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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I’m a mortgage underwriter and see a ton of broke rich people. We give them loans anyways. They just gotta keep running in that golden hampster wheel. [/quote]

This makes me feel a bit better. Can you give some details into this observation?[/quote]

Why does it make you feel better? If they buy a $2m house and pay it off after 30 years, at least they will have $2m which is a lot more than most Americans will have. [/quote]

Except most that are "on the hamster wheel" don't actually pay off the house, they keep refinancing over time, often taking out money each time.  So that only works if you actually pay off the mortgage.[/quote]

+1. Our big law partner friend and his SAH wife are very honest about being bad with money. They openly state that they “have no idea where it all goes” and if the partner lost his job they would have to “put a for sale sign in their front yard” the next day. We make less than half what they do and have at least double the NW. [/quote]

You believe everything people tell you, eh? No one would have any idea how much I actually have because I live more simply and frugally than many do, although still nicely enough. [/quote]

NP: when people live a luxury lifestyle and say that, yes I believe them.  Know way too many people like that.  Majority of people are not "live simply and frugally".

I Know people who paid 30% over list for a home (only way to get them at that point in CA--this was over $200K extra), exercised stock options in advance so they would be LT Cap Gains when sold.   Except the price went down and they were worthless.  And they owed over $500K in federal and state taxes but had nothing.  Lost the house and a lot more.  Extremely smart person, stupid with money and liked living large. It burned them and took them over a decade to recover, as well as moving to a lower COL area in order to live decently

SO yeah people do shit like that.  More than you think

[/quote]

Sure. Some do. But most don't. All these stories are anecdotal. People will also have different meanings for savings. Someone with an affluent lifestyle telling you they spend every penny and don't save anything may very well not be including that they do max out all the benefits and 401ks and 529s. And others may go through high expenditure years where they seemingly spend all their income but they also still have hundreds of Ks in investments and 401ks and equity in their house. The latter isn't uncommon for some people at certain ages when they have children while higher incomes haven't really started paying for itself. And, then, of course, are those who deliberately laugh off their expenditures specifically to downplay their real wealth. [/quote]

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