Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-23-2010, 06:27 AM   #61
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Quote:
Originally Posted by ziggy29 View Post
If you have no debt and a COLA'd pension that exceeds the expenses of your desired lifestyle, it would...

Isn't that another way of saying 'if your 250k is more than 250k, it will do you just fine.'
__________________

__________________
Money's just something you need in case you don't die tomorrow.
Maurice 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 01-23-2010, 08:27 AM   #62
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by BunsGettingFirm View Post
The conclusion I draw from that statement is that the people on this board are insane freaks.
No. We're just not normal (at least with respect to money issues). And I'd be surprised to find anyone here who would dispute that.
__________________

__________________
Gone4Good is offline   Reply With Quote
Old 01-23-2010, 08:35 AM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by . . . Yrs to Go View Post
No. We're just not normal (at least with respect to money issues). And I'd be surprised to find anyone here who would dispute that.
Fully agree. Its just that when you spend a lot of time in a particular community, it becomes your norm. In my current workplace, the long term employees are extremely conservative financially, so much so that something like 2/3 or 3/4 of the total 401k plan (all balances) was invested in the stable value fund. This was a rude shock coming in from a small hedge fund with a privateers-of-the-capital-markets culture.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-23-2010, 09:33 AM   #64
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,351
Quote:
Originally Posted by brewer12345 View Post
Fully agree. Its just that when you spend a lot of time in a particular community, it becomes your norm. In my current workplace, the long term employees are extremely conservative financially, so much so that something like 2/3 or 3/4 of the total 401k plan (all balances) was invested in the stable value fund. This was a rude shock coming in from a small hedge fund with a privateers-of-the-capital-markets culture.
That is interesting. Is that a recent trend that is reflective of the current market or more of a long term trend?
__________________
Helen is offline   Reply With Quote
Old 01-23-2010, 11:07 AM   #65
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by brewer12345 View Post
Its just that when you spend a lot of time in a particular community, it becomes your norm.
Yup, and that's why so many people on this board don't consider $250K of investable assets "affluent". People of means have a way of defining "rich" upward. They aren't rich, their richer friends are rich. And those richer friends don't consider themselves rich because they travel in circles where some people have more than they do. If you keep on going you end up defining "rich" or "affluent" so narrowly that it applies to exactly one person. But that isn't the right definition.

I had a conversation this week with someone who makes mid to upper six figures who said "Yeah, but the cost of living here is so high that I'm really not that well off." She didn't know exactly how to respond when I pointed out that the secretary lives here too on about 1/10th her income.
__________________
Gone4Good is offline   Reply With Quote
Old 01-23-2010, 11:11 AM   #66
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Helen View Post
That is interesting. Is that a recent trend that is reflective of the current market or more of a long term trend?
Reflective of the way things have always been at the current place. It is a highly secure place to work that has limited upside, so I imagine that most of these folks value safety and security way more than most people in my profession. This gets reflected in their choice of retirement investments as well as employment.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-23-2010, 05:51 PM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,019
Quote:
Originally Posted by Keim View Post
According to Dictionary.com
1.having an abundance of wealth, property, or other material goods; prosperous; rich: an affluent person. 2.abounding in anything; abundant.3.flowing freely: an affluent fountain.
---------
By that definition I think it depends on whether one feels $250k is an abundance. My neighbors with no savings probably think it is. I do not.

But I'll take it over $125k.
I'll take definition #3: flowing freely.
If I had $250K flowing freely to me every year, I might feel affluent.
$250K NW: NOT!

By this definition I am not affluent.
__________________
Meadbh is offline   Reply With Quote
Old 01-24-2010, 03:04 PM   #68
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Always loved the quote:
There are two ways to get rich (affluent):
1. Have more, or
2. Want less
__________________
Delawaredave5 is offline   Reply With Quote
Old 01-25-2010, 10:21 PM   #69
Recycles dryer sheets
 
Join Date: Sep 2004
Posts: 63
Quote:
Originally Posted by Keim View Post
According to Dictionary.com
1.having an abundance of wealth, property, or other material goods; prosperous; rich: an affluent person. 2.abounding in anything; abundant.3.flowing freely: an affluent fountain.
---------
By that definition I think it depends on whether one feels $250k is an abundance. My neighbors with no savings probably think it is. I do not.

But I'll take it over $125k.
I'm not even flowing freely any more. So I guess I'm not affuent in any sense of the word.
__________________
km4hr is offline   Reply With Quote
Old 01-26-2010, 02:37 AM   #70
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
I think a more apt measure of affluent would be how long your stash would support you. $250k will take a cheap frugal person much farther than the mortgaged-to-the-hilt 2-home owners driving leased Lexuses refreshed every two years.

People in general seem to think affluence is defined by how much a person can spend, but the focus of people on this board I think are more generally looking to save just enough to quit work and live off of, and that's far more achievable by controlling spending than increasing income and/or savings.

Quote:
Originally Posted by bbbamI View Post
Hmmm...I dunno....maybe her own money and rechargeable batteries...
She'd get more bang for the buck with the warehouse store brand.
__________________
BigMoneyJim is offline   Reply With Quote
Old 01-26-2010, 04:43 AM   #71
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 551
My mom is affluent with about 250K. She is 83 with a house contract she will collect on for 30 more years, a paid for car she got 6 years ago. She pays 1,500 a month for rent including all food, utilities and cleaning services and laundry at my brother's house.

Her income is a little SS about 4K a year, pensions worth about 25K and around 15K from the house contract so her 250K is sitting in the bank in CDs earning a few thousand a year. She doesn't like to shop, her hips hurt, she doesn't like the internet and won't have it, she has only 4 rooms and already has furniture and stuff. We will buy her gifts that more than replenish her supplies of things like computers, TV or lamps, whatever she might like. She only has her rent, cell phone and car insurance, her medical is Medicare and a HMO from her old employer. She was in a clinic and two hospitals and had surgery this month to remove gall bladder and won't spend a cent on it.

She can buy anything she wants and decided this year it would be ok to start spending down her savings if she wanted to. She can afford to go out to eat everyday if she feels like it or pay for gas for someone to drive her places that are too far for her to drive, her eyes burn if she drives more than 100 miles.
__________________
old woman is offline   Reply With Quote
Old 01-26-2010, 08:46 AM   #72
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Well there are three ways for someone of modest means to become affluent.

1) LBYM for a decade or three and then live off of the saved stash

2) Housing bubble equity farming - all that cash just waiting for you - The good life awaits

3) Welfare fraud - people can live very well by cheatin' the man.
__________________
MasterBlaster is offline   Reply With Quote
Old 01-26-2010, 09:54 AM   #73
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Quote:
Originally Posted by BigMoneyJim View Post
I think a more apt measure of affluent would be how long your stash would support you. $250k will take a cheap frugal person much farther than the mortgaged-to-the-hilt 2-home owners driving leased Lexuses refreshed every two years.
Good point. Many of us here might qualify as being affluent, by that measure, even though we may not think of ourselves in those terms.
__________________
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 01-26-2010, 09:56 AM   #74
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
What would you call a perpetual traveler type ex-pat that has their $250k and heads to the beaches of Thailand and lives it up on their $10,000 a year? To be able to do that in perpetuity would probably make that person look affluent in the eyes of the locals, and in the eyes of fellow backpacker, world traveler types. Maybe not me and my middle- or upper-middle class peers.

Heck in some parts of the world, having more than 1 goat makes one affluent!
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 01-26-2010, 10:10 AM   #75
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
I agree with everyone saying that folks with large amounts of wealth and income in addition to the $250k being discussed are affluent........
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-26-2010, 11:41 AM   #76
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: 16,487
Quote:
Originally Posted by MasterBlaster View Post
Pretending that you are from a rich family takes some thought and a little money. Sometimes, you have to pretend to be rich to make money so that you can be rich. Remember that rich people place very little importance on money. Rich people are usually very classy and proper in every situation.
Hah, ha ha ha!

Obviously this person never read Millionaire Next Door!

However, it probably works perfectly well if you need to "pretend" to be wealthy, because other folks are apparently taken in by this charade all the time, or otherwise swallow such an appearance hook line and sinker, or spend all their money trying to "keep up with the Joneses" because they think that will somehow make the richer rather than destroying their net worth.

That etiquette thing - that must be those "old-money" rich (I immediately think Maddoff victims) rather than the perhaps more common self-made types that are covered in "Millionaire Next Door". Most well-off folks I know don't give a hoot about appearance or etiquette.

Audrey
__________________
audreyh1 is online now   Reply With Quote
Old 01-26-2010, 11:50 AM   #77
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: 16,487
Quote:
Originally Posted by MasterBlaster View Post
Well there are three ways for someone of modest means to become affluent.

1) LBYM for a decade or three and then live off of the saved stash

2) Housing bubble equity farming - all that cash just waiting for you - The good life awaits

3) Welfare fraud - people can live very well by cheatin' the man.
4) Create your own business and be successful at growing it, then cash out.
5) Go work for a start-up company, get stock options and work hard to help the company succeed.

Of course, lots of risk and luck needed in those last two, but it is an available path to FI.

Audrey
__________________
audreyh1 is online now   Reply With Quote
Old 01-26-2010, 12:34 PM   #78
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Remember that rich people place very little importance on money.
Is that really true? I've never known a rich person who didn't place at least a little importance on money. I guess I don't really know anyone who inherited large sums. Most made theirs one of the old fashioned ways. Working and saving, starting a business, real estate, etc.

Would someone like Paris Hilton be considered affluent? Maybe she places very little importance on money. In general though, those that have made a lot of money themselves are usually good at making it and keeping it. That is why they are rich. They may not run around swimming in it (a la Scrooge McDuck) or bragging about it, but to say they place very little importance on it doesn't seem accurate for almost all of "the rich".
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 01-26-2010, 04:02 PM   #79
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,431
"The best things in life are free
But you can keep them for the birds and bees
Now give me money
That's what I want
That's what I want, yeah
That's what I want
...
Money don't get everything it's true
What it don't get, I can't use
Now give me money
That's what I want
That's what I want, yeah
That's what I want, wah"
...

__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 01-26-2010, 04:06 PM   #80
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Affluent...some people think I am, others not so much.

When I hear the word I just want to say, "Gazunheit"
__________________

__________________
There's no need to complicate, our time is short..
bbbamI 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
Don't forget to claim your part of the $10,000,000,000 refund mickeyd FIRE and Money 1 12-26-2006 01:58 PM
$250,000 daystar Young Dreamers 10 12-19-2006 10:49 AM

 

 
All times are GMT -6. The time now is 07:23 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.