At what net worth are you considered wealthy ?

[Anonymous]

Anonymous wrote:For all of you starting you can get X income from Y asset value -- what are your assumptions? I'm seeing implied 4% dividend yields and in some cases 5% -- where are you getting that yield?

Google "safe withdrawal rate"
It's not dividends.

[Anonymous]

For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have an <100K income and >10M in assets. We live frugally, since there is no spending of capital. I suggest you bear in mind that there are as many financial situations as there are people and that initial appearances can be deceiving.

So your wealth is tied to your primary residence? No rental property?

I replied earlier. We have Apple stock. No rental properties or real estate apart from the house we live in.

BS....sorry but at that income you wouldn't have been able to purchase enough stock long ago where it would have made that big of a difference...

25 years ago it was 25 cents a share. You could have invested $15-20k back then and be at $10 million now. This information is freely available. Some people are older than you are.

PP you're talking about. You are correct. My husband bought Apple when it was on the edge of bankruptcy. He himself was also poor, so he couldn't afford to invest a lot. Over the years, we've bought a little more every time there's been a dip. Hence the result today.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

I hear this a lot, what is the obsession with “liquid” assets outside of retirement accounts? If I have $5M in retirement accounts and my primary home that simply doesn’t count?

Asset managers are looking for people with large amounts outside of retirement accounts so that they can charge fees to manage that money. They are the ones obsessed with "liquid" - and they throw it around to make their marks feel special. If you have substantial amounts in retirement accounts, you can structure "early" withdrawals so as to not incur penalties.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

I hear this a lot, what is the obsession with “liquid” assets outside of retirement accounts? If I have $5M in retirement accounts and my primary home that simply doesn’t count?

Asset managers are looking for people with large amounts outside of retirement accounts so that they can charge fees to manage that money. They are the ones obsessed with "liquid" - and they throw it around to make their marks feel special. If you have substantial amounts in retirement accounts, you can structure "early" withdrawals so as to not incur penalties.

most know about 72Ts but IRAs would be liquid..a house is not.

[Anonymous]

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

I could do all that on less than half that number, easily.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

I hear this a lot, what is the obsession with “liquid” assets outside of retirement accounts? If I have $5M in retirement accounts and my primary home that simply doesn’t count?

Asset managers are looking for people with large amounts outside of retirement accounts so that they can charge fees to manage that money. They are the ones obsessed with "liquid" - and they throw it around to make their marks feel special. If you have substantial amounts in retirement accounts, you can structure "early" withdrawals so as to not incur penalties.

Do tell how one would go about withdrawing from a 401k without incurring penalties.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

I could do all that on less than half that number, easily.

You can do all of this out of pocket on $150k a year? (5M @ 3% withdrawal)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

I hear this a lot, what is the obsession with “liquid” assets outside of retirement accounts? If I have $5M in retirement accounts and my primary home that simply doesn’t count?

Asset managers are looking for people with large amounts outside of retirement accounts so that they can charge fees to manage that money. They are the ones obsessed with "liquid" - and they throw it around to make their marks feel special. If you have substantial amounts in retirement accounts, you can structure "early" withdrawals so as to not incur penalties.

Do tell how one would go about withdrawing from a 401k without incurring penalties.

https://www.investopedia.com/terms/r/rule72t.asp

[Anonymous]

Everyone has their own definition of wealthy. Surprised people call anything under 10M wealthy. I'd draw the line at 30M.

signed NW individual at 5.5M

[Anonymous]

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

If my financial advisor's goal is to have $10M, I would feel like I am getting screwed. You must work at one of those big box companies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

If my financial advisor's goal is to have $10M, I would feel like I am getting screwed. You must work at one of those big box companies.

You would be surprised. Groups throw a lot of money around to get reoccurring cash flow..it's the exit strategy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would say a liquid net worth of at least 1 million outside of retirement and housing. That amount of money gives a lot of flexibility.

I hear this a lot, what is the obsession with “liquid” assets outside of retirement accounts? If I have $5M in retirement accounts and my primary home that simply doesn’t count?

Not really. Because you're bankrolling Future You and whatever that brings. Things like health care and illness. That money doesn't get touched until retirement and then has to last.

FLUID, to me, means money that if you spend it, lose it, whatever, you can do it without fear or concern. It won't hurt you. Just inconvenience. Until you have the type of money that allows you to spend or use what you have without fear or concern, you're not wealthy. We are considered "wealthy" by a lot of posters on here and we're not. Our retirement is literally all we have. No generational wealth or safety net. We can just spend, buy, do whatever we want w/o regard to cost. We can't stop working. We do not consider ourselves wealthy in any way and are one serious medical diagnosis from financial ruin.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

If my financial advisor's goal is to have $10M, I would feel like I am getting screwed. You must work at one of those big box companies.

You would be surprised. Groups throw a lot of money around to get reoccurring cash flow..it's the exit strategy.

Ahh.... you sell annuities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For what its worth, I am a "younger" financial advisor and $10M is our "number." It would allow our lifestyle to remain the same even if our kids are younger, private school, etc.

Whenever we that number I am done. For me, there is no point in creating much more wealth. I do not care for multiple homes, fancy cars, etc. I just want to have the time with my wife and kids. Volunteer, Coach, etc

If my financial advisor's goal is to have $10M, I would feel like I am getting screwed. You must work at one of those big box companies.

You would be surprised. Groups throw a lot of money around to get reoccurring cash flow..it's the exit strategy.

Ahh.... you sell annuities.

Not at all..quite the opposite. I meant an acquiring firm would pay a lot for the reoccurring revenue my book generates (advisory fee only).