July 23, 20214 yr 1 hour ago, Paul852 said: Bingo. Someone making 100k-200k a year as an IT professional who continues to work and contribute to their 401k (getting company match) will easily hit 9 million if they work until 80. That's exactly how I'm looking at it. Why the F would you want to work till your 80? What's the point of 9 million when you got a few good years left. Congrats kids, I worked my whole life so you can blow it.
July 23, 20214 yr Just now, DaEagles4Life said: Why the F would you want to work till your 80? What's the point of 9 million when you got a few good years left. Congrats kids, I worked my whole life so you can blow it. Of course nobody would do that. That's my point though. Biden never really stopped working so he's just accumulated a lot of worth. That's the only point I'm trying to make.
July 23, 20214 yr 10 minutes ago, Paul852 said: She could be splitting it off to another bank account. You should confront her about it and let us know how it goes. Good idea!
July 23, 20214 yr 18 hours ago, Paul852 said: This really is a classic case of people not saving their money and then calling anyone who has millions "rich". If a person makes 65k and puts 8% of their paycheck in their 401k with the standard "half" employer match they will have 3 million in their 401k. That doesn't include any other savings/home/investments that can throw 500k-1million. That person was never rich. They just saved their money over a long period of time. I don't know, maybe I'm out of touch. That's a possibility. You are also assuming they are free and clear on their mortgage. Very few people buy their "forever" home in their 20s and have it paid off in their 50s. Pretend I have a million in investments. Cool, but because I have both a home and a second property with mortgages, my net worth could very easily be cut in half.
July 23, 20214 yr 2 minutes ago, paco said: You are also assuming they are free and clear on their mortgage. Very few people buy their "forever" home in their 20s and have it paid off in their 50s. Pretend I have a million in investments. Cool, but because I have both a home and a second property with mortgages, my net worth could very easily be cut in half. Really depends on your equity in the home. If you're 50 your home mostly likely INCREASES your net worth because of the equity.
July 23, 20214 yr 9 minutes ago, paco said: You are also assuming they are free and clear on their mortgage. Very few people buy their "forever" home in their 20s and have it paid off in their 50s. Pretend I have a million in investments. Cool, but because I have both a home and a second property with mortgages, my net worth could very easily be cut in half. No, that's only true if you're under water on the properties. Net worth is calculated by totaling up your assets and deducting your liabilities.
July 23, 20214 yr 2 hours ago, Paul852 said: Yep. If people knew how much money I had they'd be asking why I don't have a nicer house/car. I'm a huge proponent of living below your means. Yes. People always want to upgrade things and that makes sense but you should still live within means. Whenever I've taken new jobs or promotions with salary increases, I haven't always gone and spent the money on upgrading things just because. You can save and invest, you can pay off debts. Then you can have flexibility when you do want/need to upgrade something. Appliances break, you need home maintenance, etc.
July 23, 20214 yr 5 minutes ago, NOTW said: Yes. People always want to upgrade things and that makes sense but you should still live within means. Whenever I've taken new jobs or promotions with salary increases, I haven't always gone and spent the money on upgrading things just because. You can save and invest, you can pay off debts. Then you can have flexibility when you do want/need to upgrade something. Appliances break, you need home maintenance, etc. Exactly. If my car broke down tomorrow or my HVAC went I wouldn't stress for a moment about the cost and that's not because I'm rich.
July 23, 20214 yr 1 hour ago, Boogyman said: Man you just got me thinking, I wonder if my wife does that with me? Yes and those weekly "girl's night out" when she comes home and goes straight into the shower.
July 23, 20214 yr 1 hour ago, Paul852 said: I tell every young person who I know can do it to max our their 401k ($19,500) immediately and adjust their lifestyle accordingly. I'm pretty sure exactly 0 have listened I was fortunate. I was "homeless" for 5 years. Company paid for food, shelter and transportation. So my liviing expenses was my cell phone bill plus $50 a month for a storage locker. During that time (and quite a bit before that) not only did I max it out, my plan had an option to put in extra that was tax in tax out (similar to a mutual fund). I also maxed out a Roth IRA each year and funded a plan. The rest was put into a savings account (and did rolling CDs) to save up for a down payment on a house. Almost no one can go as aggressively as I did. Also very few people can afford to put away 20k of their take home income.
July 23, 20214 yr 4 minutes ago, Paul852 said: Exactly. If my car broke down tomorrow or my HVAC went I wouldn't stress for a moment about the cost and that's not because I'm rich. Last summer our HVAC died...in July...in the humid 90 degrees temps. I'm glad we had savings and emergency funds on hand. Wasn't always the case when younger.
July 23, 20214 yr 33 minutes ago, Paul852 said: Really depends on your equity in the home. If you're 50 your home mostly likely INCREASES your net worth because of the equity. My point was more to the fact that the home you buy early in life (lets be aggressive and say mid 20s) isn't the home you are in your 50s. So its very likely when you are 50 you are still in a 30 year mortgage because you went from your starter home to your "forever" home.
July 23, 20214 yr Just now, paco said: My point was more to the fact that the home you buy early in life (lets be aggressive and say mid 20s) isn't the home you are in your 50s. So its very likely when you are 50 you are still in a 30 year mortgage because you went from your starter home to your "forever" home. Sure, but if you bought that second home at 35 it likely doesn't hurt your net worth at all. 3 minutes ago, NOTW said: Last summer our HVAC died...in July...in the humid 90 degrees temps. I'm glad we had savings and emergency funds on hand. Wasn't always the case when younger. Same. Died in the middle of summer. Sucked for about a day or two.
July 23, 20214 yr 5 minutes ago, paco said: I was fortunate. I was "homeless" for 5 years. Company paid for food, shelter and transportation. So my liviing expenses was my cell phone bill plus $50 a month for a storage locker. During that time (and quite a bit before that) not only did I max it out, my plan had an option to put in extra that was tax in tax out (similar to a mutual fund). I also maxed out a Roth IRA each year and funded a plan. The rest was put into a savings account (and did rolling CDs) to save up for a down payment on a house. Almost no one can go as aggressively as I did. Also very few people can afford to put away 20k of their take home income. Hey, we're best friends, right? Like I'm in the will?
July 23, 20214 yr 31 minutes ago, we_gotta_believe said: No, that's only true if you're under water on the properties. Net worth is calculated by totaling up your assets and deducting your liabilities. I'm going to regret this but..... Perhaps my view of what is considered net worth is wrong. Lets say you have half a million in investments, a half a million dollar house but the mortgage remaining is a quarter million. Is the net worth, in your eyes, 1 million or 750k? Assuming you are not under water. 1 minute ago, Paul852 said: Hey, we're best friends, right? Like I'm in the will? Sorry. Baby Ellie bumped you out of it.
July 23, 20214 yr 2 minutes ago, paco said: I'm going to regret this but..... Perhaps my view of what is considered net worth is wrong. Lets say you have half a million in investments, a half a million dollar house but the mortgage remaining is a quarter million. Is the net worth, in your eyes, 1 million or 750k? Assuming you are not under water. Sorry. Baby Ellie bumped you out of it. 750k in this example. If you owe 250k on a home valued at 500k, then by definition you're not under water on the property.
July 23, 20214 yr 5 minutes ago, we_gotta_believe said: 750k in this example. If you owe 250k on a home valued at 500k, then by definition you're not under water on the property. Wouldn't it be 1.25 million? 1 million in investments + (500k home - 250k remaining mortgage) = 1.25 million Edit: My bad, he said half a million in investments. You're right.
July 23, 20214 yr 1 minute ago, Paul852 said: Wouldn't it be 1.25 million? 1 million in investments + (500k home - 250k remaining mortgage) = 1.25 million He said half million in this example. But yeah in his previous one he said $1M.
July 23, 20214 yr 1 minute ago, we_gotta_believe said: He said half million in this example. But yeah in his previous one he said $1M. Yeah, I just edited my post. You are good at the maths after all.
July 23, 20214 yr 28 minutes ago, NOTW said: Yes and those weekly "girl's night out" when she comes home and goes straight into the shower. I wish she would go out with her friends more often to be honest.
July 23, 20214 yr 22 minutes ago, we_gotta_believe said: 750k in this example. If you owe 250k on a home valued at 500k, then by definition you're not under water on the property. Ok. My original example was a million in the bank plus multiple properties. Its feasible that investment properties are very early in the mortgage so while they are covering their costs, it will lower your net worth. (recent example, we are talking about potentially selling our beach property for a larger one. I could add an additional quarter million dollars of debt but its moot because the rental income will make it pay for itself). But your point about being under water stands given my 1 million dollar in the bank waterline. I should have used a lower number.
July 23, 20214 yr 2 hours ago, Paul852 said: Aren't you glad you posted that meme? I didn't 2 hours ago, we_gotta_believe said: Got me there. Being rich and staring off into space might be the only things these guys all have in common. but Trump. Have a good day bro
July 23, 20214 yr 1 hour ago, NOTW said: Yes. People always want to upgrade things and that makes sense but you should still live within means. Whenever I've taken new jobs or promotions with salary increases, I haven't always gone and spent the money on upgrading things just because. You can save and invest, you can pay off debts. Then you can have flexibility when you do want/need to upgrade something. Appliances break, you need home maintenance, etc. Hardest thing for people to do I think. That is the secret.
July 23, 20214 yr 1 hour ago, NOTW said: Last summer our HVAC died...in July...in the humid 90 degrees temps. I'm glad we had savings and emergency funds on hand. Wasn't always the case when younger. Went through that last year with my furnace. Died the week before Christmas. Did not have to dip into the emergency fund though, my yearly bonus covered it. But it is good to have an emergency fund when needed.
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