Millionaire is the new middle class

[IH8RICE]

You got a crystal ball to predict inflation will stay steady at 2% for the next 10-20 years? Why don’t you tell me where inflation was in the 80s and I’ll tell you what the SP500 averaged over the last 30 years.

Touché.

[AgRyan]

1 million bucks can't even buy a platinum account now

[allianc3]

Touché.

I’m not trying to be a smartass but the whole 4% safe withdrawal rate works until it doesn’t. I would never put myself in that position because you’re banking on absolute consistency. Emergencies of all sorts can cost lots of $, rising inflation, rapid increases in COL, or a severe economic downturn you’re over exposed to could put you in a real bind with no other sources of income.

[Dirtymanjames]

I would say having 1 million dollars of liquid cash is a **** ton. A net worth of 1m doesn't mean you're a millionaire.

[IH8RICE]

I’m not trying to be a smartass but the whole 4% safe withdrawal rate works until it doesn’t. I would never put myself in that position because you’re banking on absolute consistency. Emergencies of all sorts can cost lots of $, rising inflation, rapid increases in COL, or a severe economic downturn you’re over exposed to could put you in a real bind with no other sources of income.

No offense taken. Honestly I didn’t want to get in a pissing match over retirement philosophies. You’re absolutely right that anything could happen to negatively affect my assets, even with the 4SWR. That’s not going to stop me from retiring early or moving on from my w2 job when I reach the number I feel is safe enough for my family. From what I’ve read, the 4SWR is supposed to adjusted from year to year after the first to adjust for inflation and such. An absolute crash where 1M in assets is comprised in just a few years would mean apocalyptic times for this country and at that point worrying about my money will be the least of my concerns.

[IH8RICE]

1 million bucks can't even buy a platinum account now

Time for misc syndications.

[RoxyFoxy22]

Tbh I agree, that's why you need to chase a multi, always. Great thread OP, nothing better than bringing awareness to a young female such as I

[IH8RICE]

That’s not ultra rich bud, that’s just the level above middle class.

Classses:

Peasant
Lower
Middle
Upper (what I refered to)
Rich
Don’t give a fck money ($100 mill +)

We are in a sad state in this country where people think these incomes and net worths are in their proper classes. The problem I see is where people in hcol areas decide too late that they can’t afford these explosive housing prices and decide to lay down and rot. We are already seeing it with Californians flocking to Texas, Arizona, and Florida.

[DrFeeIGood]

We are in a sad state in this country where people think these incomes and net worths are in their proper classes. The problem I see is where people in hcol areas decide too late that they can’t afford these explosive housing prices and decide to lay down and rot. We are already seeing it with Californians flocking to Texas, Arizona, and Florida.

What are you talking about? Life is expensive and getting more expensive by the year. You have entry level houses in So Cal going for $700k+, you think those folks are affording that on $80k yr income? With $300k yr income in Cali after taxes that’s $150k take home = middle class as hell. Lots of people break six figures easy with the right skills.

I think it’s sad that $250k yr won’t get you chit these days but a middle class life. Everything keeps getting more expensive.

[IH8RICE]

What are you talking about? Life is expensive and getting more expensive by the year. You have entry level houses in So Cal going for $700k+, you think those folks are affording that on $80k yr income? With $300k yr income in Cali after taxes that’s $150k take home = middle class as hell. Lots of people break six figures easy with the right skills.

I think it’s sad that $250k yr won’t get you chit these days but a middle class life. Everything keeps getting more expensive.

I’m talking about the national average and you’re bringing up SoCal. We all get that there are HCOL clusters but for most of Americans, the numbers you’re giving out are inflated. I do agree with your premise that the price of everything( housing especially) is far outpacing what people can comfortably afford.

[guest89]

The problem with this current generation is their idea of a millionaire is big houses, a high rise condo, flashy cars, clothes, etc. Thats a celebrity that made a ton of money and would likely go broke if they have a falling off in their career.


Just about every self made millionaire I know drives a mid tier pickup truck, dresses in regular clothes, and most of them rock a G-shock or Casio watch day to day. No jewelry or anything flashy. They all either own one or more businesses, have money in the market and/or rental properties.


Essentially 3-4 income streams and they don't waste money. All work more then 40hr a week even after 'making' it.

[IH8RICE]

The problem with this current generation is their idea of a millionaire is big houses, a high rise condo, flashy cars, clothes, etc. Thats a celebrity that made a ton of money and would likely go broke if they have a falling off in their career.


Just about every self made millionaire I know drives a mid tier pickup truck, dresses in regular clothes, and most of them rock a G-shock or Casio watch day to day. No jewelry or anything flashy. They all either own one or more businesses, have money in the market and/or rental properties.


Essentially 3-4 income streams and they don't waste money. All work more then 40hr a week even after 'making' it.

Bingo

[allianc3]

I’m talking about the national average and you’re bringing up SoCal. We all get that there are HCOL clusters but for most of Americans, the numbers you’re giving out are inflated. I do agree with your premise that the price of everything( housing especially) is far outpacing what people can comfortably afford.

Are they really out pacing what people can afford or just returning to the norm still (excluding bubble-like areas such as SF, Seattle, and maybe a few other cities) after bottoming in 2011/2012 or so? The last few years we’ve enjoyed record low interest rates so in all reality homes are still “cheap” when a 30 year fixed is still 4-5%. It’s just that banks have become more stringent about lending.

If anything the problem is probably supply, there’s been a home building slowdown and markets are getting more competitive around the country. I bet if you looked homes on average have been decreasing in the amount of time they stay on the market which would indicate that they’re not necessarily outpacing what people could afford. Rather, we’re just seeing demand outpace supply.

[IH8RICE]

Are they really out pacing what people can afford or just returning to the norm still (excluding bubble-like areas such as SF, Seattle, and maybe a few other cities) after bottoming in 2011/2012 or so? The last few years we’ve enjoyed record low interest rates so in all reality homes are still “cheap” when a 30 year fixed is still 4-5%. It’s just that banks have become more stringent about lending.

If anything the problem is probably supply, there’s been a home building slowdown and markets are getting more competitive around the country. I bet if you looked homes on average have been decreasing in the amount of time they stay on the market which would indicate that they’re not necessarily outpacing what people could afford. Rather, we’re just seeing demand outpace supply.

I agree. Guess I’m just shocked at the speed of things. My folks got several letters from investors wanting to buy in the area where their real estate properties are last year and now me and my wife are getting them and we are a few towns over.

[allianc3]

I agree. Guess I’m just shocked at the speed of things. My folks got several letters from investors wanting to buy in the area where their real estate properties are last year and now me and my wife are getting them and we are a few towns over.

That has to be a great feeling.

[dbluevette]

If I sold everything I had, house, cars, jewelry, etc... coupled with my investments 401k, pension, inheritance, etc... and all of it added to one million dollars, would/could i be considered a millionaire?

[Cuchulainn]

Those thinking they need to get 100-200k a year just to cover expenses need to face punch themselves. Go read Mister Money Mustache and the Bogleheads forum.


What's more "alpha" working until your 60's before retiring or retiring at 30 to go do whatever it is you want?


Red pill: https://www.mrmoneymustache.com/

[Cuchulainn]

ITT: No one knows what a "millionaire" is.

Having everything you own total to a million dollars is easy. Do you people even houses?

You don't own your home if you're paying a mortgage, someone else does. Same goes for your car and anything else you bought on credit.

[allianc3]

Those thinking they need to get 100-200k a year just to cover expenses need to face punch themselves. Go read Mister Money Mustache and the Bogleheads forum.


What's more "alpha" working until your 60's before retiring or retiring at 30 to go do whatever it is you want?


Red pill: https://www.mrmoneymustache.com/

Both are sort of alpha, I always have respect for an older guy still hustling to make more $, at the same time I guess being able (truly able) to retire at 30 can be alpha as well.

[Cuchulainn]

Both are sort of alpha, I always have respect for an older guy still hustling to make more $, at the same time I guess being able (truly able) to retire at 30 can be alpha as well.

Check out his blog. Dude retired at 30 with 1 million in investments. Lives below his means on the interest it generates, side hustles when he wants, and builds things around the house that increase his happiness.

https://www.mrmoneymustache.com/2018...ic-adaptation/

[ScaredOfGains]

Here is a "middle class" home in Ankeny lol



That's sarcasm by the way...it's almost $500k.

Lol that's a very nice place for 500k. You're looking at atleast 1.5m for that in my area. 500k gets you a 1 bedroom condo here..IF YOUR LUCKY.

[lockdev]

If it's not a lot, then how are average families able to live and raise kids and afford daycare on a 45-50k/year combined salary?

Again, if a million/year is not enough you're doing something wrong and living outside of your means.

Strong this.

Unless you live in an overpriced chithole like San Francisco, 50k is enough to live off of.

If it isn't, you're doing something very wrong.

Most of my friends that complain about money:
Go to Starcucks every cot dayum day
Buy a new phone every year
Pay $300+/month interest on their credit cards
Have $600+/month in student loans on their online history degree from University of Maryland College University
Have an 84 month term car payment
etc
etc

[Cuchulainn]

Strong this.

Unless you live in an overpriced chithole like San Francisco, 50k is enough to live off of.

If it isn't, you're doing something very wrong.

Most of my friends that complain about money:
Go to Starcucks every cot dayum day
Buy a new phone every year
Pay $300+/month interest on their credit cards
Have $600+/month in student loans on their online history degree from University of Maryland College University
etc
etc

QFT

[Acetheticz]

Misc is arguing about how 1 million dollars is poverty, yet the majority of people who live here in Phoenix, Arizona make $50k or less and are still going through life just fine.

[Cuchulainn]

Misc is arguing about how 1 million dollars is poverty, yet the majority of people who live here in Phoenix, Arizona make $50k or less and are still going through life just fine.

Save 15% of 50k (7,500 a year) and you invest that, you're looking at a 7.5 million dollar retirement if you invest in a S&P500 index fund with historical returns in 4 decades.

No excuse to retire broke for the average person.

[DrFeeIGood]

Save 15% of 50k (7,500 a year) and you invest that, you're looking at a 7.5 million dollar retirement if you invest in a S&P500 index fund with historical returns in 4 decades.

No excuse to retire broke for the average person.

Exactly. Any degenerate can be a millionaire these days. Its just not that special. $10 million. Now that is special.

[OutdoorsBrah]

If you invest a million and get a 5% ROI, that's $50k per year, many families live on much less than that. If you can't make a million last, you are a retard.

/f*ckingthread.



1 mill in index funds and i'm out.


If you can't live comfortably off 50k (minus taxable withholdings) then its you, not the sum of money.














Not even mentioning all the free time to create businesses. Get t/f out of here with this nonsense.

[iloveus]

Not even mentioning all the free time to create businesses. Get t/f out of here with this nonsense.

Right most of the time everybody goes to their 9-5 then comes home and watches TV for the rest of the time.

[OutdoorsBrah]

Right most of the time everybody goes to their 9-5 then comes home and watches TV for the rest of the time.

Truth brah, truth.

[ecs33]

Does he have that million in liquid assets or in investments?

If it's just sitting in investments and your generating passive income on it, easy to feel average.

If he is sitting on a million cash and still has 6 figure income rolling in, that qualifies as pretty rich in my book.