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11-08-2018, 08:17 AM
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#21
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Thinks s/he gets paid by the post
Join Date: Aug 2011
Posts: 3,602
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Quote:
Originally Posted by marko
"Hey, he lives in that big, big house and drives a luxury car. Dah?! He's obviously very rich!" Why can't you see that?
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"Obviously"
Actually, I dug into the Charles Schwab survey and their press releases. I found that 3/5 of the respondents say they live paycheck to paycheck.
Probably good at putting square pegs into round holes too.
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11-08-2018, 08:24 AM
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#22
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Thinks s/he gets paid by the post
Join Date: Jul 2015
Location: Beaverton
Posts: 1,382
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We are a society and people that like to measure things. Especially one to another. Im in the camp of just knowing that I should be able to survive until my untimely death comfortably.
__________________
Jump in, the water's warm.
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11-08-2018, 09:34 AM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,326
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Quite a lot to dig into here beyond the comfortable vs wealthy labels. Good job by Schwab, I think. Thanks for posting.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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11-08-2018, 09:45 AM
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#24
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,041
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Quote:
Originally Posted by Maenad
There was a philosophical article making the rounds earlier this fall that stated, "Most people don't want to have a million dollars, they want to spend a million dollars". Those are the people interviewed here.
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So true! I am from St Paul, hello neighbor.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
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11-08-2018, 10:29 AM
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#25
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Recycles dryer sheets
Join Date: May 2013
Posts: 327
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+1 for LCOL + SS + paid-for-house strategy, which I am living here in LCOL Central Minnesota resort country.
[ at kgtest and Maenad]
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11-08-2018, 01:25 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,633
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Quote:
Originally Posted by brucethebroker
More HCOL, "rule of thumb", big city nonsense. Is there a definition of 1.4M? Investable assets vs. net worth, for example?
In many parts of the USA, 2 SS checks, paid off house and car(s), no debt and $600,000 of investable assets will produce a comfortable life style. Total net worth would be well under $1M. 1.4M of investable assets, using the same scenario, would be princely.
These writers need to take a month long trip, by car, across the US-avoiding any city of more than 1M people. It might just add common sense to their articles.
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Close relative did the above nearly 25 years ago when they retired from their blue-collar job w/ a paid-off house, & investable assets closer to $60,000.
They've enjoyed life just fine since with their modest (but COLA'd) pension & nearly-free retiree healthcare.
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11-08-2018, 01:35 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,959
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I define myself (and I think I've done so on some other threads) as being financially comfortable. My definition is based on having no realistic money worries, able to live my happy (which is not exotic) without financial concerns, able to give my grandkids money just for fun, etc.
And, although I could technically afford to do so, I (and more importantly DW) can't bring myself to buy that gorgeous $8500 bicycle I see in my local bike shop showroom. I guess I'd be wealthy when I can bring myself to buy it, without guilt or recriminations from DW!
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11-08-2018, 01:55 PM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,649
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Quote:
Originally Posted by ncbill
Close relative did the above nearly 25 years ago when they retired from their blue-collar job w/ a paid-off house, & investable assets closer to $60,000.
They've enjoyed life just fine since with their modest (but COLA'd) pension & nearly-free retiree healthcare.
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I don't remember his specifics, but I would guess that member "imoldernu" has numbers that are pretty close to this and he has mentioned VERY OFTEN how great his retirement has been.
We don't have a ton of investible assets, but the monthly pension from Uncle Sugar and very VERY cheap health insurance makes retirement pretty damn comfortable for me.
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
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11-08-2018, 01:57 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Location: GTA
Posts: 1,728
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I prefer being comfortably numb...
__________________
Family Motto: "Every penny's a prisoner"
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11-08-2018, 02:36 PM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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I also look at lack of pain or stress as "enjoyment". So, money available but not actually spent gives me a lot of stress avoidance, knowing I can deal with most any expense that pops up. That makes me happy.
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11-08-2018, 03:04 PM
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#31
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Western Maryland
Posts: 926
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Fun responses. I don't think about how I compare to others for "comfortable" and "wealthy". For me, comfortable means that I can do anything that I want. Wealthy would mean that I could do EVERYTHING that I want. There weren't going to be enough work years in my life to get to that definition of wealthy. But I think that I am pretty solidly at my definition of comfortable.
Of course, the phrase "anything I want" is going to be shaped by one's means and what is culturally available, but I hope you get my drift. My parents, on the other hand, were lucky to be able to "Do SOMETHING that I want" every now and then.
I think that these phrases have been mentioned here before, but I could be misremembering.
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11-08-2018, 03:21 PM
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#32
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Thinks s/he gets paid by the post
Join Date: Jan 2012
Posts: 2,593
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Quote:
Originally Posted by jjquantz
For me, comfortable means that I can do anything that I want. Wealthy would mean that I could do EVERYTHING that I want.
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For me, being able to do everything that you want is the definition of "rich", not wealthy. Wealthy seems more limited and more technical in its common usage. I think I'd be considered wealthy by most people, considering my net worth, but I certainly can't do (or buy) everything that I want. I can afford to do most things that I'd reasonably like to do, though, as long as I do them infrequently and with some restraint. In order to move from "wealthy" to "rich", I feel like I'd need to be pulling in something like $30,000+ per month from my investments. Of course, according to that book referenced in an earlier post, I'd need $1 million/year in passive income to be truly "rich".
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11-08-2018, 03:35 PM
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#33
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Western Maryland
Posts: 926
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Quote:
Originally Posted by Sojourner
For me, being able to do everything that you want is the definition of "rich", not wealthy. Wealthy seems more limited and more technical in its common usage. I think I'd be considered wealthy by most people, considering my net worth, but I certainly can't do (or buy) everything that I want. I can afford to do most things that I'd reasonably like to do, though, as long as I do them infrequently and with some restraint. In order to move from "wealthy" to "rich", I feel like I'd need to be pulling in something like $30,000+ per month from my investments. Of course, according to that book referenced in an earlier post, I'd need $1 million/year in passive income to be truly "rich".
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Interesting point about a "technical" definition. I'm just thinking for myself that there's a scale something like:
Doing "all right" - I don't feel any threats to my well-being, but I can't do very many things that I would "like" to do
Doing well - I can do some of the things I want
Comfortable - Able to do anything I want - although some of the big choices might foreclose the possibility of doing other things
Wealthy - Able to do everything I want, but maybe not all at once
Rich - Not having to think about the fiscal impact of doing things
Filthy Rich - Able to crush peasants under my financial thumb
Again, what you "want to do" is shaped by your culture and financial ability so this is a very fluid set of definitions
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11-08-2018, 04:24 PM
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#34
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,360
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Quote:
Originally Posted by jjquantz
What you "want to do" is shaped by your culture and financial ability so this is a very fluid set of definitions
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Agreed.
Per your definitions, anyone with few/modest wants is 'rich', or at least 'wealthy': even if they have have a very small income, all that matters is that the latter is sufficient to exceed those wants (and needs, natch). Which sounds plausible.
__________________
"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)
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11-08-2018, 04:36 PM
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#35
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Minneapolis
Posts: 1,172
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Also from the Western Suburbs of Minneapolis !
I think all of us want to Spend a Million Dollars, but you should probably have a Million Dollars before you spend it. And a lot of these folks want to Spend it, BEFORE they have it, and often they do!
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11-08-2018, 04:44 PM
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#36
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
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Comfortably wealthy.
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11-08-2018, 06:06 PM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2010
Posts: 5,907
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I suspect one of the variable as to how one feels is their burn rate/spend rate vis a vis their resources.
Someone with $1M can feel very wealthy based on their upbringing and their spend. Someone with $3M may not if they indulge in a very expensive lifestyle.
It is all relative.
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11-08-2018, 06:19 PM
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#38
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Administrator
Join Date: Apr 2006
Posts: 23,035
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Quote:
Originally Posted by Milton
Agreed.
Per your definitions, anyone with few/modest wants is 'rich', or at least 'wealthy': even if they have have a very small income, all that matters is that the latter is sufficient to exceed those wants (and needs, natch). Which sounds plausible.
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The richest I have ever felt was the first day I walked into the grocery and bought anything that looked tasty, without knowing or caring how much it cost. That happened a long time ago. I have substantially more assets now, but I have never had that feeling since.
__________________
Living an analog life in the Digital Age.
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11-08-2018, 06:33 PM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,925
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By their definition I'm wealthy but I've never felt that way. Still don't. Comfortable, yes, wealthy no.
To me, 25m+ starts getting into the wealthy category.
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11-08-2018, 06:44 PM
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#40
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Recycles dryer sheets
Join Date: Feb 2014
Location: SF Bay Area
Posts: 289
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I've invested well. My attic is FULL of collectible "Beanie Babies". Put me down as wealthy.
__________________
"The only function of economic forecasting is to make astrology look respectable"
- J.K. Galbraith
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