Poll:Have $5 million invested assets?

[MichaelB]

For those who have $5+ million in investible assets, I would love to see a poll showing the breakdown of the sources of their wealth. I can think of some legitimate categories:

-Inheritance
-Lottery
-Salary or bonus from employment (senior mgmt, sales)
-Sale of business/dividend from one's own business
-Stock options/IPO
-Divorce settlement
-Judgment from a lawsuit
-Others?

I think that in general, it is virtually impossible for an average Joe to accumulate this kind of wealth without some combinations of the above.

luckydude

You could add investing. A family that began saving from day one and accumulated steadily over their entire working life would have substantial investment gain in their portfolio.

 

[REWahoo]

Viewing another thread, I became curious. This is a blind poll, so even if you do not want to discuss your situation, please vote.

I'm surprised you failed to include what should be a mandatory response option: NYDB

 

[robbridg]

Have $5 million invested assets?

not even close

 

[Masquernom]

Just read the book "The Millionaire Next Door". Couple of professors in Chicago did surveys of wealthy folks for a class. Luxury manufacturers found out about it, and have been paying them to continue the surveys. Finally they wrote that book about their results.

It's a very interesting book to read.

 

[ERD50]

...

Seriously, I think it shouldn't be too much of a stretch to think that the typical member of this forum is an outlier.

Precisely. However, I bet if we compared this forum to another personal finance forum I frequent, the numbers would be different - the difference between a place with many who can seriously think about ER and a place where many are wondering whether they'll ever be able to retire. Like you said... basketball players are tall.

OK, I guess I misread the intent behind your comment. I thought you were saying it was remarkable, I guess you are saying it is to be expected.

+1 I respect the people who have accumulated more, but enough is enough. I want to try a volunteer gig for a while.

I think you might be missing some scenarios.

A) What if a person has one (or more) kids/grand-kids with special needs, and wants to try to provide for them? That could take several million above/beyond their own needs.

B) Some people adopt kids with special needs. Consider it a 'private volunteer' situation, funded from their own private funds rather than going outside with their volunteer efforts.

C) Some people might hope to leave a large estate to charity - and they are better at earning money than volunteering. So their 'work' is really a volunteer effort, in a way. And they probably pay a significant amount of tax$, much of which goes to 'charity' type activities.

I obviously can't say how many of those who answered > $5M are in one of those categories, but it might be a part of it. Not everyone follows the same path.

-ERD50

 

[ERhoosier]

You could add investing. A family that began saving from day one and accumulated steadily over their entire working life would have substantial investment gain in their portfolio.

Agree. The bull market from 1982 through end of 1999 grew $1 invested into $21 (assuming reinvestment of dividends), or 18+%/yr. While some on this forum are too young to have participated fully in that bull run, and then avoided the subsequent dot-com bubble burst , no doubt that bull created many multi-millionaires from 'ordinary' blue-collar w#rkers who just LBYM'ed and invested their savings in well-diversified (SP index equivalent) mutual fund(s).

 

[rodi]

For those who have $5+ million in investible assets, I would love to see a poll showing the breakdown of the sources of their wealth. I can think of some legitimate categories:

-Inheritance
-Lottery
-Salary or bonus from employment (senior mgmt, sales)
-Sale of business/dividend from one's own business
-Stock options/IPO
-Divorce settlement
-Judgment from a lawsuit
-Others?

I think that in general, it is virtually impossible for an average Joe to accumulate this kind of wealth without some combinations of the above.

luckydude

I agree with the other commentor that said it would be hard to accumulate $25k without some combo of the above list. Especially since it includes salary!... Not to mention the catch all "others?"

 

[bUU]

I'll bet my janitor friend was happier and had more friends than the broke millionaire at his funeral.

The matter of happiness goes down a trail that evidently a lot of people find controversial (which is why the rest of this paragraph is rife with conditionals and equivocations). A recent review found that there was an inflection point regarding happiness that happened somewhere around a household income of $75k per year. A lot of folks vehemently attacked that prospect, but I found it to be a reasonable conclusion from reasonable premises supported by reasonable data -- not that that number "makes people happy" or that people with less money "aren't happy" at all, or any other extreme distortion of the meaning of what the corresponding research found. Rather, the research prompts me to value in the idea of pursuing a retirement plan that reliably assures an income stream that large. It's not enough to maintain our current lifestyle, but that research and other research like it has convinced me that there is a very good chance we could still be just as happy as we are now even if we reduced our lifestyle to that level (but I believes that the chances of that likely decrease sharply at lower levels of income, because the research indicated that, and I've not seen any compelling argument that injects some other number as a better number in that regard).

OK, I guess I misread the intent behind your comment. I thought you were saying it was remarkable, I guess you are saying it is to be expected.

It's both notable and to be expected. I had hoped that my earlier comment communicated that when it mentioned how it "underscores" (i.e., stresses, emphasizes) just how far off from the typical American the typical participant on this forum is. I'm sorry for any confusion in that regard.

 

[haha]

For those who have $5+ million in investible assets, I would love to see a poll showing the breakdown of the sources of their wealth. I can think of some legitimate categories:

-Inheritance
-Lottery
-Salary or bonus from employment (senior mgmt, sales)
-Sale of business/dividend from one's own business
-Stock options/IPO
-Divorce settlement
-Judgment from a lawsuit
-Others?

I think that in general, it is virtually impossible for an average Joe to accumulate this kind of wealth without some combinations of the above.

luckydude

Obviously it is impossible for the average Joe, particularly if you define average as "the norm". However America is full of doctors and lawyers and business executives who have this kind of portfolio without any of the things you mention above, other than salary and bonus. But to disallow that is like saying you can't get tall without growing. OK, but so what? Even a fortuitous stock investment can do it, and more.

Ha

 

[haha]

And....I'll bet my janitor friend was happier and had more friends than the broke millionaire at his funeral.

How will this bet be settled?

 

[FUEGO]

I'm still a few million short. A mere million ain't what it used to be, but it is a whole lot more than nothing.

 

[Spanky]

I'm still a few million short. A mere million ain't what it used to be, but it is a whole lot more than nothing.

Actually it's a lot more than that of most people in the world.

 

[harley]

Well, judging by the drop in percentage of the $5M+ crowd, obviously if you have more than $5M you spend a lot of time on this forum waiting to jump on things like this poll. It took a while for the poorer FIREees or the still employed to respond. Give it long enough and the percentage will probably drop closer to a match for the rest of society.

Personally, I'm hoping that at some point in my life my investable assets go over $5M, even though I'm drawing down. A nice decade of boundless growth could do it. Or just living long enough that my current balance goes over $5M, although worth much less due to inflation. Live long and prosper, that's what I always say,

 

[Jack_Pine]

Agree ---with above post.

For us 5M would be great, but if I had that I would have pulled the trigger before now.

The best we can do (and our goal) is 2.8-3M at 60/65 (me/DW) in three years. We are good with that.

 

[ratto]

Why? A higher number of people than you expected above $5M? That doesn't change your situation.

Of course not for that reason. I thought I would have a sleepless night because I was a little shocked by how far this target of retirement investment assets keeps going up. We only need maybe 2-3 mils. Any bit more would be nice.

This reminds me of what Herbert Hoover said: "About the time we can make the ends meet, somebody moves the ends.".

 

[ERD50]

Of course not for that reason. I thought I would have a sleepless night because I was a little shocked by how far this target of retirement investment assets keeps going up. We only need maybe 2-3 mils. Any bit more would be nice.

This reminds me of what Herbert Hoover said: "About the time we can make the ends meet, somebody moves the ends.".

But it isn't your target, so why should it affect your sleep? Confused.

-ERD50

 

[bUU]

Without regard to this specific target (because this specific target is about who's "rich", not who's financially secure), I think that, legitimately, when experts are saying X and you're doing <X, it is natural to consider what those others are saying, and consequently that could lead to you rethinking the matter.

 

[ERD50]

Without regard to this specific target (because this specific target is about who's "rich", not who's financially secure), I think that, legitimately, when experts are saying X and you're doing <X, it is natural to consider what those others are saying, and consequently that could lead to you rethinking the matter.

What 'experts' are saying anyone should obtain $5M? It was just a poll asking if you have it or not. And why would I care if someone else reported they had $X, if I have figured my plan will work with $Y?

I happen to know some very rich people. I know that one has an annual income that is often > $5M (it is public info). And he is LBYM (not hard at that level, but some manage to blow it). Doesn't affect me in the least. I know I would not put forth the effort he has to achieve that, probably don't have the skill set anyhow, so be it. I never once thought I need to save more because of what this guy has.

If one is a 'keep up with the Jones type', they will probably have trouble achieving FIRE, they will not be LBYM.

-ERD50

 

[RunningBum]

Without regard to this specific target (because this specific target is about who's "rich", not who's financially secure), I think that, legitimately, when experts are saying X and you're doing <X, it is natural to consider what those others are saying, and consequently that could lead to you rethinking the matter.

I agree that it's natural to react that way. My response is to overcome that reaction and realize that nothing in the poster's own situation has changed just because some others are throwing around higher numbers. Even if it was about a target retirement amount, others' goals shouldn't affect your own, unless you are looking into their breakdown and realize you haven't accounted for health care, replacement of cars, major irregular home maintenance expenses, etc., in your own target.

 

[bUU]

Without regard to this specific target (because this specific target is about who's "rich", not who's financially secure), I think that, legitimately, when experts are saying X and you're doing <X, it is natural to consider what those others are saying, and consequently that could lead to you rethinking the matter.

What 'experts' are saying anyone should obtain $5M?

.

I agree that it's natural to react that way. My response is to overcome that reaction and realize that nothing in the poster's own situation has changed just because some others are throwing around higher numbers.

My initial reaction was that it isn't even worth a second thought about what makes one "rich" - I focus just on financial independence, not affluence.

 

[Ed_The_Gypsy]

Doggies, boy,

If I had 5 mil, do you think I would be hanging out here? I would be the invisible man. My kids would have trouble finding me. As it is, I may wind up living in one of them's basement. My brother has offered me a place to put my trailer on his back lot. If I don't need water or sewer.

I need another 1.5 years in this butamous job to break even. As the song says, I been down so long it looks like up to me.

I can afford to retire 5 years after I'm dead.

Bipolar Ed,
outlier among outliers

 

[HFWR]

Million schmillion...

Signed,

HFWR, Thousandaire