Is ours a hidden existence?

[youbet]

And all complained that there were so few people out there that understood their choices.

So maybe they should just get on with their own lives without obcessing about what others think and without judging others.

 

[kcowan]

Regarding the number of millionaires, I would say there are 3 general categories:

1) inherited wealth
2) high earners/business owners (who are not necessarily big savers, but earning many hundreds of thousands per year will even make most big spenders a millionaire eventually)
3) LBYM types

I would say the vast majority of folks on this board are #3, but most of the millionaires in the country are #1 or #2...

I am in all three categories:
1) Inherited $300k in 2000
2) Made $200k/year as founder and CEO of a technology company (no stock returns)
3) Have always had nice trips, nice houses, and nice cars. But our cars are a 93 & 95. Since FIRE in 2002, we LBYM but we would not be FI if we had not sold our home and downsized to a rental penthouse.

But then I did not come to this board until FIRE so probably fall into category 3.

 

[Sarah in SC]

I talk LBYM with anyone who will listen, and have told our friends and family about our FIRE plans. It is surprising that no one asks about the mechanics of this, no one can picture themselves in our situation. Odd, that. I don't know if the instant gratification pull is so strong, or if they figure that they've got bills, kids, expenses, what-have-you, that we don't have.
Sarah

 

[dylar]

Around these parts $1MM is considered the (no pension) amount necessary to FIRE. According to the Wall Street Journal, that puts you in the top 8% of wealth in the country. So automatically at least 80% of people are just not going to relate to your situation. I would bet that most people who hang out here have had access to education and careers that the 92% of non-millionaires would never dream of having. Not to say that it can't be done, but it's certainly harder.

If you take the internet using percentage of that 8%, which will be small because most people will reach that number only when fairly old, and further reduce it to the non trust funded LBYM types, I wouldn't be surprised if this board doesn't capture just about everyone who's out there. Which I guess is the long way around to saying, yes it is a hidden existence because this existence or even the desire for this existence is so rare.

 

[macdaddy]

Nobody is happy about you being wealthy but you.

And your kids...

 

[teejayevans]

I am proud of the fact that I am gonna FIRE no later than age 55 - and tracking very well for it. People are floored that I can live "so well" and so cheaply....spread the word on LBYM! Might not always fall on deaf ears

Don't do this, if everybody LBYM then world would going into a massive depression
SPEND, people, SPEND!!
Tom

 

[TromboneAl]

Being a curmudgeon, I wrote an email to the author of that NY Times article:

Hi,

I'm hoping you can help me resolve something that often bothers me. Frequently I see an article like your "Millionaire Families" piece, which says something like this: "The number of American households with a net worth of $1 million or more, excluding their principal residence, grew to a record 8.9 million last year."

What it says may be true, but without adjusting for population changes or inflation, it doesn't mean anything. You state that "The number of millionaire families rose to 7.1 million in 1999," but since the population increased from 273 million to 300 million in that period, and a million in 1999 was equivalent to 1.21 million in 2006, there may well be a decrease in the per capita households with the same spending power.

So, my question is: Do journalists realize that they should adjust the numbers, but don't do it because readers won't understand? Do they fail to adjust because it would make the story boring?

I'm not just criticizing -- I would like to understand this.

Thanks,

Al

Here is his reply:

I use inflation adjusted numbers unless they are not appropriate.
The data in my article were all adjusted for inflation.




Groupings (top one percent) remain the same in relative size to the whole.


In my next book, FREE LUNCH: Who Is Getting Rich Off Government, out in the fall, I go into some detail on per capita increases.






Allbests,


David Cay Johnston
Reporter
The New York Times

 

[jav]

since I just recently found this forum, I would say hidden existence is an understatement. I've been happily reading old posts just becuase they suggest I'm not so odd after all! I've always been this way and I can relate to the difficulties of having dialogue with others that have such radically polar views on life and finances than my own.

If I could just chime in that I love my job, but still look forward to ER at 50 (ideally) but not later than at 55. I have a lot of interests and look forward to doing more of what I "want" as opposed to a life (however blessed and good) dedicated to doing what I "must", first.

 

[OKLibrarian]

I've been odd ever since I was in utero, and I've had a much happier, prosperous, resilient life than I would have if I had ever succumbed to societal "norms" . Frankly at this point I practically consider it a badge of honor. I'll also chime in with Jav that I love my job, but I want DH and I to RE while we still have life left in our years. I'd rather spend my time with 3 good friends than trying to evangelize to crowds who will "never get it", at least from me.

 

[sweetana3]

Check out the forum simpleliving.net

They discuss a wide variety of money topics dealing with less spending and early retirement. You will find people around the world living this simple frugal lifestyle. The forum is not a one size fits all but a place where many can share ideas. I love it.

Ana

 

[tryan]

People are funny .... when I FIRE'd at 43 (after a layoff), at first, there was genuine concern from co-workers. Everyone was asking everyone "what are you gonna do". Then when people realized I was falling back on the real estate (i.e. I covered my @ss for this very scenario) it either:

1) Disbelief - you'll look for a job when the severence runs out.

Or

2) Jealosy - deer in the head light stares and weird comments.

A few couple people sought me out to pick my brain about RE questions. But they were about as rare as the FIRE'd on this board.

 

[kcowan]

Going "Contra the herd" works in many aspects of life, especially investing. By definition, it tends to be a hidden existence because there is no personal benefit to proselytize and we are somewhat contrarian to begin with. 8)

 

[HFWR]

...

 

[jazz4cash]

Amazes me that household size and location (location, location) are not considered in these stats. I live near DC.......a $1MM net worth including a "very modest" 300k home leaves 700k x .04= 28k income based on SWR.........is that rich?........anywhere?..........not even close!

Besides household size and location, the other disconnect is that folks with "y" net worth generally have "z" income (not correlated) and they WILL have the pension, SS or whatever to supplement. I love this board, but maybe I'm outta my element here as I dont anticipate being eligible to FIRE.

 

[lets-retire]

Most of the people I work with wouldn't know a 401(k) if it hit them in the head. I asked one of the guys what he thought of the one at the company. He got a blank look and asked what a 401 was.

I also recently put in my resignation. I decided the small amount of money I was making was not worth the disruption to my life. Most of my co-workers have asked where I'm going. I get very odd looks when I tell them I don't need the job. What I don't tell them is I'll need a job within a year but not that job, now.