Six levels of wealth - how are you doing?

[brett]

Seems like a pointless read to me. Not at all into comparisions of wealth/net worth or spending.

They have zero impact on our life, our happiness, or our personal financials.

Never bother with any of them because they have zero benefit to me. Nor do I need the potential ego boost.

 

[surprising]

I have a neighbor who is solidly in 5+ : own small business he built from nothing, well decorated homes, always getting uber eats or eating out, own multiple homes, constant vacationing, money is no object at all. He grew up in a very wealthy household so he was around wealth his entire life, is now in his 60s and his business is doing well and he has no intention to retire yet, but could.

I am in level 5 in wealth only, retired at 51, live frugally. Grew up poor so have a unhealthy relationship with money. I am not sure if I can ever get to the money is no object mentality, but sure sounds nice.

 

[ls99]

To paraphrase Col. Potter from MASH.
Don't give a horse's patoot about levels.

 

[523HRR]

I would think that the top 1% of the top 1% (ie. 01%) would have net worth closer to $100-250M. 15M is closer to the top 1%

Agree with Toocold. The top 0.01% is not what is described in Level 6.

 

[EarlyandLate]

View attachment 56366

We're just not that kind of retiree.
Medical Care =Simple Medicare, no concierge for us.
Nutrition = No chef and no food delivery. We cook at home 99% of the time.
Housing = Simple tract home that could use some updating.
Clothing = Better dressed than most homeless. But, yeah... understated for sure.
Social Life = A few friends, and fewer fundraisers.
Vacations/Travel = OK, got me there.
Legacy Planning = No trusts, no foundations and what is a donor advised fund?

Exactly! These lifestyle choices have little to do with wealth. I'll bet that many people who have/use these things struggle to pay for them. I have an Ivy League PhD and way more money than I'll ever know what to do with, yet nothing on that list remotely appeals to me. (With the possible exception of travel although I've done very little of that in recent years.)

 

[Diogenes]

I'm not sure how to answer that, but we had our kids late in life and could afford to send them to private school up through grade 8 and then we actually moved to a different city to insure we got the kids into the best school in our region of the state.

Kid's education was the one thing where we "lived" like a 6 but had the finances of a 4 or 5. Everything else, we look more like 3's or 4's and, as always, YMMV.

The gist is that having a family entails obligation to support the family at some modicum of comfort. A house or a decent apartment, with air conditioning, clean water and a safe place to sleep. A single person with no dependents could live in a barn in the forest, showing a the gym, and on cold winter nights sleep on an air mattress in his office. Such shortcuts mean a much lower housing cost and hence much more aggressive savings. Do this occasionally, and it's nugatory. Do this for decades, and it adds up. One becomes a level-6 investor living a level-0 life. But again, this isn't possible with a wife and children.

 

[HappilyRetired]

I told my husband that according to the Six Levels of Wealth, we should have a private chef. We both laughed, and thought it was ridiculous....NOT that I wouldn't like to have a private chef, but jeepers, that just will never be on our list of musts. We are just so grateful to not be stressed out financially while in retirement, and all we want to do is thrive with our kids and grands....

 

[Sunset]

I retired from cycling due to time constraints. I still have some really nice bikes hanging in the garage (classic steel, Colnago, Masi, Steelman, all Campy) but the ramp-up time to get the neck and butt in shape is a blocker for me now. I also have a nice steel fixie (no freewheel) that I used for interval training. My groups are pretty old and not high-tech but they are beautiful works of art at the same time. I think I just need to replace tires, regrease and relube and they should all be ready to go. The wheels are always true and I suspect they haven't gone out of true. I built half of them myself. Luckily I held on to my repair stand, truing stand, tools and parts so I should be good to go. I have 3 bib shorts in the closet that should still be serviceable. Definitely not as strong as I used to be so climbing Highway 9 might be a bit challenging but it is on my to do list to get back on the bike.

You might want to look at them carefully, I have 2 bikes hanging that haven't been used for ~20 yrs.
One is fine, the other has light rust spots all over the frame, couldn't see it until I took them down.

 

[Dreamer]

We are levels 3 and 4. I have no desire for some of the things listed in 5 and 6. I would like to get comfortable with upgrading airplane travel. We are going to Ireland in coach. Both of our children told us to upgrade. Maybe next year, I will be able to do it.

DH and I both started out life at level 1 or lower.

 

[Pointby2]

The listing piqued my interest and I did a little checking on concierge medicine. Apparently it is possible to use a concierge service AND medicare at the same time. The rates aren't prohibitive either. Like $1,500 - 3,000 a year for things like home visits, same day appointments, telemedicine, nutrition consultation and fitness evaluations.

 

[FLSUnFIRE]

Some of the Vet bills I've seen on the Forum would suggest "level 5." We spent a lot on our animals at the Vet, but the prices seem to have gone even higher (outrageously so) since our last pet passed.

Definitely high here, if the Vets will even accept new patients. I've started doing some limited house/pet sitting and that adds up -its fun but it's not cheap to get me to work these days.... getting paid to play with dogs is pretty awesome though! Part of me would like to get another dog but the expense and impact to flexibility keep that thought in check.

 

[marko]

The listing piqued my interest and I did a little checking on concierge medicine. Apparently it is possible to use a concierge service AND medicare at the same time. The rates aren't prohibitive either. Like $1,500 - 3,000 a year for things like home visits, same day appointments, telemedicine, nutrition consultation and fitness evaluations.

Yes. I have a concierge PCP and the cost is about $3500. Medicare or not, they don't take insurance at all.

He told me that it's more cost effective because he doesn't need to hire 1 or 2 people to chase and battle insurance around all day.

 

[Winemaker]

We're border line 5-6, I was educated as an mining engineer and worked in a coal mine, DW was a teacher in one of the lowest paying school districts in the county. Seeing what one spends on cycling, I don't mind spending what I do on grapes for winemaking. I still wear some of my 30 year old tee shirts ( I have enough tees that they're probably on a 60+ day cycle.)

I wouldn't be caught dead in a pair of those cycling shorts, but I do wear hiking pants that the legs zipper and become shorts.

 

[Car-Guy]

I don't track such stuff anymore but I'm sure I'm spending at least 3 to 4 times on my hobbies than I do on everything else on an annual basis. I suspect that will continue another few years until I just don't have the energy to continue at that level. Not sure what I'll do with my money at that point.

 

[MrBojangles]

The listing piqued my interest and I did a little checking on concierge medicine. Apparently it is possible to use a concierge service AND medicare at the same time. The rates aren't prohibitive either. Like $1,500 - 3,000 a year for things like home visits, same day appointments, telemedicine, nutrition consultation and fitness evaluations.

What exactly is concierge medicine? I’ve never heard of it before.

 

[RetiredHappy]

The listing piqued my interest and I did a little checking on concierge medicine. Apparently it is possible to use a concierge service AND medicare at the same time. The rates aren't prohibitive either. Like $1,500 - 3,000 a year for things like home visits, same day appointments, telemedicine, nutrition consultation and fitness evaluations.

We don't get home visits with our concierge doctor but we get to text and email him 24x7.

 

[RetiredHappy]

What exactly is concierge medicine? I’ve never heard of it before.

You pay an annual fee directly to the provider, typically a PCP. A good concierge doctor is worth every cent, with connections to the top specialists. They spend alot of time in networking with the top specialists, so that you can get to see them quickly as needed. You also text, email 24x7, and get same day appointment to see your concierge doctor.

 

[MrBojangles]

You pay an annual fee directly to the provider, typically a PCP. A good concierge doctor is worth every cent, with connections to the top specialists. They spend alot of time in networking with the top specialists, so that you can get to see them quickly as needed. You also text, email 24x7, and get same day appointment to see your concierge doctor.

I never heard of such a thing. I seem to get good care quickly without such a service and the specialists in the area are certainly qualified. Something I don’t need to pay for, but, then again, I’m near a major city.

 

[Out of Steam]

The listing piqued my interest and I did a little checking on concierge medicine. Apparently it is possible to use a concierge service AND medicare at the same time. The rates aren't prohibitive either. Like $1,500 - 3,000 a year for things like home visits, same day appointments, telemedicine, nutrition consultation and fitness evaluations.

The one my wife would use is about $2500 a year.

 

[ncbill]

Seems like the author of the video thinks everyone progresses steadily up the hedonic treadmill as their income/assets increase.

But those of us here understand not doing that is what lets one retire early.

And then choose to spend on what we value.

Which is probably not going to be private chefs or designer clothing.

 

[socca]

Level 6 - Income - Vast array of public and private investments

Some folks posting on reddit r/fatfire claim to use the Boglehead three-fund approach. So much for a "vast array"...

 

[MrBojangles]

Some of the Vet bills I've seen on the Forum would suggest "level 5." We spent a lot on our animals at the Vet, but the prices seem to have gone even higher (outrageously so) since our last pet passed.

Here’s what your vet earns:

https://money.usnews.com/careers/best-jobs/veterinarian/salary

It requires generally 8 years of post high school education, student loan debt levels are high, and it’s a stressful profession. It’s not uncommon for a newly minted vet school graduate to have several hundred thousand in student loan debt, and some have over 500k in debt even several years after graduation.

Pay was abysmal and only became respectable during COVID.

There are a great number of ways to earn greater income with less schooling, less debt, and a less stressful existence as well.

Most veterinary clinics are corporate owned these days and vets usually are compensated 20 to 24% of the bill you pay.

 

[imjustawarrior]

Some folks posting on reddit r/fatfire claim to use the Boglehead three-fund approach. So much for a "vast array"...

I am a Boglehead 3 fund investor. I'm not level 6, but if I ever hit level 6, I will still be a Boglehead 3 fund investor.

Keep in mind that one being a level 6 does not mean one makes wiser decisions on investing and spending. Some do and some don't.

 

[Flyfish1]

I don't track such stuff anymore but I'm sure I'm spending at least 3 to 4 times on my hobbies than I do on everything else on an annual basis.

Yep - thank goodness I don't track what I spend on my hobbies it would be ugly. Fly fishing, conventional tackle fishing, boating and woodworking it adds up fast. You won't believe what a good fly rod and reel cost...crazy..but they do last a long time.

 

[Flyfish1]

Most veterinary clinics are corporate owned these days and vets usually are compensated 20 to 24% of the bill you pay.

That's quite sad. I'm sure there are some vets that are doing better than what's quoted in the article. When I was working the " average salary " for my profession that was published was far below what we as partners earned. In part because we were an independent specialty practice and we ran it as a true partnership with buy ins , etc..