NY Times: Critique of a columnist's finances

[walkinwood]

A good article at the NY Times
http://www.nytimes.com/2011/06/18/your-money/asset-allocation/18wealth.htm

Three points emerged for me.
1. Make sure you are adequately insured against a loss of income due to death or disablity.
2. Keep your assets as liquid as possible. (I would not consider rental assets in this category)
3. Spend what you can afford to, not what you need to.

Enjoy.

 

[Nords]

I'm impressed-- these guys are paying $30K/year for advice that we're givin' away for free?!? And it took them three hours (plus a week of prep) to do it?

I can only imagine what they'd do with our perpetual [-]reciprocated diatribes[/-] debates like "Should I pay off the mortgage?" or "Is our house part of our net worth?" or "Should I help pay my kids' college education?"

I think this could be a new charter for all the local community Early-Retirement.org chapters.

BTW if a woman joined this group, and she had kids, would she be known as a Tiger Mom?

Trimming spending in other places is easier: Walking the dogs ourselves, for instance, would save $100 a week or $5,200 a year.

Holy crap. I mean that literally.

I'm not lookin' for a job, but this could certainly motivate a person to pursue a daily exercise program.

 

[mickeyd]

Each of the 180 members of Tiger 21 has a net worth of at least $10 million,

I plan on applying soon.

 

[arebelspy]

I plan on applying soon.

You may have the cause-effect relationship backwards on that one.

 

[walkinwood]

I'm impressed-- these guys are paying $30K/year for advice that we're givin' away for free?!?

The $30K is for the "poached salmon, grilled asparagus and buffalo mozzarella" and the chance to hide away from trophy wives & resultant kids.

 

[Independent]

... as we filled our plates with poached salmon, grilled asparagus and buffalo mozzarella from the buffet.

Does anyone else remember the first chapter of "The Millionaire Next Door"? As I recall, the author was doing a focus group with the millionaire clients of a local bank. He ordered high end snacks for his high net worth crowd, only to discover that they preferred beer and pretzels.

I suppose that $10 million puts you into a different category vs. a mere $1 million.

This was also interesting ....

Perhaps most important, none of the members became rich by eating out less. They became rich by working in industries that paid extremely well or by building businesses that they later sold.

 

[GaryInCO]

You don't get rich by eating out less. But if you're not making $300k+ a year, eating out or not can make the difference between having enough, and not having enough. LBYM.

 

[Nords]

The $30K is for the "poached salmon, grilled asparagus and buffalo mozzarella"...

Man, we have that at just about every potluck and beach party I've gone to lately. I'm so tired of it.

If that's what they serve at the Tiger 21 lunches then maybe I should just wait for the invitation to the Tiger 2.1 lunch.

 

[Khan]

I'm impressed-- these guys are paying $30K/year for advice that we're givin' away for free?!? And it took them three hours (plus a week of prep) to do it?

I can only imagine what they'd do with our perpetual [-]reciprocated diatribes[/-] debates like "Should I pay off the mortgage?" or "Is our house part of our net worth?" or "Should I help pay my kids' college education?"

I think this could be a new charter for all the local community Early-Retirement.org chapters.

BTW if a woman joined this group, and she had kids, would she be known as a Tiger Mom?


Holy crap. I mean that literally.

I'm not lookin' for a job, but this could certainly motivate a person to pursue a daily exercise program.

The rich are different.

 

[chinaco]

I'm impressed-- these guys are paying $30K/year for advice that we're givin' away for free?!? And it took them three hours (plus a week of prep) to do it?

....

That is the entire yearly spending budget of some on this board.

 

[52andout]

I love articles like these. It puts so much in perspective. Like how many working people here have achieved early retirement without a net worth of ten million. Much of it saved by strategies like not eating out, walking your own dogs and eating Kraft Mozzarella.

Yes, the rich are different. But many people here have the kind of wealth in spirit that a bad stock market or housing crisis can't take away.

 

[rescueme]

I plan on applying soon.

Let it get up to my/DW's joint NW. I might consider joining if they raised the minimum a bit ...

 

[Texas Proud]

I'm impressed-- these guys are paying $30K/year for advice that we're givin' away for free?!? And it took them three hours (plus a week of prep) to do it?

Nords...... I think you are reading this wrong.... it is an investment club.... this means that the $30K is going into investments, not 'fees'... each club has a minimum amount of new investments due from the members....

And investment club is run by the members, for the members.... usually the only true costs are the costs of trading... I bet with this amount of money etc. their costs are very low...

 

[Danmar]

Texas, I tnink Nords got it right. Not an investment club. If it were they would want a lot more than 30k. Chump change for these guys.

 

[braumeister]

Texas, I tnink Nords got it right. Not an investment club.

From their website:

Annual membership dues are $30,000, payable in advance. This investment covers one full year of group meetings and includes the cost of presenters, meals, beverages, and activities. Participation in monthly Headliner Series events is included. Each Member also has the opportunity to attend non-confidential portions of group meetings nationally on an "as available" basis and may choose from a wide selection of books from the TIGER 21 library.

 

[kevink]

That is the entire yearly spending budget of some on this board.

Yeah, and I was just reading the latest budget numbers from the Kaderli's, who've been traveling through Central America for 4 months on less than $40 per day, total:

(Expense Report

IMHO a heck of a lot better way to spend (less than) 30K than rubber chicken and conversation, but I guess the rich really are different.

 

[Texas Proud]

Texas, I tnink Nords got it right. Not an investment club. If it were they would want a lot more than 30k. Chump change for these guys.

"all members of an investment club called Tiger 21"


I guess the quote in the article got me confused.....


But I do see that they are NOT the kind of investment club I was thinking...

Introduction to Investment Clubs

 

[Nords]

Nords...... I think you are reading this wrong.... it is an investment club.... this means that the $30K is going into investments, not 'fees'... each club has a minimum amount of new investments due from the members....

But I do see that they are NOT the kind of investment club I was thinking...

I'm quite familiar with Tiger 21 from the stories written by Bloomberg's old "Wealth Management" magazine. It's intended as a way for each of the members to advise & mentor each other on their areas of expertise... these guys already have their own financial managers and other staff. They're not looking for other people with whom to invest their money, and they probably think all investment groups are like the Beardstown Ladies.

I don't need to take up any of Tiger's valuable space for presenters, meals, beverages, or activities. I just want them to post their presentations online and to let guys like us lurk on their discussion board! I'd even pay a small annual fee for bandwidth & infrastructure maintenance.

 

[clifp]

I'm quite familiar with Tiger 21 from the stories written by Bloomberg's old "Wealth Management" magazine. It's intended as a way for each of the members to advise & mentor each other on their areas of expertise... these guys already have their own financial managers and other staff. They're not looking for other people with whom to invest their money, and they probably think all investment groups are like the Beardstown Ladies.

I don't need to take up any of Tiger's valuable space for presenters, meals, beverages, or activities. I just want them to post their presentations online and to let guys like us lurk on their discussion board! I'd even pay a small annual fee for bandwidth & infrastructure maintenance.

So are they more like Hawaii Angels with better food, and ties, and Steve Bake wealth levels. Or are they more like the portfolio analysis and "the am I ready to retire" threads that get posted on the ER board?

Is this reason that you'd want to hear their analysis primarily because you think it would be smarter and better or because since they have more money it would be different?

 

[Nords]

So are they more like Hawaii Angels with better food, and ties, and Steve Bake wealth levels. Or are they more like the portfolio analysis and "the am I ready to retire" threads that get posted on the ER board?

I figure all the posters would be somewhere between Steve's "Are you sure that's what you want to do? Seriously?" questions and Michael P.'s in-your-face commentary.

I don't think any member of Tiger 21 could even spell "ER".

Another good point though-- I'd hate to have to wear a tie. It's been nearly 10 years since the last time, and that was for a funeral.

Is this reason that you'd want to hear their analysis primarily because you think it would be smarter and better or because since they have more money it would be different?

Well, I enjoyed the Richistan book and the author's blog. I'm very interested to hear what that level of wealth does with philanthropy and estate planning. (Not the Gates or Buffett "save the world" level, and not "hospital wing" level, but certainly small foundations & endowments.) My fantasy of "smarter and better" would probably be crushed within the first week.

But it'd certainly be fascinating reading...