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5 Lessons from the "rich"
Old 03-18-2007, 03:48 PM   #1
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5 Lessons from the "rich"

Thought this article was interesting. Specically:

96% own thier home and 55% have a mortgage.

Enjoy!

http://articles.moneycentral.msn.com...nTeachYou.aspx
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 05:18 PM   #2
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Re: 5 Lessons from the "rich"

Investments:

" * 46% in stocks and bonds, managed accounts, IRAs, mutual funds, deposits and alternative investments
* 10% in pensions and defined-contribution plans like 401(k)s
* 6% in insurance and annuities"

and from the article

10% in principal residence
2.4% in cars

Wonder how that compares with the rest of us...?

I'm a lot heavier in principal residence, cars and equities.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 05:26 PM   #3
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Re: 5 Lessons from the "rich"

20% in residence
2.0% in cars.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 05:41 PM   #4
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Re: 5 Lessons from the "rich"

Currenlty:

28% in residence
1.6% in cars

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Re: 5 Lessons from the "rich"
Old 03-18-2007, 05:56 PM   #5
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Re: 5 Lessons from the "rich"

17.6% residence
0.35% in car

I'm assuming this is the percentage of net worth

If the example of 2.4% in cars is for a person with a net worth of 2 million that would be 48K in cars - two 24K cars maybe? It sounds high to me.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:04 PM   #6
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Re: 5 Lessons from the "rich"

When they say net worth... net after all liabilities including taxes.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:12 PM   #7
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Re: 5 Lessons from the "rich"

Interesting - we have 11.5% in principal res. and less than 1% in vehicles. (two crappy old Toyotas) but that's about to change.

The new vehicle I'm looking at will bump us up to about 1.5%.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:23 PM   #8
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Re: 5 Lessons from the "rich"

about 10% in residence
<1% autos
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:25 PM   #9
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Re: 5 Lessons from the "rich"

7.5% in our home, 0.216% in our 2 old bimmers. This is net worth, not figuring cost of sale or tax on income properties. We don't keep up with the Joneses too well. But we're comfortable with our lifestyle.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:25 PM   #10
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Re: 5 Lessons from the "rich"

13% in residence
0.7% in car
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:38 PM   #11
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Re: 5 Lessons from the "rich"

30 % in residence
.03% in car
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:43 PM   #12
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Re: 5 Lessons from the "rich"

hah...most of us are house heavy and car light.

Reminds me of an old movie quote, forget where its from...where someone said the rich buy appreciating assets and lease/rent depreciating ones while the poor do the exact opposite.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:48 PM   #13
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Re: 5 Lessons from the "rich"

>10% in residence

>.05% in car
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 06:59 PM   #14
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Re: 5 Lessons from the "rich"

10% residence
2.5% cars
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 07:53 PM   #15
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Re: 5 Lessons from the "rich"

16% residence
0.2% car
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 08:09 PM   #16
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Re: 5 Lessons from the "rich"

13% in residence
1% in cars
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 08:10 PM   #17
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Re: 5 Lessons from the "rich"

16% residence

0.2% car; just about to change soon

enuff
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 08:21 PM   #18
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Re: 5 Lessons from the "rich"

6.2% Residence
2.6% Cars

This is an interesting experiment, not sure what it means though . I have intentionally kept my mortgage high, and invested the money in other things rather than my residence. When I got the loan, mortgage money was cheap. (5.25%)

-d.
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 08:23 PM   #19
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Re: 5 Lessons from the "rich"

8.5% residence and 1.5% suv/truck - less if you back out the financing and count equity only.

Now back in the 'old days' - heh heh in my trusty fish camp and paid up truck - I had it honked down really cheap. Property taxes were under $200/yr until they 'discovered' my remodelling.

heh heh heh -
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Re: 5 Lessons from the "rich"
Old 03-18-2007, 08:25 PM   #20
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Re: 5 Lessons from the "rich"


30% residence (100% paid off)
7.3% cars (it's a fetish.)
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