Millionaires?

[Bimmerbill]

Nope...

Maybe if I stretch it and add in the value of my Cola'd pensions, but since I'm not receiving them yet, I won't.

 

[Razor]

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

Working themselves to death, constantly worrying about money, making more money and not wasting money are not the best things in life.
It is affecting their health and their happiness. That is why I am concerned. I care about there well being while their children are thrilled that they keep making more money that they will inherit sooner.

 

[Razor]

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

It is more about being set in their ways. They really aren't all that happy because they worry about money constantly.

 

[huskerblue]

Someone should talk to your friends about leaving some of their wealth to charity in the form of endowment. If more people did this instead of leaving scads of money to kids who are simply waiting for them to die, the world would be a better place. That's a bit cynical but coming from a career deeply involved in this issue, I have come to believe this very deeply.

To answer the original question, yes but I don't think that number means anything anymore.

To answer the other question, I remember updating my Microsoft Money one day about four years ago and the net worth showed seven figures for the first time. I called DW into the office, showed her the computer, we smiled, kissed and went back to living life.

 

[OAG]

Just a destination in a journey!

 

[Goonie]

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.

OK, let's see here now.....hmmm:

They "drive 5 and 10 year old vehicles".......me too.

"they clip coupons".......me too.

"and buy expired meat at the grocery store"......me too.

"they let their tiny lawn burn up instead of spending a couple bucks to water it"..........me too (nature intended it to go dormant when rain is lacking).

"they are really tight".....me too.

"their net worth keeps growing".....mine to.

"they are set in their ways".....me too.

They "will live the way they want until they can't anymore".....me too.

"You would never know that they are rich".....me neither.

"They don't act it".....me neither.

So with the exceptions of not being in my 70's (50's) and not having "multi" in front of millionaire, not living in a duplex (just a small old house), not working 8-10 hours a day (only about 5 or 6 in the yard, gardens, or workshop), and not having kids (undeserving or otherwise), my habits & ways pretty much match theirs and I'm happy as a lark. Of course my friends and neighbors always hear me talking about being "just a poor old retired guy on a fixed income not knowing where my next meal is coming from", and they really think I mean it, and that I'm not actually happy. But....ummm....they're wrong! I just like messin' with people! (BTW, this being the 1st Sunday of the month, my next meal is the FREE spaghetti dinner that one of the churches downtown puts on for the community. )

Oh and a couple of things to add to the list above:

I only buy clothes "on sale" or at secondhand stores.

I buy bread at the "day old" bread store.

And when I need to replace my 8-10 year old car, I buy gently 'pre-owned' (a.k.a. used).....just did it again 2 years ago.....saved over $5K (bought a used '06 in '06 with a full warranty).

It is more about being set in their ways. They really aren't all that happy because they worry about money constantly.

Some folks are set in their ways, and that's just the way it is. I know I am. There's nothing wrong with that. Other people's perceptions and opinions of whether folks are happy or not, are just that, perceptions and opinions. Some people think that I'm too frugal and/or just scraping by. That's just a misperception on their part....I'm just frugal enough and by no means, just scraping by. My neighbor thinks I'm too cheap to run the A/C and that's the reason I always sit outside under the shade tree when it's hot. However, I don't run the A/C most of the time because the house stays relatively cool without it, and I actually prefer being outdoors in the fresh air and sunshine.

Of course there really are folks out there in the world who aren't really happy unless they're miserable. Maybe your friends are in that group. But only they know for certain.

 

[shotgunner]

Charities can rob you too

Greedy charities exist and can be no better than greedy children waiting for you to die. It was only a few years ago the head of the United Way was in the news for his extravagant ways. There is only one way to be sure the money is well spent and that is to spend it well yourself

 

[Razor]

OK, let's see here now.....hmmm:

They "drive 5 and 10 year old vehicles".......me too.

"they clip coupons".......me too.

"and buy expired meat at the grocery store"......me too.

"they let their tiny lawn burn up instead of spending a couple bucks to water it"..........me too (nature intended it to go dormant when rain is lacking).

"they are really tight".....me too.

"their net worth keeps growing".....mine to.

"they are set in their ways".....me too.

They "will live the way they want until they can't anymore".....me too.

"You would never know that they are rich".....me neither.

"They don't act it".....me neither.

So with the exceptions of not being in my 70's (50's) and not having "multi" in front of millionaire, not living in a duplex (just a small old house), not working 8-10 hours a day (only about 5 or 6 in the yard, gardens, or workshop), and not having kids (undeserving or otherwise), my habits & ways pretty much match theirs and I'm happy as a lark. Of course my friends and neighbors always hear me talking about being "just a poor old retired guy on a fixed income not knowing where my next meal is coming from", and they really think I mean it, and that I'm not actually happy. But....ummm....they're wrong! I just like messin' with people! (BTW, this being the 1st Sunday of the month, my next meal is the FREE spaghetti dinner that one of the churches downtown puts on for the community. )

Oh and a couple of things to add to the list above:

I only buy clothes "on sale" or at secondhand stores.

I buy bread at the "day old" bread store.

And when I need to replace my 8-10 year old car, I buy gently 'pre-owned' (a.k.a. used).....just did it again 2 years ago.....saved over $5K (bought a used '06 in '06 with a full warranty).



Some folks are set in their ways, and that's just the way it is. I know I am. There's nothing wrong with that. Other people's perceptions and opinions of whether folks are happy or not, are just that, perceptions and opinions. Some people think that I'm too frugal and/or just scraping by. That's just a misperception on their part....I'm just frugal enough and by no means, just scraping by. My neighbor thinks I'm too cheap to run the A/C and that's the reason I always sit outside under the shade tree when it's hot. However, I don't run the A/C most of the time because the house stays relatively cool without it, and I actually prefer being outdoors in the fresh air and sunshine.

Of course there really are folks out there in the world who aren't really happy unless they're miserable. Maybe your friends are in that group. But only they know for certain.

My friends are nearing the end of their lives. Worrying about money when they have 10 times more than they need at that point in their lives just seems like a waste of years that they could be enjoying themselves. They should be carefree.

 

[FANOFJESUS]

Greedy charities exist and can be no better than greedy children waiting for you to die. It was only a few years ago the head of the United Way was in the news for his extravagant ways. There is only one way to be sure the money is well spent and that is to spend it well yourself

I laugh when I hear that people do not want leave money to their children because they think they will blow it. Like a stranger in these charities will not blow it. I hate to see money blown or wasted. But if someone is going to blow money it would be a little better if they were related to you. At least they would get some funny out of it. When asked what I would do if I had children I thought would blow it. I said set it up to pay them x each month for the next 20 or 30 years. They might get some smarts in that much time and if they do not you limit the blow rate.

 

[W2R]

When asked what I would do if I had children I thought would blow it. I said set it up to pay them x each month for the next 20 or 30 years. They might get some smarts in that much time and if they do not you limit the blow rate.

That would be ideal. But even then, I wonder. I hear ads all the time on the radio and TV, promising to provide a lump sum in exchange for an annuity or regular timed payment. (Their slogan is, "It's MY money and I want it NOW!!!")

So, providing a monthly payment of x dollars to the child who is likely to blow a lump sum after one's demise, might simply mean that the child will end up just blowing a smaller lump sum. So, I don't think that is the answer.

I plan to give to my daughter up to the $12,000 tax-free limit while I am alive, but I don't think a parent can (or should) control how their adult children spend an inheritance after the parent is dead. You raise the child as best you can, and teach them what you can, and at some point the baby birds leave the nest and what they do with money is no longer something under your control.

Of course I worry, being a mother. I will do the best to live a long life, and once I am gone my daughter will do her best.

 

[FANOFJESUS]

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

That funny I could retire on about 7% of that 11M amount or less.

 

[DblDoc]

Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD

 

[Gotadimple]

Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD

Congratulations on hitting positive net worth -- it's always a struggle. Did you celebrate?

Regarding the ">75%" comment, it is interesting to note that only about 200 members have responded. Last time I looked there were over 1100 members here, so the poll really represents a significantly smaller percentage than 75% -- more like 13.5% (assuming the other 900 aren't millionaires).

-- Rita

 

[W2R]

Heres a post to hopefully cheer those of us that are early in this process and getting depressed seeing that > 75% of our fellow posters exceed a million dollars in net worth - ours just climbed over $0 this year .

DD

I'd like to add my sincere congratulations to you, as well!! That's wonderful, and no small accomplishment.

 

[huskerblue]

I laugh when I hear that people do not want leave money to their children because they think they will blow it. Like a stranger in these charities will not blow it. I hate to see money blown or wasted. But if someone is going to blow money it would be a little better if they were related to you. At least they would get some funny out of it. When asked what I would do if I had children I thought would blow it. I said set it up to pay them x each month for the next 20 or 30 years. They might get some smarts in that much time and if they do not you limit the blow rate.

I said leave it in an "endowment", ie, untouchable principal FOREVER and a spendable amount each year to charity. And don't let the charity oversee it themselves, leave it at a community foundation and while you're at it, don't name specific charities unless that fits, name a field of interest that is your passion {mine is animal welfare [NOT animal rights aka PETA types]} and make the local charities in that field apply for the spendable amount each year and show what they will do with it each year and have their history be a factor on whether they'll get more in the future.

And for the part that you leave to your kids, leaving it in trust ain't a bad idea either. Also, most states have abolished the Rule Against Perpetuities so you can control your money from the grave forever {not my cup of tea but you can}.

The knee jerk reaction that the kids each get an equal amount of the entire estate never ceases to amaze me.

Ask yourself these questions next time you think of this issue:

-What is an appropriate inheritance for my kids? {how much gives them a boost but doesn't create sloth = ever worry about a family Paris Hilton?}
-Do I distribute to them equally or by perceived need {one kid a teacher, one a surgeon, who needs the money?}
-How and when do I want them to receive these dollars?
-Should I skip a generation? By the time a person normally dies, their kids have already made their way, maybe grandkids are a better fit.
-Are there areas of community for which you have a passion and should you leave a fund in the family name to distribute for those needs? Family members can even be involved in the decisions through a donor advised fund. A family philanthropic fund can be a terrific way to stay connected.

 

[Martha]

I hear ads all the time on the radio and TV, promising to provide a lump sum in exchange for an annuity or regular timed payment. (Their slogan is, "It's MY money and I want it NOW!!!")

That is my favorite commercial! It just cracks me up. People leaning out their windows yelling "It's MY money and I need it NOW!!!"

 

[Martha]

-What is an appropriate inheritance for my kids? {how much gives them a boost but doesn't create sloth = ever worry about a family Paris Hilton?}
-Do I distribute to them equally or by perceived need {one kid a teacher, one a surgeon, who needs the money?}
-How and when do I want them to receive these dollars?
-Should I skip a generation? By the time a person normally dies, their kids have already made their way, maybe grandkids are a better fit.

These are tough questions because leaving unequal amounts of money to children can also be viewed as a bad mark on a report card. I have seen situations where it was totally reasonable for one child to receive more, but the child who received less felt that he or she somehow was not loved or valued as much as the other child. On the other hand, communication may solve some of these issues. I know a person who had children with wide disparity in assets. He talked to his "rich" son about what to do about his will, hinting strongly that "poor" (but not unworthy) son should receive more. The rich son said but of course, I don't want or need anything. When he died there seemed to be no bad feelings.

 

[Marquette]

That funny I could retire on about 7% of that 11M amount or less.

I said that wouldn't even bring in my current salary using CaseInPoint's guidelines... and I don't have a fancy car or driver (nor do I have a house, much less a fancy one).

I think I need about $40k to live on. Only that high because I'm worried about health care costs.

 

[Moemg]

T

I plan to give to my daughter up to the $12,000 tax-free limit while I am alive, .

I started doing that for special occasions .( Her Master's , marriage and grandson's birth ) . Other years I spend money on a family trip .We've done several of these and always had a good time . I think it's important to spend not only money but time together while you can.

 

[growing_older]

Good planning on their part to avoid bad feelings. In my parents generation, there are all kinds of resentments about how inheritances were handled and siblings of that generation have pretty much formed up into to cliques which no longer talk to each other. My siblings and I hope to avoid the same rift, but it's going to be hard.

One sister lives at home and does huge amount of work caring for parents. She's dependent on them for housing, while they are dependent on her for everything day to day. She's also very jealous of "rich" sister.
One sister doing okay but with ne'er do well husband and slew of super cute grandkids
One sister married to multi-multi-millionaire but very prickly about getting her "fair" share. Always has some new way of figuring how her share isn't fair enough.
Me doing fine on my own and hope my parents spend it all or find some creative solution instead of dropping this hot potato on us.

Hard to see how this is going to play out without "stay-at-home" sister or "rich" sister feeling slighted or maybe turning the simmering rivalry into a feud.

 

[FIREd]

Good planning on their part to avoid bad feelings. In my parents generation, there are all kinds of resentments about how inheritances were handled and siblings of that generation have pretty much formed up into to cliques which no longer talk to each other. My siblings and I hope to avoid the same rift, but it's going to be hard.

One sister lives at home and does huge amount of work caring for parents. She's dependent on them for housing, while they are dependent on her for everything day to day. She's also very jealous of "rich" sister.
One sister doing okay but with ne'er do well husband and slew of super cute grandkids
One sister married to multi-multi-millionaire but very prickly about getting her "fair" share. Always has some new way of figuring how her share isn't fair enough.
Me doing fine on my own and hope my parents spend it all or find some creative solution instead of dropping this hot potato on us.

Hard to see how this is going to play out without "stay-at-home" sister or "rich" sister feeling slighted or maybe turning the simmering rivalry into a feud.

Tell me about inheritances spawning family feuds. My dad and his brother have been feuding over my grand father's estate ever since he died in 1988. They tried to keep it pretty civil as long as my grand mother was alive but since she died last December it has been open war.

 

[SarahW]

Just wondering how many millionaires are on this forum.
A yes or no will suffice unless you want to ellaborate.
I am talking about net worth.
Right now I am about 60k short of having a net worth of a million bucks. I hope I make it before I retire but the market is not cooperating.

Yes. And God Bless America.

 

[ladelfina]

DblDoc.. congratulations on being net positive!!!!!!!!!!!!!!!!!!!!!!!

That is cool 8). You are way ahead of the average person by not being in debt. Keep at it and best wishes.

 

[FANOFJESUS]

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

That withdrawal rate would be $220,000 a year, unless I am doing something wrong.

 

[NW-Bound]

That withdrawal rate would be $220,000 a year, unless I am doing something wrong.

For a working couple, each drawing a professional salary, it is not unusual to have that annual income. If the people who find themselves in this lucky position practice LBYM, they have no problem reaching FIRE a lot earlier than the rest of the population. But that is not always the case.

I subscribe to Money Magazine, where I find the real-life stories they publish each month most interesting. There was an issue where they interviewed and published FULL FINANCIAL DATA (income, budget, the works !) from 3 or 4 families in the same upper middle class neighborhood. The couple who had the highest net worth were the couple who had the lowest income in the group, and always envied the lifestyle of their free-spending neighbors. If I can find the issue date, and if there is interest, I may be able to point you to it.

By the way, if you are curious about how the rest of America spends and saves, Money Magazine may be available at your nearby public library (I got mine with frequent miles). I couldn't believe people have guts to allow their photos and whole financial statements be published, not like our "secretive" forum members here. (Well, except for Nords, whose personal info I ran across more and more as I perused old posts!)

Seriously, same as all of us, I wonder how I am doing with respect to the rest of America. As you will find out, for your income and age group, you might find yourself in the middle, if you compare yourself to this forum, or the Money Magazine readership. But the above people are already ahead of the rest of the country, since they show an interest in their financial affair. Believe me, if you are concerned and doing something for your future, you are way ahead of the spendthrifts out there.