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Old 07-28-2015, 06:18 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,443,353 times
Reputation: 12318

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Quote:
Originally Posted by Pac_5 View Post
I think you would see LA in a very different light if you made a bit more income. At least tell any young kids you know to study hard in school, so they can enjoy LA when they are your age........
Studying hard in school is good...but many are realizing it's not necessarily the path to wealth or becoming a high income earner.

I think it might be better to study how to make money or start a business.
Things they don't really teach one in school.
Also many people might not do great in school and then think they are dumb and doomed to a low income existance because everyone is telling them good grades = a great career/job
Great of course means a job that pays a lot of money.
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Old 07-28-2015, 06:27 PM
jw2
 
2,028 posts, read 3,264,955 times
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I have a question for you 909, if all houses in LA were affordable (per your standard) who would decide who gets to live there? It would seem the demand would outweigh the availability so someone would have to choose, right?
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Old 07-28-2015, 06:43 PM
 
Location: On the water.
21,725 posts, read 16,327,107 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
Middle class goes on up to $10million in net worth.
No. It doesn't.
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Old 07-28-2015, 11:27 PM
 
Location: OC/LA
3,830 posts, read 4,661,125 times
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Quote:
Originally Posted by Tulemutt View Post
No. It doesn't.
I too was going to dispute that.

The top 1% has a net worth of over ~7 million.

I don't think "upper middle class" includes the top 1%.


Net Worth in the United States: Zooming in on the Top Centiles - Don't Quit Your Day Job...
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Old 07-29-2015, 09:34 AM
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11,395 posts, read 13,409,287 times
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Quote:
Originally Posted by jm1982 View Post
Studying hard in school is good...but many are realizing it's not necessarily the path to wealth or becoming a high income earner.

I think it might be better to study how to make money or start a business.
Things they don't really teach one in school.
Also many people might not do great in school and then think they are dumb and doomed to a low income existance because everyone is telling them good grades = a great career/job
Great of course means a job that pays a lot of money.
Agreed. Some people should know better than to live in LA if they can't afford it. If I went back to LA, I'd be making half as much money and be living in an area with a way higher COL. Doesn't make sense to me.
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Old 07-29-2015, 09:37 AM
 
Location: Southridge
452 posts, read 619,447 times
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School is, and can be, great depending on the field. But it's true they don't teach you to be entrepreneurial, and not every one can be. Many are raised with a farm work ethic, to work long and hard, and that is an asset. And you can make six figures with that ethic. Until Obama sequesters your industry and thousands in one city are jobless.
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Old 07-29-2015, 10:05 AM
 
Location: Los Angeles (Native)
25,303 posts, read 21,443,353 times
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Quote:
Originally Posted by 909er View Post
School is, and can be, great depending on the field. But it's true they don't teach you to be entrepreneurial, and not every one can be. Many are raised with a farm work ethic, to work long and hard, and that is an asset. And you can make six figures with that ethic. Until Obama sequesters your industry and thousands in one city are jobless.
Many wealthy farmers out there for sure.

The best is to do something that isn't dependent on one particular income source. Easier said than done.
In this way you are relying on the government and at their whim.
It's almost like being an employee in a way as one person can make a decision and 'fire' you.

Government contracts can be great...but one should be aware of the risk involved.

It's important also to be very flexible/adaptable.
"If I lose the government contract...I can do a deal with someone else"

A little while back I mentioned one way someone could make money was brokering deals with Chinese buyers, but you said you didn't want to deal with the "Chi-Nee" . This makes me think that you aren't too adaptable or open to working with different people or environments.

If you have a more open mind and broader view you could look at other people including other countries and see what they are doing that works or doesn't work and learn from their experiences too. Or even people doing things in other states or cities than the one you live in.

"This guy or this company is doing that...that's interesting maybe that will work where I live too ..."
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Old 07-29-2015, 02:08 PM
 
Location: Living on the Coast in Oxnard CA
16,289 posts, read 32,330,688 times
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Quote:
Originally Posted by Tulemutt View Post
No. It doesn't.
If you go by the Census reports it takes only $2,500,000 or so to leave the middle class. Those numbers are not exactly correct though.

It Takes Nearly $8 Million to Join the Wealthiest One Percent | Demos

Joseph Hines wrote the above peice and he explains how it would take $8 mill before you leave the Middle Class.

In another article it stated that it takes $50 to $100 million to jump to super rich status. Then again I am thinking if you asked a Billionaire if that was right they may have another opinion. Within the story it said that even with a net worth of $50 million that may not give anyone bragging rights.

In my area a family of 4 or 5 would need $200,000 to think that they are in the middle class. My wife and I are not there yet although we are solidly over $100,000 a year, we feel as though we are barely making it and we don't spend a lot on extras. A nice modern middle class home around here would set you back close to $1million. You would need maybe $2mill per a person for retirement just to get by. My wife and I are working on building a $5million or more net worth before we decide to retire. We want to make sure that once we get there, we retire within or higher than the middle class.
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Old 07-29-2015, 09:16 PM
 
Location: On the water.
21,725 posts, read 16,327,107 times
Reputation: 19799
Quote:
Originally Posted by SOON2BNSURPRISE View Post
If you go by the Census reports it takes only $2,500,000 or so to leave the middle class. Those numbers are not exactly correct though.

It Takes Nearly $8 Million to Join the Wealthiest One Percent | Demos

Joseph Hines wrote the above peice and he explains how it would take $8 mill before you leave the Middle Class.

In another article it stated that it takes $50 to $100 million to jump to super rich status. Then again I am thinking if you asked a Billionaire if that was right they may have another opinion. Within the story it said that even with a net worth of $50 million that may not give anyone bragging rights.

In my area a family of 4 or 5 would need $200,000 to think that they are in the middle class. My wife and I are not there yet although we are solidly over $100,000 a year, we feel as though we are barely making it and we don't spend a lot on extras. A nice modern middle class home around here would set you back close to $1million. You would need maybe $2mill per a person for retirement just to get by. My wife and I are working on building a $5million or more net worth before we decide to retire. We want to make sure that once we get there, we retire within or higher than the middle class.
All kinds of people write and say all kinds of things that aren't true. The Donald does it everyday. So do the majority of people who post on this forum.

And middle class doesn't go up to the top 1%. The top 1% are the super incredibly rich. There's a whole lot of wealthy between them and the middle class.
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Old 07-29-2015, 10:15 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,443,353 times
Reputation: 12318
Quote:
Originally Posted by SOON2BNSURPRISE View Post
If you go by the Census reports it takes only $2,500,000 or so to leave the middle class. Those numbers are not exactly correct though.

It Takes Nearly $8 Million to Join the Wealthiest One Percent | Demos

Joseph Hines wrote the above peice and he explains how it would take $8 mill before you leave the Middle Class.

In another article it stated that it takes $50 to $100 million to jump to super rich status. Then again I am thinking if you asked a Billionaire if that was right they may have another opinion. Within the story it said that even with a net worth of $50 million that may not give anyone bragging rights.

In my area a family of 4 or 5 would need $200,000 to think that they are in the middle class. My wife and I are not there yet although we are solidly over $100,000 a year, we feel as though we are barely making it and we don't spend a lot on extras. A nice modern middle class home around here would set you back close to $1million. You would need maybe $2mill per a person for retirement just to get by. My wife and I are working on building a $5million or more net worth before we decide to retire. We want to make sure that once we get there, we retire within or higher than the middle class.
How much one would need would depend mostly on how much return they are getting on their investments.

If one can make a pretty secure mostly passive return of say 10% on their income . Even at 2.5million that would be 250k (pretax of course) .
Some ideas would be owning rental property that is professionally managed or investing in trust deeds or making short term loans to real estate investors.
Lot's of people would love to pay 12%+ in interest plus at least 2 points to borrow money at even 70% of value.
As an example a $210,000 loan on a property worth $300,000.

Loaning out 2.5million , you'd 300,000 in interest (at 12%) and you'd make at least $50,000 in points .
So $350,000 year.
This is why it seems once people get to a certain cash net worth they oftentimes become lenders rather than real estate flippers.
It takes a lot more work to remodel/rehab and sell enough houses and deal with all the details of that versus making a loan.
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