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Old 05-20-2013, 05:58 AM
 
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Quote:
Originally Posted by BigCityDreamer View Post
In terms of living in a huge mansion, probably true. But expectations nowadays are rather different than they were decades ago.

It's pretty common nowadays for people to live in nice homes in upscale neighborhoods, drive Mercedes Benzes and BMWs, travel regularly to Europe and exotic places, go on cruises, and send their children to private schools - and still have less than $1 million net worth.
Absolutely, but if you are working/earning a good living but spending it all then you aren't adding to you net worth. When the income stops.......retirement or unemployment that is when the "net worth" becomes the deciding factor, hard to get your money back on those European Vacations and leased cars!
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Old 05-20-2013, 09:43 AM
 
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In terms of what it meant in the 1950s? No way, inflation does that.

It was a big deal to me when we crossed that threshold.

Not something where I would quit my job and go live the life of luxury, but it was one of those mile markers I placed for myself that I was on the track to my most desired scenario.
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Old 05-20-2013, 09:44 AM
 
Location: San Francisco Bay Area, California
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I think it's a major milestone. Most working class and middle class will likely not be able to attain this goal in their lifetimes.
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Old 05-20-2013, 11:48 AM
 
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Originally Posted by mathjak107 View Post
really? can you live NICELY on 35- 40k of pretax income? i know we can't.

because that is all 1 million represents if you are trying to live off it.
I could. I live on less than that now in the high cost SF Bay Area...but I admit the wild card for me would be health insurance cost.
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Old 05-20-2013, 11:49 AM
 
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My health care insurance would be 15k for husband and wife
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Old 05-20-2013, 11:53 AM
 
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Quote:
Originally Posted by mathjak107 View Post
My health care insurance would be 15k for husband and wife
Do you have a high deductible plan? That would be the way I'd go, I think. Plus, it's just me to cover and I'm in my 40s..so I think it would be cheaper...but not cheap. And quite frankly, if I had 1M, I would have the ability and proclivity to pick up and move to another country where medical care is cheaper.
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Old 05-20-2013, 11:59 AM
 
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Yes we do have an hsa. Its 7k for insurance IF i was not with my company and had to foot the bill fully on my own. 3000k individual ,6k husband and wife is the deductable plus 7250 to fund it.
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Old 05-20-2013, 12:05 PM
 
Location: Vallejo
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I'd say at 30 it's a big deal. I won't even come close to it. At the rate I'm currently saving and assuming a 7% return, I'd be about two-thirds of the way there by the time I hit 40. On the other hand, by the time I retire at the rate I'm currently saving at 7%, I'll be well over that. Of course, in 40 years it's not like $5 million will be worth that much. Taking a more conservative return of 4% to account for inflation, I'd still be over a million, enough to have a comfortable retirement but I'm not foreseeing any yachts. Maybe a Porsche Boxster or BMW Z4 type of car as a splurge, but definitely not Ferrari budget retirement.

I think million by 35 is still a big deal. I know a few people I graduated with that are on track to that, but they also make quite a bit more than I do. Million by the time you're in your 50s just means you've planned well. It's a big deal in that you're not, baring some catastrophic event, going to be a pauper in your old age. Having been poor, that's huge to me... but it's not rich by any means.
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Old 05-20-2013, 12:11 PM
 
Location: Moscow
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Put me down as someone thinking that a person with a million dollars is rich. It is not capital R RICH! It may be the first rung on the rich ladder. But, it's better than 90%+ of Americans. If that doesn't qualify as rich, what does?
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Old 05-20-2013, 12:24 PM
 
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Quote:
Originally Posted by mathjak107 View Post
really? can you live NICELY on 35- 40k of pretax income? i know we can't.

because that is all 1 million represents if you are trying to live off it.
What i was trying to write, some folks are never happy.
And I have zero bills, everything is paid, what is a very nice feeling.
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