Family blows $10M windfall in 10yrs

[MagnusTheBrewer]

Hey, you can choose to be negative if you want, that's your decision.

I choose not to be.

Like I said, if spending makes you happy, go right ahead and keep doing what makes you happy. Just don't ask me to pay for your retirement when you get to 63 and are broke and then live 30 more years.

So, you see a difference between investing in your own company versus someone elses?

 

[guyver01]

Hey, you can choose to be negative if you want, that's your decision.

Nothing to do with being negative.

Having watched my dad die in his mid 50's.. of an incurable cancer, and one that wasn't detectable until it fully metastasized... does change one's perceptions of their own mortality.

 

[Vic Vega]

Nothing to do with being negative.

Having watched my dad die in his mid 50's.. of an incurable cancer, and one that wasn't detectable until it fully metastasized... does change one's perceptions of their own mortality.

I went through something similar, I won't go into details, lets just say it wasn't easy but I came away from it differently.

Yes, it is being negative, whether you choose to accept it or not. I went through this and came out of it. Maybe you will too. Good luck to you.

 

[Vic Vega]

<<<---- is a strong believer in "moderation". Not spending every dime and swiming in debt or eating ramen noodles while saving 99% of the money. Live and enjoy life, stay healthy, and plan toward the uncertain future.

That's why we don't save 99%. We are comfortable people. I don't drive a brand new 50k car or have a brand new $500 phone. So what? I still have a nice car and a nice phone, I also have a nice portfolio.

I agree with you, moderation is the key. 🙂

 

[alkemyst]

Hey, you can choose to be negative if you want, that's your decision.

I choose not to be.

Like I said, if spending makes you happy, go right ahead and keep doing what makes you happy. Just don't ask me to pay for your retirement when you get to 63 and are broke and then live 30 more years.

y0 dude...when you get your first million in the bank come back to us...we will help you count down that next $16 million and even try not to laugh when your wife leaves and takes half of it along with your house which in reality will probably be about $500k by your 'retirement'.

 

[Vic Vega]

y0 dude...when you get your first million in the bank come back to us...we will help you count down that next $16 million and even try not to laugh when your wife leaves and takes half of it along with your house which in reality will probably be about $500k by your 'retirement'.

I've read your posts here. You're a sad, angry and jealous young man. I don't care to read them anymore. Fortunately, that's easily fixable.

 

[dali71]

http://money.cnn.com/2007/02/20/magazines/fortune/lottery_winnings.fortune/index.htm

This guy has got it figured out.

 

[dmcowen674]

It's not all bad, at least he truly trickled down a ton of money into the economy. :thumbsup:

 

[rh71]

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.

http://www.amazon.com/Millionaire-Ne.../dp/0671015206

I read it during jury duty, then returned it and got my $8 back. 😀

I think it's a shitty way to go about it though. They work hard so they can live like bums. Yeah, makes a lot of sense. So what if you HAVE money...?

On another note, I was once told by a general contractor we knew that he hated working for the rich. They are tight-asses. What's more - they would get him to do their home, then at the end say "hey we know we owe you the last $20k. It would cost you $10k to get a lawyer and drag it through court, so why don't we settle at $10k now?" Seriously... wtf.

 

[JMapleton]

http://www.amazon.com/Millionaire-Ne.../dp/0671015206

I read it during jury duty, then returned it and got my $8 back. 😀

I think it's a shitty way to go about it though. They work hard so they can live like bums. Yeah, makes a lot of sense. So what if you HAVE money...?

On another note, I was once told by a general contractor we knew that he hated working for the rich. They are tight-asses. What's more - they would get him to do their home, then at the end say "hey we know we owe you the last $20k. It would cost you $10k to get a lawyer and drag it through court, so why don't we settle at $10k now?" Seriously... wtf.

The Millionaire Next Door is truly a misleading book. In that book, which was written like 15 years ago, examines everyday millionaires, people worth maybe one or two million dollars, not "rich" people.

You would be amazingly shocked how many ordinary "millionaires" there are out there. But having $1.5m does not make you "rich," and if you had that much you'd be a fool to be spending your money in a lavish lifestyle.

I remember reading in that book of how the average "millionaire" drives a Ford F150. Well, it's a deceitful book. They toss around the word "millionaire," which most people associate with "rich person" and people read this book thinking this is how the average "rich person" lives, not knowing these are not the rich, just "401k millionaires." Ordinary people who just saved up a decent nest egg.

I hate hearing mentionings of that book as a reference to how the "other half" live when most of us here probably have these "ordinary millionaire" neighbors living right next door, but they're certainly not "rich."

I'd like to see a book on how the average person with at least $10m lives. I would assure you the statistics would be dramatically different.

 

[tcsenter]

http://money.cnn.com/2007/02/20/magazines/fortune/lottery_winnings.fortune/index.htm

This guy has got it figured out.

I think he otherwise is doing it right but FWIW, I remember reading that he lost his ass on some real estate investments and a couple business investments. Not like half of his money or anything, but still he took a big hit.

 

[JMapleton]

I think he otherwise is doing it right but FWIW, I remember reading that he lost his ass on some real estate investments and a couple business investments. Not like half of his money or anything, but still he took a big hit.

He was probably investing in real estate developments, not normal investments.

You have to know what you're doing to invest in new developments and new construction, it's overall a terribly risky investment. Investing in small businesses are also usually a losing bet. This is how many pro athletes go bankrupt.

Stick to residential real estate in established areas with proven income histories (apartment complexes in nice areas) and use very little leverage and you will rarely lose.

 

[halik]

http://money.cnn.com/2007/02/20/magazines/fortune/lottery_winnings.fortune/index.htm

This guy has got it figured out.

How did you develop your system?

How to choose my lottery numbers started through a trial and error process. I just started playing number games with myself about how to capture the most diverse numbers. Then I looked at the most recent Powerball numbers over the last six months and took the set of 15 numbers that were most commonly coming up. My Powerball numbers were going to be those 15. So I starting messing around with it, and my number games got a little more complex and a little bigger. I was starting to win smaller amounts like $150 and $500.

Something tells me he doesn't...

 

[sandorski]

Something tells me he doesn't...

I used a similar system back in the late 80's. Took the 3 most drawed numbers and the 3 least drawed numbers and played them for a few months(IIRC cost $20ish/Month). Won small amounts totaling approx $100 during that time. Got bored of it after 4 or 5 months and have only bought a half dozen or so tickets since then.

 

[halik]

I used a similar system back in the late 80's. Took the 3 most drawed numbers and the 3 least drawed numbers and played them for a few months(IIRC cost $20ish/Month). Won small amounts totaling approx $100 during that time. Got bored of it after 4 or 5 months and have only bought a half dozen or so tickets since then.

And you attribute winning in a random draw to the fact that you had a number system?

 

[Zebo]

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).

This you don't need much if you're self sufficient, not vain, and are a doityourselfer. 🙂 If I were not married about 500k would be just fine. used Single wides are about $6,000 and rural land is about $2000-$4000 an acre. I can buy a lot of minnows with $480,000 left over.😛

More seriously 2M and one could have a guaranteed salary of ~ 100K for the rest of your life. Twice mean. These folks are just crazy.

 

[alkemyst]

I've read your posts here. You're a sad, angry and jealous young man. I don't care to read them anymore. Fortunately, that's easily fixable.

No I am hardly sad, angry or jealous. I just grow tired of reading so much bullshit and fairy tales.

You are no different than everyone else thinking they figured it all out and because you are saving a full paycheck that means you will be rewarded with an 8-figure retirement.

I outlined even if you are putting away a full $75k a year and making 30&#37; on it and all the compounded money, as a matter of fact here is it calculated I targeted $75k per year over 10 years.

To save $9,242,693, your investments need to gain an average of 48.48% from now until retirement. We estimate that there is a 0.00% chance of this happening.

So since even $9million is impossible, how you going to do $16million? Find dragon eggs and sell them?

 

[ultimatebob]

10 Million? Hell... you could blow all that on one weekend in Vegas if you do it right.

 

[ponyo]

http://www.amazon.com/Millionaire-Ne.../dp/0671015206

I read it during jury duty, then returned it and got my $8 back. 😀

I think it's a shitty way to go about it though. They work hard so they can live like bums. Yeah, makes a lot of sense. So what if you HAVE money...?

On another note, I was once told by a general contractor we knew that he hated working for the rich. They are tight-asses. What's more - they would get him to do their home, then at the end say "hey we know we owe you the last $20k. It would cost you $10k to get a lawyer and drag it through court, so why don't we settle at $10k now?" Seriously... wtf.

Yes, many rich people are real tight-asses. I only know one truly rich, and she fights over a single dollar. It's actually pretty funny how frugal she is. Her family is worth billions but she and her husband earned, not inherited it. I think that's the key difference. People who earned it themselves know the value of money. People who inherited it often don't.

 

[Cogman]

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?

Do you really have to ask?

 

[Cogman]

nm

 

[TheSlamma]

Even at a skimpy 1&#37; interest in a savings account that's a very comfortable life right there "living off the interest". Heck on Crapital One's current savings rates that's $121,000 a year, so spreading that across any no risk investments that pay more tells me you can live well above average just on interest alone.

It's funny how humans instantly go right to how they would blow it instead of make it last their lives, no wonder everyone is broke and in debt. "Hey I have a $10,000 credit limit? that means I have to go spend $10,000 NOW!!!"

 

[Engineer]

All I can say is that I must be an "I can't" guy as I can't see the average US household, which makes less than $60,000, saving $57,000+ per year and getting a full 10&#37; from it because they "want to".

So, all that I can conclude that the people who subscribe to this mean something other than "average US" and must mean "average ATOT" or something like that. This is not to mention that if every "average" US household tried (i.e. wanted to), the economy would tank like a rock and they would all end up more poor than when they started, but that's another thread.

Oh, and to alkemyst, Vic never said that he and his wife were going to make $16,000,000 in 10 years. He stated that by the time they were 55, which is quite possible if both started saving early and had sizable incomes, not to mention if they rode a huge stock market boom from the mid 80's through 2000 to start with.

 

[Mark R]

...but their problem was that they had completely changed their lifestyle, and began to live as if they had not 10 million, but 100 million.

Word.

The advice given by wealth-managers for the wealthy has always traditionally been that your annual expenditure should be less than 1% of your wealth.

This way, in sensible investments, your wealth should be able to exhibit capital growth (to keep up with inflation), allowing you to maintain your 'disposable income' at a consistent standard of living for as long as you live (while still enabling you to leave a legacy to your children).

The lifestyle in the OP really needed at least $100 million to fund it.

 

[dullard]

I'll rephrase it as this.

The "average" person who would have the motivation to save $1m in 10 years and the intelligence to actually do it, makes enough money to do it.

The national "average" person knows little or nothing about investing, so the point is null.

So your point boils down to this: "Those who are capable of doing it, are capable of doing it." You are true there. But, it isn't really a useful point.