What net worth do you consider wealthy?

[Tenacity]

I have quite a few wealthy clients and the general consensus is you need around 50 million to be in a position where you and your family can sustain that level of wealth while still enjoying a high standard of living.

With all due respect, this is just nuts man. You need $50 million to be in a position with a high standard of living? Who is making these rules? Unless you have an insanely high spending habit or insanely high expenses, if you get to the point of having $1 million in the bank and earning safe/conservative interest on that (let's say 4%) then you can consider yourself to be very WELL OFF. Depending on your expenses, you could live off that $40,000 a year without working.

Now again, TO ME, that's very well off. If you want to just be "well off" then having $500,000 in the bank earning 4% a year is pretty solid. You would still have to go out and work with this, but you would still be making $20,000 a year passively and SAFELY and there's millions of people in the country that have to work full time to make the $20k - $25k that you make passively.

In other words, you can spend your afternoons on the golf course and your evenings banging high class ho*kers and your wealth will still grow or stay around the same level.

See this is why these "required wealth numbers" are so inflated, it's because people that are spending insane amounts of money are setting these metrics. What about those of us that aren't looking to bang high class hookers? My goodness, pvssy is pvssy, what the hell do I look like paying a significant amount for something that's been ran through like that? And there are decent golf courses that don't require that level of spending.

Again, go back to my $1 million example, if you keep your expenses managed to be under $40,000 a year, there are Brokered CDs you can put that money into right now earning 4% and you could live off that $40,000 a year interest safely.

To me, being WELL OFF is being able to live off your passive investments for a long period of time. It follows the Mr. Money Mustache mantra. But again, this is ME, depends on YOUR goals. If you want to spend $250,000 a year on worthless crap then you will need to amass a significant amount of money to do so.

I don't HAVE to amass that much to be WELL OFF.

There are only really two ways to reach that level. One is by setting up your own company and then selling it. The other is by working in VC or Private Equity for a few years and then joining the next Uber/Spotify/Facebook as an executive before it gets huge so you can sell off the stock you're paid in once it goes public. I'm aiming for the latter while still working on the former.

- Thousands of people setup companies and sell them, and don't make $50 million - $500 million on the sale.

- Thousands work in the VC and Private Equity industry (or I-Banking), and don't amass $50 million - $500 million.

To get into that level of wealth, you are going to have to create something that is going to change the way the world works in some fashion and on a MASS scale. You are going to have to be the founding father of some extremely innovative concept, setup the business, sell it all over the globe, and then SELL the business. If you can do that, then you will get into that level of wealth.

I'm not against anybody having "dreams", but sometimes you guys go way over board with this stuff to the point you aren't even being practical, logical or reasonable.

 

[SeymourCake]

Wealth is measured by the abundance one carries in his mind; Not by material possessions.

 

[BeTheChange]

Tenacity, as others have pointed out, your small thinking is the reason you will never be successful.

If you don't have a seemingly outrageous goal you will never seek opportunities to fulfill that goal - shout out to my boy guru.

Secondly, don't shoot the messenger.

The 50m number is coming straight from the horse's mouth. These are wealthy clients who know their stuff.

And the number I quoted is roughly the figure they believe you need to sustain a luxury lifestyle and with reasonable investments see your wealth still rise.

Anything less and you with either have to give up certain luxuries or see your net worth deplete.

Wealth preservation is what turns new money into old money.

 

[Tenacity]

Tenacity, as others have pointed out, your small thinking is the reason you will never be successful.

If you don't have a seemingly outrageous goal you will never seek opportunities to fulfill that goal - shout out to my boy guru.

And like I said, both of you guys are doing nothing but "talking" about goals and dreams, with no concrete planning on how you are supposed to amass this $50 million - $500 million. Anybody can just throw out some random, arbitrary number and say THAT'S their wealth accumulation goal. But if you don't have the resources, networks, VC capital, business acumen, NEW IN-DEMAND PRODUCT THAT EVERYBODY WANTS, to get there...then how do you get there then?

Secondly, don't shoot the messenger.

The 50m number is coming straight from the horse's mouth. These are wealthy clients who know their stuff.

And the number I quoted is roughly the figure they believe you need to sustain a luxury lifestyle and with reasonable investments see your wealth still rise.

Anything less and you with either have to give up certain luxuries or see your net worth deplete.

Wealth preservation is what turns new money into old money.

Can you ask them what they did they do come into their wealth? Are they trust fund babies? Did they get in on being a very early holder of Apple stock or Google stock or Microsoft stock? Did they help invent Facebook? Did they help invent the iPhone? Are they in the Hedge Fund industry? Is Mitt Romney their daddy?

Same thing here with the other thread that we left off with, without concrete examples these random, arbitrary numbers mean absolutely nothing. Less than 99.99% of people in the country will EVER (and I mean EVER) amass over $50 million in wealth because our Corporate Fascist System is just not SETUP for people to just "work hard enough" to amass that.

You guys are using people who are extreme exceptions to the norm, and trying to use them AS the norm. These guys you are talking about have/had extreme competitive advantages that 99.99% of people on this planet will never have/had, thus, they aren't even in the POSITION to amass $50 million in wealth.

But I'm sure you will call me a piker or whatever new word you guys make up lol, but facts are facts sir.

 

[sodbuster]

50,000,000 x .04 {ATT, Verizon, and a bunch of other companies dividends} means 2 million a year for life before taxes...... I think they maybe have a different definition of rich than the rest of us.... I maybe know a builder at that level, but he's 84 and still building.

 

[dillj]

you need a certain amount of net worth, at least semi-liquid, as in readily salable apt buildings, etc. To the tune of 1/4 million and you need passive (not a biz you have to run, nor a job) income of at least 50k per year (gross) if you are alone. If you have a wife and kid, you'd better be making 3x that much. You can make far, far more than 8% passive income, if you know what to do with your money. As in 50% per year. So you don't need anything like millions to be able to retire handsomely. It takes 3-4 years to set up and you need 20k to get it going, but that's easy to arrange for.

 

[dillj]

if your "portfolio" makes plenty, why work, hmmm? Define "plenty". If I have no work income and my portfolio makes $10, according to you, i"m ok, correct? Put a dollar figure on it, guys. stop welching. 50k per year, pretax, covers you ok, as long as you can sell out and have another 1/4 million for emergencies, like you had to shoot somebody (ala George Z) and then have criminal and civil problems.

 

[Trump]

It's funny how guys in this thread argue back and forth over interest rates, not having to work, and the term wealthy. It's like we get defensive when someone says something we don't like or think is unfair.

IMO, it's not so much about being wealthy as the experience you get and connections you make getting and keeping it. If you are born into it and not competent, you will lose it fast with no way of making it back. But if have smarts to know what you are doing, even if you lose it, you can always make it back. Money comes and money goes, as long as you don't waste it, it's the journey that's important, relatively speaking.

I think deep down (mostly for guys), no one wants to be handed a load of money and just drive around in fancy cars and travel the world all day with no responsibilities. OK, it's fun for a month, but what are going to do month 2? I think most guys want to do work that's meaningful for them, they want to go through the fight, the struggle, the pain to get somewhere. Because at the end of day, when people come at you and try to CRUSH you and take your money, you will be smart enough to say, NO BUENO!

 

[Bible_Belt]

It's going to be pretty funny when the dollar becomes worthless, and it doesn't matter how many of them you have. The numbers on your bank statement - that wealth does not tangibly exist, except in the form of a promise to pay in the future. When that promise isn't trusted any more, the entire system collapses, and your life savings will disappear with it. That money never really existed, anyway, it was all just an illusion.

 

[dillj]

yeah? well 100k of that "illusion' is enough to get somebody to stalk, kidnap, torture and kill you, so go on kidding yourself about it. people can use that "illusion" to buy and bury enough guns, ammo, gold and food to still be going strong long after other people have eaten your carcass.

 

[dillj]

making 300k without having to work at a very stressful job, is going to require many millions of $ invested. that's a pig's sort of "life". all I have to do, to be quite happy, is hunt and shoot and I only need about 30k per year for that (after tax)

But I do have to pay a kid to cast my bullets and I lay down plastic sheeting to catch my fired brass casings. i do my own sizing of the bullets and loading of the ammo, or I'd have to spend 3x as much for shooting-costs.

 

[BeTheChange]

It's going to be pretty funny when the dollar becomes worthless, and it doesn't matter how many of them you have. The numbers on your bank statement - that wealth does not tangibly exist, except in the form of a promise to pay in the future. When that promise isn't trusted any more, the entire system collapses, and your life savings will disappear with it. That money never really existed, anyway, it was all just an illusion.

People have been saying this for decades. Sorry MGTOW college dropouts but It just ain't happening.

 

[BeTheChange]

Talking up real estate is often met with antipathy these days but if you buy property in an in demand like New York or London you aren’t going to lose money over a twenty year period.

People whine about real estate because they expect to make a quick buck off unsustainable rises in property values and then overstretch themselves, particularly where it’s their primary or sole residence. The trick is to buy in an area that has a high/growing population. Then you can be confident you will be always be able to rent it out and have someone pay your mortgage.

This is how things have worked for me and I’m slowly building my own real estate empire without overstretching myself or placing myself in any real financial risk. If I can repeat this process and add a property in line with my increase in income so I am never overstretched by the time I hit 40 I could easily outright own 10 or more properties.

Save. Invest. Find ways to make more money. Save some more. Invest some more.

 

[dillj]

such "confidence" has ruined many an investor. Real estate IS where it's at, all right, but only if you can rent out 20+ weekly rooms and only if you can get into it with somebody's VA home loan on a big old 80k$ house (ie, no 20% down payment,, no PMI and no closing costs). If you locate it well, you'll always have a waiting list of tenants I'ts a helluva lot easier to find 20 guys who will pay $100 a week for washer, dryer, net and pc, small fridge, access to microwave and sinks, AC, TV and cable, than it is to find one tenant who'll pay you 100k per year, to rent that same house,r est assured of that. You'll have trouble finding a reliable guy to pay you 20k per year for it and without the VA loan, you'll be barely breaking even. do it my way and you'lll make 100% profit

 

[dillj]

50 million, huh? good luck with that. you'll work 50 years and never have 5 milllion, due to taxes and inflation. you CAN, however, in 6 years or so, have a clear 100k per year income, with the ability to charge more for rent, to make up for any increase in taxes or inflation

 

[BeTheChange]

^ Go home you're drunk.

 

[hanni]

if you are single, you have to gross 150k per year to amount to a hoot, unless you are EXTREMELY frugal. You'll lose 40k of a 100k gross to taxes and SS. and 5k more to inflation. you have to invest 25k of it in order to retire at a decent age, so that leaves only 30k for expenses and fun. That aint much.

I have not drunk anything alcholic in 33 years and have never even been tipsy in my life. when you ccw a pistol everywhere, you can't drink. Anyone who "thinks" that they are going to start with nothing and have 50 million (or need even 10% that much) is definitely a fool, and probably a drunk, too.

 

[BeTheChange]

if you are single, you have to gross 150k per year to amount to a hoot, unless you are EXTREMELY frugal. You'll lose 40k of a 100k gross to taxes and SS. and 5k more to inflation. you have to invest 25k of it in order to retire at a decent age, so that leaves only 30k for expenses and fun. That aint much.

I have not drunk anything alcholic in 33 years and have never even been tipsy in my life. when you ccw a pistol everywhere, you can't drink. Anyone who "thinks" that they are going to start with nothing and have 50 million (or need even 10% that much) is definitely a fool, and probably a drunk, too.

You must be drunk as you are struggling with basic comprehension. Either that or you aren't too bright.

The title of the thread is "What net worth do you consider wealthy" not "What net worth do you consider achievable".

The 50 million was the answer to the first.

It's the minimum amount you can be worth and still enjoy a luxury lifestyle without seeing the value of your wealth erode considerably in your life time.

It's certainly the minimum amount if you plan to live like a playboy and never work again.

3 - 5% net returns (which isn't easy) after inflation would give you at least a million after tax to play with. To me that's wealth.

 

[hanni]

if ou don't have a clue how to invest it, probably right, but anyone who DOES know such need not bother with more than a couple of mill, which is very attainable, even if you do wanna be stupid about your lifestyle. if you can't average 20% per year, you aint waf.

 

[LiveFreeX]

You can have all the money in the world but if you ain't got your health, you ain't got nothin.