Excited: I have 1.3 million in assets, not inc. real estate!

[Anonymous]

I think I might have $1300 saved for retirement. Yay me. Not.

[Anonymous]

[Anonymous]

Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

[Anonymous]

Anonymous wrote:I want to say congratulations, but I don't really care. I think this post is in poor taste and 1.3 million is not a lot of money, especially considering all the scrimping and saving you feel so proud of. You must not be a savvy businessperson, but good luck with your coins.
However, I am not impressed with your lack of class or with your lack of business savvy. If you were 25 then this post would make more sense.

Not OP but you sound a little jealous!

[Anonymous]

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each property, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

[Anonymous]

How old are your kids? It gets harder the older they get. Also, if they are around other kids with money (private school) they want more stuff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each property, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

Are you including the retirement only money in the 1.3? That is not liquid. Mtg on vacation properties?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You didn't build that...

what does that even mean? what a random thing to say. she's talking about money and wealth, not construction.

http://en.wikipedia.org/wiki/You_didn't_build_that

Did OP mention having a business? What the hell is relevance?

POTUS is right -- you don't build your business alone since it's impossible to go to market without roads, rule of law, and other public goods.

Get the fuck over yourself and stop hating on America. America -- love it or leave it. I suggest you leave it.

Don't try to equate disdain for this sentiment with hatred of America. It was one of Obama's worst moments and reflective of a general hostility towards entrepreneurship and inclination to tax and redistribute wealth to the victim class. OP should feel happy he's managed to build some wealth despite such an anti-business environment.

OP here: first, I'm a "she". Second, I have a small business. Quite a bit of my non-real estate wealth is in retirement. A small business allows me to put more than $40k into a retirement acct. annually and then I do an IRA on top of that.

When you say "non-real estate" do you mean your primary home? 'cause rental real estate investment should count toward your networth..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I want to say congratulations, but I don't really care. I think this post is in poor taste and 1.3 million is not a lot of money, especially considering all the scrimping and saving you feel so proud of. You must not be a savvy businessperson, but good luck with your coins.
However, I am not impressed with your lack of class or with your lack of business savvy. If you were 25 then this post would make more sense.

Did I mention I took 7 years off (not working at all)? And I only work part time now. Remember my posting. I did not say these were all of our assets...I said this was MY assets in my name. This has nothing to do with what is in my husband's name or our joint names or any real estate (6 homes and a 1/6 interest in a rented commercial building that has been rented, making a profit, for 8 years). Again, I posted because I AM proud of myself. I would agree, working full time at 1.3 million combined is not a great deal of money, but to have it as non-real estate and being about 1/2 of our asset (non real estate portfolio), I gotta say I think it is pretty damn good. Oh, and you can delete the first 5 words of your post, as they aren't true!

I am amused. Don't confuse that with caring.

That is still not a lot. Even if it were doubled in just your name I would say the same. It is better than most people, but still not impressive or worth bragging about.

I would tell you why, but then I would be guilty of what I am accussing you off- being someone with little class.

But keep on posting and I will keep on chuckling. But you might want to spend less time bragging and more time around people who can upgrade your business skills and ways of thinking. Or just keep posting because we all need a laugh.

You sound like a dick (the responder not the OP)

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each property, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

It's very nice that you were thrifty, but I'm more curious on the income side of the equation. B/C around here, your real costs will be housing, housing, and oh yeah, housing. Maybe it could be private school, but that is just a proxy for buying cheaper housing and sending your kids to good school (in some cases).

Even if I saved every penny I earned since college, I would not have $1M. I could have made serious money, but didn't make it a priority till too late b/c I really didn't understand how expensive just living was (I have simple tastes and where I grew up a nice house with a pool in an ok school district was $50k -- didn't really understand the cost of metropolitan areas until got married). Always curious what people do that can be so lucrative you can stay home and return part-time, that is the dream.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You didn't build that...

what does that even mean? what a random thing to say. she's talking about money and wealth, not construction.

http://en.wikipedia.org/wiki/You_didn't_build_that

Did OP mention having a business? What the hell is relevance?

POTUS is right -- you don't build your business alone since it's impossible to go to market without roads, rule of law, and other public goods.

Get the fuck over yourself and stop hating on America. America -- love it or leave it. I suggest you leave it.

Don't try to equate disdain for this sentiment with hatred of America. It was one of Obama's worst moments and reflective of a general hostility towards entrepreneurship and inclination to tax and redistribute wealth to the victim class. OP should feel happy he's managed to build some wealth despite such an anti-business environment.

OP here: first, I'm a "she". Second, I have a small business. Quite a bit of my non-real estate wealth is in retirement. A small business allows me to put more than $40k into a retirement acct. annually and then I do an IRA on top of that.

When you say "non-real estate" do you mean your primary home? 'cause rental real estate investment should count toward your networth..

I did not count a single piece of real estate that we own, not because it isn't included in determining net worth (it is) but because that wasn't my personal goal. When I started this goal (to have 1 million in assets) I specifically excluded for myself all real estate).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each property, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

Are you including the retirement only money in the 1.3? That is not liquid. Mtg on vacation properties?

I am including retirement because that was "my" goal. I am not including any vacation properties or any real estate at all in the equation, again, because that was my personal goal ($1 million in bank/investment/retirement intangible ...aka $...property). So no, I didn't include the mortgages but I also didn't include the equity. All homes that we own (and the office building share) have equity in them...none are under water...and all would sell with a very large profit over what we owe, but again that wasn't my goal.)

[Anonymous]

Anonymous wrote:How old are your kids? It gets harder the older they get. Also, if they are around other kids with money (private school) they want more stuff.

Kids go to public school. Youngest is in kindergarten. Oldest is in fourth grade. My sister's kids DO go to private and have all the "latest and greatest." I've been asked for an iPhone or iPad by my oldest already after going to my sister's house. Ain't happening in our family.... As I said in one posting, I DO realize at some point my kid will "have to have" x or y (jeans, shoes, etc.) and I'll spring for that, but very occasionally.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each property, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

It's very nice that you were thrifty, but I'm more curious on the income side of the equation. B/C around here, your real costs will be housing, housing, and oh yeah, housing. Maybe it could be private school, but that is just a proxy for buying cheaper housing and sending your kids to good school (in some cases).

Even if I saved every penny I earned since college, I would not have $1M. I could have made serious money, but didn't make it a priority till too late b/c I really didn't understand how expensive just living was (I have simple tastes and where I grew up a nice house with a pool in an ok school district was $50k -- didn't really understand the cost of metropolitan areas until got married). Always curious what people do that can be so lucrative you can stay home and return part-time, that is the dream.

Yes, housing is exceedingly high...but we live in a moderate home in Oakton. As I mentioned, I started saving when I was 11 (birthday money) and have been like that every since. I worked as a kid (babysitting, helping someone in an office, etc.) and saved, saved, saved...just how I have always been. If I got a check from my mother in law for mother's day ($100, let's say) which said "massage on me" in the memo line, I'd instead put it into a college 529. As for my job, I'm an attorney by training, but I assist with conflict resolutions in the business setting.

[Anonymous]

Well OP, it sounds as though you are a high earner as well as a hard worker and very frugal. Not everyone wants to live like you do - many people would find it ludicrous to pass up a $5.99 shirt when they have a big bank balance - but they don't have to live your life and vice versa, so that's OK. It sounds as though your goals and values are aligned. Nice job.