$7M vs $10M

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think I'd have any lifestyle change between those two numbers. At $25M I think I'd start incorporating a few stupid-rich things, like chartering planes for travel. But at those numbers I'd be retired, relaxed, and still focusing on preservation.

Really? I'm going to reach that net worth in a few years, the way my portfolio is going, and there's no way I'd charter a plane, unless to get somewhere a commercial route can't go. I just want a normal middle class life, and preserve wealth for my descendants.

If you are close to $25 million, the words normal middle class do not describe you

They do, and this what a lot of people don't understand. I have a middle class income. Income and assets can be VERY different things. I happen to have lucked out in my stock portfolio, but that doesn't make my job high-earning. And since I'm still quite young, there is no way I'm quitting my life to gobble up my capital. I have kids to put through college, parents to look out for and spending on luxury just isn't my thing. Maybe I will re-evaluate when my kids are finished with college. But certainly not now.

I think you some of you, who probably all out-earn me, just don't quite understand what it's like to actually have 10M+ in a stock portfolio in your early 40s. It's not "Woohoo! Free money! Let's spend it". It's "Hmm, OK. My oldest's college is 85K a year. My father has dementia. Let's wait and see."

You seem to have gotten lucky in the market, but don’t understand what you have. $10M should generate $500k to $1 million annually in return. Can you not live on that? Sounds like $250k or less would be fine for your lifestyle. Run some numbers bro; you’re overthinking it.

Best practice for UHNW individuals is 2-3% annual withdrawal to not touch your principal and to continue allowing your money to grow to account for future inflation and higher spending down the road. Then you have to account dividend taxes and/or capital gains taxes. I agree with PP, when you have this much money and are still young, it's definitely not "free money! let's spend it!" unless you want to end up with nothing. People get into trouble thinking the market is going to return 5-10% every year and relying on that type of withdrawal, not to mention uncertainty with the future tax code.

+1

$10M at age 40 when you still have 40-50 years for you and your spouse to live is really not to continue living the lifestyle they want and to provide for family as they desire (ie college, assisted living/nursing care for parents, same care for themselves if needed, etc). You'd be looking at $30K/year alone just for medical insurance premiums until you hit 65, add in another $5-10K for actual medical expenses per year. Why do that when he likely has decent medical insurance for much cheaper thru work? Let the $10M grow and live off his salary/spouse's salary at least until the kids are out of college/launched. If college costs are a part of that $10M, then they will likely need $400-500K minimum for 2 kids. Sure kids could go to whatever state school gives them the best deal, but he has the money to afford $85K/year if he continues to work, so why wouldn't he want to offer that to his kids? He wants to help elderly/aging parents and provide them excellent care---he has the money to do that, but it would drain quickly if he is not working. Seems like a no-brainer to keep working until kids are at least on their own and no longer on your books

[Anonymous]

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think I'd have any lifestyle change between those two numbers. At $25M I think I'd start incorporating a few stupid-rich things, like chartering planes for travel. But at those numbers I'd be retired, relaxed, and still focusing on preservation.

Really? I'm going to reach that net worth in a few years, the way my portfolio is going, and there's no way I'd charter a plane, unless to get somewhere a commercial route can't go. I just want a normal middle class life, and preserve wealth for my descendants.

If you are close to $25 million, the words normal middle class do not describe you

They do, and this what a lot of people don't understand. I have a middle class income. Income and assets can be VERY different things. I happen to have lucked out in my stock portfolio, but that doesn't make my job high-earning. And since I'm still quite young, there is no way I'm quitting my life to gobble up my capital. I have kids to put through college, parents to look out for and spending on luxury just isn't my thing. Maybe I will re-evaluate when my kids are finished with college. But certainly not now.

I think you some of you, who probably all out-earn me, just don't quite understand what it's like to actually have 10M+ in a stock portfolio in your early 40s. It's not "Woohoo! Free money! Let's spend it". It's "Hmm, OK. My oldest's college is 85K a year. My father has dementia. Let's wait and see."

This, exactly.

+1

$10M in the bank when you are 60 is very different than when you are 40, still have kids at home and college to consider, aging parents who might need assistance, etc. $500K of that could easily go to the kid's college.

MOST people with 10m in their 40s won't have to support their parents and no one is telling you to send you kid to Georgetown. Send them to Maryland if you're worried about college costs.

If you need to drop 500k as a one-off, who cares, that is 5% of your liquid portfolio, which will be a drop in the bucket long term assuming you invest the money.

How the hell do you know that "MOST people with 10m in their 40s wont have to support their parents"? Are you implying that most people only have the $10M from family wealth? If so, you are sorely mistaken. Everyone I know with that much in their 40s is self made, and I know over 10 people like that.

Sure you can send them to state school for $40K per year, but this person would prefer to use their money to send them to whatever school the kids wants to attend and that includes those costing $85K+/year. Obviously he is an excellent money manager, and has managed to save and amass $10M in early 40s, so he knows what he is doing.

Your attitude that dropping 5% of your portfolio (he never said it is liquid---most likely it's not, it's in the market or he wouldn't have it at $10M if it was sitting in a bank earning 1-2% the past decade until interest rates just soared) is exactly why so many don't have money---you would blow thru it without a care.

This family is set for life, but will be even better off if they manage it well and continue working for another decade/until kids are out of college.

Your attitude does explain why so many have so little, the second you would get any money you'd blow thru it, thinking it's just 10% I can spend it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think I'd have any lifestyle change between those two numbers. At $25M I think I'd start incorporating a few stupid-rich things, like chartering planes for travel. But at those numbers I'd be retired, relaxed, and still focusing on preservation.

Really? I'm going to reach that net worth in a few years, the way my portfolio is going, and there's no way I'd charter a plane, unless to get somewhere a commercial route can't go. I just want a normal middle class life, and preserve wealth for my descendants.

If you are close to $25 million, the words normal middle class do not describe you

They do, and this what a lot of people don't understand. I have a middle class income. Income and assets can be VERY different things. I happen to have lucked out in my stock portfolio, but that doesn't make my job high-earning. And since I'm still quite young, there is no way I'm quitting my life to gobble up my capital. I have kids to put through college, parents to look out for and spending on luxury just isn't my thing. Maybe I will re-evaluate when my kids are finished with college. But certainly not now.

I think you some of you, who probably all out-earn me, just don't quite understand what it's like to actually have 10M+ in a stock portfolio in your early 40s. It's not "Woohoo! Free money! Let's spend it". It's "Hmm, OK. My oldest's college is 85K a year. My father has dementia. Let's wait and see."

I get what you are saying, but normal middle class can’t fund $85000 a year for their child’s college.

Because normal people in the USA don't really save. He's just told you he got here thru average income and saving and some luck with stocks---so unless he means stock options (a totally different story), then he got here thru savings, living within a budget and more savings and a little luck with picking the right stocks.
There are middle class people who have saved for their kids education and pay for the elite schools. They chose to make college savings a priority.

Correct, except I'm a woman.

Oops, my bad. Even better

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

I post while I'm doing all of those things.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

I post while I'm doing all of those things.

For the record, I have enjoyed your posts and learn from them. Ignore the hater.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

Well, your idea of living large is sitting around and trolling on DCUM. javascript:emoticon('');

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

For every post like yours I get another thanking me for my perspective.

I can post anywhere and everywhere and as much or as little as I like. You, in turn, are equally free to ignore everything I write.

Bottom line: I don’t have to explain or justify myself to you.

You go back to stealing from your employer now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

For every post like yours I get another thanking me for my perspective.

I can post anywhere and everywhere and as much or as little as I like. You, in turn, are equally free to ignore everything I write.

Bottom line: I don’t have to explain or justify myself to you.

You go back to stealing from your employer now.

I have never responded to you in the many, many times I've seen your posts until you started demanding gratitude, bud.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think I'd have any lifestyle change between those two numbers. At $25M I think I'd start incorporating a few stupid-rich things, like chartering planes for travel. But at those numbers I'd be retired, relaxed, and still focusing on preservation.

Really? I'm going to reach that net worth in a few years, the way my portfolio is going, and there's no way I'd charter a plane, unless to get somewhere a commercial route can't go. I just want a normal middle class life, and preserve wealth for my descendants.

If you are close to $25 million, the words normal middle class do not describe you

They do, and this what a lot of people don't understand. I have a middle class income. Income and assets can be VERY different things. I happen to have lucked out in my stock portfolio, but that doesn't make my job high-earning. And since I'm still quite young, there is no way I'm quitting my life to gobble up my capital. I have kids to put through college, parents to look out for and spending on luxury just isn't my thing. Maybe I will re-evaluate when my kids are finished with college. But certainly not now.

I think you some of you, who probably all out-earn me, just don't quite understand what it's like to actually have 10M+ in a stock portfolio in your early 40s. It's not "Woohoo! Free money! Let's spend it". It's "Hmm, OK. My oldest's college is 85K a year. My father has dementia. Let's wait and see."

This, exactly.

+1

$10M in the bank when you are 60 is very different than when you are 40, still have kids at home and college to consider, aging parents who might need assistance, etc. $500K of that could easily go to the kid's college.

MOST people with 10m in their 40s won't have to support their parents and no one is telling you to send you kid to Georgetown. Send them to Maryland if you're worried about college costs.

If you need to drop 500k as a one-off, who cares, that is 5% of your liquid portfolio, which will be a drop in the bucket long term assuming you invest the money.

How the hell do you know that "MOST people with 10m in their 40s wont have to support their parents"? Are you implying that most people only have the $10M from family wealth? If so, you are sorely mistaken. Everyone I know with that much in their 40s is self made, and I know over 10 people like that.

Sure you can send them to state school for $40K per year, but this person would prefer to use their money to send them to whatever school the kids wants to attend and that includes those costing $85K+/year. Obviously he is an excellent money manager, and has managed to save and amass $10M in early 40s, so he knows what he is doing.

Your attitude that dropping 5% of your portfolio (he never said it is liquid---most likely it's not, it's in the market or he wouldn't have it at $10M if it was sitting in a bank earning 1-2% the past decade until interest rates just soared) is exactly why so many don't have money---you would blow thru it without a care.

This family is set for life, but will be even better off if they manage it well and continue working for another decade/until kids are out of college.

Your attitude does explain why so many have so little, the second you would get any money you'd blow thru it, thinking it's just 10% I can spend it.

stocks are liquid... i can have any amount of money in my checking account in 2 business days.

who ever said it was in cash?

I am a professional money manager with a similar net worth in my 40s. and YES, MOST people in their 40s with a 10M net worth had a leg up from mom and dad -- usually through college and grad school paid for. If your parents could afford to pay your way through college, odds are they will be just fine in retirement. Again...most. I see this in practice, you read about this on DCUM.

Taking a measly 5% withdrawal to fund college is not a huge deal with proper planning. Additionally, MOST (if you can grasp that word) with $10M have college costs covered and do NOT include those funds in their net worth or retirement planning.

Some people need Xanax when it comes to money management.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

I post while I'm doing all of those things.

For the record, I have enjoyed your posts and learn from them. Ignore the hater.

Thank you very much. For the record, that wasn’t me. Although I, too, post while doing all of those things ha ha.

More often than not, though, I’m actually posting poolside! l😆

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I retired at 53 with a 4.5 million net worth. Nine years later my net worth is 7.5 million and I’m living large. But hey you all keep telling yourselves that ain’t enough money. It’s cool - you’ll live forever I’m sure. Have fun with all your money sitting around in diapers in your 80s and 90s!

You post this in SO. MANY.THREADS. You sound insufferable, no matter your nw.

You’d only know how often I posted if you were on all of those same threads. So without posters like me, what would you be reading? You should be grateful, not scornful.

DP but there's a difference between reading threads and dominating them. You definitely like to share your testimony but it's not really something for the rest of us to be grateful for to see the same guy make the same point with the same numbers down to the decimal point in every subforum.

And it's a little funny that you've included a dig here about how people are wasting their lives working when they could be smart like you and retire to . . . post 8 hours a day on DCUM. We're here because we're wasting time at work. Why aren't you out traveling or gardening or sailing a boat or something?

For every post like yours I get another thanking me for my perspective.

I can post anywhere and everywhere and as much or as little as I like. You, in turn, are equally free to ignore everything I write.

Bottom line: I don’t have to explain or justify myself to you.

You go back to stealing from your employer now.

I have never responded to you in the many, many times I've seen your posts until you started demanding gratitude, bud.

Ha ha ok. Why don’t you go back to not responding then. I’m sure you’ll feel better. I’m sorry you’re having a bad day at work!

[Anonymous]

I have NW of $10+m although $3.5m is tied up in 2 houses which have increased substantially in value in recent years. And no plans to sell either of them, so our non house NW is closer to $7m. I expect to get about $1.5m in inheritance at some point, but not relying on that. And we are still saving a lot. The only thing that really changes is that I am more willing to spend current income since I am pretty comfortable with our financial position from a future retirement perspective. So I don't sweat travel expenses or home improvement investments the way I once did.

[Anonymous]

Anonymous wrote:I have NW of $10+m although $3.5m is tied up in 2 houses which have increased substantially in value in recent years. And no plans to sell either of them, so our non house NW is closer to $7m. I expect to get about $1.5m in inheritance at some point, but not relying on that. And we are still saving a lot. The only thing that really changes is that I am more willing to spend current income since I am pretty comfortable with our financial position from a future retirement perspective. So I don't sweat travel expenses or home improvement investments the way I once did.

I am the poster who the other guy hates.

I’d still consider one of those two houses as part of your portfolio even if you never plan on selling, because the fact is that if you had to or wanted to you could. You only need one house to live in, not two.