To: Holly_P
$400,000 not including home equityThis seems a bit strange. That must mean that their savings/401k's/IRA's etc have to be 400k more than their mortgages/credit card bills/liabilities. That seems pretty steep for a 40 year old making 100k per year. Am I missing something here/
10 posted on
01/04/2004 1:50:32 PM PST by
PISANO
(God Bless our Troops........They will not TIRE - They will not FALTER - They will not FAIL!!!!!)
To: PISANO
Proably used the same logic Algore did when he said someone making $250K was a 'millionaire'.
19 posted on
01/04/2004 1:57:06 PM PST by
MarkeyD
(Men never do evil so completely and cheerfully as when they do it from religious conviction.)
To: PISANO
Look what is going on here. Dad paid for college. They have no kids. The wife isn't at home, but working, even though they don't need her to do so.
Yeah, we could live that way. But most of us don't. If you both work, live in a moderate home, have your parents pay off your student loans, you too can be like them.
There is a difference between living beyond your means, and living under your means. There is a balance there.
I wonder what exactly they are saving all this money for, if they have no kids, have no mortgage. They probably are so used to not spending money, that they will live the same way after they retire, end up dying with alot of money in the bank. I would rather die with "just $100,000" in the bank, and get nicer clothes, than die with $400,000 sitting in line at the K-mart waiting for the blue light special.
To: PISANO
If I exclude the home and can include my condo I guess according to his formula that qualify for "wealthy" since my net worth is more than double his formula. As for CC, and time payments, i've never had a balance on a CC and never in my life bought anything on credit. If I don't have the cash, I can't afford it and don't buy it.
24 posted on
01/04/2004 2:03:08 PM PST by
dalereed
(,)
To: PISANO
That must mean that their savings/401k's/IRA's etc have to be 400k more than their mortgages/credit card bills/liabilities. That seems pretty steep for a 40 year old making 100k per year. Am I missing something here? Perhaps. It is not so hard to do with compound interest and taxfree investments. The paths of living with debt to make other people wealthy, and having compound interest work for you to make you wealthy, diverge rather quickly. The fact that this couple has no children makes it much easier for them, but I know a couple who did the same thing with four children, and they lived quite well. The U.S. is such a wealthy country that ordinary people who are willing to be a little frugal can accumulate wealth over two to three decades.
To: PISANO
Net worth is calculated a lot of ways, but it certainly includes more than liquid investments. You have to include personal property including vehicles, furniture, jewelry, TVs, etc. Most people have bought more stuff than they realize.
An even truer measure of net worth would include the present value of any future payments you've already earned but not yet received, such as retirement pensions and even social security.
57 posted on
01/04/2004 3:11:21 PM PST by
Dog Gone
To: PISANO
Why not include home equity in the equation for wealth?
If this couple is doing so well, how come he will be working until he is 66? I'll be long retired by then from corporate life.
97 posted on
01/04/2004 4:43:14 PM PST by
ironman
To: PISANO
I think what you're missing is that there shouldn't BE any mortgages/credit card bills/liabilities. Mortgages maybe. But credit cards a definite no-no, and liabilities would automatically be low. Mortgages can be accelerated to pay them off sooner, which is wise.
I am just about to have all of my credit cards and loans paid off, within a month or so. I am so looking forward to that! I have taken the time to set up a spreadsheet to play "what-if" games with my finances, and I'm amazed at what I'll be able to do. The key is to keep my standard of living from creeping up. I plan to buy a home when I figure out where I want to live. My mobile home is paid for, so I may stay here for a while just to build up my savings, and get myself financially healthy again.
PS I live alone, no wife, the kids are out on their own.
153 posted on
01/04/2004 7:19:09 PM PST by
nobdysfool
(All True Christians will be Calvinists in Glory)
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