All things STOCKS

[Thunder Good-Oil]

If you had to give a number, what number do you consider, as they say, “F you!” money? That definition to me is that someone is set up so well that their current situation does not diminish at all as they move into retirement, but likely continues to improve, where they can handle any expense that may come up, be it renovations, new car, vacations, continue their normal hobbies and activities, insurance increases, medical bills, etc., with their retirement savings generating about 5-7% return annually to live off of and barely ever touch your principal.

The top 1% of US households are worth $13.7 million. For the top 10% it’s $1.9 million. The median household income is $75k.

The Bernies and Beths have big problems with the wealth gap and want to create oppressive, envy taxes on the wealthiest. But the wealthiest already donate plenty to charities without the government bureaucrats inserting themselves into the process as intermediaries. The bottom 50% of earners pay no federal income taxes and most of those live in nice homes and drive nice cars. Everybody isn’t entitled to a 10,000 SF home on the lake with a garage full of Corvettes, Ferraris, and luxury cars with a SunSeeker and a Donzi or 2 parked at their dock.

The Beths and Bernies want to keep the club at the top even more exclusive. Why would it be a problem if there are 30,000 billionaires instead of almost 3,000?

 

[Thunder Good-Oil]

Building wealth is about living within your means. Some can’t help but to spend every dime they get their hands on on stupid ****. I feel bad for those that can’t build wealth because of health issues and other things that they can’t help. I don’t feel bad for those living paycheck to paycheck that get a $6-7 Starbucks every morning or buy designer clothes and luxury items instead of putting those dollars into Roth IRAs every month.

 

[Thunder Good-Oil]

Ultra high net worth individuals in the US have about $30 million.

What’s scary is that the government can take all of that away. Giuliani. Alex Jones. They tried to do tattgat to Trump.

Ultra-High-Net-Worth Individual (UHNWI): Definition and Criteria

Ultra-high-net-worth individuals (UHNWIs) are people with a net worth of at least $30 million. Their ranks continue to grow globally.

www.investopedia.com

 

[BigOrangeMojo]

Building wealth is about living within your means. Some can’t help but to spend every dime they get their hands on on stupid ****. I feel bad for those that can’t build wealth because of health issues and other things that they can’t help. I don’t feel bad for those living paycheck to paycheck that get a $6-7 Starbucks every morning or buy designer clothes and luxury items instead of putting those dollars into Roth IRAs every month.

4 biggest wealth destroyers

Cars, clothes, dining out, vacations...

 

[Thunder Good-Oil]

4 biggest wealth destroyers

Cars, clothes, dining out, vacations...

Wives

 

[kiddiedoc]

Wives

I have several friends that can confirm this.

 

[BigOrangeMojo]

I have several friends that can confirm this.

Doctors, especially ones with significantly younger trophy wives, are probably the worst with money....

 

[Thunder Good-Oil]

Rice and beans. Taco Bell dollar menu. Or Kobi steaks at expensive restaurants with $50 pours of fine single malt scotch and fancy bottles of wine. It’s a choice. Literally piss it away or invest it and see what compounding will do.

 

[kiddiedoc]

Doctors, especially ones with significantly younger trophy wives, are probably the worst with money....

The ones I've seen get into trouble chase young tail (especially nurses) and end up paying the wife they fell in love with during school etc.

 

[BigOrangeMojo]

The ones I've seen get into trouble chase young tail (especially nurses) and end up paying the wife they fell in love with during school etc.

You aint wrong. But like lawyers, many doctors are lousy with money considering the intelligence level...

 

[Thunder Good-Oil]

Monthly payment math keeps a lot of people poorer than they need to be. Instead of how much is that truck going to cost me and how many hours/days/weeks/months/years does it take to pay for it, it’s instead how much is the monthly payment.

 

[BigOrangeMojo]

Monthly payment math keeps a lot of people poorer than they need to be. Instead of how much is that truck going to cost me and how many hours/days/weeks/months/years does it take to pay for it, it’s instead how much is the monthly payment.

Saving needs to be done on the front end just like taxes/health insurance, etc. Max out IRA, 401k, deferred comp, college savings, etc. first. If you cant max out, contribute to match at a minimum.

With what's left, divide into 4 buckets

Needs (basic food, utilities, gas, insurance)
Giving
Wants (dining out, vacations, entertainment)
Additional saving

Right now, we are 20/20/50/10 with any excess. The breakout between buckets is dependent on income.

 

[BigOrangeMojo]

Obviously, the breakout between the buckets is dependent on your financial situation. The main point is the mindset around savings needs to change.

Right now, the general mindset is "savings is what's left over". It needs to be "Pay yourself first. Not the govt."

 

[Thunder Good-Oil]

The US is a consumer based economy. The sheep can’t resist spending. I wonder what the economy would be like if everybody was saving all that they could. It seems like it would be better to build long lasting stuff instead of filling up land fills around the country with useless crap. But the Chinese crap on the dollar store shelves does drive the multiplier effect.

 

[Ernest T. Vol]

If you had to give a number, what number do you consider, as they say, “F you!” money? That definition to me is that someone is set up so well that their current situation does not diminish at all as they move into retirement, but likely continues to improve, where they can handle any expense that may come up, be it renovations, new car, vacations, continue their normal hobbies and activities, insurance increases, medical bills, etc., with their retirement savings generating about 5-7% return annually to live off of and barely ever touch your principal.

It's when you can replace your W-2 with a 1099 Div/Int/R...and not invade that principal.

 

[Go aeiou]

Wives

You must not have one.
Or Husbands.

 

[Go aeiou]

Wives

I've had two of them. The first one came from a fairly wealthy family who gave her everything she wanted. She married me, and thought she would get the same. I was miserable. Lasted about 5 years.
Before we wed I told the second one that I was never going to make much money, and she needed to not expect to have much.. She was a teacher and one of 5 children of a high shool principal so she never had a lot. Lucky me. As luck would have it I came up with an idea that made good money. Still good to be a frugal person, and have a mostly frugal wife. 44 years in about a month.