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Article: Worth $4 Million -- and Unable to Retire
Old 10-11-2007, 08:01 AM   #1
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Article: Worth $4 Million -- and Unable to Retire

http://tinyurl.com/3555jc

why, i feel so sorry for all the challenges these middle class millionaires face :-)
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Old 10-11-2007, 08:05 AM   #2
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Apparently my sympathy button is stuck in the "off" position at the moment! sniff!
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Old 10-11-2007, 08:10 AM   #3
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Mansions and yachts are out. The mMillionaires who want to retire before age 65 or 72, find they must live in three- and four-bedroom homes and drive mid-priced four-door sedans and mini-vans.
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Old 10-11-2007, 08:14 AM   #4
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During the dot-com boom, I remember reading many articles like this.
There is a big diffrence between 2M and 10M. Still... if these people can't live the middle-class retirement, how are people who have "only" a few 100K going to retire?
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Old 10-11-2007, 08:18 AM   #5
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Just hyperbole to make the $2million retirees feel smug about their situation and post about it on message boards.
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Old 10-11-2007, 08:20 AM   #6
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is a certified financial planner and president of D.B. Root & Company Wealth Management in Pittsburgh
at least the author had no motive or hidden agenda ...
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Old 10-11-2007, 08:43 AM   #7
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Originally Posted by TeeRuh View Post

at least the author had no motive or hidden agenda ...
Heh heh - maybe, or maybe not - what's the new buzz stuff - think outside the box:

circa 1980 Louisiana was automating and I had the misfortune of buying a good old 68 Camaro SS from a guy at work. Downtown to change titles/registration - the office a hand drawn cartoons put up all over the office - apparently allowing employee's to vent their frustration at trying to get the new computer system up and running - at the window the sweet young thing was explaining to me how it was impossible for me to retitle the car as the computer was down and I should come back another day at the computer's convience and not mine - when a little old lady(gotta lov em) came up behind her a tapped her on the shoulder - and TOOK OUT A PAPER FORM and (drum roll please!) a no 2 pencil!

No 2 pencil - 25 times expenses(preferably multiplyed out longhand) - you don't like the answer! - Duh. - change expenses!

aka - if required - get out of the box! And look around - the view may change!

heh heh heh - remember the Bear - agile, mobile, and hostile. I don't care you don't like no 2 pencils - I have a Curmudgeon certificate - naner, naner.
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Old 10-11-2007, 08:51 AM   #8
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at least the author had no motive or hidden agenda ...
They should take her CFP away for writing such garbage..........
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This Thread is USELESS without pics.........:)
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Old 10-11-2007, 08:53 AM   #9
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It's funny to refer multi-millionaires as middle class. I guess that the bar may have been raised in ways that an upper class may require billions. I am tired to see articles that having millions is not enough to retire. If not millions, perhaps we should seek billions. If not billions, we should seek trillions. If not trillions, seek ? (may be help?).
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Old 10-11-2007, 09:09 AM   #10
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"Just a generation ago, a person with $2 million or more in liquid assets would have had enough for a secure retirement. But not today. Combine longer life expectancies and the rising costs of health care, food, transportation and property, and you have financial challenges ahead for the mMillionaire."

Do they really believe this stuff? Sure, rising health care cost and general inflation is a problem for everyone but I think I can manage just fine on a 2 mil portfolio.
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Old 10-11-2007, 09:11 AM   #11
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Just read the article----major eye roll---. Oh please. DH and I are just fine with our money funding the same lifestyle we had while we were w**king. We did not have to downsize and even if we had to it would have been worth it. It is about gaining the time and freedom to live your life. I guess it is a different mindset about what is important, stuff or time. If Mr 4MM can't get it together that is his problem. It makes no sense to me that he would have to downgrade his lifestyle.

What is it with all of the doom and gloom articles suggesting people stay in harness and w**k until age 70 for fear of running out of ones retirement nest egg. My MIL lived off the money her husband left her for thirty years until her death at 91. Her money was managed well and she continued to LBYM. Her life was comfortable but not extravagant. Works for me. Now that it has passed to us we will do the same, manage it well and LBYM. Oh and ignore the doom sayers.
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Old 10-11-2007, 09:30 AM   #12
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mMoronic article
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Old 10-11-2007, 09:43 AM   #13
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Yahoo finance is a total joke--isn't that where Kiyosaki a-clown gets space to write his dribble, I mean drivel? Oh, and Suze, too. Great.
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Old 10-11-2007, 10:01 AM   #14
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Originally Posted by Dawg52 View Post
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Do they really believe this stuff? Sure, rising health care cost and general inflation is a problem for everyone but I think I can manage just fine on a 2 mil portfolio.
Well, 4% SWR on a 2 mil portfolio produces 80K per year. That certainly isn't poverty but I wouldn't call it being rich, either.

For a person living in a low cost part of the U.S., with no debt or unusual expenses, it's pretty nice. For someone who lives in a high price area and has extra medical expenses, kids still in college, home mortgage, etc it can be just one step above dog food.

Some of my friends have been forced into early retirement because of downsizing, they did not want or expect to retire just before their peak earning years. Yeah, they could have saved more in the younger years, but it would have required really major sacrifices in order to save enough to make a difference when you are forced into ER at 50-55. I don't feel like I need to bail out these people, but I do feel sympathy for them.
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Old 10-11-2007, 10:06 AM   #15
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What Gearhead_Jim said.

Didn't we see an article just a month or two ago on this forum that "you're nobody here if you are worth less than $10m", referring to New York City? Seemingly you cannot even get a date with a reasonable looking girl if you're not worth at least that much. Sheesh!

Remember that the converse of the 4% SWR is that you need 25x your living expenses to be FI. Many coastal families are making (and spending) $200k+ per year, which puts their required portfolio at or North of $5m.

Bear in mind that the recent controversy over Bush vetoing government health care for children in "moderate income" families was tied to an income level of $60k. Such an income requires an asset base of $1.5m given 4% SWR. So, that's "moderate income" for you.
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Old 10-11-2007, 10:59 AM   #16
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Well, 4% SWR on a 2 mil portfolio produces 80K per year. That certainly isn't poverty but I wouldn't call it being rich, either.
Yes, that is being rich. $80k income per year, for life, without having to lift a finger!!!!

Its almost twice the median household income. All those median and below households, people have to work hard to earn that money. Furthermore, median household income in the US is amongst the highest in the world.
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Old 10-11-2007, 11:09 AM   #17
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I agree with Cattusbabe and Sarah.....no sympathy in my heart for these mMillionaires!
Sounds like they need to find some cheap hobbies and connect with their inner chi....layoff some of the consumption and $100/plate dinners and you will be fine!
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Old 10-11-2007, 11:12 AM   #18
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The cost of being rich just keeps going up and up. Just check out the Forbes "Cost of Living Extremely Well" index. The index clearly shows that the cost of being rich is racing ahead of the normal cost of living as measured by the CPI....

The chart below shows the Forbes "Cost of Living Extremely Well" index in yellow and the CPI in purple. Check out the article : The Cost Of Living Extremely Well Index - Forbes.com.

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Old 10-11-2007, 11:15 AM   #19
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Hmmm. My plan still calls for me to retire at 52 in a three bedroom house with a hair under $2M. I better call that wealth management firm and find out what is wrong with my spreadsheet.

Hey, unclemick, can I be a junior curmudgeon? I don't have a number 2 pencil, but I can do longhand multiplication...

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Old 10-11-2007, 11:24 AM   #20
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Quote:
Originally Posted by unclemick View Post
No 2 pencil - 25 times expenses(preferably multiplyed out longhand) - you don't like the answer! - Duh. - change expenses!
I'm doing mine in crayon...

Quote:
Originally Posted by MasterBlaster View Post
The cost of being rich just keeps going up and up. Just check out the Forbes "Cost of Living Extremely Well" index. The index clearly shows that the cost of being rich is racing ahead of the normal cost of living as measured by the CPI....

The chart below shows the Forbes "Cost of Living Extremely Well" index in yellow and the CPI in purple. Check out the article : The Cost Of Living Extremely Well Index - Forbes.com.

This must be the "cost of keeping up with the Jones'" chart...
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