Millionaires?

[retire@40]

I know people who are millionaires because they live in a million dollar home, but they struggle to pay the real estate taxes because they are cash poor.

Then I know millionaires who live in a old crusty small house but have a million dollars in cash, stocks, and bonds.

There are different kinds of millionaires.

 

[Razor]

I know people who are millionaires because they live in a million dollar home, but they struggle to pay the real estate taxes because they are cash poor.

Then I know millionaires who live in a old crusty small house but have a million dollars in cash, stocks, and bonds.

There are different kinds of millionaires.

Some friends of mine in their mid 70s are millionaires several times over. They live in the duplex they own, he has a lawn mower repair shop in his garage and works 8 to 10 hours a day, drive 5 and 10 year old vehicles, they clip coupons and buy expired meat at the grocery store, they let their tiny lawn burn up instead of spending a couple bucks to water it, they are really tight and their net worth keeps growing. I keep telling them to enjoy their money instead of leaving it to their undeserving children, but they are set in their ways and will live the way they want until they can't anymore. You would never know that they are rich. They don't act it.

 

[Notmuchlonger]

Bah heres something sickeningly positive.. I know I know things are so bad..but hey

YouTube - Bruce Springsteen - Better Days

 

[unclemick]

If the market keeps tanking at the rate it did in June, I will need to change my vote in a few weeks.

Thrice/not thrice?

Yep - over/then 2000-2002 dip, over/then Katrina, over/if Mr Market keeps dipping in this downturn?

heh heh heh - all in portfolio a tad over 3% yield - livible in hard times Oh and BTW - Pssst Wellesley!

 

[Purron]

Looking at these results I am not surprised we have so many people trying to sell us stuff. Hats off to our mods for keeping them at bay.

 

[cute fuzzy bunny]

excluding one's home.

Why would I do that? I consistently make a ton of money flipping my primary residence. In fact I've made almost as much doing that over the last 7 years than I have using other investments. Plus its tax free.

Sure, you run all over the issues of refusing to emotionally accept that your home is an investment, as well as people who choose to live in places where real estate doesnt appreciate.

I could just as easily choose to lose money in the stock market or find myself emotionally unavailable to asset classes that are profitable.

 

[unclemick]

Some friends of mine in their mid 70s are millionaires several times over. They live in the duplex they own, he has a lawn mower repair shop in his garage and works 8 to 10 hours a day, drive 5 and 10 year old vehicles, they clip coupons and buy expired meat at the grocery store, they let their tiny lawn burn up instead of spending a couple bucks to water it, they are really tight and their net worth keeps growing. I keep telling them to enjoy their money instead of leaving it to their undeserving children, but they are set in their ways and will live the way they want until they can't anymore. You would never know that they are rich. They don't act it.

There is a certain perverse joy in being a really cheap bastard - a perhaps heartwarming habit pattern. But one of the quirky results of losing almost everything in Katrina (at 12 yrs into ER) - was 'you can't take it with you' and 'you can't stop the clock' aka the most tricked out wheelchair in the rest home may not thrill you at all.

Soo - trying to loosen up - but I do suffer flashbacks of frugal.

heh heh heh - .

 

[socca]

...but they are set in their ways and will live the way they want until they can't anymore. You would never know that they are rich. They don't act it.

Perhaps being able to live the way they want is the greatest wealth of all

 

[Khan]

There is a certain perverse joy in being a really cheap bastard - a perhaps heartwarming habit pattern. But one of the quirky results of losing almost everything in Katrina (at 12 yrs into ER) - was 'you can't take it with you' and 'you can't stop the clock' aka the most tricked out wheelchair in the rest home may not thrill you at all.

Soo - trying to loosen up - but I do suffer flashbacks of frugal.

heh heh heh - .

I admit to a certain feeling of failure when I have less than $500 unspent in the checking account at the end of the month.

 

[lazygood4nothinbum]

i've repeated bikerdude's quote a few times since i read it last year to explain to others my financial position:

I live well, not rich, more like independently middle class.

 

[Marquette]

Yes, that's right.

In my own research, I've found that most estimates say $11M.

These days, there's a (somewhat) new concept of the "Middle Class Millionaire," which goes to show how being a millionaire just ain't what it used to be...

$11M with a 2% withdrawal rate wouldn't even provide our current household income. And I drive an Accord!

 

[SteveR]

Here is a poll done last year on net worth of those members that participated in the poll. It might give a bit more information that just who has $1MM.

http://www.early-retirement.org/forums/f28/annual-watcha-worth-poll-26578.html

Here is another one:
http://www.early-retirement.org/forums/poll.php?do=showresults&pollid=694

And yet another one with a discussion on home value vs net worth.
http://www.early-retirement.org/forums/poll.php?do=showresults&pollid=679

Search on Net worth poll and get see a lot more.

 

[Dawg52]

$11M with a 2% withdrawal rate wouldn't even provide our current household income. And I drive an Accord!

Whooaaa Nellie! I'm headed to the food stamp line Monday morning.

 

[CaseInPoint]

$11M with a 2% withdrawal rate wouldn't even provide our current household income. And I drive an Accord!

The $11M is just what's needed these days for the spending power of the millionaire of the past.

I'd bet that with $11M in the bank (or a heck of a lot less), you could be very comfortably retired in MN. No need to go ice fishing for dinner, that's for sure.

 

[CaseInPoint]

Thanks. I am glad someone understands. 25 years ago my net worth was about $5,000.

So, Razor... Watcha gonna do to celebrate becoming a millionaire?

And, for that matter, I wonder what others here have done to mark that occasion?

 

[Culture]

rogersteciak,

Love your diagram; straight to the point. However, it is only for those who can understand a mass-flow diagram. While they seem obvious to me, most people cannot understand them.

 

[ladelfina]

Hmm. It just looks like a cistern, which is not an uncommon item (see your bathroom).

They should use such simple diagrams to teach personal finance in schools.

 

[Steve O]

yes

 

[cyclone6]

Yes. 1.5 mil as of today.

I'm 45, and planning to "retire" come Aug 1. Spend 6 mos here in the States, and 6 mos in Thailand/SE Asia. Hopefully a 3.5% withdrawal rate will keep me going until I stop going. A few years ago it would have been a foregone conclusion - now with worldwide food and energy inflation its a little less certain.

Rebalance, readjust and adapt as needed. If I only knew what tomorrow would bring...but just the thought of living a little bit on-the-edge is exhilarating. Beats the hell out of the daily w*rk routine.

 

[bbbamI]

Si......

 

[Spanky]

I'd bet that with $11M in the bank (or a heck of a lot less), you could be very comfortably retired in MN.

.. or even expensive places such as the Bay Area or New York City. I guess it really depends on the definition of living comfortably.

 

[clifp]

Well I hope Andy is using this poll, when he talks to advertisers. 81% have a net worth of a million dollars wow. Of course we'll keep it a little secret that reasons most of are millionaires is we don't buy anything

 

[shotgunner]

Count me in

Add me in as a millionaire under the standard definition of not including the value of one's residence. I didn't celebrate the milestone, it's just a number. I drive vehicles for 10 years (toyota trucks) and a hang laundry on the line. I live frugally, but I enjoy my hot tub, going out to eat whenever I want, and shooting skeet with Parker shotguns. To me I like living frugally in some areas of life so I can really enjoy others.

 

[Midpack]

I keep telling them to enjoy their money instead of leaving it to their undeserving children, but they are set in their ways and will live the way they want until they can't anymore. You would never know that they are rich. They don't act it.

I wouldn't listen to you either. 'The best things in life aren't things...'

 

[HFWR]

Back at the turn of the 19th century, a "gentleman" was defined as someone that had 10,000 pounds (British).

I think I'd prefer 10,000 pounds (Columbian)...

Well I hope Andy is using this poll, when he talks to advertisers. 81% have a net worth of a million dollars wow. Of course we'll keep it a little secret that reasons most of are millionaires is we don't buy anything

Let me lower than percentage; no...

But I am a "thousandaire"!