Family blows $10M windfall in 10yrs

[Vic Vega]

LOL. If he had $10 million, he would have lost it in 5 years, not 10.

I wouldn't need $10 million to retire, I would do it on $1 million and not work again (yes, I'm serious).

My wife and I don't needs 10 million to retire but we'll have it anyway. Our target is actually 16 million. We hope to retire at 55 (we're the same age) and spend the 30 years following that blowing our money. It should be fun.

 

[Engineer]

My wife and I don't needs 10 million to retire but we'll have it anyway. Our target is actually 16 million. We hope to retire at 55 (we're the same age) and spend the 30 years following that blowing our money. It should be fun.

How old are you now?

What do you do?

How much do you make?

(you don't have to answer, obviously, just curious as to how you'll obtain $16 million by age 55).

 

[Vic Vega]

How old are you now?

What do you do?

How much do you make?

(you don't have to answer, obviously, just curious as to how you'll obtain $16 million by age 55).

Wife is a banker, I work in IT. Niether of us make six figures. We live off one income, the other is invested.

You'd be amazed what you can do with a little discipline. Your average household should be able to accumulate $1,000,000 in 10 years with just moderate saving/investing. No, I don't mean day trading.

 

[CRXican]

i'd blow a mill and have someone hide the rest from me

 

[Engineer]

Wife is a banker, I work in IT. Niether of us make six figures. We live off one income, the other is invested.

You'd be amazed what you can do with a little discipline. Your average household should be able to accumulate $1,000,000 in 10 years with just moderate saving/investing. No, I don't mean day trading.

I don't think the "average" household could come anywhere near 1 million in 10 years....not even close.

Hell, I've put over 20% (maybe 30% at times and not including matches) including doubling my salary with overtime and have nowhere near that.

Sorry, just don't buy that the average household can get a million, even with two incomes. Maybe in a lifetime of working (40 years) but not in 10.

At 10% interest, it would take $57,041.27 per year to get to 1 million in 10 years (including compounding), which is more than the average household income in the US, IIRC.

I can assure you that I was going to be a millionaire (in retirement) by the age of 45 and then 2007-2009 happened and I'm not back to about where I was in late 2007 or so. Market is moving sideways and has been (on average) for about a decade or so.

 

[frostedflakes]

Stupid stupid stupid. You could live pretty comfortably off capital gains alone if you invested it wisely, especially if they continued to work. A smart family would have been set for life with $10 million.

I guess hindsight is always 20/20, though. Looks like they invested heavily in housing, and we all know how that turned out. Should have put it in a diversified portfolio or something instead of having all their eggs in one basket that ended up crashing bad in 2007 and 2008.

And a fun fact, apparently they live like 15 miles away from me.

 

[Specop 007]

Wife is a banker, I work in IT. Niether of us make six figures. We live off one income, the other is invested.

You'd be amazed what you can do with a little discipline. Your average household should be able to accumulate $1,000,000 in 10 years with just moderate saving/investing. No, I don't mean day trading.

The calculator.....You're using it wrong.

You'll never hit 16 million. But I applaud you for trying. Its more than most do.

 

[Lifted]

At 10% interest, it would take $57,041.27 per year to get to 1 million in 10 years (including compounding), which is more than the average household income in the US, IIRC.

You said he can't make 1 million in 10 years unless he saves $57k/year, right after you quoted him saying they live off one income then invest the rest.

I agree 16 million is a stretch unless he is doing more "active" investment, but that's nearly impossible with a full time job.

 

[stag3]

yea from what i've read if you can live off 1 income and invest the other income, you're pretty much set for life (assuming the other income isn't at mcdonalds or something)

 

[JEDI]

My wife and I don't needs 10 million to retire but we'll have it anyway. Our target is actually 16 million. We hope to retire at 55 (we're the same age) and spend the 30 years following that blowing our money. It should be fun.

making the switch from saver to spender is harder than you would think.

I have problems spending $25k windfalls from bonuses. i instead just save it. (i might spend a few hundred to upgrade my desktop.)

when i retire, i know i'm going to have a freaking hard time to dip into my (hopefully) high 7figure principle.
and my goal is to die with less than 6figures in combined $ + assets.

yeah, i see a conflict coming

 

[AyashiKaibutsu]

You said he can't make 1 million in 10 years unless he saves $57k/year, right after you quoted him saying they live off one income then invest the rest.

I agree 16 million is a stretch unless he is doing more "active" investment, but that's nearly impossible with a full time job.

He was talking about his statement that the average household could.

 

[alkemyst]

Summarized. He's a fucking moron.

With a fortune of 10million, a $200k car, three horses and treating your wife to a luxury hotel weekend + fur coat is hardly extravagant. Many do just this with net worths in the 1-2 million range and probably even less.

His margin purchases and other things were moronic.

 

[alkemyst]

LOL. If he had $10 million, he would have lost it in 5 years, not 10.

I wouldn't need $10 million to retire, I would do it on $1 million and not work again (yes, I'm serious).

Sort of interesting...$1million today would maybe net you $50k in interest (taxable) per year.

That get's worth less every year. In about 10 years that $50k may be worth more like $40k the way we are headed. Your property taxes/insurance will continue to rise. You'd probably have to skip on health insurance and just get catastrophic care coverage.

1 million would be roughing it in retirement.

 

[alkemyst]

Wife is a banker, I work in IT. Niether of us make six figures. We live off one income, the other is invested.

You'd be amazed what you can do with a little discipline. Your average household should be able to accumulate $1,000,000 in 10 years with just moderate saving/investing. No, I don't mean day trading.

Hate to break it to you, you are not going to have $16 million by retirement then. Even with saavy investments yielding 30% a year with only putting away under $100k each year over 10 years you are going to be coming up way short.

I enjoyed your story, I hear it a lot.

"When I retire I am going to be a multi-millionaire"

really? that's great

"Yeah, 'cause I am retiring at 55 too since I want to be young and enjoy it".

that's really really awesome, what do you do?

"I am assistant manager here, I got a 401k now. 401k mother fucker, boom! I am set!"

 

[bas1c]

Hate to break it to you, you are not going to have $16 million by retirement then. Even with saavy investments yielding 30% a year with only putting away under $100k each year over 10 years you are going to be coming up way short.

I enjoyed your story, I hear it a lot.

"When I retire I am going to be a multi-millionaire"

really? that's great

"Yeah, 'cause I am retiring at 55 too since I want to be young and enjoy it".

that's really really awesome, what do you do?

"I am assistant manager here, I got a 401k now. 401k mother fucker, boom! I am set!"

Been a long time forum lurker and I can't say I agree with a lot of the stuff alkemyst says but he is on point with this one.

 

[SandEagle]

i can retire on 1 mil and never work again.

 

[blackangst1]

nvm

 

[Engineer]

You said he can't make 1 million in 10 years unless he saves $57k/year, right after you quoted him saying they live off one income then invest the rest.

I agree 16 million is a stretch unless he is doing more "active" investment, but that's nearly impossible with a full time job.

I didn't say he couldn't, I said the "average" household, as he said. Go re-read the quote.

 

[Ronstang]

People who don't actually have to earn the money they are spending always make poor financial decisions. Just look at politicians and those on welfare.

 

[Michael]

I can probably retire on $5M now and live somewhat close to my current life-style. My house is paid off but I have 2 kids to put through college still. Hard to make over 3% to 4% today with any safety. If you're not working, you save on a lot of day to day expenses but spend a lot in medical insurance (US centric, I could always move back to Canada).

I'm in my mid-40's and about to start another CFO gig in Shanghai this time. I am pretty sure that by 50 I'll be at my goal, the last 5 years have been pretty good to me.

BTW - I agree that the whole "average household can save $10M" is crazy. I have always spent a lot less than I make and I save. Mid-40's I am a good way to the goal I listed above, but I also have had way above average jobs the last 10 years.

Michael

 

[AgaBoogaBoo]

1. Watch others, who have much more than you have, and emulate their lifestyles, trying to prove that you’re “just as good as they are.

Surprisingly, in my experience, the richest people I know don't spend much of it - you don't get rich spending all of your money

I was shocked the first few times, but it seems that they value every dollar they earned a lot and so it doesn't get spent quickly.

It's interesting to see how the "rich" spend their money - I've seen many for whom the biggest expenses they have are their kids' education while they all drive beaten down cars, live in an okay size home, don't take very lavish vacations, etc.

I don't have too many samples to examine from, but maybe when the person crosses the $100MM+ wealth range, things change and they start spending a bit more with private jets and such, but until that range they seem to not want to spend it all. Maybe part of the reason is that while they may be "wealthy," they don't have a lot of cash because it's mostly invested.

Edit: I'd say this goes for people that earned it - not necessarily those who inherited it. I don't think money changes people, maybe it just brings out their true self though.

 

[MarkXIX]

Yeah, supposedly. Stupid fucking advice, IMHO.

If I had $10m, I'd be doing whatever the fuck I want.

Obviously I wouldn't spend it on stupid shit like that guy. I'd do a lot of traveling. Go to school during the weekdays, live in a nice place, and then on the weekends... fly first class to some other city and have fun. Come back on Monday and start the grind, knowing that on Friday I'll leave. You'll always have something to look forward to at the end of the week even when you're grinding away at homework.

No, you wouldn't. You're full of shit. You would sit and whine about how much was taken in taxes and you would bitch about how hard it is to be rich and have more money than you know what to do with. Then you'd cry, piss and moan about how terrible your life is now that you're rich and can do whatever you want.

 

[TridenT]

Wife is a banker, I work in IT. Niether of us make six figures. We live off one income, the other is invested.

You'd be amazed what you can do with a little discipline. Your average household should be able to accumulate $1,000,000 in 10 years with just moderate saving/investing. No, I don't mean day trading.

You're wrong. The average household brings in less than $60k a year.

(10x$60k = $600k)

 

[Fear No Evil]

My wife and I don't needs 10 million to retire but we'll have it anyway. Our target is actually 16 million. We hope to retire at 55 (we're the same age) and spend the 30 years following that blowing our money. It should be fun.

Are you factoring in the government taking a good 50% of that 16 million because, after all, you didn't earn it and you are RICH. And we have to pay off that debt somehow, oh, and that free healthcare. Hell, they should probably take some of that extra income now since you really don't need it. :twisted:

 

[zinfamous]

You're wrong. The average household brings in less than $60k a year.

(10x$60k = $600k)

besides the fact that yes, the average household is below the needed income to make this work, you do realize what "invest" means, don't you?