Retirement / Financial advice

[Mishiwa]

don't see a financial adviser, go see as many as possible, then compare and decide which one is best for you, when I retired the ones I saw gave me quite different advice, then decided on one that was recommended by a friend and I am very happy with the results

[Andy73]

Originally Posted by onestepcsy37

Without the federal reserve there would be anarchy. Before the federal reserve there WAS anarchy. Read your history books.
.

Ummm... NO

The "anarchy" you refer to in the recent years before the creation of the FED (which is not a federal institution) was created by the banks to demonstrate a need for the FED. These same banks were involved in the creation of the FED. Please consider reading "Creature from Jekyll Island" for a discussion on this.

The Fed was the 3rd central bank created in the US, and both of the previous 2 were disbanded by Presidents when they saw the problems created by the central banks.

The FED, in short, creates paper money and then loans it to the government at an interest rate. This is nothing our own government couldn't do successfully.

[ianjoub]

Originally Posted by Andy73

Ummm... NO

The "anarchy" you refer to in the recent years before the creation of the FED (which is not a federal institution) was created by the banks to demonstrate a need for the FED. These same banks were involved in the creation of the FED. Please consider reading "Creature from Jekyll Island" for a discussion on this.

The Fed was the 3rd central bank created in the US, and both of the previous 2 were disbanded by Presidents when they saw the problems created by the central banks.

The FED, in short, creates paper money and then loans it to the government at an interest rate. This is nothing our own government couldn't do successfully.

Thank you!

The FED is true evil. It is not a government institution. It is also unconstitutional. The single best thing we could do for this country is get rid of the fed and fiat currency.

[ianjoub]

http://youtu.be/mII9NZ8MMVM?list=PLF0857BD6B7E3F35F

[barnakiel]

You guys and ladies here are using very odd definitions.

Like wealthy.

Wealthy is the one who can go sailing any time they feel like it.

Like us.

Not?

b.

[socaldmax]

Originally Posted by denverd0n

Excellent philosophy, absolutely true, and a good example. Read "The Millionaire Next Door" if you want to understand how TRULY wealthy people most often live their lives (as opposed to those who are up to their eyeballs in debt, living the high life, but paycheck to paycheck).

That's the author's opinion.

So Jay Leno is broke? He's got a pretty big car collection.
Larry Ellison is a poser? He's got a megayacht.
Sergey Brin isn't worth $32B?
Tom Cruise must be broke, he is reported to own anywhere from three to five private jets. This includes a $20 million Gulfstream that he purchased as a wedding present for his wife Katie Holmes – who was then quoted as saying: ”It’s like a bus, only quicker.”

On the other hand and much to the chagrin of environmentalists, it’s been reported that Cruise once sent one of his private jets to pick up groceries for Katie. He also has a P-51 Mustang. Nice toys.

I don't see any of those people clipping coupons or trying to use grocery points to get a discount on jet fuel. Like I pointed out before, the TRULY RICH have enough money to spend exorbitant amounts on ostentatious displays of affluence and didn't have to drive a used car for 20 yrs to get there.

You should check out RKOI. Rich kids on Instagram. They snap a pic of themselves and their friends getting on daddy's G4 for a quick hop to Paris for lunch, then they snap a pic of the lunch receipt for $100,000 plus tip.

Regardless of anyone's opinion of them,(sure, they're mega-spoiled) the fact remains, they are truly rich, contrary to what that book says.

Even if I had that kind of money, I wouldn't spend it like that. I'd buy some very nice things, but I have no desire to own a mega yacht or planes or any of that. Just pointing out that book doesn't apply to most of the truly rich. Warren Buffet's modest lifestyle is the exception, not the rule.

[valhalla360]

Originally Posted by socaldmax

That's the author's opinion.

So Jay Leno is broke? He's got a pretty big car collection.
Larry Ellison is a poser? He's got a megayacht.
Sergey Brin isn't worth $32B?
Tom Cruise must be broke, he is reported to own anywhere from three to five private jets. This includes a $20 million Gulfstream that he purchased as a wedding present for his wife Katie Holmes – who was then quoted as saying: ”It’s like a bus, only quicker.”

On the other hand and much to the chagrin of environmentalists, it’s been reported that Cruise once sent one of his private jets to pick up groceries for Katie. He also has a P-51 Mustang. Nice toys.

I don't see any of those people clipping coupons or trying to use grocery points to get a discount on jet fuel. Like I pointed out before, the TRULY RICH have enough money to spend exorbitant amounts on ostentatious displays of affluence and didn't have to drive a used car for 20 yrs to get there.

You should check out RKOI. Rich kids on Instagram. They snap a pic of themselves and their friends getting on daddy's G4 for a quick hop to Paris for lunch, then they snap a pic of the lunch receipt for $100,000 plus tip.

Regardless of anyone's opinion of them,(sure, they're mega-spoiled) the fact remains, they are truly rich, contrary to what that book says.

Even if I had that kind of money, I wouldn't spend it like that. I'd buy some very nice things, but I have no desire to own a mega yacht or planes or any of that. Just pointing out that book doesn't apply to most of the truly rich. Warren Buffet's modest lifestyle is the exception, not the rule.

Actually Warren Buffet's modest lifestyle is the rule for people who built wealth over time thru steady smart investing. Every study I have seen on the subject backs this arguement.

Now there are exceptions to every rule but the people who live the lifestyles you describe usually wind up broke sooner or later. It's amazing how many ex-sports and movie stars are in bankruptcy.

You are also confusing high earnings with being wealthy. I'm not sure what Tom Cruises financial background is but he's managed to keep the role of big name star with big paychecks for something like 30yrs. That's far from typical and more akin to winning the lottery than a successful financial plan (lottery winners are also known for being bankrupt in a few years).

Michael Jackson was worth $600mil at one point and later was in bankruptcy.

Basically you can't out earn stupidity.

[socaldmax]

Originally Posted by valhalla360

Actually Warren Buffet's modest lifestyle is the rule for people who built wealth over time thru steady smart investing. Every study I have seen on the subject backs this arguement.

Now there are exceptions to every rule but the people who live the lifestyles you describe usually wind up broke sooner or later. It's amazing how many ex-sports and movie stars are in bankruptcy.

You are also confusing high earnings with being wealthy. I'm not sure what Tom Cruises financial background is but he's managed to keep the role of big name star with big paychecks for something like 30yrs. That's far from typical and more akin to winning the lottery than a successful financial plan (lottery winners are also known for being bankrupt in a few years).

Michael Jackson was worth $600mil at one point and later was in bankruptcy.

Basically you can't out earn stupidity.

I agree 100% with you (especially about the athletes) on everything except the bold sentence. You need to have high earnings to be really wealthy. My mom clipped coupons, walked to the store, reused aluminum foil, etc. she's got ~$1.4M now, but that's just comfortable, not really wealthy. She probably epitomizes what's in that book. If she had Tom Cruise's income, I'm sure she would have saved more than he did of it, but what's the point of dying with $30B if you ate Ramen and drove a beat up Buick every day?

I don't think Tom Cruise is going to die penniless like MJ did, unless he starts inviting little boys over for sleepovers. That's kind of career suicide, to put it mildly. Despite the Veyron and fleet of planes, I hope he has enough financial savvy to cut back on expenses if/when income drops. There's a line between enjoying your money and blowing it foolishly, and everyone draws it in a different place in the sand.

I agree with my mom's savings regimen, but she also bought plenty of jewelry, Rolexes, MB cars, etc. She just had a knack for buying stuff that always appreciated, in addition to her other investments. My biggest regret is that she didn't travel more when she was able to. She always thought tomorrow would be the same as today, unfortunately her health has deteriorated to the point that she can't leave the country. I'd rather she spent it all traveling and leave me nothing, that's what life's all about, having an adventure, not simply amassing money. They say you can't take it with you.

[valhalla360]

Originally Posted by socaldmax

I agree 100% with you (especially about the athletes) on everything except the bold sentence. You need to have high earnings to be really wealthy. My mom clipped coupons, walked to the store, reused aluminum foil, etc. she's got ~$1.4M now, but that's just comfortable, not really wealthy. She probably epitomizes what's in that book. If she had Tom Cruise's income, I'm sure she would have saved more than he did of it, but what's the point of dying with $30B if you ate Ramen and drove a beat up Buick every day?

I don't think Tom Cruise is going to die penniless like MJ did, unless he starts inviting little boys over for sleepovers. That's kind of career suicide, to put it mildly. Despite the Veyron and fleet of planes, I hope he has enough financial savvy to cut back on expenses if/when income drops. There's a line between enjoying your money and blowing it foolishly, and everyone draws it in a different place in the sand.

I agree with my mom's savings regimen, but she also bought plenty of jewelry, Rolexes, MB cars, etc. She just had a knack for buying stuff that always appreciated, in addition to her other investments. My biggest regret is that she didn't travel more when she was able to. She always thought tomorrow would be the same as today, unfortunately her health has deteriorated to the point that she can't leave the country. I'd rather she spent it all traveling and leave me nothing, that's what life's all about, having an adventure, not simply amassing money. They say you can't take it with you.

It's not really high earnings so much as an early jump in net worth. (balmer, gates, etc... are perfect examples) Of course you need to follow up by not doing something stuipid.

A 22yr old who sells a startup for $5million can easily hit $500million by retirement age, if he sets that money aside if fairly pedestrian investements and lives off his regular salery.

On the other hand a guy worth $5million at 55yrs old (pretty successful by most standards), who gets a big corporate job promotion making $5million/yr is unlikely to ever hit the $500million level. If he suddenly starts living like he has $500million (your instagram kids are a perfect example), he likely won't break thru the $20million barrier.

[denverd0n]

Originally Posted by socaldmax

So Jay Leno is broke? He's got a pretty big car collection.
Larry Ellison is a poser? He's got a megayacht.
Sergey Brin isn't worth $32B?
Tom Cruise must be broke, he is reported to own anywhere from three to five private jets.

You certainly seem to be quite impressed by conspicuous consumption. Forgive me if I am not.

Do you really believe that those people represent the lifestyle of most of the millionaires in the world? My, my. How easily some can be lured in by pretty baubles.