Retirement Targets

[ricochet]

True, but most of the billionaires did exactly that, hold a few stock that perform very well, and stay along for the ride. Index funds are the way to lessen risk, but your are never going to make millions off an index fund, which is the goal of many.

I bet most billionaires start a company (or inherit from somebody who started a company) rather than buying stock in a company. Venture capitalists or others who provide seed money and get stock don't count as people who buy stock because regular people can't do that.

Also, owning total market or S&P 500 index funds is the safest and easiest way to become a millionaire. Put your money in early, keep putting it in, don't panic sell when the stock market goes down. It might not be exciting but it works.

 

[qwerty]

I have dreams of winning a billion dollar lottery, lump sum after taxes and using a lot of that money to bring industry, jobs, infrastructure and business to my dying home town, where I haven't lived for at least 35 years. Probably not a very good business model because that town is down to less than 500 people right now with no school

Well, that description narrows it down to 8,346 towns in the Midwest.

 

[mkadl]

Well, that description narrows it down to 8,346 towns in the Midwest.

If you are with one of the major networks that would be the following States; Pennsylvania, Ohio, Michigan, Indiana and Illinois.

 

[yowza]

I have dreams of winning a billion dollar lottery, lump sum after taxes and using a lot of that money to bring industry, jobs, infrastructure and business to my dying home town, where I haven't lived for at least 35 years. Probably not a very good business model because that town is down to less than 500 people right now with no school

Could build housing with that kind of money. People would come Ray.

 

[yowza]

True, but most of the billionaires did exactly that, hold a few stock that perform very well, and stay along for the ride. Index funds are the way to lessen risk, but your are never going to make millions off an index fund, which is the goal of many.

Most are not that lucky. Not many billionaires in the US.

 

[yowza]

For my retirement plan, which I maintain myself, I assume up to a 5.5% type of return to be conservative. I know they throw out that 4% withdrawal deal, but I don't see us going back to 0% interest rates any time soon, especially for as long as we were at 0. You get to a point you have to start taking out some as required. Probably just dump some into other investment vehicles.

I assume long term inflation at 2% to 3%.

I watch roughly an hour of CNBC in the mornings to try to catch up with what's going on that day and then check back in mid-afternoon to see what's changed. It doesn't change what I do, because my outlook is still longer term, but always good to keep up with it. Sometimes watch Cramer in the evenings, but I can usually only take so much of that guy.

 

[yowza]

67 is mandatory retirement at my company. That's my plan. That's a ways off for me and while I could retire now, have no desire to. I enjoy working and want to give as much back to my company as I can.

My secret to success has always been living below my means, saving as much as possible and trying to keep life simple.

There is a lot of good advice in this thread. Don't sweat the details and take time to enjoy life with family and friends. The people I see who have the most regrets are the ones who never made time to do those simple things.

Hey if that is fun, then stick with it. I have changed my thinking a lot in the last 3 years. Just lost many people and some had maybe 10 years of true retirement. I just don't want to be that. I may miss being at work at times, but I will find other things to occupy my time, including some volunteer stuff at schools. I used to think I wanted to work until I was 70, but no longer. Now I want out by the time I am 62. Probably do some part time stuff first to transition out, so I don't get the shakes.

 

[SEIOWA CLONE]

Most are not that lucky. Not many billionaires in the US.

According to this article there are 770 billionaires in the US, and 5.3 million, millionaires in the US. That seems like quite a few.

Here's How Many Millionaires and Billionaires Live in the United States

The United States has the largest wealth market in the world. Explore the latest data on how many millionaires and billionaires call the United States home.

www.fool.com

 

[yowza]

According to this article there are 770 billionaires in the US, and 5.3 million, millionaires in the US. That seems like quite a few.

Here's How Many Millionaires and Billionaires Live in the United States

The United States has the largest wealth market in the world. Explore the latest data on how many millionaires and billionaires call the United States home.

www.fool.com

There are more lottery winners running around and I will never use that as a retirement strategy either.

Doesn't the millionaires # seem low???? Dang near every farmer would be a millionaire if looking at net worth. I know some may have loans, but anyone who been farming since 1990s before land prices shot up should be topping that number.

 

[SEIOWA CLONE]

There are more lottery winners running around and I will never use that as a retirement strategy either.

Doesn't the millionaires # seem low???? Dang near every farmer would be a millionaire if looking at net worth. I know some may have loans, but anyone who been farming since 1990s before land prices shot up should be topping that number.

Not sure if people like farmers are counted in the total of 5.3 million or not, and lottery winner would not be a retirement strategy for anyone.
But if you look at the Billionaires group, most either inherited the money or they started a company that became successful, that will mean that they own lots of stock in that company, not index funds. Index funds are great for the guy looking for retirement, but not a great way to build up vast wealth. I think both of us can agree on that.

 

[Cyclones_R_GR8]

There are more lottery winners running around and I will never use that as a retirement strategy either.

Doesn't the millionaires # seem low???? Dang near every farmer would be a millionaire if looking at net worth. I know some may have loans, but anyone who been farming since 1990s before land prices shot up should be topping that number.

Taking into account the value of your home along with IRAs, 401k and investments I would agree that number seems low.

 

[CascadeClone]

Taking into account the value of your home along with IRAs, 401k and investments I would agree that number seems low.

Google search comes up with that Fool estimate first, but down the results list you find a Credit Suisse survey that puts it at 22 million. That seems more likely, and more credible source.

Also says 40% of that wealth is real estate, and 43% is just one property. So essentially, their home equity is a big chunk of their net worth, which makes sense.

I bet half the people in this thread, and 80% of those over 50 in this thread, are "two comma" net worth. Just based on self selected interest in the topic.

 

[dmclone]

I bet half the people in this thread, and 80% of those over 50 in this thread, are "two comma" net worth. Just based on self selected interest in the topic.

I had never heard of "two comma" before and was a little confused at first. I thought you meant 10 million or more

 

[Stormin]

Google search comes up with that Fool estimate first, but down the results list you find a Credit Suisse survey that puts it at 22 million. That seems more likely, and more credible source.

Also says 40% of that wealth is real estate, and 43% is just one property. So essentially, their home equity is a big chunk of their net worth, which makes sense.

I bet half the people in this thread, and 80% of those over 50 in this thread, are "two comma" net worth. Just based on self selected interest in the topic.

A person can be a millionaire on paper with the price of home, vehicle, and IRA, etc. Those assets are not disposable. Must keep. And homes and vehicles are non-revenue producing assets. They are a consumption of your revenue with the taxes, insurance, maintenance.

 

[KnappShack]

A person can be a millionaire on paper with the price of home, vehicle, and IRA, etc. Those assets are not disposable. Must keep. And homes and vehicles are non-revenue producing assets. They are a consumption of your revenue with the taxes, insurance, maintenance.

I loves me some home equity.

I don't love that I have to liquidate the property or pay someone to get that money out.

 

[CycloneSpinning]

A person can be a millionaire on paper with the price of home, vehicle, and IRA, etc. Those assets are not disposable. Must keep. And homes and vehicles are non-revenue producing assets. They are a consumption of your revenue with the taxes, insurance, maintenance.

I would agree. The value of your home should not be considered. It does nothing for you unless you live in a high cost of living location and are moving to a much lower one…or you plan on being homeless. I suppose I could add downsizing or dying (with your kids getting the money).

I also assume everyone is remembering net worth is assets minus liabilities. There are a lot of people with big mortgages, cars they don’t fully own, student debt, etc. (and that would certainly include farmers and their equipment). There are even a lot of heavily leveraged real estate portfolios. You can have an enormous cash flow and a rich lifestyle but have a fairly low net worth.

And certainly a conversation can be had as to what value a high net worth actually brings…especially as has been pointed out if a lot of your money is in places you can’t (or perhaps better said shouldn’t) get to it.

 

[CascadeClone]

I would agree. The value of your home should not be considered. It does nothing for you unless you live in a high cost of living location and are moving to a much lower one…or you plan on being homeless. I suppose I could add downsizing or dying (with your kids getting the money).

I also assume everyone is remembering net worth is assets minus liabilities. There are a lot of people with big mortgages, cars they don’t fully own, student debt, etc. (and that would certainly include farmers and their equipment). There are even a lot of heavily leveraged real estate portfolios. You can have an enormous cash flow and a rich lifestyle but have a fairly low net worth.

And certainly a conversation can be had as to what value a high net worth actually brings…especially as has been pointed out if a lot of your money is in places you can’t (or perhaps better said shouldn’t) get to it.

For a minute I was like what are you talking about? But I see your point - there IS a difference between net worth and funding your retirement.

But all else equal, owning your home should reduce your income requirement (taxes & insurance are less than taxes & insurance & mortgage -- or rent), so it lowers the amount of retirement savings you need. You could also downsize your home, and use that incremental cash to fund retirement. I think it is safe to say there is probably a strong correlation between net worth and ability to fund retirement income needs.

 

[CascadeClone]

A person can be a millionaire on paper with the price of home, vehicle, and IRA, etc. Those assets are not disposable. Must keep. And homes and vehicles are non-revenue producing assets. They are a consumption of your revenue with the taxes, insurance, maintenance.

Your IRA isn't "disposable"? I plan on selling off mine in pieces regularly, and taking the cash to fund my retirement. What are you going to do with yours?

 

[Stormin]

There are more lottery winners running around and I will never use that as a retirement strategy either.

Doesn't the millionaires # seem low???? Dang near every farmer would be a millionaire if looking at net worth. I know some may have loans, but anyone who been farming since 1990s before land prices shot up should be topping that number.

Some may have loans? IMO the larger farming operations are very likely to utilize financing to cash flow the monetary needs of crop inputs, machinery and land. Higher interest rates will end up causing serious problems for those who bought assets that do not cash flow.

 

[nfrine]

Google search comes up with that Fool estimate first, but down the results list you find a Credit Suisse survey that puts it at 22 million. That seems more likely, and more credible source.

Also says 40% of that wealth is real estate, and 43% is just one property. So essentially, their home equity is a big chunk of their net worth, which makes sense.

I bet half the people in this thread, and 80% of those over 50 in this thread, are "two comma" net worth. Just based on self selected interest in the topic.

Does the decimal point count as a comma???