Reply to What’s the different between upper middle class and upper class?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Ha my sister married into a UC Bostonian family - you would never know it when you look at them.

The parents have a house in the NE for the summer and in the SE for the winter.

Will fly commercial but as they have gotten older prefer to fly on private jets.

Daughter married into finance and her HHI is around $10 million a year.

Son (my sisters husband) and my sister do well but are not as insanely wealthy as the daughter. Their HHI is around $1.5 million a year.

The family trust is around $20 million and nobody touches the principal it just gets passed down through the generations. [/quote]

This is a tiny family trust for this level of HHI. I created a $7m trust for my child a single mother making $300k/year[/quote]

Sorry, what are you saying?  how does one create a $7 million trust from earning $300k a year?  That's like 30x your gross pre-tax annual salary.[/quote]

You invest half your salary and use compounding interest over many years.  Do you not have a 401k?  This sounds like such an ignorant question.[/quote]

Let me try to make it simple to you. The point is you should make[b] it a goal NOT to be a salaried employee in your 40s. [/b]No, you can’t become a multi millionaire investing half your salary because taxes will be eating half your salary .
 It can only be achieved through ownership of assets worth of millions and millions of dollars . The only way to do it when you have little capital is to borrow and invest the borrowed money in assets that produce cashflow sufficient to service the loan and keep some extra cash to yourself. The only asset that allows it to  red beginners  is real estate. Of course, if you buy it at the right time and know how to create value with what you bought . And if you don’t know how to create value, you’ll go bankrupt

Once you get a cashflow, you will  diversify your assets with stocks moving away from RE. But 401k is the least profitable way of doing it .

I’m done teaching on this thread but a good book like Value Added RE by A.Grosso

[/quote]

I literally can’t get through the rest of your post because of the bolded, so clearly you have reading issues.

The PP you responded to (not me) has a “child” - so assume sub-18 - that have ~$7M.  She is currently working making $300k.  Let’s assume she’s in her early 40s. She can retire with $7M if she so chooses.  This still would not make her UC but she is definitely within the top 2% wealth.  And yes I’m UMC (educated elite private schools) and can do math.[/quote]

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