Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$10M Liquid

you could generate 300 - 500k in income fairly easily off that

If you have large pensions then I could argue 3-5M, assuming you wouldn't need to tap into your liquid assets

What if you have $7 million ? We sold our middle class home after 30 years and have no interest in buying another. We have zero debt. We are 55 and the kids have no student loans and each have about $1.5 million We have a kind of a large pension. It’s kind of like a guessing game on how much to spend.

You really want DCUM to confirm that you're wealthy and tell you how much you're allowed to spend?

No. I want the person who told the person how much he could withdraw with $10 million what the numbers would be at 7 million. Just because I have money in the bank doesn’t mean I’m all that smart. I can’t figure it out.

Between 3 and 4%. If you can get away with less, even better. In your case, it would be between $210K and $280K. Talk to a CPA about structuring it properly so taxes are minimized.

Thank you for your help. My kids have relatively low paying jobs and leaving as much as we can will allow them to pay their own kids tuitions.

Historically you can spend 4% (adjusted for inflation every year) over a 25 year period if you are at least 50% in stocks.

But the future is unknown and many would recommend a lower withdrawal rate, especially if you are only invested in US stocks. If your goal is to leave a lot of money to your kids, they will likely end up with a ton of money if you go 100% stocks and keep your withdrawal rate below 3%.

And there is no shame in seeking out a fee only financial advisor if investing isn't your thing.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$10M Liquid

you could generate 300 - 500k in income fairly easily off that

If you have large pensions then I could argue 3-5M, assuming you wouldn't need to tap into your liquid assets

What if you have $7 million ? We sold our middle class home after 30 years and have no interest in buying another. We have zero debt. We are 55 and the kids have no student loans and each have about $1.5 million We have a kind of a large pension. It’s kind of like a guessing game on how much to spend.

You really want DCUM to confirm that you're wealthy and tell you how much you're allowed to spend?

No. I want the person who told the person how much he could withdraw with $10 million what the numbers would be at 7 million. Just because I have money in the bank doesn’t mean I’m all that smart. I can’t figure it out.

Between 3 and 4%. If you can get away with less, even better. In your case, it would be between $210K and $280K. Talk to a CPA about structuring it properly so taxes are minimized.

Thank you for your help. My kids have relatively low paying jobs and leaving as much as we can will allow them to pay their own kids tuitions.

Anonymous wrote:I used to think $5 million is enough to be considered wealthy. Then I realized wealthy people probably don’t consider that wealthy.

A young man I know well just told me that his parents are buying him a condo with a mortgage of $30k a month. He is a humble kid compared to his family assets. Money is basically never a hindrance for him. Constant travel and big name events.

There’s always someone with more. It’s more reasonable to ask what a person with median income/net worth would consider wealthy.

I used to think $5 million is enough to be considered wealthy. Then I realized wealthy people probably don’t consider that wealthy.

A young man I know well just told me that his parents are buying him a condo with a mortgage of $30k a month. He is a humble kid compared to his family assets. Money is basically never a hindrance for him. Constant travel and big name events.

Anonymous wrote:For what it's worth, we use a few services (banking, investments, etc.) that are geared toward high net worth individuals, and they pretty much all define high net worth as $10mm+ in liquid assets, with the general expectation that you will have real property and other long-term investments on top of that. I would say that would mean "wealthy" means $10mm liquid assets, maybe $15-20mm total net worth.

We have 40 million and have nowhere close to 10 million in liquid assets. Why would we have it sitting around, not making money? Maybe there is million that is liquid? We only have a mortgage on one of our houses for the tax right off. Other real estate and cars paid off.

Anonymous wrote:

Anonymous wrote:People are confusing near-term liquid net worth with net worth. The most common DMV $5M net worth is:

* $2.5M home with $1.5M mortgage ($1M)
* $2M retirement funds
* $500K 529
$ $1.5M brokerage

Only the $1.5M is accessible. Risk-free that throws off $60K per year. The mortgage payment on the above is $110K per year. This means you need an income of $300K to live, minimum. That's not wealthy. At $10M, you're throwing off $260K / year. Now you're wealthy.

I would love to see you explain to an actual middle class person how you aren’t actually wealthy because you bought a $2.5mil house with a big mortgage and hid $2.5mil in special tax advantaged savings accounts. You “only” have $1.5mil available without strings right now, so very middle class.

+1 lol

We have $250K in 529, $3.2mil in 401k, and $470K in cash/equity accounts. I would never say I am MC.

Anonymous wrote:People are confusing near-term liquid net worth with net worth. The most common DMV $5M net worth is:

* $2.5M home with $1.5M mortgage ($1M)
* $2M retirement funds
* $500K 529
$ $1.5M brokerage

Only the $1.5M is accessible. Risk-free that throws off $60K per year. The mortgage payment on the above is $110K per year. This means you need an income of $300K to live, minimum. That's not wealthy. At $10M, you're throwing off $260K / year. Now you're wealthy.

I would love to see you explain to an actual middle class person how you aren’t actually wealthy because you bought a $2.5mil house with a big mortgage and hid $2.5mil in special tax advantaged savings accounts. You “only” have $1.5mil available without strings right now, so very middle class.