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Chicago IL
35
~$200k household income including bonuses
$375k NW
This is kind of a cross-section of people's current net worth / income stream. I'd love to see the trajectory over time. Also, is anyone aggregating this data or plotting it out on a scatter graph? It'd be cool to see if there are trends for people here at City Data vs the average joes.
It's strange to think we came out of college with a net worth of -$50k or so, and 10 years later we're over a third of the way to being millionaires. And if we continue saving at this rate, we should hit the $1MM mark for net worth by 40.
So for those worried about seeing these big numbers, keep saving big percentages, and the big numbers will come.
Coming here keeps me focused (I think it works that way for a lot of people here). I believe it's just a part of why we're all doing better than average. Like attracts like.
The biggest investment I think you can make it in your education. Nothing is likely to yield more cash flow
I don't agree with this anymore, not today. We are in a College Bubble and a Student Loan Bubble, I'm sure everybody knows about the Student Loan Bubble but the College Bubble is even worse.
To me, a Bubble is when a sector gets over-inflated with demand, demand that's higher than what would be normally expected based on said value, quality, efficiency, etc. that the sector is producing.
- Every media outlet, HS counselor and social circle out there is telling people to GO TO COLLEGE or you will be a loser dropping fries at McDonalds.
- Employers jump in on this and start their insane demands for people to have "some college" or a "4 year degree" for basic, menial, entry level job work.
- Both of these situations cause more people to rush into College with a good 70% of them being there that have NO BUSINESS being there.
- With more people in College than normal, including lower IQ people, this causes the quality of the education to be dumbed-down so the Colleges can graduate these "C and D" students to keep their graduation rates in place to keep Title IV coming in.
- The value of the degrees go down, because more people have them and there's just an overall LESSER amount of quality learning taking place. You also have more stupid degrees and courses being created, such as courses studying Beyonce: http://www.nydailynews.com/entertain...icle-1.1597270
The only way a college degree has any type of value, if is it's tied to a direct experience component in a field that's founded on STEM such as Nursing, Engineering, anything in Finance, etc.
Here are some ways for folks to pump up their asset listings (which also pumps up their net worth):
- Invest in real estate. The majority rule is that you can list the entire appraised value of your property (or properties) under your asset listings, not just the amount you have paid in with equity.
- Invest equity in growing businesses as a silent partner. You will of course always receive XYZ profit distribution from said company based on your share, but the value of said company will pump up your asset listings. Let's just say that you own 20% of the company as a silent partner, but the company is doing $10 million a year gross sales now. In terms of profit distributions, the profits might not be too significant but they provide a pretty good income stream, but in terms of your asset listings, if that $10 million grossing business is valued at let's just say $10 million, because you own 20% share you can put $2 million down on your asset listings.
- Buy recurring revenue/residual income portfolios.
- Of course start up and operate your own business with 100% ownership then get it appraised. Let's say you run a $2 million business but you appraise that it will sell for $2 million let's just say, you can put that entire $2 million on your asset listings.
- Of course, buy stocks. Your asset listing value will go up and down frequently, but you get the point.
So in a nutshell, to pump up your asset listings (which will eventually pump up your net worth) you should be heavily invested in business and/or real estate in some form or capacity.
So this is how you might have a situation with someone making let's say $75k - $125k a year, be no older than 40, but have over $1 million in net worth. It's because of their heavy business and/or real estate holdings.
Boosting assets doesn't boost net worth if you are calculating properly. 1mm house with 1mm mortgage contributes nothing to net worth
yes. I preface my assumption by saying you still have to pick the right discipline and excel at it.. I suppose not everyone who goes to school makes it.. And I agree that there is a dilution in the quality of education.
Quote:
Originally Posted by jotucker99
I don't agree with this anymore, not today. We are in a College Bubble and a Student Loan Bubble, I'm sure everybody knows about the Student Loan Bubble but the College Bubble is even worse.
To me, a Bubble is when a sector gets over-inflated with demand, demand that's higher than what would be normally expected based on said value, quality, efficiency, etc. that the sector is producing.
- Every media outlet, HS counselor and social circle out there is telling people to GO TO COLLEGE or you will be a loser dropping fries at McDonalds.
- Employers jump in on this and start their insane demands for people to have "some college" or a "4 year degree" for basic, menial, entry level job work.
- Both of these situations cause more people to rush into College with a good 70% of them being there that have NO BUSINESS being there.
- With more people in College than normal, including lower IQ people, this causes the quality of the education to be dumbed-down so the Colleges can graduate these "C and D" students to keep their graduation rates in place to keep Title IV coming in.
- The value of the degrees go down, because more people have them and there's just an overall LESSER amount of quality learning taking place. You also have more stupid degrees and courses being created, such as courses studying Beyonce: http://www.nydailynews.com/entertain...icle-1.1597270
The only way a college degree has any type of value, if is it's tied to a direct experience component in a field that's founded on STEM such as Nursing, Engineering, anything in Finance, etc.
Sweet Jeebus. I'd like to know how you folks on here got so much money. You guys are considerably above the norm.... I mean WAY above the general population. Many of you are reporting net worth and income figures that are well above the 70th percentile, especially those of you under 50 with NW above $250K - those are top 10-15% figures.
As for myself:
Oregon
32
60K gross per year
287K Net worth
I'm not going to humblebrag about my NW. Only about 50K is due to myself and where it would be without special circumstances.... Some of it is due to my home value rapidly increasing in the last couple years which I had no idea would happen when I bought the place - I did not realize at the time Oregon would become such an attractive destination so quickly for Bay Area Californians.
The bulk of that figure is due to an inheritance and a life insurance payout (I had two family members die in 2014, one expected, one not).
Last edited by redguard57; 09-26-2015 at 01:38 AM..
Oh yeah, I came from Flint, MI and to be honest MOST black men in my situation don't turn out to do anything in life. I found "faith" and pulled myself up by my own bootstraps literally .
It's why I'm honestly more Conservative than guys like you and MathJak when it comes to passive investing, which makes me hate Stocks more than most people lol.
Good for you .
But I do think you go a little too far in your hating of stocks...you're way too black/white all-or-nothing in your thinking on that subject, IMO.
So this is a good place, if you are wealthy or on the other end of the spectrum. Problem here is there is very little advise for the guy making 50 grand with a mortgage and 3 kids and that represents by far the majority of people in this country.
Well, that's the problem right there. If you make 50 grand then either don't have 3 kids or make more than 50 grand. That is the problem we have in America. The majority of people are short sighted and/or have unrealistic expectations.
I keep going back and forth about whether I should post, but here goes.
San Jose
45
50K (gross)
340K (no home equity)
I skipped the kids. (Never wanted 'em so it was an easy choice for me.) That's one of many reasons why I have a decent net worth.
The advice for the guy making $50K is to latch onto a public sector or union job with a defined benefit pension. They'll be eating dog food at retirement age paying the bills on 3 kids. Or, at a minimum, find an employer with a generous 401(k) match.
LOL, yeah that's what I did, sans kids. I will hopefully be getting a public sector pension at age 55...but I didn't include that in my NW.
However, I wouldn't advise this path for young people. The pension benefits are being cut back for new hires and most people are paying a lot more out of their paychecks for these benefits as well. People in government jobs who haven't had one or the other happen yet should definitely expect one or both things to happen.
The biggest investment I think you can make it in your education. Nothing is likely to yield more cash flow
Too much of a blanket statement there. You really have to have the right specialization these days more than ever.
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