Reply to $7M vs $10M

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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.

[/quote]

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

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."

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This, exactly. [/quote]

$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.  
[/quote]

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.[/quote]

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.

[/quote]

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.  [/quote]

+1. And for the record, the poster that started this chain of discussion claimed to have $25M and one of the responded said that if you have $10M+, it's time to step back and the argument began.  :-)

Regardless of the parental situation, $25M is plenty of money to call it quits, especially if one leads a middle class life and has associated expectations, regardless of age.[/quote]

Not MC lifestyle, not family money, self made, paid our own way thru college and paid off student loans ourselves 
Sure we could call it quits at $25M, but there is the strong potential for a lot more in 3-5 years so that keeps us working. After that we will retire and happily spend our money, while leaving plenty for future generations to be well established.  For now, we travel as we much as we can (you can work from nearly anywhere for a few weeks at a time fairly easily) and enjoy life between our 3 homes.[/quote]

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