Who Here Has a Net Worth of Over One Million USD

[pourdeac]

The conservatives on this board like to talk about the government having a spending problem, rather than a revenue problem. Well, I submit that the same concept applies to the retirement plans for posters on these boards.

People are confusing needs with wants. Then they replace the concept of the salary they need with the one they want in order to spend all that extra money. What we have...particularly from today's spoiled WF graduates who have, evidently, been accustomed to privelege and thereby assume that luxury equals need...is this bloated idea of income that is necessary to maintain a perfectly happy lifestyle. The irony is that most of these people criticize the government for its spending....but are doing the very same thing with their own personal finances. They talk conservative, but spend liberal.

Well I'll be.....I actually agree with you Bob. Which fiscal conservative are you channeling?

I too was a bit shocked to see people claim they couldn't save when making lots and lots of money, and others promote not saving in order to "live in the now". People tend to live above their means and then complain later because they are struggling. I understand a lot of people on here can afford to put off saving because down the road they'll have better salaries and can do it then. I took a low paying job and dealt with it for years knowing I could make money later...but it still reflects the typical American attitude of spend now, worry about consequences later.

I have to disagree with that last statement though. I think it cuts both ways. I see a lot of liberals claim that Americans all struggle financially, but on the other hand then promote "live in the now" and no savings because you only live once. The typical American attitude is not rooted in political ideology, it's populist IMO.

 

[Shooshmoo]

Increases in college costs have consistently outstripped increases in other costs. If you have $1 MM in the bank and want to send your kid to a school like Wake 18 years from now you will in all likelihood have nothing left over.

Tuition at Wake has on average risen 6% a year for each of the last 20 years. If that were to continue tuition at Wake in another 18 years would be an astounding 152K a year. 4 years all in would cost 608K. That's just tuition. Better hope you have just one kid.

And unless you send your kid to an instate public school the story won't be that much better at any other school.

Higher education needs to pull its head out of its collective ass and realize they are selling a product that only has so much value.

ETA - You are "only" allowed to put 55K into a 529 plan every 5 years. So by the time Jr. heads off to college you will have been allowed to put 165K into his/her fund. At 5% that 165K will be worth 300K. You'll have roughly half the cost of Wake covered. Hurray!!

If you're trying to sell me on wake costing 152 k / year in 18 years, sorry, not buying it. It'll top out at some point.

 

[Liquid Karma]

If you're trying to sell me on wake costing 152 k / year in 18 years, sorry, not buying it. It'll top out at some point.

I agree, but I thought it would have topped out or at least slowed down around 50k.

 

[leftcoastdeac]

Well I'll be.....I actually agree with you Bob. Which fiscal conservative are you channeling?

I too was a bit shocked to see people claim they couldn't save when making lots and lots of money, and others promote not saving in order to "live in the now". People tend to live above their means and then complain later because they are struggling. I understand a lot of people on here can afford to put off saving because down the road they'll have better salaries and can do it then. I took a low paying job and dealt with it for years knowing I could make money later...but it still reflects the typical American attitude of spend now, worry about consequences later.

I have to disagree with that last statement though. I think it cuts both ways. I see a lot of liberals claim that Americans all struggle financially, but on the other hand then promote "live in the now" and no savings because you only live once. The typical American attitude is not rooted in political ideology, it's populist IMO.

I don't think anybody had advocated not saving now and figuring it out later. That would be a terrible thing to do. What most were saying is that you don't have to live on Ramen noodles to be able to save. Have a little fun, enjoy the money you work for, but live within your means (to include some savings).

 

[Shooshmoo]

I agree, but I thought it would have topped out or at least slowed down around 50k.

My guess is we'll see it top out around 75-80 k.

 

[Liquid Karma]

My guess is we'll see it top out around 75-80 k.

At this point it really doesn't matter. The only way my kids will be attending is

a) On a scholarship
b) By taking out student loans
c) On a tuition waiver if Mrs Karma is still teaching at Wake in 9 years

 

[pourdeac]

I don't think anybody had advocated not saving now and figuring it out later. That would be a terrible thing to do.

Several people were clearly saying...spend while you're single and can have fun....wait to save until you get older and married and have to. Others were making fun of people making little but living on less because it would be boring. I know a lot of it was just joking around, but a lot of people in this country think that way.

Spend spend spend...whatever you got.

 

[ABCDeac]

Several people were clearly saying...spend while you're single and can have fun....wait to save until you get older and married and have to. Others were making fun of people making little but living on less because it would be boring. I know a lot of it was just joking around, but a lot of people in this country think that way.

Spend spend spend...whatever you got.

I don't think anyone, much less several people, said this. I did say sharing a single bedroom three ways, having basic cable, and eating Ramen noodles every night just to try to save $350K before getting married sounded miserable. It does.

 

[WRS]

Basically people are saying not to live a spartan life in a $400/month shithole until you're 30+ because you'll be wasting some of the best years of your life.

 

[OliveGardenDeac]

I don't think anyone, much less several people, said this. I did say sharing a single bedroom three ways, having basic cable, and eating Ramen noodles every night just to try to save $350K before getting married sounded miserable. It does.

It only sounds miserable because we are spoiled Americans. This would be living better than 80% of the world.

 

[Shorty]

If someone has a WFU degree and spends thirty years on an upwardly mobile track in the private sector, a net worth of $1M is pretty attainable. That said, $1M does not carry quite the same retirement clout it did 10-20 years ago.

To me, the key is to eliminate debt. My wife and I built the house we live in, took out a 15 year mortgage, and paid it off in 12. I wake up every morning in a house I own free and clear. Great feeling. Payments on 15-year mortgages are not appreciably more than those on 30-year mortgages. Run the numbers and do it if you can.

 

[2&2 Slider To Leyritz]

Do you equate spending money with quality of life? (Because it certainly sounds like that is what you are doing.)

I would hope so, at least to a point. Are you saying that it does not equate? If so, why are you so hell-bent on redistributing money from the rich to the poor. If there is no correlation between spending money and quality of life, then why do you think the poor need any money?

 

[WRS]

Do you equate spending money with quality of life? (Because it certainly sounds like that is what you are doing.)

If it means the difference between living in a slum and living in a decent apartment next to the Metro, with a pool and a gym then yes. If it means the difference between eating Ramen noodles every night and going out occasionally to nice restaurants/bars then yes. Making $70k+ in the first 3-5 years after college probably means you're going to be working your ass off. If you don't take the time and spend a little bit of money to enjoy the fruits of your labor then it's going to be an absolutely miserable lifestyle. I'm not talking about blowing all of your money either...hell I drive a 13 year old 4Runner.

 

[ABCDeac]

It only sounds miserable because we are spoiled Americans. This would be living better than 80% of the world.

No doubt. Societal peer pressure is stronger than I ever thought when I was younger. If you are able to not get caught up in it, you may be able to create a vacuum world where you are genuinely happy. However, as your friends and peers begin to do things differently, you are more than likely going to wake up one day and realize that your situation is comparatively sucky, and you will conform in some ways. At least that is my prediction, and was my experience. I started off thinking I would stay unmarried, have no kids, and retire at 42. Then, I realized that none of my friends were going that route, and that retirement at 42 would be fairly pointless if I was enjoying it alone, or with 65+ year olds.

 

[WRS]

When a person is making good money and single is the very time that he should be able to save some money.....and should be doing so. If a single person making $70K can't save any money, I'd like to know how in the hell he thinks he will be able to save any money making $70K after he has married and started a family.

(And I'm supposed to be the liberal on this board????)

That's the thing...we're not saying you shouldn't save any money. My target is to save $1k a month. OGD is talking about saving $40k a year which, no offense to him, borders on insanity.

 

[TownieDeac]

At this point it really doesn't matter. The only way my kids will be attending is

a) On a scholarship
b) By taking out student loans
c) On a tuition waiver if Mrs Karma is still teaching at Wake in 9 years

C is out, cause they're doing away with the tuition concession after this year, at least on the med campus.

 

[OliveGardenDeac]

That's the thing...we're not saying you shouldn't save any money. My target is to save $1k a month. OGD is talking about saving $40k a year which, no offense to him, borders on insanity.

I don't think it's that insane really. First of all, it's not ramen noodles every night, it's just cheap grocery store food. I'll say bump the food up to $300/month. I'll be fine with eating a bowl of cereal, a turkey sandwich, and a cliff bar for breakfast/lunch/snack every single day of my life. That costs about $4/day total and is not eating bad, but rather fairly normal actually. Then dinner for $6. From the grocery store you can make a decent meal for one person for an amortized $6/day. Say I cook a nice caserole that costs me $20 but is enough for about 3 days. The key is to avoid restaurants.

I do enjoy restaurants on occasion, which is why I included a $400 budget/month for restaurants and bars. I don't have to go to the nicest steak houses regularly.

I could see myself throwing in an extra $500/month for bars/trips, but that still leaves me saving $34k/year while living on $26k.

Living on $26k/year after tax is living better than all of my friends who are 23-25 are right now. Perhaps that's because many are still in school or make $30k - 40k, but either way it's not like I'd be sacrificing hanging out with my friends because I'm too cheap.

I've never lived on anywhere close to $26k/year before. I realize that amount may seem like a pauper to some of you older guys, but it seems like quite a lot of money to me.

 

[TheTwinAndreBen]

I turned out just fine, thank you. Ask my clients, who have more than $25 million entrusted to me...most of which have been with me for 15 years or more. Ask the 35 employees who worked for me in my family business for up to 20 years. (How many small businesses were putting in 401K plans with generous matching in 1984?) Ask the citizens in my community, who have elected me to serve them five times over the past 18 years. Or..... you could just ask my two grandchildren. They'll tell ya!

I bet they sure are glad gramps is paying for their college on 100K a year!

 

[vadimivich]

You can't put a price on your 20's ... those are the best years of your life and unlike any material good, they cannot be purchased again.

I fully support saving money wisely, but at the same time - enjoy the one totally depreciating asset you have (the time you are alive). You know what happens when are dead with 2,500,000 in your bank around? You're still dead.

I saved some money in my 20s (working as a computer engineer, making as much or more than the figures being thrown on this board) - but I also had a blast. I traveled, I partied, I went to sporting events, I did things that I'll look back in life and remember. Yeah, I could have a higher net worth right now if I skipped those things ... but why?

Money in the bank has no value to itself, it's merely a tool to use to improve your life experience.

 

[Liquid Karma]

C is out, cause they're doing away with the tuition concession after this year, at least on the med campus.

Good thing she isn't teaching on the med campus then.