How Much $$$ Makes You Rich??

[Total Refected Power]

Seriously, how much money would make you feel rich?

Take into account housing, college funds for kids, a good chuck towards retirement etc.

In some parts of the country One Million eats up most of that.

I estimate 3 Million would enough to "retire" at say 35.

 

[Robert01]

Enough money to do what I want, when I want to.

 

[Russ]

According to the democrats, if you're not on welfare, you're rich.

Russ, NCNE

 

[RSI]

A few million in extra spending (as in a few million, completely free to do what I want with)..

-RSI

 

[Robert01]

Russ,

True, true.

What about the Repulicans?

 

[Total Refected Power]

Russ:

Exactly my point. After Uncle Sam gets his huge piece, plus pay state taxes and property taxes, raise a family and live in a comfortable manner, are you really rich?

According to Gore, if you make over 100K you are rich. HA!!!!!!!!!!!!!!!!!!

 

[4824guy]

At least 1.5 to 2 million would seem like a entry level 'rich' person.

 

[BoberFett]

Enough so that after doing whatever you want to do, you still have some left.

 

[Lord Evermore]

44000/yr * 42 years = 1.85M

If I never earned another raise and worked until I was 65, then starting from when I got this job to when I retired, I'd earn over 1.8 million dollars in my life, before taxes. At this point, I don't consider myself rich, I haven't been able to start saving up money and I still have to worry that I may run into someemergency that sucks up everything I have. If I were able to get 2 million dollars right now, I would have to portion it out in order to make it last the rest of the 41 years, so I'd still be in the same situation I am now.

I would feel like I had a lot of money, but I'd know that I couldn't just spend it on anything I wanted to, I'd have to limit myself to the same that I do now pretty much. Even with buying stock or putting it in an interest bearing account, I wouldn't necessarily be able to live off the interest or dividends or necessarily make money on the stocks, so I'd still have to worry.

I expect that in a few years I'll be earning somewhere near the rate to allow me to total 2.5 million in my lifetime. So 3 million wouldn't really be enough to be able to consider myself 'rich' other than 'right now'. I'd still be concerned about the future. I'd certainly feel rich for some time, until I noticed that my money was dwindling quickly. Only being able to have a little bit more than I already do would keep me from keeping the 'rich' feeling.

I think maybe 5 million would allow me to feel like I was rich and could spend money on the things I want, while still being able to know that I've got plenty left over, especially if I invested it wisely. Just to be able to put 2 or 3 million in the bank or in reliable stocks would mean I've got AT LEAST as much as I would have earned otherwise, and then still have a couple million left that I could spend as I wanted to, and the earnings on investments would trickle in to keep that couple of million from becoming zero too quickly.

And yes, I do know that I'm far better off than a lot of people. I'm not COMPLAINING about how much I make now, I'm just saying that I don't feel 'rich' yet. I know I've got the money to be considered comfortable, maybe even 'well off', and that to very poor people I'm rich, but I can only compare to what I've experienced myself.

 

[Isaiah]

I think 4 or 5 Million would make me feel rich

 

[Isla]

"...I just want real love"

Honestly, money is nice and I know people who have plenty of it. One of my best friends growing up is an heir to an oil fortune. I am certain he isn't all that happy, poor thing. We made a pledge to marry if neither of us found "The One" by a certain age but I bailed on him. Too much of an alcoholic and underachiever for my tastes (although I loved him dearly... a better friend and protector there never was) My older sibs have made more green than any of us could have ever imagined (like, 300K per year). However, it doesn't fill that empty space, if ya know what I mean.

Don't sell your soul for a dollar.
Be true to yourself and achieve your dreams.
Follow your bliss!

 

[Russ]

<< If I were able to get 2 million dollars right now, I would have to portion it out in order to make it last the rest of the 41 years >>



Huh? Even if you just stuck it in a money market fund and NEVER touched the principal, you'd earn nearly three times your current income.

Russ, NCNE

 

[KingHam]

The rule of thumb is that you need to have $2 million to retire. If it's invested conservatively, and inflation and all that jazz is factored in, you can spend $100k a year and never touch your original $2 million. If you invest more aggresively (like Russ pointed out) you can spend a lot more but, you could also potentially lose your money too. That's something that I wouldn't want to risk when I was retired.

Personally I wouldn't want to retire with less than $5 million in the bank. Mainly because if I was retired I wouldn't be content living on &quot;only&quot; $100k a year.

KingHam

 

[Raspewtin]

KingHam,

That's pretty accurate. I retired at 27. I invested in a tax-free fund (that invests in treasury bonds), It takes about 1.6 or 1.7 million for a purely interest income of about 60,000 per year tax free (which is equivalent to a lot more taxable income). Don't quote me exactly, but I think that's right.


If you take your remaining capital, focused around growth, religously putting some money from your growth in other funds, in into your &quot;mutual fund interest income,&quot; You can increase your yearly income, year after year. It's been one year since I've retired, and I've been able to move up 85,000 tax-free per year, through additional investment purely from capital growth in other areas. It's getting the initial 2M that's the hard part. Either you get lucky in that regard, or you work your ass off and get burned out early (me in 2nd category). Sorry for the long, boring post.

 

[Napalm381]

Raspewtin hit it pretty well...enough money so that you can live how you want without working (or working however much you want). As Bob Brinker calls it, &quot;Critical Mass&quot;.

 

[raptor13]

What I want to know is what Raspewtin did that he could retire at 27! What's your secret?

 

[DataFly]

I go to a private school and some people there can make you feel dirt poor even though 60% of the students' families make 250k+/year and 10-20% make 400k. One kid drives a friggen FERRARI. Several others have Audis, Mercedes, BMWs, etc.:disgust:

Anyway...

I don't consider anyone to be &quot;rich,&quot; regardless of how large their annual income is, unless they are emotionally content. Sure, you might be making 500k per year, but what if you hate your job? If you hate your job you'll probably be unhappy in life. Do you value your wealth more than your happiness? I would rather be making 200k per year at a job where I enjoyed my work and had a good social life than make 500k at a job where the work was not interesting or where the people weren't friendly.(note that the cut off is 200k...after a point the dough is too tempting)

Bill Gates recently stepped down as CEO (or chairman...can't remember) of Microsoft because he was bored with his job and assumed the position of Lead Programmer because he apparently loves to code. Granted, he is still making as much as before, but he changed his job so he could be wealthy in both a monetary and emotional sense.


I consider 150k+ per year to be pretty affluent, but it's not enough to buy that damned Ferrari my schoolmate has!:|

 

[Raspewtin]

Raptor:

I don't really have much of a secret. I didn't have much equity when I was younger, but got the opportunity to work in a venture capital firm. In the beginning I got comissions on the money I brought in (about 10%). I had no experience and was able to hit 75,000 my first year. I wasn't very knowledgable b/c I was a pre-med (knowing your limitations is half the battle, eh?), so if I could do it, virtually anyone can.

After a couple years most make 150K at least. The best part is that if you're honest (which you have to be for repeat investors), your investors make money as you make money. That's a good feeling. Most get too comfortable at this step. However the big potatoes comes on the management level of the VC virm (which means taking a bit of step backward financially in order to take two steps forward).

In trying to make this short as possible (I know I already failed), basically for help setting up &quot;investment vehicles&quot; LLC you can trade in comissions for &quot;seats&quot; in the LLC. Essentially you're like a matchmaker, instead of matching guys and girls, you're matching those with ideas with those with money. The best part of LLCs is your protecting from risk, and you get hands-on management. In fact, by law in many states, you're required to be hands-on, unlike a corp. That's what protects you. If you pick which ones to get equity, which ones to just get comission, and are diligent, you can make a lot of money. The important thing when getting LLC equity is to know the business and have an exit strategy. In private investments it's critical to have an exit strategy. I learned that hard and fast. See, it's no secret.

 

[Blackhawk2]

Money won't make you rich, because you'll never have enough. In the end the only thing that can make you rich is helping other people. No one will remember you for your $$$. Everyone will remember you for who you were and what you acheived.

 

[JellyBaby]

Money can't buy you happiness. But it sure allows you to choose your own form of misery.

 

[Raspewtin]

<< Everyone will remember you for who you were and what you acheived >>




I would think anyone who lives one's life in order to be remembered by others is not at peace with oneself. Being remembered what you achieved always seemed silly to me. Some people, born into incredible families (say the Kennedy's), will find achievement much easier than others (I'm not talking about fiscal achievement). Some people have born talents and skills that allow them to achieve things the rest of us never could. How come these people, just because of random chance, are better than those who work their ass off in McDonalds for the rest of their life, to support their family? Achievements are meaningless. They are just little badges we put on ourselves to feel good about ourselves, like boy scouts or girl scouts.

 

[Nick Stone]

A real answer for a change.
Enough to provide $50,000 a year -- taxible for the rest of my life. This amount would need to increase by the &quot;Consumer Price Index&quot; (cost of living increase) each year. I estimate that the value of this annuity would be $700,000 to $800,000.

 

[chipbgt]

Enough to where I dont have to work anymore...seems simple enough. but along the lines of what Russ said, that woudl mean I could be poor and on welfare and be rich at the same time...hmmm...

 

[Psychoholic]

<< Money can't buy you happiness. >>



Then I guess I would have to rent it.