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Old 05-28-2013, 06:49 AM
 
Location: SoCal
1,529 posts, read 3,624,789 times
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There's a massive difference in actually having a 'million' in cash and having a million in 'net worth'

Most people are the latter.
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Old 05-28-2013, 08:51 AM
 
Location: East Coast of the United States
21,015 posts, read 22,285,426 times
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Quote:
Originally Posted by michgc View Post
My dad used to tell this joke:

A man wakes up after being in a coma for 30 years. First thing he does is find a payphone to call his stockbroker.
Man: "How is my portfolio doing?"
Stockbroker: "Your portfolio is worth $1.5 million"
Man: "Wow, 1.5 million dollars! That's great. I'm rich! Terrifc news! Thank you! Bye."
Stockbroker hangs up and the operator gets on the line, "That will be $10,000, please."

(Clearly this joke is dated with a payphone and a telephone operator, but I think the point still comes across. )
It would be better to have at least $1 million right now than to NOT have at least $1 million right now.

Agreed? :-)
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Old 05-28-2013, 12:18 PM
 
Location: Moscow
2,081 posts, read 3,337,198 times
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Something this thread makes me wonder:

How many of the people on this thread saying a million isn't a big deal actually have a million?

Seems to me the only folks saying a million isn't a big deal should be those that already have several...
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Old 05-28-2013, 12:21 PM
 
Location: DFW
6,877 posts, read 12,805,238 times
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Not that big of a deal..

1 million net worth doesn't put you in the top 1%.
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Old 05-28-2013, 01:01 PM
 
Location: Moscow
2,081 posts, read 3,337,198 times
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Quote:
Originally Posted by ragnarkar View Post
Not that big of a deal..

1 million net worth doesn't put you in the top 1%.
But I'll bet it puts you in the top 5%. An A is still an A...
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Old 05-28-2013, 01:41 PM
 
Location: Living on the Coast in Oxnard CA
16,276 posts, read 28,848,795 times
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Here is a caption of Bill Gates saving up for a new Lamborghini:

http://thenextweb.com/shareables/201...w-lamborghini/
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Old 05-28-2013, 05:10 PM
 
Location: Palo Alto
12,152 posts, read 7,590,651 times
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Quote:
Originally Posted by sentry12 View Post
its not enough to retire on, thats for sure.. thanks to inflation, your money buys you less, and less every year.. 10/20 years ago, you could have retired on that million and taken care of your parents.. today, you would probably last a decade..
Thirty years ago a million in 10% CD's generated $100k in interest income. Not bad.

In the mid-90's overnight sweeps paid 6%+. My company had about $2.5 million in ACB in 1995. Not bad.

We have an account at Wells that pays 20 basis points today. Not so good.
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Old 05-28-2013, 05:22 PM
 
86,356 posts, read 83,831,968 times
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in 1979 the real return on cd's was almost negative 3% even though t-bills were almost 10%. it is all relative.
in 1983 rates were still quite high and inflation plunged. 1983 was the highest real return in history for cd's, an almost 8%.

but that was the exception and many many time frames even with decent cd rates were negative returns after inflation and taxes.

Last edited by mathjak107; 05-28-2013 at 05:48 PM..
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Old 05-28-2013, 10:52 PM
 
Location: Los Angeles, Ca
2,884 posts, read 5,409,509 times
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I think the US dollar is extremely, extremely suspect.

-For example, the melt value of 90% silver coins from the 60's are 16x their face value now! That blows my mind. If you leave money in a drawer, it is suppose to be "worthless" over time. No one stores money under their mattress, right?

The dollar has basically gone to confetti since 2000. That's one reason why being a millionaire is kind of boring, you're in dollars.

-Another reason why it's boring....everything has gone digital. A few key strokes, you're a millionaire. A few lines of code. Tweaking this or that. All the tech millionaires and billionaires of the last 20 years.

It's not the back breaking physical work it was in the 50's to 70's. Look at all the hedge fund/wall street wealth. Those basically come from key strokes. You also have large lines of credit (jumbo mortgages). In the old days, you had to have 20% down to buy a house (CASH). People are exposed to more credit now.
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Old 05-29-2013, 01:55 AM
 
4,661 posts, read 3,250,139 times
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Quote:
Originally Posted by yowps3 View Post
There's a massive difference in actually having a 'million' in cash and having a million in 'net worth'

Most people are the latter.
True. But there is still a great deal of value in having, say, a vested pension with a cash value of $500K and a paid off house with a realistic value of $500K and an investment portfolio with a value of $500K. Because in the end they can all be converted to cash.

A person with $1.5 million in cash is no better off if he rents and has no pension or other investments.

Still, I agree with others who say a million dollars today is not what it used to be.
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