If you know a wealthy person (other than you), how did they do it?

[maddythebeagle]

I dont think everyone has done it with the stock market....I am not sure why you would say that after folks posting up to this point with stories of RE, inheritance, and businesses?

 

[Sandy]

in the 1970's, my uncle was the CFO of a small company that stored data electronically. They were bought out in 1979, right before PCs entered the market. He never really held a steady j*b again. (Had a few attempts, but didn't get along with others too well - with the attitude that my way is the right way). They lived in Westport CT and later moved to Denver with a second home in Vail. (in their 70's now and have sold the Vail home)

Anyway, no one ever said he was retired! Always "just looking for the right opportunity." The mantra was so strong, that I never even put the RE label on him until I joined this board!

 

[Robert the Red]

We had a grad student once who inherited $4 million (from a childless uncle) about the end of his first year in the program. His advisor tried to convince him to stay in science, but after a couple days the student decided he'd rather go into managing his money. He disappeared back to LA and we never heard from him again.

 

[Gillette]

I know oodles of rich people, including two billionaires. Some inheritances, some stock options, a few CEOs, but the uber rich own their own companies.

 

[wildcat]

I dont think everyone has done it with the stock market....I am not sure why you would say that after folks posting up to this point with stories of RE, inheritance, and businesses?

(shaking my head). Out of my examples, none would consider themselves big investors in the stock market. They have had mediocre results and would rather stick with what they know best.

 

[Goonie]

I also had a great-uncle from the Ozarks, that drove a truck, and eventually moved to Texas and started a small trucking company. He grew his small company into a rather sizable fleet, specializing in tankers hauling petroleum products. He got involved in the oil business and made his fortune in it.

He retired in his 50's, and moved back to the hills of south-central MO, where he'd grown up. He always said that his goal was to live happy, fish a lot, and squander every red cent he ever made! He succeeded completely.

After he passed away in his early 70's, his estate was settled, and myself, my 2 siblings, and 1 cousin inherited everything that was left. We each ended up with something just south of $1000. And that was after the sale of his dinky, little, old house and his VW Beetle.

He always had deep pockets when it came to his friends, neighbors, and relatives. No one he knew ever had to to do without any of the necessities.....and sometimes the luxuries.

 

[RunningBum]

Four guys I worked with at my former company formed a tech startup and did very well when they sold it a few years ago.

I also know a number of people who RE on stock options at my current company. A couple of them came back after the bubble burst.

I worked with one guy who made his first million before he exercised any options. He was the ultimate LBYM man, lived in a small condo, drove a used Honda, didn't take big vacations. He was also a big risk taker in stock investing but did thorough research so they weren't wild risks. At work they used to give out a lot of t-shirts for new or complete products, and he almost always wore those shirts. I remember one that was just hideous and I said that no one would ever wear it. He did. I wouldn't have enjoyed living so frugally. He finally got married and I think his wife loosened him up some. She was also worried about the stock market and begged him to get out, which he mostly did, right before the bust. So even though we figured she was the type to burn through a lot of his money, she probably earned it.

At the resort community where my second home (and eventual only home) is, there are a lot of people who did or could have retired early from stock options as execs, or starting their own business. I went to dinner with some of them one time, and one of the guys picked up the tab. Everyone offered to chip in, but he wouldn't hear of it. Someone later told me that he had sold his business a couple years ago. When they went into the negotation meeting with the buyer, he and his partner had agonized over what to shoot for, and finally settled on $X as their goal. Early on, at the first talk of money, the suitor offered $3X. The two must've put on a good poker face and stared, pretty much dumbfounded. The suitor hastily added "of course, that's just a starting point."

 

[trirod]

Since I am a tax accountant, I have lots of wealthy clients - mostly business owners.

The most interesting one that I came across was a production worker at our local jeep plant here in Toledo. He never married, never had kids and lived in the same house for most of his life. I got called in after he died and his relatives weren't sure what to do with all the stock certificates they found in his house.

It turned out he had over $4,000,000 of stocks he had accumulated over his life as a production worker. All of these were individually held (not in a brokerage account) so his tax return was a nightmare. A big chunk of his wealth went to the government as estate taxes, but his nieces and nephews still did pretty well.

So you can make big money just by LBYM, but I'm not sure I would recommend it.

 

[cute fuzzy bunny]

Whoops, one of my old friends who was a wealthy ceo is now under indictment for backdating stock options, and is facing 20 years in prison.

I guess 47 brazillion dollars isnt enough.

 

[CuppaJoe]

I know a multi-millionaire who had almost nothing, and this is his story:

He bought an apple for 30 cents, shined it up and sold it for 60 cents. With the profits, he bought two apples, made them look nice, and sold them for $1.20. Then his uncle died and left him 3 million dollars.

Can't wait till apple picken time! But wait, I've run out of uncles.

 

[me_no_boss]

My ex's uncle's story is remarkable.
He is in his 80's now. He came to this country with nothing and did not speak English. He worked 7d weeks 16 hr days and bought a grocery store. Many years of 7/16 sweat equity but add in wife and children working at grocery store. They bought an apartment complex that basically occupied a city block half a mile from Fisherman's Wharf in San Francisco. That was way before the latest housing boom.
My guess is his networth is over 30M.
But you'd never guess by their lifestyle.
Hardly ever travel, stock-up on toilet paper, sofa covers...

My salaryman neighbor has a new Lexus and a nice ski boat.
So who has it better?

I am not sure.

 

[Zoocat]

I have met a lot of people who made a million or so selling their tech stock options after they left/sold companies . Then they invested that money and now are very wealthy.

My dad is well off because he is a frugal SOB who sold his calif house that he had owned for around 15 years and made a lot of money, then invested and rented out rooms to his deadbeat son, and is now sitting very pretty with a nice estate to leave to his other (non-deadbeat) kids (YAY!)

I also know this guy who inherited a lot of money then his wife insisted that they continue to live below their means, let the invested money grow. He ended up very wealthy, wealthy enough so that when they divorced he was able to financially set up his ex-wife very nicely, attract a very attractive replacement wife and buy her a McMansion. His ex-wife continued to live below her means, saving and investing, learning a lot about personal finance. She is now more financially secure than she was at the time of the divorce.

I think the key ingredient, at least in my examples, is that no matter how you acquire money, earning or inheriting or whatever, the key to keeping it is to make smart decisions and not go hog wild keeping up with the proverbial Jones who have not been saving at all, instead buying houses they can't afford, going on way too expensive vacations and buying anything and everything they want.

 

[wildcat]

I have met a lot of people who made a million or so selling their tech stock options after they left/sold companies . Then they invested that money and now are very wealthy.

My dad is well off because he is a frugal SOB who sold his calif house that he had owned for around 15 years and made a lot of money, then invested and rented out rooms to his deadbeat son, and is now sitting very pretty with a nice estate to leave to his other (non-deadbeat) kids (YAY!)

I also know this guy who inherited a lot of money then his wife insisted that they continue to live below their means, let the invested money grow. He ended up very wealthy, wealthy enough so that when they divorced he was able to financially set up his ex-wife very nicely, attract a very attractive replacement wife and buy her a McMansion. His ex-wife continued to live below her means, saving and investing, learning a lot about personal finance. She is now more financially secure than she was at the time of the divorce.

I think the key ingredient, at least in my examples, is that no matter how you acquire money, earning or inheriting or whatever, the key to keeping it is to make smart decisions and not go hog wild keeping up with the proverbial Jones who have not been saving at all, instead buying houses they can't afford, going on way too expensive vacations and buying anything and everything they want.

If the Cali real estate market crumbles, I am emtpying out the bank account and heading west for the scraps. No way would I pass on that opportunity. I am still waiting for the final runs of the stupid real estate tv shows and hopefully everyone will become totally disinterested in it.

 

[Nords]

Whoops, one of my old friends who was a wealthy ceo is now under indictment for backdating stock options, and is facing 20 years in prison.
I guess 47 brazillion dollars isnt enough.

To some people it's just a scorecard.

Sounds like you need a new set of friends...

 

[cute fuzzy bunny]

Well shoot, I worked for the guy about 15 years ago and havent seen him in 10.

Really sharp guy. But he did have a little weasel streak in him.

Dang, I just looked again...before the company kicked him out he had a net worth in excess of a billion dollars.

 

[Nords]

Dang, I just looked again...before the company kicked him out he had a net worth in excess of a billion dollars.

It must be a relief for him to know that he's accumulated enough shareholder assets to be able to persuade Bubba & Spike (and all the rest of the boys on the cellblock) to treat him right. I'll bet he sleeps well at night!

Maybe they can start up their own call center...

 

[tightasadrum]

I’ve enjoyed this thread, Wildcat

I knew a family friend of my parents, played tennis with him often on Sunday after church, who was a chemical engineer by training. You’ve never met a happier guy. But the twenty years I was around him, he never worked for a salary. What he did do was far more interesting.

The short story was he started or bought and sold businesses. When I first became aware of what people did for money, he owned a small, local airport outside of Atlanta with one or two other guys. They developed the AP into a thriving private air hub, and then sold it after several years. He did this grow and sell thing multiple times. As far as I know, he never missed turning a nice profit. When the world was using ballpoint pens, he invented a hard point pen. Grew the business, sold it. Did it over and over. No telling how much he was worth, but you’d never know it to see him or be around him. He was just a super guy.

It reminds me of something I read recently. A business is something you can grow into greater value and sell at a profit. Anything else is just a job, even if you work for yourself.

 

[wildcat]

I’ve enjoyed this thread, Wildcat

I knew a family friend of my parents, played tennis with him often on Sunday after church, who was a chemical engineer by training. You’ve never met a happier guy. But the twenty years I was around him, he never worked for a salary. What he did do was far more interesting.

The short story was he started or bought and sold businesses. When I first became aware of what people did for money, he owned a small, local airport outside of Atlanta with one or two other guys. They developed the AP into a thriving private air hub, and then sold it after several years. He did this grow and sell thing multiple times. As far as I know, he never missed turning a nice profit. When the world was using ballpoint pens, he invented a hard point pen. Grew the business, sold it. Did it over and over. No telling how much he was worth, but you’d never know it to see him or be around him. He was just a super guy.

It reminds me of something I read recently. A business is something you can grow into greater value and sell at a profit. Anything else is just a job, even if you work for yourself.

Yeah, I have an uncle who is kind of like that but I only know he has some money from what people tell me. I would never have guessed it. I think he bought some raw land, developed it and sold it. A real quirky yet intelligent guy.

Pretty tight all around. Always recycling stuff and finding new ways to put stuff to use. He has had some of the same outfits for years. It's funny. If you ever go through photo albums you may recognize the outfit he was wearing 10 years ago. In fact, he actually had it on at the time we were going through the pictures

 

[Ed_The_Gypsy]

A co-worker once worked at Boeing and survived the massive layoffs in '69 or thereabouts. He kept his job and bought houses and apartment buildings dirt cheap. Rented them out. He is worth a mint today.

We tried being landlords once. Not for us.