Anonymous wrote:

Anonymous wrote:I think that it's weird that so many think a paid off home represents a lifetime of security. A home is just a place to live. And if it is worth enough to sustain your lifestyle it is also likely to be a money pit.

I don't think anyone thinks a paid off home represents "a lifetime of security." It's a major financial advantage. Not having to pay a mortgage every month, and not having to pay interest specifically, allows you to save/invest money much more quickly and easily. That allows you to build wealth much faster.

I have no idea why you think a house has to be a money pit -- I could live very happily and comfortably in a 1-1.5m home in the DC area. I don't want a big home and definitely don't want a home that requires tons of maintenance, lots of staff, etc. It's not worth it, I don't care about that lifestyle at all. I want someone to come clean my house once a week and I want to be able to afford any maintenance or that comes up including big ticket items like a roof or something. $5 gets you that no problem.

Not sure if you said this but is just a few posts up: "Agree. And we certainly aren’t staying here! Our paid off home here will buy us whatever we need elsewhere."

$1-1.15m is not a lifetime of security. I really don't know what you are talking about.

Anonymous wrote:

Anonymous wrote:No one at $5M-10M stays there. In ten years they will have 2x the amount. It’s plenty to enjoy life, travel first class if you want, eat well, enjoy experiences, etc. $30M just gets the super nice second home and some chartered private jets but it isn’t a remarkable difference in lifestyle, especially if focused on preserving the wealth for future generations as opposed to spending it. You won’t Own a Jet for example…

+1. Once you get to $10 million, the lifestyle doesn’t appreciably change until you get to “own your own jet” rich, which is much higher than $30 million. I mean, at $30 million, you may own the $5 million house in Telluride, but someone with $10 million can rent that house as much as they want.

I think the whole point of this thread though is that many people want neither their own jet nor a $5m house in Telluride, because they have no interest in maintaining either of those things on a full time basis. But on $5-10m, they could rent an amazing house in Telluride when they visit every few years, and that is more than enough for them.

Anonymous wrote:I think that it's weird that so many think a paid off home represents a lifetime of security. A home is just a place to live. And if it is worth enough to sustain your lifestyle it is also likely to be a money pit.

I don't think anyone thinks a paid off home represents "a lifetime of security." It's a major financial advantage. Not having to pay a mortgage every month, and not having to pay interest specifically, allows you to save/invest money much more quickly and easily. That allows you to build wealth much faster.

I have no idea why you think a house has to be a money pit -- I could live very happily and comfortably in a 1-1.5m home in the DC area. I don't want a big home and definitely don't want a home that requires tons of maintenance, lots of staff, etc. It's not worth it, I don't care about that lifestyle at all. I want someone to come clean my house once a week and I want to be able to afford any maintenance or that comes up including big ticket items like a roof or something. $5 gets you that no problem.

I think that it's weird that so many think a paid off home represents a lifetime of security. A home is just a place to live. And if it is worth enough to sustain your lifestyle it is also likely to be a money pit.

Anonymous wrote:

Anonymous wrote:I don't think that the people who just want to remain at $5m will be able to do it. Too much competition from those focused, intentional and ruthless about moving up above that number. The $5m line is like the starting line at a marathon. There are tons of people at the starting line but it stretches out as the race progresses. And there are many runners starting from way behind the starting line who run faster than you.

What a weird way to think about life. I think about what I need/want to have and to do and what amount of money will meet that for me. I don't see how what other people want or are gunning for has anything to do with that.

Agree. And we certainly aren’t staying here! Our paid off home here will buy us whatever we need elsewhere.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think that the people who just want to remain at $5m will be able to do it. Too much competition from those focused, intentional and ruthless about moving up above that number. The $5m line is like the starting line at a marathon. There are tons of people at the starting line but it stretches out as the race progresses. And there are many runners starting from way behind the starting line who run faster than you.

What a weird way to think about life. I think about what I need/want to have and to do and what amount of money will meet that for me. I don't see how what other people want or are gunning for has anything to do with that.

I suppose you're not that competitive. DC tends to be that way.

I would say that's true, especially when it comes to finances. I'm well-compensated and also have investments that have done well. I work in a niche area and I'm very good at what I do and I'm reasonably good at making a case for my value and making changes if I don't feel I'm being adequately rewarded. I have more than $5m with none inherited. But I don't really give a second thought to competition with others unless I'm explicitly doing a competitive thing (like literally running a marathon).

Anonymous wrote:

Anonymous wrote:I don't think that the people who just want to remain at $5m will be able to do it. Too much competition from those focused, intentional and ruthless about moving up above that number. The $5m line is like the starting line at a marathon. There are tons of people at the starting line but it stretches out as the race progresses. And there are many runners starting from way behind the starting line who run faster than you.

What a weird way to think about life. I think about what I need/want to have and to do and what amount of money will meet that for me. I don't see how what other people want or are gunning for has anything to do with that.

I suppose you're not that competitive. DC tends to be that way.

Anonymous wrote:I don't think that the people who just want to remain at $5m will be able to do it. Too much competition from those focused, intentional and ruthless about moving up above that number. The $5m line is like the starting line at a marathon. There are tons of people at the starting line but it stretches out as the race progresses. And there are many runners starting from way behind the starting line who run faster than you.

What a weird way to think about life. I think about what I need/want to have and to do and what amount of money will meet that for me. I don't see how what other people want or are gunning for has anything to do with that.

We have $5-6m in our forties and we could not retire and do not feel wealthy for the following reasons:
1. A lot of our income goes to taxes
2. We have 3 kids to put through college. We both went to schools that now cost $80k+ per year (DH had a full scholarship between athletics and need, my parents paid for mine), so we feel like this is something we need to do for our kids.
3. Our older home that we remodeled is crazy expensive to maintain. Every year something almost catastrophic has gone wrong: we've had to replace the roof and almost every system.
4. DH's parents have nothing saved for retirement. We support them.
5. As a family, we like to golf, ski and mountain bike. We do it as cheaply as we can, but they are expensive hobbies.
6. We let our kids play travel sports. DH and I both both a sport at a high level growing up and in college, so it's natural that our kids will want to do the same.
7. If something goes wrong in our marriage and we got divorced, $2.5m per person to maintain a household with kids is not enough to retire.
We are grateful for what we have, but we certainly don't feel wealthy or ready to retire. I relate to the quote a little in that I have lost my motivation to grind in my career, though. I'm at the point where I feel enough is enough. DH is still grinding.

Wealthy across the U.S., even in lower cost of living areas like the Midwest, indicators:

Airplane, not necessarily a jet
A boat, maybe a sailboat or motor boat
country club memberships
Vacation home, like Lake Tahoe or Big Sur or Vale or Martha's Vineyard

$5M would be enough for us to retire. We are planning for $6-8M but 5 would be enough. We are at $3M right now but only age 40.

$5 million is plenty for most people. Even the richest people never say they have too much money. There is no end to money.

Millions is not enough if you are using private jets, spending thousands on a dress etc - in the end most people don't need that and most of the expensive clothes and jewelry are never worn - I guess people get a high with the ability to buy it. Having a nice house & car is what people need for a decent life.

Having money is very important to a certain extent like $5 million (nobody wants to be poor). But having good health, good relationships and peace of mind is real wealth!

Anonymous wrote:

Anonymous wrote:It is 100x tougher to have been rich and then become poor than to never have been rich at all.

Complete BS.

Yes Complete BS - try being poor for even one day

We are 50 and at $6.5M including home equity of about $800k on a paid off townhome. One kid with separately funded 529 with enough for 4 years of $80k/year higher education.

Expenses are about $130k/year. HHI $250k. We do not feel rich but have no particular unmet wants and needs.

I am delighted to be where we are.

Anything less than 10 is poor