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Old 04-04-2013, 10:07 AM   #41
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  1. Yes and yes
  2. No; I pay interest on a mortgage, and a slight bit on the car loan, but no CC or "revolving" debt, but my cash is basically earning no interest.
  3. Yes, though right this minute would not be optimum.
  4. I usually answer this by telling people where I used to w*rk, rather than trying to explain what I do... But, once FIREd, I'll likely answer with some wisecrack...
My car loan will be gone in 1.5 years; only financed because they gave me the loan for nearly nothing, which allowed me to keep a larger cash cushion at very low cost. Mortgage will likely never be paid off completely until I sell to move to an old hippie's home, but my PITI is less than I could rent a 1BR apartment. Portfolio plus SS plus a scrawny pension will allow me a lifestyle very similar to my current one, certainly not rich, but comfortable, but SS is 3.5+ years away.
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Old 04-04-2013, 11:06 AM   #42
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Originally Posted by Texas Proud View Post
LOL... I had something similar with Creditkarma.... they dropped my score after we paid off our car loan and our mortgage was 'paid off' because we were refinancing... the new mortgage did not show up... these, along with the credit checks because of the refi lowered my score a lot... seems pretty dumb to me...
I don't understand the credit karma stuff either. We just bought a new truck to be able to pull the oversized travel trailer. Wanted to pay cash for it, but got a discount of $1000 if we financed it on a 36 mo term, which we can pay off after the 3rd payment and still keep the discount. Anyway, Credit karma gave me a score of 792 and DW a score of 810. Mind you, we've been married for almost 29 years, everything we own is joint, credit cards are all joint, we never carry a balance on the cc's, have no mortgage or other loan of any kind, I've been fully employed until 12/12, and DW has not had a compensated job in 20 years. Also, we've never had a late payment on anything in those 29 years.

:headscratch:

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Old 04-04-2013, 11:23 AM   #43
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I'm not wealthy - I spend all day doing my own yard work, etc. If I was wealthy, I'd have a gardener and other servants.
By the chart, I guess I would be considered wealthy. That said, I can't bring myself to hire people to do things I can do for myself...in terms of either time and/or talent. Does this make me not wealthy? For me to hire someone to do such things, I would need to have probably two to three times as much wealth as I have, AND have other things I wanted to do more than mow the lawn or build a shed, which, BTW, I enjoy doing. Then consider, since I enjoy doing them, and have the time to do them, does this make me wealthy? Are you confused yet as to whether Rambler is wealthy or not? (I am...). Does it even matter?

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Old 04-04-2013, 11:36 AM   #44
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In top 5% only if I use the full NPV of our pensions, without it not in the top half even with our paid off California house & portfolio. Unfortunately the pension is not an inheritable asset, so yakers junior are definitely not starting life wealthy.
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Old 04-04-2013, 11:40 AM   #45
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Sorry, Sir Paul McCartney, you must not be wealthy. Your known occupation is musician.
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Old 04-04-2013, 11:55 AM   #46
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Yeah, just hated it when I lost my "Credit Guru" badge for the very same reason

A.

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I feel about as bad as when my Creditkarma score drops because I'm picking up $400 in bonus money by signing up for a new card
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Old 04-04-2013, 11:57 AM   #47
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1 - Do you make payments on your house or car?
Nope.

2 - Does your interest income exceed what you pay in interest?
We pay no interest and have a little interest income from a couple of those juicy PenFed 5% CDs.

3 - Can you keep what you have without actually working?
Yes. DH is fully retired and his pension covers all our expenses. We occasionally have a garage sale just to declutter, but certainly not to cover necessities.

4 - You are at a cocktail party and a stranger asks: “What do you do?”
DH would answer that he's retired. My answer is that I'm a School Crossing Guard and a Concert Venue Usher. It's fun stuff that I do so that I can contribute to a Roth IRA.

So the answer is that according to the Asset Builder test, it looks like we are wealthy. I don't feel that way as we don't have a huge portfolio of assets. But DH is retired almost 3 years and so far it's all going very well.

So.... I guess we are "wealthy" enough.
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Old 04-04-2013, 12:06 PM   #48
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We are in the top 1% for our age group and in the top 5% for all age groups so we are well off, although you'd never know it.
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Old 04-04-2013, 12:38 PM   #49
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I am in the top 10%.... but did poorly on the test...

I owe on our house.... I will probably buy our next car with a loan (if it is still very low).....

I still say what I do when asked...
I'm in the same boat. Top 10% for my age group. But, I owe on the house. However, when asked what I do, I usually say "Sit in front of a computer and go brain dead all day!" rather than my actual job title. So, maybe I'm getting there!
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Old 04-04-2013, 12:47 PM   #50
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Since I retired I really don't care how I stack up. I have met my financial goals and now I am moving on to a more exciting life. It's really great to have the time to swim outside every day and go for a bike ride whenever I feel like it. ...Wealthy .. who cares? FI is the real test.
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Old 04-04-2013, 02:07 PM   #51
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I pass the test, but wealth is somewhat a state of mind. I feel very wealthy when I see how the 3rd world lives. Not so much when I realize that folks with less actual wealth "live" better than I do. I'm not at all dissatisfied with my life, but once in a while, I resent flying coach (even though I could fly 1st class) because the perceived benefit to me is not worth the extra cost. One would think a wealthy person would fly 1st class, but I don't. It's a personal choice, based on years of LBYM thinking. There are other examples (13+ year old cars instead of new, 1000 sf condo instead of a 2500 sf house, canned-frozen-store brand instead of fresh-organic foods, etc. etc.)

I could "live" as I perceive a wealthy person lives, but my goal is to survive most any foreseeable financial downturn/calamity/set-back and never truly "worry" about such events (though, in all honesty, I occasionally still do.) YMMV
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Old 04-04-2013, 02:21 PM   #52
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based on questions one through three, I am wealthy. The smarta$$ answer to question four is: I can't seem to find an economic reason to w*rk.

Therefore I am wealthy.

It is a relative term, Donald Trump and a bunch like him are way wealthier than I.
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Old 04-04-2013, 02:40 PM   #53
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By the chart, I guess I would be considered wealthy. That said, I can't bring myself to hire people to do things I can do for myself...in terms of either time and/or talent. Does this make me not wealthy? For me to hire someone to do such things, I would need to have probably two to three times as much wealth as I have, AND have other things I wanted to do more than mow the lawn or build a shed, which, BTW, I enjoy doing. Then consider, since I enjoy doing them, and have the time to do them, does this make me wealthy? Are you confused yet as to whether Rambler is wealthy or not? (I am...). Does it even matter?

R
I feel your pain. I cant imagine how much it would cost me to hire people to do what I do around here. DW still works, but I'm usually working around the house before she leaves and after she gets home. Like you, I enjoy it and would have to find other things to fill the time. Another advantage to doing your own chores - I get solicitors coming to the house and ask me if I'm the owner or gardener. I say gardener and they leave me some info to give to the owner - and I never have to listen to their spiel.
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Old 04-04-2013, 03:13 PM   #54
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We are at the 1% bracket for our age group (30's). Guess we are wealthy.
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Old 04-04-2013, 04:55 PM   #55
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If their idea of success/wealth is sitting in that crappy little boat pictured on the website, they've got nothing to offer me....I want to work with someone with a slightly bigger idea of what wealth is.
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Old 04-04-2013, 05:22 PM   #56
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I agree with (and pass) all but #1. I find it odd that he would accept the car loan over a mortgage. I know very wealthy people who have mortgages by choice rather than need.
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Old 04-04-2013, 05:37 PM   #57
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The more income you have from sources that don’t involve working, the closer you are to being wealthy. For retirees, Social Security can be a big part of this income.
Well then that makes it official~~~~~~~I'm wealthy.
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Old 04-04-2013, 05:43 PM   #58
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Based on my current age, we're in the 7.5%.

In 10 years, we'd likely drop to 15%

In 20 years, 20%

In 40...back to 10%, but by then, inflation will have kicked my behind...

Happy, yeah, especially a nice conversation with the DD today...
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Old 04-04-2013, 06:20 PM   #59
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...

The wealth grid would be more meaningful if they published the boundaries rather than the medians. ...
I was wondering about that too and then I thought that if these are normal distributions then adding the median of the two brackets one is interested in and dividing by two ought to be close enough for government work. I.E. the edge of the bracket for the top 10% @ age 60-69 (I'm 62) would be ($1,955+$712)/2= $1,334.
I'm not even an amateur statistician so better guesses are welcome.

Then again, it probably doesn't matter a whole lot but as long as we are playing the game...
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Old 04-04-2013, 06:23 PM   #60
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Since I retired I really don't care how I stack up. I have met my financial goals and now I am moving on to a more exciting life. It's really great to have the time to swim outside every day and go for a bike ride whenever I feel like it. ...Wealthy .. who cares? FI is the real test.

+1
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