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people saying that millionaires only worry about their money, let me tell you most of them made their money long ago or it was an inheritance. These wealthy people aren't living day to day lives worrying about their money. they are hiring the peasants to tend to their houses, yachts, weekend homes and other belongings. Anyone that thinks they are worrying about their money doesn't know or hasn't been around wealthy people. Now someone in the 1 million to 3 million range may worry more about staying in that range and live a more day to day life, those with 5-10 million have made it, they are rocking along in life enjoying all the finer things life has to offer. most of the people that get wealthy on their own tend to make smart decisions in life and were not afraid to make a few very educated and calculated decisions in life that got them into a position to be wealthy.

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Nothing that you typed is backed up by any of the studies that are regularly done about millionaires in America. The overwhelming majority are first generation and got there with home equity and years of slow and steady compounding in retirement and other investment accounts. They're quite. They're not flashy. They don't have yachts, peasants, or weekend homes.

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bro, I have plenty of friends with lots of money, what I typed fits almost all of my friends who have tons of oil and gas money or whose family's have old money. sure their are types that work their arse off and gain money over time... the people I'm talking about are 5 million plus people who used their wealth to compound and keep growing it.. they don't need to work a 9 to 5 and haven't needed that in years, even when young. I agree many people get their by starting and running a business over time, that's one way to get there. Its very hard to get to big money working for someone else unless you rise to the top.. which very few peeps in the work force get their.

Also, I'm not talking about people with 1-2 million, those are usually people that work their arse off until they are 60 years old and save their money, nothing wrong with that either. Those with 5 million plus usually have other incomes or own a company they may have started or inherited

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Strongly disagree. Assume you start investing at 30 years old in 1986 and saved $9,000 each year invested in index fund. You would have $5,000,000 this year. Note, this allows you some years to get your act together after school. The hard part is living "reasonably" in your 30's.

Show me exclusive of home equity. Old people millionaires with home equity does not equal 35 years old with 3mm in investments and savings.

With 401k & paid off homes my wife and I will fall into 7-8mm in today's dollars by retirement but we aren't "rich".

Not that hard if you have a consistent career, stay married etc…

BMX Bandit said:

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No kidding! I'd be pretty miserable if all I worried about was making money.


If you have $1 million, and are happy with your life, why would you care how many other Americans are also millionaires?


It seems like too many are not chasing their own happiness, but chasing what others have. Explains a lot of the jealousy.

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Can't say I agree. We don't chase money but we have it.

I play golf 3-4 days a week and really only work 1-2 days a week.

Getting to the point where we don't have to worry about money which is even better.

In 1986 you expect a 30yo to save $9k a year? Their salary would be around $30k if they are killing it, which in 1986 they probably were not.

CrackerJackAg said:

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Show me exclusive of home equity. Old people millionaires with home equity does not equal 35 years old with 3mm in investments and savings.

With 401k & paid off homes my wife and I will fall into 7-8mm in today's dollars by retirement but we aren't "rich".

Not that hard if you have a consistent career, stay married etc…

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are you retiring next century?

If you plan to have $7 million to $8 million then you rich buddy.

Ha. Yeah, I think they have. Many advocates of what you did. I would be one of them. Being debt free now and freeing up that cash is more important to me than the alternative.

6 in one hand
1/2 dozen in another

More then one way to skin a cat

There's a lot of ways to get there …. It's up to each person to figure it out- most don't.

YouBet said:

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Ha. Yeah, I think they have. Many advocates of what you did. I would be one of them. Being debt free now and freeing up that cash is more important to me than the alternative.

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You don't free up cash by paying down debt.

flown-the-coop said:

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YouBet said:

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Ha. Yeah, I think they have. Many advocates of what you did. I would be one of them. Being debt free now and freeing up that cash is more important to me than the alternative.

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You don't free up cash by paying down debt.

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I've done it every time I've paid off debt. Not sure which version of math you are using.

YouBet said:

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flown-the-coop said:

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YouBet said:

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Ha. Yeah, I think they have. Many advocates of what you did. I would be one of them. Being debt free now and freeing up that cash is more important to me than the alternative.

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You don't free up cash by paying down debt.

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I've done it every time I've paid off debt. Not sure which version of math you are using.

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Accounting.

I paid off my house and hit $3 million net worth when I was 35. Now I'm 38 and almost to $4 million. I'd like to know what percentage that puts me in for people aged between 35 and 40. It has to be up there. I'd imagine the majority of people with over $1 million are over 50 years old, or at least a large plurality.

flown-the-coop said:

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CrackerJackAg said:

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Show me exclusive of home equity. Old people millionaires with home equity does not equal 35 years old with 3mm in investments and savings.

With 401k & paid off homes my wife and I will fall into 7-8mm in today's dollars by retirement but we aren't "rich".

Not that hard if you have a consistent career, stay married etc…

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are you retiring next century?

If you plan to have $7 million to $8 million then you rich buddy.

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Couple homes paid off in the next 15 years. Retire in 20-25 probably. The house values by then will be probably 5-6 times what we bought them for 10-15 years ago. They have already 2-3x value.

401k
Investments
(With some trades Intel was a 10 banger this year)

7-8mm in 20 years will be 4 million today.

Keep that in mind.

I think what he is trying to say is you have less available cash to invest if you are aggressively paying off debt.

Also, unless your rates are over 5-6%, it's technically a better idea to invest it in an index or mutual fund rather than aggressively paying off the debt. I get making an extra payment here or there and I get the mental aspect of paying off debt, but I have so many doctor buddies who paid off their student loans of $200k+ in a year or two after leaving residency when their rates were only 3%. Congrats guys, but you likely added another year of work before you meet your financial goals for retirement. Some people might be cool with the trade off, but I just don't think it's worth it, personally.

Correct.

And I respect the mental improvement some get from not having debt. Running businesses for 15+ years that require substantial debt to operate changes the perspective a bit.

Paying off debt is a use of cash. And yes once paid off you have some additional cash flow. Though I can say people usually spend that additional flow on something not as sound as a house.

flown-the-coop said:

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In 1986 you expect a 30yo to save $9k a year? Their salary would be around $30k if they are killing it, which in 1986 they probably were not.

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You posted gross pay. This is what I got for "take home" pay. (So, yeah. Cool thing to say, but I lived that and the numbers do not add up to reality; saving 50% of take home pay)

In 1986, the average annual gross salary for a 30-year-old college graduate was roughly $24,000 to $27,000, which translated into an estimated average net take-home pay of $18,000 to $20,000 per year (or about $1,500 to $1,660 per month).

You wasted it all at Starbucks. Just be honest.

Also, if you owned a home you likely had a double digit mortgage rate.

Stock markets were the lands of hookers, blows and fast cars.

And to achieve $9,000 that would be maxing out your IRA and 401k (likely not offered at your job… for most folks) and IRA.

So it's not a realistic scenario.

However, saving what you can early and often is very, very wise.

What does the data under Age Band mean? Is the median age each grouping?

Because of course wealth grows over the years in one's lives. It would be much more helpful to age-adjust, meaning show what percentile each dollar figure equates to around common ages

flown-the-coop said:

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You wasted it all at Starbucks. Just be honest.

Also, if you owned a home you likely had a double digit mortgage rate.

Stock markets were the lands of hookers, blows and fast cars.

And to achieve $9,000 that would be maxing out your IRA and 401k (likely not offered at your job… for most folks) and IRA.

So it's not a realistic scenario.

However, saving what you can early and often is very, very wise.

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Looking back now at the 10,000 things I chose to do without all those years to put $500/month into savings, realizing that was $6000/year, when I now make that every week, makes me wish I'd had the lobster that one time instead of saving $9 to settle for the fish. Yeah, compounding and all, but still....

Dr. Not Yet Dr. Ag said:

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I think what he is trying to say is you have less available cash to invest if you are aggressively paying off debt.

Also, unless your rates are over 5-6%, it's technically a better idea to invest it in an index or mutual fund rather than aggressively paying off the debt. I get making an extra payment here or there and I get the mental aspect of paying off debt, but I have so many doctor buddies who paid off their student loans of $200k+ in a year or two after leaving residency when their rates were only 3%. Congrats guys, but you likely added another year of work before you meet your financial goals for retirement. Some people might be cool with the trade off, but I just don't think it's worth it, personally.

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Yeah, I'm aware of that but that wasn't my point. Bottom line is once you pay off debt you have more cash on hand. What you do with that cash is up to you.

And he has subsequently walked back what he said and agreed with me:

Quote:

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Paying off debt is a use of cash. And yes once paid off you have some additional cash flow.

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I knew what you were saying. It's just a matter of perspective and also you own tolerances for things like debt.

I had a very low tolerance for debt then the numbers were to big I stopped thinking about the amount and more on the rates and usage.

However, when all is said and done I will settle up on any debt (mortgage below 3% is all I have today)… unless someone wants to lend me money for less than I can conservatively make on it… and that does happen.

Lots of different ways to get there. No one size fits all.

Money is important, but it's not everything.

If you're poor and happy, you're a blessed man.

If you're rich and lonely, you're a wretched soul.