Never has been invested in stock market

[street]

I know a guy that works for a farming operation and I asked him the other day if he has his millions in the stock market. He said he has never put any money in to stocks/bonds etc..

He has worked for small wages all his life but always has worked. The job he has now he will get a small pension with about 10 years of employment. He is very smart man and is 61 year old. Married twice with two kids and I believe lives below his means but has nice things an does splurge at times.

First I can't imagine not being involved in the markets. Second if hadn't started in the stock markets 40 years ago I would most likely be still working and trying to save every penny I was making.

Do you think in todays time a person making a small wage maybe with a very small pension could accumulate millions at 62 years of age?

 

[COcheesehead]

I know someone like that. All their money went into a business and buying rental RE. He thought the market was too risky and did things he thought he could “control.” He has millions today. Their are many roads to success and happiness.

 

[Dawg52]

Does this guy actually have millions?

 

[UnrealizedPotential]

First off, there are many successful people that do not invest in the stock market. But as to what you were asking, yes it is possible, I think if someone started young enough.

 

[marko]

First off, there are many successful people that do not invest in the stock market. But as to what you were asking, yes it is possible, I think if someone started young enough.

Half of my high school classmates got wealthy the old fashioned way. They inherited it.

 

[MRG]

My FIL retired at 42 from his retail business. He invested in real estate and some private loans. He'd only dabbled in the market his last couple years.

 

[MRG]

My FIL retired at 42 from his retail business. He invested in real estate and some private loans. He'd only dabbled in the market his last couple years.

 

[calmloki]

Do you think in todays time a person making a small wage ... could accumulate millions at 62 years of age?

I resemble that remark. While we are invested in the market now it is just peer pressure and the thought that there is a chance that society and its social agreements trump my personal thinking. Didn't work for other people or companies much; think my highest wage was around $15k. Military time and earned income just barely qualified me for sub-$400 social security. Got together with a hard worker who stayed employed longer than I, but for a paltry wage - she qualifies for almost $600 SS. I say qualifies because we make too much, so our contributions to medicare are racheted up. Inheritances from our families were pretty inconsequential. Bank robberies or other ill gotten lucre - nope.

Stay together. No kids. Rental real estate. As a couple, work hard, stay focused, persist, spend smart, don't be jerks.

 

[JoeWras]

This is not unusual. Many people only use banks and nothing else. They are "afraid." News media doesn't help that either.

 

[frayne]

Do you think in todays time a person making a small wage maybe with a very small pension could accumulate millions at 62 years of age?

Define a small wage. If a person making $20 an hour, annual amount would be $41,600 X 42 years, equals $1,747,200. Living on say $747,200 over the 42 year span would be about $17,790 per year. Possible yes, probable, no.

 

[Freedom56]

Don't assume that the stock market is the only road to wealth. Many people made fortunes from small businesses and real estate.



My FIL doesn't have a penny in the stock market but made his money from land sales and rental properties. He currently has 47 doors in his rental property portfolio that generate an average now of 2830 CHF (about $2900 USD) per door per month which is great in a county with near zero interest rates. His net worth is approaching 9 figures.


My brother is a radiologist and nuclear medicine specialist. A good portion of his money is tied up in two diagnostic imaging clinics he owns. He employs 48 people including 12 radiologists and the two clinics process over 210 patients on average per day. He has zero exposure to equities and has a bond portfolio managed by Morgan Stanley private wealth management. His clinics netted $1.2M last year and the clinics are a sideline to his position at a major hospital.



Many of my friends inherited their wealth. Many of them chose to do nothing but smoke pot and snort lines. Others actually went on to become accomplished professionals or took over the family business.

 

[athena53]

It's possible- large fortunes have been made in real estate, especially in rentals. Not for me- I don't want the landlord hassles.

I just looked at my numbers and about half my invested assets are investment income from the last 15 years (hadn't tracked new money vs. investment results before that). So, if I'd stuffed everything I had 15 years ago into a mattress, as well as all additions, I'd have half what I do now- worth less due to inflation, of course. I'd also have a very fat mattress!

I agree that the media get crazy about the market and like to pretend it's a rigged game, only for rich guys, and the little guys all lose their shirts. It's unfortunate since it's one way (not the only way) for your assets to keep pace with inflation.

 

[SumDay]

My father was never in the market. He had his own business, and sold it and put that money in an annuity. He owned many pieces of residential real estate and as he aged, he "sold" them to the current occupants and owner financed the sale at a ridiculously high interest rate. When he got a chunk of change accumulated, he'd buy another annuity.


I know I included a lot of here, but it worked for him. They were as comfortable as they wanted to be. I'd like to slap his "financial advisor" (aka insurance agent).

 

[youbet]

My father was never in the market. He had his own business, and sold it and put that money in an annuity. He owned many pieces of residential real estate and as he aged, he "sold" them to the current occupants and owner financed the sale at a ridiculously high interest rate. When he got a chunk of change accumulated, he'd buy another annuity.


I know I included a lot of here, but it worked for him. They were as comfortable as they wanted to be. I'd like to slap his "financial advisor" (aka insurance agent).

Depending on the annuity particulars, wouldn't we define your dad as actually being in the equity and/or fixed markets? Whether he paid significant annuity costs and fees or not, it's still participating and in many cases not too much different than buying loaded, high fee MF's.

 

[Dtail]

Does this guy actually have millions?

+1
No indication yet as such, although there are definitely folks on this site with >1m who are not in the stock market.

 

[SumDay]

Depending on the annuity particulars, wouldn't we define your dad as actually being in the equity and/or fixed markets? Whether he paid significant annuity costs and fees or not, it's still participating and in many cases not too much different than buying loaded, high fee MF's.

I thought about that after I posted. Really, what's an annuity invested in? The market in some way, shape or form. It just annoys me how much he paid that insurance agent over the years, who was also supposedly his tax guy, and not a very good one at that. But that's another story.

 

[youbet]

It just annoys me how much he paid that insurance agent over the years.

Agree.

 

[street]

Interesting replies and I do believe there are more ways to become wealthy then by the markets. I just don't think I would have done near as well if for not being in the markets.

As far a wage he might have been close to 42000 to 48000 a year after taxes. That wage would only have been in the last 5 to 7 years. Before that it would of been high 30000 a year at best.

The reason for the thread I do believe there are many like this guy they have never invested any or very little in the stock market.

 

[nvestysly]

Yes, there are many roads to wealth and depending on your cost of living there may be no need to have millions and yet still be financially independent beyond people's expectations.

My mother and father owned and operated a variety of businesses over the years. Some were very successful and others were at the root of extreme financial hardship. Overall the successes outweighed the failures and they had a comfortable life.

In their twilight years I asked them what they might do differently if they were able to live life (their financial lives) over again. Almost without hesitation my mother said "get involved with the stock market at a younger age."

 

[HI Bill]

I knew an old, uneducated farmer. He lived in a one-story ranch house, on his farm with his wife. His furniture was from the 1960s, in the 1980s. His only splurge in life was buying a new Cadillac every two years. He had an orchard, and later, leased some of his land. He loaned people money, back when interest rates were higher than now. Eventually, he retired, built a nice two-story house with an elevator on the river, but he brought his now 30-year old furniture with him. He gave millions of dollars to a medical school, and the church, and set up a nursing scholarship fund. He outlived his wife, and eventually passed in his late 90s. He always gave money to the church when they had a special need, such as buying a new grand piano.

I know one realtor who lost a lot of money in the stock market. He won't touch it. Keeps his money invested in real estate, leveraging it. Also worth multiple millions.

 

[COcheesehead]

I just remembered this reading this thread, but my Dad never had any investments other than CD's and he owned two houses and lived a comfortable life. Millions? No. But happy and comfortable.

 

[Lukeee]

Outside of the stock market... I know of a few people that have made their first million from
-property
-vintage watches
-art
-bit coin
-inheritance
That said, I know lots more who are likely millionaires because of stocks.

 

[RobbieB]

I used to work with a guy that feared the market. Did not even take advantage of the company 401K plan, bought only T-Bills.

He picks up cans every weekend and collects the deposits.

 

[razztazz]

I used to work with a guy that feared the market. Did not even take advantage of the company 401K plan, bought only T-Bills.

He picks up cans every weekend and collects the deposits.

That speaks more to:

A) He didn't save enough money or

B) His expenses are/were too high

than it does to any relative virtues of stocks

 

[pb4uski]

I thought about that after I posted. Really, what's an annuity invested in? The market in some way, shape or form. It just annoys me how much he paid that insurance agent over the years, who was also supposedly his tax guy, and not a very good one at that. But that's another story.

Insurers usually back annuities with bonds, not in stocks.... typically stock investments in insurers are the insurer's surplus.... an exception would be variable annuities that owners have invested in equity subaccounts.