Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How to Stash 1 Million
Old 03-18-2011, 09:38 AM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,835
How to Stash 1 Million

I thought I'd be the first to post this yahoo link on how to save a $million.
There's nothing earth shattering, just earn a lot of money and LBYM. But the article fails to mention one of the most critical factors in saving; his family situation. I get the impression that he's single with no children and so can be single minded in his frugal lifestyle and savings. The frightening thing is i have a lot in common with him and he sounds so utterly boring.


how-to-stash-1-million-savings: Personal Finance News from Yahoo! Finance
__________________

__________________
nun 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 03-18-2011, 09:45 AM   #2
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
"I established a traditional defined-benefit pension plan for my business, which allowed me to contribute as much as $240,000 in one year."

How does one arrange this?
__________________

__________________
photoguy is offline   Reply With Quote
Old 03-18-2011, 09:48 AM   #3
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
Good for him. Looks like he's dodged the "Big 3" early-retirement killers: Kids, divorce, and serious illness.
__________________
kombat is offline   Reply With Quote
Old 03-18-2011, 10:00 AM   #4
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
Good deal.

Perhaps I missed it, but the article didn't touch on how his education expense was covered or the type of residence his budget supports.

I would be more impressed with an article on an average earner making it to 1M or more by 49.

I guess I would expect someone earning > 200k per year to have that much if not more by his age. YMMV... perhaps I have high expectations.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 03-18-2011, 10:09 AM   #5
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,835
Quote:
Originally Posted by photoguy View Post
"I established a traditional defined-benefit pension plan for my business, which allowed me to contribute as much as $240,000 in one year."

How does one arrange this?
If you are self employed you can do a SEP and contribute something like $46k a year to a DC plan, the limits for a DB plan are far higher.....

Some quick Googling and I see that for a SEP DB plan the tax deferred annual amount is essentially limitless. You decide what benefit you want and fund the DB plan appropriately. This is great for someone who is self employed, over 40, and needs to accumulate retirement savings quickly.
So the guy in the article is locking up most of his money in an enormous DB plan. I'd want a little more liquidity.
__________________
nun is offline   Reply With Quote
Old 03-18-2011, 10:18 AM   #6
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
- SEP IRA contribution is limited to 25% of total income, up to the $49,000 limit

- DB plan 240k might be compensation limit.... contribution would seem high.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 03-18-2011, 11:28 AM   #7
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,835
I'm stereotyping the guy in the article, but I bet one of the things on his retirement to do list is a "mail order bride"
__________________
nun is offline   Reply With Quote
The 4 step process on How to Stash a Million
Old 03-18-2011, 11:52 AM   #8
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
The 4 step process on How to Stash a Million

How to Stash 1 Million

Step 1) Start with 2 Million Dollars

Step 2) Invest in the stock market

Step 3) Wait for crash

Step 4) Pull out money in a panic to invest in "safe" investments.

__________________
MasterBlaster is offline   Reply With Quote
Old 03-18-2011, 12:08 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
He should have even more money stashed away. He is losing too much to his "guys" at Merrill Lynch and Schwab. Or is there another explanation for what he did with all his money?

He's 49 and a radiologist. I think the demographics show that 50-year radiologists average $3 million stashed away.
__________________
LOL! is offline   Reply With Quote
Old 03-19-2011, 06:08 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Not much I can relate to here. A few years w/ a quarter mil in savings and soon your a millionaire. Plodding along, never made more than $75k, LBYM with a wife, three kids etc. -seven figure investment account -now that's a story
__________________
foxfirev5 is offline   Reply With Quote
Old 03-19-2011, 02:17 PM   #11
Recycles dryer sheets
Hobo's Avatar
 
Join Date: Sep 2008
Posts: 274
This is typical "guy with a high salary lives frugally and saves a lot of money" story. Personally, I think putting your money with one broker to manage your money is risky. Just putting your eggs in the stock market is risky. I like real estate (eg, raw land) in the mix. I also like to pay my taxes on my investment money. Despite the notion that you will be in a lower tax bracket when you take the money out, paying income taxes on big money always hurts. Better to take the pain at the time you save the money.
__________________
Hobo is offline   Reply With Quote
Old 03-19-2011, 10:24 PM   #12
Dryer sheet aficionado
 
Join Date: Mar 2011
Location: Mexico
Posts: 43
The really entertaining part of the article are the comments the people have made. The anger, jealousy, and personal attacks on this guy provide a lot of insight on the state of America. It's hard for people to give him credit for becoming a doctor and saving 7 figures. True that most people can't relate to that much money but why attack him because you are one the " have nots".
__________________
mexico is offline   Reply With Quote
Old 03-19-2011, 11:03 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,409
Quote:
Originally Posted by foxfirev5 View Post
Not much I can relate to here. A few years w/ a quarter mil in savings and soon your a millionaire. Plodding along, never made more than $75k, LBYM with a wife, three kids etc. -seven figure investment account -now that's a story
Agree - stories like yours are much more relevant to most folks.
__________________
pb4uski is online now   Reply With Quote
Old 03-19-2011, 11:07 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,409
Quote:
Originally Posted by mexico View Post
The really entertaining part of the article are the comments the people have made. The anger, jealousy, and personal attacks on this guy provide a lot of insight on the state of America. It's hard for people to give him credit for becoming a doctor and saving 7 figures. True that most people can't relate to that much money but why attack him because you are one the " have nots".
I don't perceive it as a lot of anger or jealously pr personal attacks. More that at his income level to save a million isn't as huge an accomplishment as the stories of many of the posters on this site who have done the same on much lower income.
__________________
pb4uski is online now   Reply With Quote
Old 03-19-2011, 11:20 PM   #15
Full time employment: Posting here.
RetiredGypsy's Avatar
 
Join Date: Mar 2008
Posts: 895
Quote:
Originally Posted by pb4uski View Post
I don't perceive it as a lot of anger or jealously pr personal attacks.
Are we reading the same comments?
__________________
I'm free and I like it!
RetiredGypsy is offline   Reply With Quote
Old 03-19-2011, 11:57 PM   #16
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,032
Quote:
Originally Posted by mexico View Post
The really entertaining part of the article are the comments the people have made. The anger, jealousy, and personal attacks on this guy provide a lot of insight on the state of America. It's hard for people to give him credit for becoming a doctor and saving 7 figures. True that most people can't relate to that much money but why attack him because you are one the " have nots".
Yes, the comments following the article are pathetic and childish.

I do not share information regarding my finances with anyone. I don't want to open myself up to attacks. I don't understand what is to be gained from putting oneself out there like this guy did.
__________________
FIREd is offline   Reply With Quote
Old 03-20-2011, 04:18 AM   #17
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
+2

Quote:
Originally Posted by FD View Post
I do not share information regarding my finances with anyone. I don't want to open myself up to attacks. I don't understand what is to be gained from putting oneself out there like this guy did.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 03-20-2011, 05:01 AM   #18
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
Quote:
Originally Posted by mexico View Post
The anger, jealousy, and personal attacks on this guy provide a lot of insight on the state of America.
I think they provide more insight into how many people will make these types of inane comments when they feel emboldened by the anonymity of the internet. This type of behaviour is not just the preserve of Americans.
__________________
Major Tom is offline   Reply With Quote
Old 03-20-2011, 07:39 AM   #19
Dryer sheet aficionado
Isadora's Avatar
 
Join Date: Mar 2011
Location: Budapest
Posts: 30
Send a message via Skype™ to Isadora
Quote:
Originally Posted by mexico View Post
The really entertaining part of the article are the comments the people have made. The anger, jealousy, and personal attacks on this guy provide a lot of insight on the state of America. It's hard for people to give him credit for becoming a doctor and saving 7 figures. True that most people can't relate to that much money but why attack him because you are one the " have nots".
that is cute, but consider if he is single, there is nobody for him to bore.
Are you single? then perhaps that could be the reason. If not, ask your spouse.
__________________
"When a mystery is too overpowering, one dare not disobey." The Little Prince
Isadora is offline   Reply With Quote
Old 03-20-2011, 07:48 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Wow, interesting reactions. The intent of my response was that there are many other examples that could provide usefull information for others. For example I know a drywaller with a 10th grade education who has an over 3m investment portfolio. How did he get there? Or the school teacher and police officer who have put together multiple unit rentals providing an income of over 100k. Articles like this should present some sort of actionable information that people can apply to improve their lot in life. I could be the subject of this article myself but stating my good fortune (and luck) in itself is not impresssive.
__________________

__________________
foxfirev5 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
My dryer sheet stash segfault Other topics 6 03-18-2011 08:28 AM
How does your stash compare to this? mickeyd FIRE and Money 32 02-19-2009 09:20 AM
Mighty old marijuana stash~2700 years old!! mickeyd Other topics 14 12-02-2008 10:05 PM
Best place to stash cash? doxeyweb FIRE and Money 22 09-22-2008 11:42 PM
Where are you putting your emergency cash stash? Whakamole Young Dreamers 5 08-09-2004 05:13 AM

 

 
All times are GMT -6. The time now is 08:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.