Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-11-2007, 08:37 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,382
Quote:
Originally Posted by Lakedog View Post
If this were the case, then he would likely have no problem retiring with a nest egg of $4 million. Hard to believe there are people who cannot live well on $160k per year.
OK, you guys know everything. Who knows why these silly fellows think they have a problem?

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-11-2007, 08:43 PM   #42
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by haha View Post
Not necesarily true at all. He may have been maximizing growth of his business at the expense of a large salary. A $4million cash-out is not bad, and he likely lived at least as well as most of us baggie washer/savers.

Ha
Another possibility (and something that people are missing from the article) is that a lot of business owners may draw nice or high salaries but if you added back in all the expenses they pass through their business it would take a lot more assets to replicate that.
__________________

__________________
saluki9 is offline   Reply With Quote
Old 10-11-2007, 08:46 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,457
Quote:
Originally Posted by furpants View Post
If you're used to making $300k per year and spending most (or all) of it, $4 million ain't gonna support that lifestyle after you stop working.
Yep, that's the gist of it!

Audrey
__________________
audreyh1 is offline   Reply With Quote
Old 10-11-2007, 09:01 PM   #44
Dryer sheet aficionado
 
Join Date: Sep 2007
Posts: 31
Well, I guess I'm the proverbial mmillionaire everybody is talking about. I have a NW between $3-4mm, age 46, married, no kids, and nowhere near retiring or feeling like I could retire and maintain my lifestyle.

But, far from being whiny about it, as this spat of recent millionaire articles likes to promote, I am deeply grateful for the prosperity I have. I didn't grow up middle-class, I grew up piss poor. Like pull the covers over your head so the roaches don't crawl all over you while you sleep poor. Like no heat in winter poor. Like eat grits for breakfast, lunch, and dinner poor. So, yeh, I'm a big deal executive now, and I got the girl so to speak, got my McMansion, know how to order to right wines and all, & hobnob with rich people on charity boards and such, which is all very nice, but I'd like to think I have some perspective on this money thing. Basically, I enjoy my lifestyle, I'm ambitious in my career, I'm still relatively young (though starting to feel the pangs of advancing age), and I still have some things I'd like to accomplish before turning in my badge.

I recognize that I could quit today and lead a perfectly fine "middle-calss" life. And I recognize that it is my choice not to do so.

Ronstar's got me pegged pretty well: I live in a crazy expensive town (NYC), bring home several hundred grand a year, save anywhere from $100K - $300K per year, and spend something like $200K - $250K (after-tax). Trust me, wifey and I are not all that extravagant compared to what we see others doing (does everybody say that). If you haven't lived in NYC, you just have no idea how somebody could spend this kinda money on a "middle-class" lifestyle, but I'm hear to tell you its possible.

So, where's the money going. Part of the big expense is the house, loads of insurance of all types, work-related clothes (wife has to look good too, its all part of the game), charitable giving, travel and vacation (which we enjoy greatly), eating out cause we don't have time to cook, etc. Oh and taxes. I pay more in taxes.... okay well don't get me started about that AMT.

Now I have no illusion about maintaining all aspects of our lifestyle in retirement, because gee... I won't be churning out money anymore. Duh!!!

It's a great ride while it lasts, and when the time comes to shift gears, I think I'll be pretty happy to do so. The key is that I have choices. I can quit and be okay, I can stay and continue to pile up savings, and I can rethink the whole thing, turn around and try something different. That freedom is priceless. By my calculations, if I wait til I'm 60 before touching any savings, I could maintain the same lifestyle.

FYI, one of the things I'm saving up additonal funds for is that when I shift gears, I want to be able to invest in new business opportunities, as well as do some speculative trading. I'm not the type to sit still too long and I will still want to find ways to make money, just different ways than I do right now.

Clearly, my way is not for everyone, but it seems to be working for me.
__________________
Gekko is offline   Reply With Quote
Old 10-11-2007, 11:40 PM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by nun View Post
If drawing $80k per year from $2M in assets makes you middle class what does my planned $30k per year from $750k make me?----working class? But I'm not working... oh yes I remember now I'm poor . Actually I think with $30k as a single person I'd be at 3x the official poverty level and if you don't have a mortgage you can live a very comfortable life on $30k per year anywhere in the US.
For $30K a year you can live like a nun!
__________________
Meadbh is offline   Reply With Quote
Old 10-12-2007, 01:55 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
He is not going to get much sympathy from the middle class world based on what was described.

Poor guy. I guess he is not FIRE ready under his terms. Oh well... back to work. Another 10 years, a pretty good stock market... he should double that at least. $8M will give him $320k/yr. Then everything will be peachy in the world.
__________________
chinaco is offline   Reply With Quote
Old 10-12-2007, 07:13 AM   #47
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
It's not just what we have, it's what we spend (I know, I'm preaching to the choir, here).

If someone does not particularly feel a driving need to live in a McMansion in an area with high housing costs, and does not have a deep yearning or desire for worldwide travel, life can be SO much more satisfying.

I have neither of these desires. Right now I am happily LBYM'ing for about $16K above my paid off house, while I prepare to retire. I am hoping to have a little more after ER, but honestly I don't know what I would do with more than $40K/year. Granted, I will have lifetime healthcare taken care of by Uncle Sam.

To spend more than $40K/year, I think I would have to be a shopping addict. Frankly, I wouldn't want to spend that much time tramping through stores or haunting online shopping websites. There is more to life, people!

Maybe Madison Avenue is causing all this dissatisfaction. Or, maybe there is some sort of extreme lack of self-confidence and people think, "If I only owned (xyz), I would impress people and be loved and admired!". I don't want that kind of love and admiration, because it isn't real.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 10-12-2007, 11:40 AM   #48
Full time employment: Posting here.
bow-tie's Avatar
 
Join Date: Mar 2004
Posts: 687
I'm confused. So... the person in the article had the ability to build a business worth $4M, but didn't have the foresight to look ahead and see if the nest egg would support their lifestyle. Uh..... say what??

I think I can follow Gekko POV, although it's completely alien to my lifestyle. Regardless, at least he has done the math, and understands his choices and what they mean.
__________________
Diggin' my way to financial freedom, one buck-at-a-time
bow-tie is offline   Reply With Quote
Old 10-12-2007, 12:06 PM   #49
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
This is an "ah-ha!" moment for me! Forget that my salary is X number of dollars more than the average, I’m now firmly a member of the "working poor." Will retire anyway, most likely at a higher standard of living than while working.

Was it Greenspan who recently pointed out that a hedge fund manager making less than $129 million/year is not in the major leagues in his field. Oh, my poor poor childhood acquaintance has the hedge fund title, address in Greenwich, CT, etc. but I wonder does he have enough to retire comfortably?
__________________
CuppaJoe is offline   Reply With Quote
Old 10-12-2007, 03:01 PM   #50
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,068
Quote:
Originally Posted by Gekko View Post
Well, I guess I'm the proverbial mmillionaire everybody is talking about. I have a NW between $3-4mm, age 46, married, no kids, and nowhere near retiring or feeling like I could retire and maintain my lifestyle.
I suspect that you could easily retire and maintain your current lifestyle - more or less, anyway - if you were prepared to move to a less expensive city. But of course, there's no need for you to do that, as long as you're still enjoying working. An interest in FIRE does not mean that you are obliged to retire ASAP, or that you should feel guilty about choosing to continue to work (your tax contributions are greatly appreciated!).

Quote:
Originally Posted by Gekko View Post
spend something like $200K - $250K (after-tax) ... If you haven't lived in NYC, you just have no idea how somebody could spend this kinda money on a "middle-class" lifestyle, but I'm hear to tell you its possible.
Wow.

Quote:
Originally Posted by Gekko View Post
It's a great ride while it lasts, and when the time comes to shift gears, I think I'll be pretty happy to do so. The key is that I have choices. I can quit and be okay, I can stay and continue to pile up savings, and I can rethink the whole thing, turn around and try something different. That freedom is priceless. By my calculations, if I wait til I'm 60 before touching any savings, I could maintain the same lifestyle.
Fair enough!
__________________

__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mildly interesting article in Slate about why it's barely worth it to invest SLC Tortfeasor Young Dreamers 11 04-16-2007 10:54 AM
World Wealth Report or 8.7 Million High-Net-Worth Individuals Worldwide Spacebär FIRE and Money 5 07-01-2006 10:40 AM
Article---you don't need that much $$ to retire wildcat Other topics 3 06-27-2005 08:30 PM
Are you ready to retire article??? Mountain_Mike Other topics 0 05-10-2005 10:40 AM
Retire a Millionaire without a Million Bucks Eagle43 FIRE and Money 14 02-01-2005 11:26 AM

 

 
All times are GMT -6. The time now is 05:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.