Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s behind a paywall for me but this forum makes me feel poor. It’s hard to be excited about my 401(k) hitting $1 million when reading about people worrying about retiring with accounts worth $6 million+.

I do feel like people on here exaggerate though because some of the people I know in real life who act the richest also have enormous 1st and 2nd mortgages and HELOCs, etc. so it’s a facade.

This is a really interesting point. The one guy I know who drives the most expensive car and lives on the most expensive house and has the biggest beach house also has huge mortgages and is constantly moving money around HELOCs and personal loans to address cash flow throughout the year.

One of my grad school classmates is now a specialist surgeon making 7 figures. He has 2 divorces, 5 kids and now a new wife with a baby on the way. I don’t know that he’s much better off than others with a more modest income.

He’s definitely not, as he probably started making that big income very late, and clearly went crazy after he graduated. Physicians are some of the saddest and financially unsuccessful people out there.

I am a physician and that is the minority of physicians..most have it together very well--financially and personally...additionally doctors can live where they want not where they have to.

Anonymous wrote: If it feels out of touch with reality to you, then you're free to frequent other money boards, of which there are many, that cater more to the average person rather than high income and high net worth.

LOL, thanks for the permission! Since this board doesn't actually have a minimum buy-in and is open to all--even to the average person--I think I'll feel free to stay put.

Anonymous wrote:$2m in assets in our early 40s

That puts us in top 90% nationally (old people have a lot of assets), but only in top 85% in our peer group (40s, college educated, live with partner).

DC has a lot of people in that top 90% threshold, but probably relatively less than NYC or LA or SF in that top 98%. There's a thicker UMC in DC area than probably anywhere else in the country.

At least that's my operating theory.

DC had a lot of UMC, but not a lot of ultra wealthy like nyc and la does. I don’t consider us wealthy, but I’d be shocked if any of our friends have a HHi less than $300k.

I would expect most second generation Americans to be quite well off. There were so many opportunities over the years even with small amounts.
I'm nearing million and I started only in 2007 with many mistakes along the way.
My elementary DC has 250k growing in his UTMA account. Investments have been much bigger priority in our house than making more money at work and getting yet another degree.

"What I find interesting is how incredibly detached from reality this forum is."

Speak for yourself. I make $1M/year in my 40s. That's my reality. Others are worth billions. That's theirs. This board isn't detached from reality at all. What makes it great is that there are a lot of highly successful people willing to share info about managing money (and earning it) and I find it helpful and fascinating. I've found people I can relate to here. I'm certainly not someone calling someone with $2M at 40 a resident of Loserville, though. My liquid investable assets are $2.3M (total NW about $4M) which, as people here will quickly point out, is low relative to my income. In that way, I recognize that I'm behind where I should be given my earnings. I don't feel like a loser, but I do feel anxious, and I don't feel rich even though some might consider me so given my income. These aren't topics I discuss IRL with anyone because that would be obnoxious. So I come here. If it feels out of touch with reality to you, then you're free to frequent other money boards, of which there are many, that cater more to the average person rather than high income and high net worth.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$2m in assets in our early 40s

That puts us in top 90% nationally (old people have a lot of assets), but only in top 85% in our peer group (40s, college educated, live with partner).

DC has a lot of people in that top 90% threshold, but probably relatively less than NYC or LA or SF in that top 98%. There's a thicker UMC in DC area than probably anywhere else in the country.

At least that's my operating theory.

Same net worth, same age range... and who cares if we're "only" in the top 85 percent in our peer group? It's not a competition for who has the most. And even if it were, top 85 percent is just fine.

I find it interesting that for college educated couples in their 40s, 15% have a net worth of at least $2m. I would not have guessed that. I would think it would've been closer to only 10% of that peer group.

Real estate and stocks have had a great run since around 2009. I think that is why.

Anonymous wrote:It’s behind a paywall for me but this forum makes me feel poor. It’s hard to be excited about my 401(k) hitting $1 million when reading about people worrying about retiring with accounts worth $6 million+.

I do feel like people on here exaggerate though because some of the people I know in real life who act the richest also have enormous 1st and 2nd mortgages and HELOCs, etc. so it’s a facade.

Have you considered that people on DCUM are at different stages in life? A person who is 35 or 40 may feel "poor" when they have saved $400K.... but they are often comparing themselves to people who are much older (55 or 65 ) on DCUM who don't mention their age, but report that they have $5mil.! Time makes a LOT of difference! The amount of $$ we had when we were 35-40 was almost nothing. But, 20 yrs later -- with consistently saving --- our net worth is b/t $3mil-5mil. I never would have expected that as a 35 yr old. But, time and consistency make a huge difference!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s behind a paywall for me but this forum makes me feel poor. It’s hard to be excited about my 401(k) hitting $1 million when reading about people worrying about retiring with accounts worth $6 million+.

I do feel like people on here exaggerate though because some of the people I know in real life who act the richest also have enormous 1st and 2nd mortgages and HELOCs, etc. so it’s a facade.

This is a really interesting point. The one guy I know who drives the most expensive car and lives on the most expensive house and has the biggest beach house also has huge mortgages and is constantly moving money around HELOCs and personal loans to address cash flow throughout the year.

One of my grad school classmates is now a specialist surgeon making 7 figures. He has 2 divorces, 5 kids and now a new wife with a baby on the way. I don’t know that he’s much better off than others with a more modest income.

He’s definitely not, as he probably started making that big income very late, and clearly went crazy after he graduated. Physicians are some of the saddest and financially unsuccessful people out there.

My buddy is in Big Law and makes around $300-400K depending on his year and hours. He came to Big Law a bit late, around age 31.

Dude blows through money like crazy. He's 37, has barely dented his student loans, doesn't own property (always lived in HCOL places - HK, London, NYC). Has only gotten serious about retirement savings in the last two years. But he has tons of expensive watches, nice clothes, always going on international vacations (buys premium economy and upgrades to business), expensive Michelin star restaurants every two weeks, etc.

If he was married and raising kids, he'd probably save a lot more.

If he was married and raising kids, there are a ton of other costs that enter the picture (including a house)...and some of his current expenses just won't go away. I've lived on both sides of that. His situation--in some form or another--describes most people. Whatever disposable income people have, most find a way to spend it and more (credit). National statistics bear that out. What gets discussed on this board doesn't reflect the vast majority because of self-selection (people are interested in this topic so they come to this board), come here to brag, come here to exaggerate/lie, and/or come here to troll.

Anonymous wrote:We are 95% here and I don’t know… certainly doesn’t feel that way. I was very surprised.

That's around $4m. Congrats. What's your age?!?

Anonymous wrote:

Anonymous wrote:$2m in assets in our early 40s

That puts us in top 90% nationally (old people have a lot of assets), but only in top 85% in our peer group (40s, college educated, live with partner).

DC has a lot of people in that top 90% threshold, but probably relatively less than NYC or LA or SF in that top 98%. There's a thicker UMC in DC area than probably anywhere else in the country.

At least that's my operating theory.

Same net worth, same age range... and who cares if we're "only" in the top 85 percent in our peer group? It's not a competition for who has the most. And even if it were, top 85 percent is just fine.

I find it interesting that for college educated couples in their 40s, 15% have a net worth of at least $2m. I would not have guessed that. I would think it would've been closer to only 10% of that peer group.

We are 95% here and I don’t know… certainly doesn’t feel that way. I was very surprised.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s behind a paywall for me but this forum makes me feel poor. It’s hard to be excited about my 401(k) hitting $1 million when reading about people worrying about retiring with accounts worth $6 million+.

I do feel like people on here exaggerate though because some of the people I know in real life who act the richest also have enormous 1st and 2nd mortgages and HELOCs, etc. so it’s a facade.

This is a really interesting point. The one guy I know who drives the most expensive car and lives on the most expensive house and has the biggest beach house also has huge mortgages and is constantly moving money around HELOCs and personal loans to address cash flow throughout the year.

One of my grad school classmates is now a specialist surgeon making 7 figures. He has 2 divorces, 5 kids and now a new wife with a baby on the way. I don’t know that he’s much better off than others with a more modest income.

Sounds like a loser, with poor judgement.

Anonymous wrote:$2m in assets in our early 40s

That puts us in top 90% nationally (old people have a lot of assets), but only in top 85% in our peer group (40s, college educated, live with partner).

DC has a lot of people in that top 90% threshold, but probably relatively less than NYC or LA or SF in that top 98%. There's a thicker UMC in DC area than probably anywhere else in the country.

At least that's my operating theory.

Same net worth, same age range... and who cares if we're "only" in the top 85 percent in our peer group? It's not a competition for who has the most. And even if it were, top 85 percent is just fine.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s behind a paywall for me but this forum makes me feel poor. It’s hard to be excited about my 401(k) hitting $1 million when reading about people worrying about retiring with accounts worth $6 million+.

I do feel like people on here exaggerate though because some of the people I know in real life who act the richest also have enormous 1st and 2nd mortgages and HELOCs, etc. so it’s a facade.

This is a really interesting point. The one guy I know who drives the most expensive car and lives on the most expensive house and has the biggest beach house also has huge mortgages and is constantly moving money around HELOCs and personal loans to address cash flow throughout the year.

One of my grad school classmates is now a specialist surgeon making 7 figures. He has 2 divorces, 5 kids and now a new wife with a baby on the way. I don’t know that he’s much better off than others with a more modest income.

He’s definitely not, as he probably started making that big income very late, and clearly went crazy after he graduated. Physicians are some of the saddest and financially unsuccessful people out there.

My buddy is in Big Law and makes around $300-400K depending on his year and hours. He came to Big Law a bit late, around age 31.

Dude blows through money like crazy. He's 37, has barely dented his student loans, doesn't own property (always lived in HCOL places - HK, London, NYC). Has only gotten serious about retirement savings in the last two years. But he has tons of expensive watches, nice clothes, always going on international vacations (buys premium economy and upgrades to business), expensive Michelin star restaurants every two weeks, etc.

If he was married and raising kids, he'd probably save a lot more.

$2m in assets in our early 40s

That puts us in top 90% nationally (old people have a lot of assets), but only in top 85% in our peer group (40s, college educated, live with partner).

DC has a lot of people in that top 90% threshold, but probably relatively less than NYC or LA or SF in that top 98%. There's a thicker UMC in DC area than probably anywhere else in the country.

At least that's my operating theory.