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View Poll Results: Is your net worth a million US dollars or over?
yes 196 73.68%
no 70 26.32%
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Old 07-06-2008, 12:04 PM   #61
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$11M with a 2% withdrawal rate wouldn't even provide our current household income. And I drive an Accord!

That funny I could retire on about 7% of that 11M amount or less.
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Old 07-06-2008, 01:05 PM   #62
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Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD
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Old 07-06-2008, 01:14 PM   #63
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Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD
Congratulations on hitting positive net worth -- it's always a struggle. Did you celebrate?

Regarding the ">75%" comment, it is interesting to note that only about 200 members have responded. Last time I looked there were over 1100 members here, so the poll really represents a significantly smaller percentage than 75% -- more like 13.5% (assuming the other 900 aren't millionaires).

-- Rita
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Old 07-06-2008, 01:22 PM   #64
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Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD
I'd like to add my sincere congratulations to you, as well!! That's wonderful, and no small accomplishment.
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Old 07-06-2008, 01:40 PM   #65
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I laugh when I hear that people do not want leave money to their children because they think they will blow it. Like a stranger in these charities will not blow it. I hate to see money blown or wasted. But if someone is going to blow money it would be a little better if they were related to you. At least they would get some funny out of it. When asked what I would do if I had children I thought would blow it. I said set it up to pay them x each month for the next 20 or 30 years. They might get some smarts in that much time and if they do not you limit the blow rate.
I said leave it in an "endowment", ie, untouchable principal FOREVER and a spendable amount each year to charity. And don't let the charity oversee it themselves, leave it at a community foundation and while you're at it, don't name specific charities unless that fits, name a field of interest that is your passion {mine is animal welfare [NOT animal rights aka PETA types]} and make the local charities in that field apply for the spendable amount each year and show what they will do with it each year and have their history be a factor on whether they'll get more in the future.

And for the part that you leave to your kids, leaving it in trust ain't a bad idea either. Also, most states have abolished the Rule Against Perpetuities so you can control your money from the grave forever {not my cup of tea but you can}.

The knee jerk reaction that the kids each get an equal amount of the entire estate never ceases to amaze me.

Ask yourself these questions next time you think of this issue:

-What is an appropriate inheritance for my kids? {how much gives them a boost but doesn't create sloth = ever worry about a family Paris Hilton?}
-Do I distribute to them equally or by perceived need {one kid a teacher, one a surgeon, who needs the money?}
-How and when do I want them to receive these dollars?
-Should I skip a generation? By the time a person normally dies, their kids have already made their way, maybe grandkids are a better fit.
-Are there areas of community for which you have a passion and should you leave a fund in the family name to distribute for those needs? Family members can even be involved in the decisions through a donor advised fund. A family philanthropic fund can be a terrific way to stay connected.
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Old 07-06-2008, 02:09 PM   #66
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I hear ads all the time on the radio and TV, promising to provide a lump sum in exchange for an annuity or regular timed payment. (Their slogan is, "It's MY money and I want it NOW!!!")
That is my favorite commercial! It just cracks me up. People leaning out their windows yelling "It's MY money and I need it NOW!!!"
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Old 07-06-2008, 02:15 PM   #67
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-What is an appropriate inheritance for my kids? {how much gives them a boost but doesn't create sloth = ever worry about a family Paris Hilton?}
-Do I distribute to them equally or by perceived need {one kid a teacher, one a surgeon, who needs the money?}
-How and when do I want them to receive these dollars?
-Should I skip a generation? By the time a person normally dies, their kids have already made their way, maybe grandkids are a better fit.
These are tough questions because leaving unequal amounts of money to children can also be viewed as a bad mark on a report card. I have seen situations where it was totally reasonable for one child to receive more, but the child who received less felt that he or she somehow was not loved or valued as much as the other child. On the other hand, communication may solve some of these issues. I know a person who had children with wide disparity in assets. He talked to his "rich" son about what to do about his will, hinting strongly that "poor" (but not unworthy) son should receive more. The rich son said but of course, I don't want or need anything. When he died there seemed to be no bad feelings.
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Old 07-06-2008, 02:43 PM   #68
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That funny I could retire on about 7% of that 11M amount or less.
I said that wouldn't even bring in my current salary using CaseInPoint's guidelines... and I don't have a fancy car or driver (nor do I have a house, much less a fancy one).

I think I need about $40k to live on. Only that high because I'm worried about health care costs.
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Old 07-06-2008, 02:44 PM   #69
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T

I plan to give to my daughter up to the $12,000 tax-free limit while I am alive, .

I started doing that for special occasions .( Her Master's , marriage and grandson's birth ) . Other years I spend money on a family trip .We've done several of these and always had a good time . I think it's important to spend not only money but time together while you can.
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Old 07-06-2008, 02:47 PM   #70
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Good planning on their part to avoid bad feelings. In my parents generation, there are all kinds of resentments about how inheritances were handled and siblings of that generation have pretty much formed up into to cliques which no longer talk to each other. My siblings and I hope to avoid the same rift, but it's going to be hard.

One sister lives at home and does huge amount of work caring for parents. She's dependent on them for housing, while they are dependent on her for everything day to day. She's also very jealous of "rich" sister.
One sister doing okay but with ne'er do well husband and slew of super cute grandkids
One sister married to multi-multi-millionaire but very prickly about getting her "fair" share. Always has some new way of figuring how her share isn't fair enough.
Me doing fine on my own and hope my parents spend it all or find some creative solution instead of dropping this hot potato on us.

Hard to see how this is going to play out without "stay-at-home" sister or "rich" sister feeling slighted or maybe turning the simmering rivalry into a feud.
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Old 07-06-2008, 03:10 PM   #71
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Good planning on their part to avoid bad feelings. In my parents generation, there are all kinds of resentments about how inheritances were handled and siblings of that generation have pretty much formed up into to cliques which no longer talk to each other. My siblings and I hope to avoid the same rift, but it's going to be hard.

One sister lives at home and does huge amount of work caring for parents. She's dependent on them for housing, while they are dependent on her for everything day to day. She's also very jealous of "rich" sister.
One sister doing okay but with ne'er do well husband and slew of super cute grandkids
One sister married to multi-multi-millionaire but very prickly about getting her "fair" share. Always has some new way of figuring how her share isn't fair enough.
Me doing fine on my own and hope my parents spend it all or find some creative solution instead of dropping this hot potato on us.

Hard to see how this is going to play out without "stay-at-home" sister or "rich" sister feeling slighted or maybe turning the simmering rivalry into a feud.

Tell me about inheritances spawning family feuds. My dad and his brother have been feuding over my grand father's estate ever since he died in 1988. They tried to keep it pretty civil as long as my grand mother was alive but since she died last December it has been open war.
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Old 07-06-2008, 03:46 PM   #72
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Just wondering how many millionaires are on this forum.
A yes or no will suffice unless you want to ellaborate.
I am talking about net worth.
Right now I am about 60k short of having a net worth of a million bucks. I hope I make it before I retire but the market is not cooperating.

Yes. And God Bless America.
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Old 07-06-2008, 03:58 PM   #73
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DblDoc.. congratulations on being net positive!!!!!!!!!!!!!!!!!!!!!!!

That is cool 8). You are way ahead of the average person by not being in debt. Keep at it and best wishes.
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Old 07-06-2008, 04:16 PM   #74
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$11M with a 2% withdrawal rate wouldn't even provide our current household income. And I drive an Accord!

That withdrawal rate would be $220,000 a year, unless I am doing something wrong.
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Old 07-06-2008, 05:20 PM   #75
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That withdrawal rate would be $220,000 a year, unless I am doing something wrong.
For a working couple, each drawing a professional salary, it is not unusual to have that annual income. If the people who find themselves in this lucky position practice LBYM, they have no problem reaching FIRE a lot earlier than the rest of the population. But that is not always the case.

I subscribe to Money Magazine, where I find the real-life stories they publish each month most interesting. There was an issue where they interviewed and published FULL FINANCIAL DATA (income, budget, the works !) from 3 or 4 families in the same upper middle class neighborhood. The couple who had the highest net worth were the couple who had the lowest income in the group, and always envied the lifestyle of their free-spending neighbors. If I can find the issue date, and if there is interest, I may be able to point you to it.

By the way, if you are curious about how the rest of America spends and saves, Money Magazine may be available at your nearby public library (I got mine with frequent miles). I couldn't believe people have guts to allow their photos and whole financial statements be published, not like our "secretive" forum members here. (Well, except for Nords, whose personal info I ran across more and more as I perused old posts!)

Seriously, same as all of us, I wonder how I am doing with respect to the rest of America. As you will find out, for your income and age group, you might find yourself in the middle, if you compare yourself to this forum, or the Money Magazine readership. But the above people are already ahead of the rest of the country, since they show an interest in their financial affair. Believe me, if you are concerned and doing something for your future, you are way ahead of the spendthrifts out there.
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Old 07-06-2008, 07:30 PM   #76
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That withdrawal rate would be $220,000 a year, unless I am doing something wrong.
Which is why it's important to talk about expenses and not income. We're very lucky to be able to live on much, much less than we earn. Still, if I were spending at my income level, I don't think I'd feel as rich as a millionaire from yester year. I do own two very nice fedoras, though...
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Old 07-06-2008, 07:33 PM   #77
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Originally Posted by growing_older View Post
One sister lives at home and does huge amount of work caring for parents. She's dependent on them for housing, while they are dependent on her for everything day to day. She's also very jealous of "rich" sister.
One sister doing okay but with ne'er do well husband and slew of super cute grandkids
One sister married to multi-multi-millionaire but very prickly about getting her "fair" share. Always has some new way of figuring how her share isn't fair enough.
Me doing fine on my own and hope my parents spend it all or find some creative solution instead of dropping this hot potato on us.
Your stay at home sister deserves a very large share. Your rich sister deserves to grow up; maybe getting nothing would help in this regard.

Ha
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Old 07-06-2008, 08:14 PM   #78
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Your stay at home sister deserves a very large share. Your rich sister deserves to grow up; maybe getting nothing would help in this regard.
Agree with that. I have to say I half hope they come up with a solution like leaving the house to the sister who has spent so much time taking care of them. There's some chance that such a solution would sit okay with "rich" sister, but nothing's for sure with her. As for growing up, she's early 50's and still showing no sign of that kind of maturity, so not much chance of learning that lesson anytime soon. Leaving her nothing is more apt to cause a breech I fear.
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Old 07-06-2008, 11:05 PM   #79
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Yes, more than once, but I don't use the house we intend to live in as a retirement asset. Without that being counted, we still make the grade for this poll more than once. But at the age I plan to retire and with the running costs we have I can't see retiring with less than 3-3.5. With any less, we would have to give up the McMansion, which we both really enjoy, is paid for, and was designed by us to be a long term retirement home.

On the topic of leaving an inheritance:

My folks are not so rich, but will likely leave behind a good chunk when they pass. Frankly I hope they use everything but enough for final expenses, but that's not likely to happen. They like to save for rainy days, but they really are happy with the way that they live, so I am happy for them.

My folks plan to leave each of the four of us siblings an equal share. Fine by me, although we won't need anything to be OK ourselves. My sis will need help, but she will also need to be fed the money in periodic payments, because she is totally irresponsible with money, and it would be gone before my folks caskets hit the bottom of the grave, figuratively speaking, and she would have nothing to show for it. Dad has asked me to be the executor and trustee for what he leaves for her, and I have agreed, so long as it is stipulated properly in his will, and that he and mom inform her of what their intent is. Sis is always complaining about how "unfair" it is that we have money and she doesn't, and cannot seem to take responsibility for her own decisions, financial or otherwise. My only worry about this is that she will feel like she is being cheated out of her money by me. Anyone have any ideas about how to handle it so she has no way to think she is being cheated?
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Old 07-06-2008, 11:29 PM   #80
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There's a huge difference between having a net worth of $1M (which includes one's home value), vs. having investable assets of $1M, excluding one's home.

As an interesting exercise, you might also want to research how much money one would have to have today to be at the same level of what was traditionally known as being a "millionaire," 20 or 30 years ago.

20 years ago = $1,831,208.79

30 years ago = $3,322,576.69

in 1965 = $6,877,206.35

CPI Inflation Calculator
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