Are you rich?

[thedanNYC]

My father worked in academia for the last 30 years of his working life. Prior to that, much to the chagrin of his family, he was a Union organiser. My mother returned to work when I, the youngest, was in school full time. She retired about 25 years later as a commodities trader. My father received a low six figure lump sum in lieu of pension from his Union days, and monthly checks from TIAA-CREF, which survived him, and were then paid to my mother. My mother received a small pension from the first company she worked for (just about $600 a month), plus her 401K, which when she passed had just about a $55K RMD. Both received social security. They had a comfortable retirement, traveled to Europe every year for a few months visiting family, stayed out East every September, spent money fixing up/redecorating their homes, etc.. Unfortunately, they did not have long retirements. I encouraged them both, and especially my mother after my father passed, to spend the money and enjoy life. I like to think they did, but it does sadden me a bit when I think of what they didn’t get to do.

 

As for me, I have no pension from any company I’ve ever worked for. I have a healthy 401K, an IRA, plus my own investments and savings. Like I said in a previous post, I don’t care what’s left when I’m gathered to my forebears, as long as there’s enough to tip the gravediggers. My family knows not to expect anything as I fully intend to enjoy every minute I have on this earth - but whatever may be left is earmarked for my godchildren, a few friends if they survive me, and a few charities.

 

?‍♂️You recruiting? I'm a great friend!

[MassageDrew]

The word "rich" is subjective to me. Some people can live with 50k or even less while some making 6 figures doesn't seem to have enough. I think you have to work with your budget. The problem is that most tend to live and spend way out of their means and that gets them in trouble. Treating yourself with a massage is always nice. But if you have to worry about how to pay for it then you probably shouldn't get one right now.

[mattr]

I consider myself solidly middleclass. My goal has been to retire with 25x my last salary saved and invested. I travel, taking at least 2 trips per year although my last trip was early February of 2020 and I probably won't travel again until Q4 of this year or Q1 of next year. I'm about to turn 62 and have always lived below my means. I own my own modest home in a NYC suburb home, have no debt, and have saved almost 30x my current salary. I am basically working for health insurance right now and my goal is to work another 20 months. At that point, I can stay on my companies health insurance plan through COBRA until I am 65 and eligible for medicare. I will move out of NY before I turn 72 and must start taking RMDs from my tax deferred investments (two 401Ks and an IRA). I plan to defer SS until I turn 70, at which point I should get about $3900/month. No one relies on me for money and I don't see that changing. My mother is in her late 80's, in good health, owns her own home, and has enough money to maintain her lifestyle for the foreseeable future. My brother and sister-in-law are both professionals and also live comfortably below their means. I have been contributing to a 529 plan for my niece since she was born and expect to be able to fund half of her undergrad degree by the time she is ready to go to college.

[BtmBearDad]

?‍♂️You recruiting? I'm a great friend!

 

I’m sure you are, @thedanNYC - but does this mean you’re betting on surviving me, and so I would then have to watch my back ?

[thedanNYC]

I’m sure you are, @thedanNYC - but does this mean you’re betting on surviving me, and so I would then have to watch my back ?

 

Not at all

 

[BtmBearDad]

Not at all

 

 

This reply gets you points, mister! Sharp humour and wit go a long way on the friend recruitment drive. I’ll make a note on your file ?

[Epigonos]

Rich is such a relative term. To Bill Gates I am certainly NOT rich but to a penniless beggar on a Calcutta street corner I certainly am.

Edited April 29, 2021 by Epigonos

[+ Vegas_Millennial]

Replace "I can't afford that" with "that is not my priority".

 

For me, a new car is not my priority (my car is 11 years old). A large cabin on a cruise ship is not my priority (inside cabin if fine). Fancy clothes are not my priority (no jewelry, no watches, shop once a year at a Department store).

 

But hiring an escort a couple times a year, such as holidays, is my priority. Traveling the world is my priority. Flying first class (I hate economy seats) is my priority. Not cleaning toilets (I have a weekly housekeeper) is my priority.

 

So, in order to afford my priorities, I cut back out do without things that are other people's priorities but not mine.

[marylander1940]

In

I guess you didn't like your job much if you left at age 55. Too bad

 

Not only that considering out life expectancy retiring at 55 is not fair to others, even 65 in some cases seems too early.

[+ WilliamM]

Not only that considering out life expectancy retiring at 55 is not fair to others, even 65 in some cases seems too early.

Age sixty five is not too early for people with pre existing conditions (heart, Cancer. arthritis, on and on). How is fifty five unfair to others. (I retired at 62).

[+ WilliamM]

Not only that considering out life expectancy retiring at 55 is not fair to others, even 65 in some cases seems too early.

In the Roosevelt and Johnson eras some people wanted to work in government to support the New Deal and Great Society Progress and not for the retirement benefits

[marylander1940]

Replace "I can't afford that" with "that is not my priority".

 

For me, a new car is not my priority (my car is 11 years old). A large cabin on a cruise ship is not my priority (inside cabin if fine). Fancy clothes are not my priority (no jewelry, no watches, shop once a year at a Department store).

 

But hiring an escort a couple times a year, such as holidays, is my priority. Traveling the world is my priority. Flying first class (I hate economy seats) is my priority. Not cleaning toilets (I have a weekly housekeeper) is my priority.

 

So, in order to afford my priorities, I cut back out do without things that are other people's priorities but not mine.

 

Agreed!

 

That's why we shouldn't judge what others do with their money, specially considering the expensive "hobby" most of us have and has brought us to this site.

[marylander1940]

Not at all

 

 

You're still young!

 

If you do things right you might be comfortable and hopefully rich in the future.

[+ sniper]

You're still young!

 

If you do things right you might be comfortable and hopefully rich in the future.

I have 5 siblings. I made the median income for my family and am far and away the "wealthiest" of us. Largely because I didn't have kids who turned out to have special needs, or crippling depression that doesn't respondvto treatment, or a disease that took my ability to walk and care for myself, or a spouse who got one of the deadlier cancers but lived several years longer than most, costing quite a bit during that time, etc. We need to be more aware of the fact it's not JUST doing the right things, there's a substantial amount of chance involved in our society in "making it." I really can't say I worked harder for my better outcome.

[+ WilliamM]

Not only that considering out life expectancy retiring at 55 is not fair to others, even 65 in some cases seems too early.

Again, how is sixty-five too early, especially for men who tend to live shorter lives than women?

[marylander1940]

I have 5 siblings. I made the median income for my family and am far and away the "wealthiest" of us. Largely because I didn't have kids who turned out to have special needs, or crippling depression that doesn't respondvto treatment, or a disease that took my ability to walk and care for myself, or a spouse who got one of the deadlier cancers but lived several years longer than most, costing quite a bit during that time, etc. We need to be more aware of the fact it's not JUST doing the right things, there's a substantial amount of chance involved in our society in "making it." I really can't say I worked harder for my better outcome.

 

I guarantee you 2 things, the world now is way more competitive for millennials than it was for you, and you and your 5 siblings got lucky to be born in the ?? if that's the case. I don't know your age, place of birth or whether you and your siblings move far away from home but I guess you guys are American and not millennials.

 

There's chance involved on many things in life, one of them being money.

[+ Vegas_Millennial]

Not only that considering out life expectancy retiring at 55 is not fair to others, even 65 in some cases seems too early.

One of my priorities is to retire before 50, so I have been saving and investing accordingly since age 17 (while still enjoying other priorities). I now believe I will be able to make my goal to retire from a full time career by age 45, before I move on to more travel and part time seasonal work for fun.

I really don't mind that this is not a priority for others. Thank goodness we all have equal opportunity to work, save, and invest, without a government restricted equity of outcome

Edited April 29, 2021 by Vegas_nw1982

[+ WilliamM]

I guarantee you 2 things, the world now is way more competitive for millennials than it was for you, and you and your 5 siblings got lucky to be born in the ?? if that's the case. I don't know your age, place of birth or whether you and your siblings move far away from home but I guess you guys are American and not millennials.

 

There's chance involved on many things in life, one of them being money.

 

No. Certainly not for people with college degrees,or those close to college degrees

 

@marylander1940 you must be the president of your local chapter of the Chamber of Commerce.

[EastCoastGuy]

This is an interesting discussion! I don’t know if I’m rich. What I do know is that I can easily afford all of my needs, most of my wants, and many of my vices. I can’t reasonably expect more than that.

[+ WilliamM]

You're still young!

 

If you do things right you might be comfortable and hopefully rich in the future.

Most people here are much younger than you and I

[JayCeeKy]

Joan Rivers used to say "Whoever says money can't buy happiness doesn't know where to shop." Having said that, I've known a few folks in my lifetime who believe that being "rich" is more than just a question of stocks, bonds, and mutual funds. I had a roommate in college, a brilliant young man, good-looking, great personality. For most of the last half-century he sold snacks at a major sports venue and made subsistence wages. For entertainment he goes to free concerts, socializes with friends, visits parks, museums, and other low-cost attractions. He rarely watches TV as he considers it a waste of time and spends most evenings reading books he has borrowed from the public library. For most of the past 50 years he has immersed himself in various organizations and movements that attempt to make life better for the less fortunate. I can attest that he is one of the happiest, best adjusted, most contented individuals I know. Epictetus, a stoic philosopher said that “Wealth consists not in having great possessions, but in having few wants.”

[+ sniper]

One of my priorities is to retire before 50, so I have been saving and investing accordingly since age 17 (while still enjoying other priorities). I now believe I will be able to make my goal to retire from a full time career by age 45, before I move on to more travel and part time seasonal work for fun.

I really don't mind that this is not a priority for others. Thank goodness we all have equal opportunity to work, save, and invest, without a government restricted equity of outcome

Just make sure your "quit number" doesn't assume everything continues to go right physically. You get some chronic condition that inhibits your ability to work, your burn rate goes up, and you could be in a lot of trouble unless you have a cushion. How you feel at 45 and 55 can sometimes be VERY different and not necessarily predictable Part of the reason when the opportunity presented itself, I went back to full-time work after a few years off in my late 40s. I realized I'm not sure how long I will be physically completely self-reliant - I'm already paying people to mow the lawn and shovel because I can't. So...back at the corporate grind, maxing out the 401(k) and HSA, and letting my other stuff grow a few more years. And strategizing about my next home and what I will require to age in place.

[+ WilliamM]

Joan Rivers used to say "Whoever says money can't buy happiness doesn't know where to shop." Having said that, I've known a few folks in my lifetime who believe that being "rich" is more than just a question of stocks, bonds, and mutual funds. I had a roommate in college, a brilliant young man, good-looking, great personality. For most of the last half-century he sold snacks at a major sports venue and made subsistence wages. For entertainment he goes to free concerts, socializes with friends, visits parks, museums, and other low-cost attractions. He rarely watches TV as he considers it a waste of time and spends most evenings reading books he has borrowed from the public library. For most of the past 50 years he has immersed himself in various organizations and movements that attempt to make life better for the less fortunate. I can attest that he is one of the happiest, best adjusted, most contented individuals I know. Epictetus, a stoic philosopher said that “Wealth consists not in having great possessions, but in having few wants.”

I agree completely

[+ Charlie]

Rather than set an arbitrary age for retirement long in advance, I retired when I felt it was time to do so and the circumstances were appropriate. I never planned to retire at 59, but a lot of things that I could not have predicted happened at about the same time--changes in my job, changes in my private life, unexpected opportunities--and I realized that the time was right, so I did it almost on the spur of the moment, and I have never regretted the decision.

[marylander1940]

Just make sure your "quit number" doesn't assume everything continues to go right physically. You get some chronic condition that inhibits your ability to work, your burn rate goes up, and you could be in a lot of trouble unless you have a cushion. How you feel at 45 and 55 can sometimes be VERY different and not necessarily predictable Part of the reason when the opportunity presented itself, I went back to full-time work after a few years off in my late 40s. I realized I'm not sure how long I will be physically completely self-reliant - I'm already paying people to mow the lawn and shovel because I can't. So...back at the corporate grind, maxing out the 401(k) and HSA, and letting my other stuff grow a few more years. And strategizing about my next home and what I will require to age in place.

 

Thank you for sharing this with us!

 

We need to have some sort of safety net for all (who actually need it) but specially for children in this country. Unfortunately most of the time all form of help ends up with folks who simply have the know how to get them but not those who actually need them.

 

So much uncertainty specially when it comes to personal healthcare is bad for people and business.