Are you Rich?

[Anonymous]

Anonymous wrote:Lawyer.
About 700k (recent jump)
2.7 net worth
House cost 450k (11 years ago)

And yes I think I’m rich

[Anonymous]

Anonymous wrote:Curious, for those stating net worth, are you subtracting any taxes that will be due upon liquidating retirement and deferred comp accounts and exercising stock options?

Our net worth is technically over $15M, but when calculating NW, my financial advisor likes to subtract estimated tax liabilities for our retirement, deferred comp and stock options accounts. That amounts to almost $3M, bringing our net worth down to a little over $12M.

Is this a typical way to calculate NW?

Heck no I don’t take taxes out of retirement accounts when calculating my NW. Where’s the fun in that?! Plus my retirement accounts have decades more to grow and all that tax deferred growth to compound. I mean, if you’re going to take taxes out of retirement accounts you might as well take inheritance taxes out of everything, capital gains tax to account for 1099 liability, etc.

[Anonymous]

Anonymous wrote:Curious, for those stating net worth, are you subtracting any taxes that will be due upon liquidating retirement and deferred comp accounts and exercising stock options?

Our net worth is technically over $15M, but when calculating NW, my financial advisor likes to subtract estimated tax liabilities for our retirement, deferred comp and stock options accounts. That amounts to almost $3M, bringing our net worth down to a little over $12M.

Is this a typical way to calculate NW?

We don't calculate NW for anything other than to see the broad strokes. Our FA runs models that include all future tax obligations. They definitely bump up when RMDs start. We are more concerned about the different possibilities for our lifetimes and our legacy to our heirs. But we are only half of where you are in terms of NW, so that might make a difference in how a FA would calculate. And we are still working.

[Anonymous]

This topic again.

100% pointless

[Anonymous]

Anonymous wrote:What’s your HHI and profession? What’s your net worth? How much did your house cost?

$250k / engineer

$4.9M

$500k, now about $800k

[Anonymous]

350k dual HHI, tech/education.

NW $1.3M

I feel rich because I have 30+ years ahead of me to work and compound and don’t need this money any time soon. Also we are frugal.

[Anonymous]

Anonymous wrote:What’s your HHI and profession? What’s your net worth? How much did your house cost?

HHI: $890K; marketing at investment firm and marketing at a tech company
NW: $5M
$1.3M in 2020; now $2M in 2025

[Anonymous]

Anonymous wrote:Curious, for those stating net worth, are you subtracting any taxes that will be due upon liquidating retirement and deferred comp accounts and exercising stock options?

Our net worth is technically over $15M, but when calculating NW, my financial advisor likes to subtract estimated tax liabilities for our retirement, deferred comp and stock options accounts. That amounts to almost $3M, bringing our net worth down to a little over $12M.

Is this a typical way to calculate NW?

You can think that way if you’d like, whatever, but that’s not how most financial advisors calculate net worth.

[Anonymous]

So, no matter HHI, everyone’s got a cool $5M. Got it!

[Anonymous]

Stunning how many people have huge NWs on very modest income. Is it all real estate? If so, who exactly is buying your real estate at those prices so you can cash out? No one under 40 can afford anything anymore.

[Anonymous]

Anonymous wrote:Stunning how many people have huge NWs on very modest income. Is it all real estate? If so, who exactly is buying your real estate at those prices so you can cash out? No one under 40 can afford anything anymore.

It’s inheritance for me.

[Anonymous]

$2.5M-$5M.
Retired/ finance
NW $40Mish
$3M. We put another $2M into it. 2010ish.

[Anonymous]

Mine is high - but got lucky with real estate. Spent $2m 10 years ago, built a new house for $1m and it is now worth $8m

[Anonymous]

Anonymous wrote:Stunning how many people have huge NWs on very modest income. Is it all real estate? If so, who exactly is buying your real estate at those prices so you can cash out? No one under 40 can afford anything anymore.

We were married at 23 and living on less than one of our incomes and investing the other income for the past 23 years. That, plus the stock market has been really profitable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m a former Biglaw partner who retired early a decade ago in my early 50s, haven’t done any kind of work since, and I consider myself rich even though I’d be three times richer had I continued working.

We currently have a net worth of just over $8 million. $2 million of that is real estate equity in our primary residence and second home. We still have a mortgage on our primary residence because the mortgage rate is ridiculous (under 2 percent).

The remaining $6 million plus is a little over on million in a brokerage account and the rest in retirement accounts. I elected to take social security early and between that another small source of income we bring in about $75k a year. We’re living quite well as a result while drawing down substantially less from our accounts than most experts recommend as the maximum, so our net work has been increasing each year.

I am definitely not rich by Biglaw standards or DCUM standards but it sure is nice not having to even think about what day of the week it is most mornings.

Americans are really rich. I am just amazed how quickly some can legally acquire such significant wealth.

We are children of poor Asian immigrants. DH and I studied hard and worked hard. We now have a $2m+ HHI, live in a $4m house and have a $15m net worth.

Compared to other parts of the world, one has so many more opportunities here. Even if you are not academically successful, one can achieve financial success in many ways.