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Old 07-26-2011, 01:30 PM   #61
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Are there really so many 40-something millionaires? As someone already pointed out, only 6% of the US population has a net worth of one million. And I'd wager the majority of those are significantly older than 40. I also would propose that a lot of people you may think are millionaires really aren't. They're just living the lifestyle--but it's all on credit. That, after all, is the American way.

As for me, I'm in my mid-40s and only about 3/4 of the way there. If I play my cards right, I may top the mark in as little as 3 years--but as another person pointed out, a million doesn't mean what it used to...
It amazes me how many people I see living a lifestyle much larger than mine who have zero, zilch nada in their savings.
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Old 07-26-2011, 01:37 PM   #62
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As someone already pointed out, only 6% of the US population has a net worth of one million.
Make that 9 percent.
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Old 07-26-2011, 01:46 PM   #63
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Make that 9 percent.
I wonder how many of those people would not be millionaires if you excluded the value of their primary residence? I personally do not think it should be considered because you have to live somewhere and that is not an asset easily turned into cash these days.
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Old 07-26-2011, 02:04 PM   #64
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Make that 9 percent.
I wonder how they arrive at this number. Anyway, I agree with a later poster: these figures are misleading, because they include primary residence home values in the calculation--and I doubt all these people own their homes free and clear.
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Old 07-26-2011, 02:05 PM   #65
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I wonder how many of those people would not be millionaires if you excluded the value of their primary residence? I personally do not think it should be considered because you have to live somewhere and that is not an asset easily turned into cash these days.
I completely agree and I do not include this when calculating our net worth.
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Old 07-26-2011, 07:16 PM   #66
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What a joy to feel the kinship with all the posters here. We reached $1MM of liquid assets at 39. At age 30, we got married as penniless but well educated romantics. Wife and I have lived very much below our means, and crossed the 1MM mark about 8 months ago. Simple formula really: focus on savings, live below our means, enjoy simple pleasures.
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Old 07-26-2011, 07:27 PM   #67
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What a joy to feel the kinship with all the posters here. We reached $1MM of liquid assets at 39. At age 30, we got married as penniless but well educated romantics. Wife and I have lived very much below our means, and crossed the 1MM mark about 8 months ago. Simple formula really: focus on savings, live below our means, enjoy simple pleasures.
I congratulate you, but it takes more than a simple formula. You almost certainly make a very decent household income to have saved 1 million of liquid assets in just nine years. More than 50% of Americans have household incomes of less than 50k per year. For these people, it's a question of decades if ever.
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Old 07-26-2011, 07:31 PM   #68
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We are 40 & 46 and just shy of our first $1MM; mostly liquid or stocks or 401k's.

We moved to Cali in 07 to take advantage of an awesome job and have saved $560k in 4.5 years. LWBM the whole time here and now we're moving to ER in Mexico to do volunteer work (and have some fun)...thought we'd give not-w**king a try.

We always lived on the lesser salary and saved the larger. Got the daughter through college, married & now its our time.
Eating in & driving modest cars always helps.
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Old 07-26-2011, 08:15 PM   #69
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What a joy to feel the kinship with all the posters here. We reached $1MM of liquid assets at 39. At age 30, we got married as penniless but well educated romantics. Wife and I have lived very much below our means, and crossed the 1MM mark about 8 months ago. Simple formula really: focus on savings, live below our means, enjoy simple pleasures.
DW and I say to each other that we married each other for our loans (since we had negative net worth). When married, we had $100k in outstanding school loans. Through good salaries, LBYM and a strict focus on repaying that debt, we paid it off within four years. Since then, we have continued to LBYM and save and invest aggressively. We reached $1mm in net worth at age 38 and continue to save and invest aggressively, including setting aside money for college for our kids.

Ultimately, it was our joint focus on LBYM and the power of compounding investments that allowed us to build our net worth. That was more important to us than trying to have the nicest house or car in the neighborhood or the newest toys. We want to retire early and enjoy the back nine, so to speak.
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Old 07-26-2011, 09:57 PM   #70
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For me, crossed $1M at around 40 due to stock options in a start up during the dotcom bubble.

Interesting thread!
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Old 07-27-2011, 08:20 AM   #71
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I don't find this particulary remarkable. As for me, I can't even remember when we went beyond $1M. Everyones' perspective on the significance of $1M is different and as others have said it ain't what it used to be. While our kids were growing up, I was the sole bread winner and still largely am. I received a good education, was lucky with my career, did well with real estate, and benefited from some favorable market conditions despite being a pretty conservative investor. My only regret is that I should have been a more aggressive investor during my earlier years.
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Old 07-27-2011, 09:34 AM   #72
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Originally Posted by Lawrence of Suburbia
A million isn't very much these days. I've got a low-pay, dead-end job, and I need two million to even feel near ready to retire (cost of health insurance, etc.) I don't have near a million yet , but if I did, I'd only think I had a good down payment towards retirement....
Going by published stats it's surprising how few people have a million in investible assets. I guess if you include criminals and government people with annuities worth 1 mill plus it's a whole lot more common.
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Old 07-27-2011, 09:47 AM   #73
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Going by published stats it's surprising how few people have a million in investible assets. I guess if you include criminals and government people with annuities worth 1 mill plus it's a whole lot more common.
I find your lumping of government workers with criminals quite offensive. Most government people I know are common, decent folk who deserve every bit of their annuities. I'd be happy to tell you where the real criminals are, but that's another thread.
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Old 07-27-2011, 09:59 AM   #74
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I find your lumping of government workers with criminals quite offensive. Most government people I know are common, decent folk who deserve every bit of their annuities. I'd be happy to tell you where the real criminals are, but that's another thread.
Sorry to offend. Just pointing out that there are more affluent people out there than the stats show. My brother, sister and uncle all work for government and are hard working and competent. Who are the real criminals?
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Old 07-27-2011, 11:22 AM   #75
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At around age 40 just after my divorce, my exwife left me with nearly $80,000 in various credit card and other debts ... After taking every dime I could muster up I paid off the debt in about 2 years.
Why didn't you just file for bankruptcy? As a bankruptcy filer myself (and an active member of a bankruptcy forum, as in here), it seems that most folks who have big debt simply file for bankruptcy to get relief? Did you not file because you felt it would be dishonorable?
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Old 07-27-2011, 11:25 AM   #76
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What a joy to feel the kinship with all the posters here. We reached $1MM of liquid assets at 39. At age 30, we got married as penniless but well educated romantics. Wife and I have lived very much below our means, and crossed the 1MM mark about 8 months ago. Simple formula really: focus on savings, live below our means, enjoy simple pleasures.
WOW! You saved up $1M in only 9 years? You should be listed in some sort of early retirement hall of fame!
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Old 07-27-2011, 04:08 PM   #77
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I wonder how they arrive at this number. Anyway, I agree with a later poster: these figures are misleading, because they include primary residence home values in the calculation -- and I doubt all these people own their homes free and clear.
I don't see your reasoning here. Whatever part of your home you do own free and clear is part of your net worth. As far as "you have to live somewhere", true true, but if you want you can sell your house and live in a VW van.

Net worth = the amt by which assets exceed liabilities. Liquid/illiquid might matter to you emotionally, but that doesn't change the definition of net worth. You'll just feel even *more* like a millionaire when you have it in cash.
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Old 07-27-2011, 04:14 PM   #78
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I don't see your reasoning here. Whatever part of your home you do own free and clear is part of your net worth. As far as "you have to live somewhere", true true, but if you want you can sell your house and live in a VW van.

Net worth = the amt by which assets exceed liabilities. Liquid/illiquid might matter to you emotionally, but that doesn't change the definition of net worth. You'll just feel even *more* like a millionaire when you have it in cash.
This study added the entire value of the home, not what the homeowner owned free and clear. So I doubt it was an accurate reflection of many people's net worth.
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Old 07-27-2011, 07:37 PM   #79
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This study added the entire value of the home, not what the homeowner owned free and clear. So I doubt it was an accurate reflection of many people's net worth.
Right, but it would also subtract the value of their mortgage, since it was totaling net worth, not assets. So of course you'd add the whole value. Total all assets - all liabilities. The whole home value is an asset, the whole mortgage is a liability.

Now we can get into whether or not a home should be counted, but I really doubt they were doing it as wrong as you claim.
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Old 07-29-2011, 05:31 PM   #80
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First post here. I'm 35 and my net worth just got to $1 million, though 25% of that is home equity.
I never went to college and started working as a programmer at 19. So no college debt. My salary went up to 6 figures when I was 24.
The way I did it is that I I saved a lot in 401k, near the max that was allowed. Also, unfortunately My father who was divorced passed away last year from cancer and I inherited half of his assets. My sister and I just sold his home.
$1 million doesn't go that far in the SF Bay area, though. I need at least $2.5 million to retire. I don't think I will get there until at least age 50.
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