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Post by ktdoesntscrap on Jul 8, 2015 23:05:43 GMT
I read a statistic that 50% of Americans are not in the stock market which would leave me to believe that they have no or little in the way of investments. It is also true that Americans have not saved enough and are working longer before they can retire. I thinkIt is harder to become a millionaire in terms of saving it and the income gap is getting wider. I agree the income gap is getting wider. I think the tech stock crash and then the recession has taken a lot of people out of the stock market. I think it is easier to become a millionaire today.. but it doesn't mean the same thing it meant 30-50 years ago. My parents bought their 5 bedroom 4 bathroom house in 1969 for $35,000 the neighbor is basically the same middle class professionals but it is now worth close to 400K so the family that lives in it now is much closer than my parents would ever be to being millionaires. A millionaire is not the same as it was 50 years ago... but I don't think a Billionaire is the same as a Millionaire was 50 years ago.. its still out of reach of all but the most elite. There are just over 2,300 Billionaires world wide.
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Post by utmr on Jul 8, 2015 23:06:15 GMT
But remember that often the people who have expensive things aren't necessarily millionaires. If you have a $1M house and a $950k mortgage your net worth is $50K. As opposed to the person who owns their $200K house outright and has $800K in the bank.
Big houses and flashy cars aren't necessarily signs of wealth. The guy in the modest house and a plumbers truck in the driveway might really be a millionaire.
There's a very interesting book called "The millionaire next door" that goes into a lot of detail about this.
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Deleted
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Sept 16, 2024 10:34:48 GMT
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Post by Deleted on Jul 8, 2015 23:15:46 GMT
But remember that often the people who have expensive things aren't necessarily millionaires. If you have a $1M house and a $950k mortgage your net worth is $50K. As opposed to the person who owns their $200K house outright and has $800K in the bank. Big houses and flashy cars aren't necessarily signs of wealth. The guy in the modest house and a plumbers truck in the driveway might really be a millionaire. There's a very interesting book called "The millionaire next door" that goes into a lot of detail about this. I wouldn't be surprised if my FIL were a millionaire. He laid carpet, was the mine janitor and took care of the cemetery in a small town. My MIL was a SAHM & Wife. They really didn't make much, but the were oh so frugal. The four teen sons slept in a room just big enough to fit 2 double beds. Their DD in the small room. They had 1.5 baths. They gardened and everything they could to save money. But my MIL really saved and invested. They might not seem to have much, but over the years we've caught glimpses that they have much more than it appears.
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Post by nepean on Jul 8, 2015 23:15:52 GMT
How do you know these people are millionaires? exactly. we assume people are millionaires because of the positions they hold or lives they lead but we don't know what financial state they are in privately. some carry tons of debt and are overextended. I know people who live lavishly but don't have two nickels to rub together and I know some unassuming people who are wealthy as hell. you just never know. TRUTH!!!
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Post by Merge on Jul 8, 2015 23:26:44 GMT
But remember that often the people who have expensive things aren't necessarily millionaires. If you have a $1M house and a $950k mortgage your net worth is $50K. As opposed to the person who owns their $200K house outright and has $800K in the bank. Big houses and flashy cars aren't necessarily signs of wealth. The guy in the modest house and a plumbers truck in the driveway might really be a millionaire. There's a very interesting book called "The millionaire next door" that goes into a lot of detail about this. This is true. I tend just to wonder how people even have a salary large enough to cover the mortgage payment on those houses, much less put anything in savings. I guess this is why those helicopter moms are so anxious for their kids to go to Stanford and be finance majors, huh? You graduate from a small state school with a liberal or fine arts degree, you don't get to live in West U. ETA: My daughter's viola teacher lives on one of the nicest streets in Bellaire (she's been there for fifty years - you know when you drive down those streets and see mansion, mansion, 1950s ranch, mansion - she's in the 1950s ranch). I like to drive around and see how the other half lives while she's taking her lessons. Her lesson happens about the time that people are getting home, taking the dogs for a walk, going for a run, etc. My takeaway: purebred dogs only in that neighborhood, but these rich people dress like slobs.
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Post by papersilly on Jul 9, 2015 0:19:37 GMT
But remember that often the people who have expensive things aren't necessarily millionaires. If you have a $1M house and a $950k mortgage your net worth is $50K. As opposed to the person who owns their $200K house outright and has $800K in the bank. Big houses and flashy cars aren't necessarily signs of wealth. The guy in the modest house and a plumbers truck in the driveway might really be a millionaire. There's a very interesting book called "The millionaire next door" that goes into a lot of detail about this. this is what I mean. my neighbors who bought at $35,000, assuming they never took a dime out of the house, are millionaires without having done anything else but live there and pay mortgage. there are millionaires amongst us that we would never suspect were millionaires. OTOH, there are people who treat their homes and 401Ks like ATM machines so their net worth is far less than people suspect.
BTW, "The Millionaire Next Door" was a great read!
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Post by LavenderLayoutLady on Jul 9, 2015 0:28:38 GMT
I read a statistic that 50% of Americans are not in the stock market which would leave me to believe that they have no or little in the way of investments. It is also true that Americans have not saved enough and are working longer before they can retire. I thinkIt is harder to become a millionaire in terms of saving it and the income gap is getting wider. This. I think for those who have a high paying job in a field filled with wealthy people, being a millionaire is more commonplace. Wealth begets wealth. But on the other hand, I think for the people who are struggling to make ends meet, who are living paycheck to paycheck, who are trying to do everything right but still can't get over the hump.... A million dollars is as unobtainable as a billion dollars. For some, being a millionaire is a life goal with a plan in place. For others, it is just a wish, just a "what if" that has nothing to do with accomplishment, and all to do with luck.
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Deleted
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Sept 16, 2024 10:34:48 GMT
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Post by Deleted on Jul 9, 2015 0:31:58 GMT
Yes. I'm worried about that chart, too. Retiring with $100,000? Scary.Just got my yearly report from finance guy. Guess I better get off here and go look at it.
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Post by gorgeouskid on Jul 9, 2015 0:34:13 GMT
While a million isn't something to scoff at, it's not unusual anymore.
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Post by LavenderLayoutLady on Jul 9, 2015 0:38:37 GMT
This thread makes me feel very, very poor. Me too. Can you imagine what it must be like for minimum wage earners who service truly wealthy people on a day to day basis? The difference in lifestyle is staggering. When a wealthy person asks "Where do you winter?" and you laugh inside as you suppress the urge to reply, "At home. And this winter I'm hoping to not get my heat shut off."
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Nanner
Drama Llama
Posts: 5,987
Jun 25, 2014 23:13:23 GMT
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Post by Nanner on Jul 9, 2015 0:52:33 GMT
I do agree. And if I were to win $1Million, I wouldn't be quitting my job.
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Post by utmr on Jul 9, 2015 0:55:12 GMT
] The difference in lifestyle is staggering. When a wealthy person asks "Where do you winter?" and you laugh inside as you suppress the urge to reply, "At home. And this winter I'm hoping to not get my heat shut off." But see, that's the thing. The people with the outward trappings of money - fancy vacations, cars, big houses - aren't necessarily wealthy. If they have those things but it's all financed, then their net worth is very minimal or negative. Whereas the people with the junker car complaining about the cost of air conditioning might have gobs of money socked away. That's a hard lesson for the kids to understand. "But Susie's mom drives a Mercedes". Yes but it's leased and Susie can't get her teeth straightened or go on the school trip because her mom doesn't have the cash for it. Some people really work very hard just to keep the wolf from the door. And I'm not knocking them because it's difficult and hard work. Please understand that. But I don't have a lot of sympathy for the people making $200K who spend it all on status symbols and yet don't have insurance or savings.
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Post by papersilly on Jul 9, 2015 0:56:09 GMT
I read a statistic that 50% of Americans are not in the stock market which would leave me to believe that they have no or little in the way of investments. It is also true that Americans have not saved enough and are working longer before they can retire. I thinkIt is harder to become a millionaire in terms of saving it and the income gap is getting wider. This. I think for those who have a high paying job in a field filled with wealthy people, being a millionaire is more commonplace. Wealth begets wealth. But on the other hand, I think for the people who are struggling to make ends meet, who are living paycheck to paycheck, who are trying to do everything right but still can't get over the hump.... A million dollars is as unobtainable as a billion dollars. For some, being a millionaire is a life goal with a plan in place. For others, it is just a wish, just a "what if" that has nothing to do with accomplishment, and all to do with luck. Being a millionaire was my friend and her husband's life goal. she grew up poor in a poor town. his parents were working class people. they knew if they were going to turn it around, they would have to get great educations and jobs. they got into and met at a prestigious college. their friends came from families with money. they were the only ones who didn't. they decided they wanted to create a financial legacy for their children like their friend's parents did for their friends. they put themselves through college and graduated with no student loans. both now work great jobs and they were self made millionaires before they were 40. no luck. no family money. just hard work, saving, investing, and focus. you would think from the way they grew up that a million dollars would be unobtainable as a billion dollars but it was not. they just put their minds to it and did it through education and hard work. they also grow the wealth by living far below their means.
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Post by txdancermom on Jul 9, 2015 1:03:20 GMT
In some ways I agree - a million dollars today isn't what it was years ago.
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Post by renateb on Jul 9, 2015 1:44:34 GMT
I think a better measurement would be $million net worth not including the value of your primary residence. I say this because you have to live someplace so it's not like you can really spend your residence. Many people may be house rich but cash poor.
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Post by belgravia on Jul 9, 2015 1:56:54 GMT
I totally agree, a million dollars isn't all that much money. Of course, net worth of a million dollars versus investable assets of a million dollars are two totally different things. One can certainly have a net worth of a million or more and be considered upper middle class.
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Post by Restless Spirit on Jul 9, 2015 1:59:46 GMT
I think a better measurement would be $million net worth not including the value of your primary residence. I say this because you have to live someplace so it's not like you can really spend your residence. Many people may be house rich but cash poor. I've recently been reading some financial articles that say exactly this. While a primary residence worth $250,000 is an asset on your balance sheet, if the house has a $200,000 mortgage, that is a debt and a liability. Some say the $50,000 equity counts towards your net worth, some say it does not until you sell the house and put that $50,000 in the bank or investments. Some articles I've read agree with the post above and that your primary residence does not and should not count towards net worth because "everybody has to live somewhere". Some also don't count the primary residence because of it's related expenses: taxes, insurance and upkeep expenses. A home in that case becomes an overall liability. With the above scenarios, the number of millionaires in the US would be substantially less.
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Post by scrappyoutlaw on Jul 9, 2015 2:52:35 GMT
I remember once a financial planner told me I needed to have $1 million to retire, and that it was doable with my contributions. That suprises me. If I recall correctly you are quite a bit younger than I am. I'd seriously look into whether 1 million will be enough. Although if you have a pension from your place of work that would change things considerably. DH and I are aiming for 2 million for retirement, 1 just doesn't seem like enough anymore.
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frostybuns
Shy Member
Posts: 22
Jun 14, 2015 8:04:52 GMT
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Post by frostybuns on Jul 9, 2015 3:02:05 GMT
I don't know. My DH has been in management of several fortune 100 companies and at one point had 60+ hourly employees working for him. These were non college educated people making in this $50k per year range (some less, some more). He always spent time during his employees annual review talking to them about their retirement plans. Even investing a modeSt amount (6%) and taking advantage of the company match, almost all of his hourly employees could be millionaires by the time they retire. I believe almost anyone can do it if they invest early and regularly.
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Post by cadoodlebug on Jul 9, 2015 3:02:12 GMT
I live in a court of 25 homes. They are track homes (2800-3100 sq feet) and sold new for about $355,000 in the late 90's and are now selling for $1.3 million. Most people who are buying then now work in Silicon Valley and want to be in our school district. We plan to retire in 2-3 years. We're hoping prices stay stable.
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Post by crazy4scraps on Jul 9, 2015 3:18:00 GMT
DH and I are aiming for 2 million for retirement, 1 just doesn't seem like enough anymore. This is what our financial planner was saying years ago already. People are living so much longer now than they ever used to, and skilled nursing care is expensive.
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Post by scrapperal on Jul 10, 2015 0:06:54 GMT
I agree with the others who said a million dollars isn't what it used to be. In some ways, it is easier to get a net worth of a million if you bought a house when the prices were low. But that isn't a liquid asset. And I know others who sold their half million dollar (or more) homes and walked away with nothing because they used their house as an ATM.
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