The “wealthy” is not going to work

[bryanfze55]

If that’s what you think will sustain them…they’re not well positioned. That’s an exaggerated population segment.

I know lol… it was tongue in cheek. Still, they ones that do exist are very loud about it…

 

[Sirwalterraleigh]

I don’t think you can subjectively define “wealthy,” but if we had to… it’s being able to quit working and replace the desired portion of your income (I.E., retiring on 80% of your pre-tax gross income). Some people are born wealthy due to generational wealth. Some people become wealthy overnight… perhaps they sell their California home for a $2 million profit and buy a $200K home in Nebraska and live off the proceeds.

But the vast majority of wealthy people aren’t wealthy until they’re 60+. They aren’t wealthy at 35, regardless of their income.

I have no idea how to define “rich,” though. No money worries at all?

It really depends on where you are.

I live in a town of “wealth”…which is both landed aristocracy and high income earners in the 25-55 ages.

That’s not me…we are solid “upper middle/lower upper” bracket and just ok here…

But if I moved to most towns in America I would own it like Brad Wesley in Roadhouse…

So it is highly subjective on alot of fronts.

 

[Sirwalterraleigh]

I know lol… it was tongue in cheek. Still, they ones that do exist are very loud about it…

No doubt…well played

 

[drizgirl]

One neighbor home owner has more than him . He said he has only 3 months emergency savings to live on if he loses his job.

I'm not even sure what that relates to.

 

[Sirwalterraleigh]

I'm not even sure what that relates to.

More debt…I believe.

This is getting kinda Pearl clutching though…people with “savings” or 401Ks aren’t wealthy in modern financial terms. They are “liquid”…they have “capital”. That’s not the same as a nest egg.

 

[bryanfze55]

Hot take: A large emergency savings are highly overrated if you have a nice severance at work and/or low ongoing fixed costs. Get that money in the market working for you.

 

[GimpYancIent]

Hot take: A large emergency savings are highly overrated if you have a nice severance at work and/or low ongoing fixed costs. Get that money in the market working for you.

No. A balanced financial portfolio means a variety of options not a once size fits all throw everything into the market. If that's your recommendation, then you must like Vegas.

 

[GimpYancIent]

My friend, you’re missing the value of the asset ($5 million) in your equation. The person owns the deed to the house. That deed is worth $5 million. There is a mortgage on that deed for $2.5 million. The net worth in that scenario is indisputably $2.5 million

Net worth is always on paper. Not sure what your point is there.

Point? Simple, you are describing an illusion of wealth.

 

[GimpYancIent]

It's not Disney's responsibility to make sure you can afford your purchases.

Absolutely. Disney Co does not care! The corporate policy is simple "Show Me The Money", how you get it is your problem.

 

[Disney Glimpses]

Point? Simple, you are describing an illusion of wealth.

It's not an illusion. Wealth and dispensable cash are two completely different things. Founders of companies are often worth billions of dollars (see Elon Musk) but have very little liquidity.

In this scenario, the person quite literally owns outright $2.5 million in assets. How is that an illusion lol

 

[bryanfze55]

No. A balanced financial portfolio means a variety of options not a once size fits all throw everything into the market. If that's your recommendation, then you must like Vegas.

I don’t recommend throwing it all at individual stocks; assuming you’re young, equity index funds are perfect and don’t have to be high-risk. I have a very small amount of cash and the vast majority is in low cost index funds. But I’m not even 30 yet. I am just speaking from my perspective. The average person can retire well by investing in the S&P 500 index over the course of their career.

 

[Ayla]

Except a 401K isn’t accessible. So to call investment accounts with stiff penalties that you would only tap in your active life in an “emergent” situation “wealth” is an intellectual red herring/misdirection.

If you want to call gambling…sorry “day trading” proceeds that…I get you. But there’s gonna be a lot of tears in that pool in the coming months/years.

Retirement accounts are included as part of your net worth.

 

[Minnesota disney fan]

As far as someone who is wealthy and works "is not wealthy ", I don't agree.
I know some wealthy people, and they are all workaholics. They live to go to the job and be involved.
This includes my brother, who retired a few years ago and is having a hard time adjusting, still! He said if he was physically able, he would go back to work in a heart beat!

 

[Lilofan]

I don’t recommend throwing it all at individual stocks; assuming you’re young, equity index funds are perfect and don’t have to be high-risk. I have a very small amount of cash and the vast majority is in low cost index funds. But I’m not even 30 yet. I am just speaking from my perspective. The average person can retire well by investing in the S&P 500 index over the course of their career.

Pour monthly start at an early age as much as you can into low cost index funds ( Aka Vanguard ), live below your means then one day you can join the FIRE club, Financially Independent Retire Early.

 

[Lilofan]

As far as someone who is wealthy and works "is not wealthy ", I don't agree.
I know some wealthy people, and they are all workaholics. They live to go to the job and be involved.
This includes my brother, who retired a few years ago and is having a hard time adjusting, still! He said if he was physically able, he would go back to work in a heart beat!

Some wealthy I know who have more money than they know what to do with, don’t sit on their butts , continue looking for the next venture , investment etc even on weekends continually networking .

 

[Sirwalterraleigh]

Retirement accounts are included as part of your net worth.

But you can do nothing really with it. Hate to be the bearer of bad news.

You can use stock as an asset to lend to yourself from.

401Ks are fine…iras are better…but you can’t spend it until you’ve passed 3rd base.

 

[Sirwalterraleigh]

As far as someone who is wealthy and works "is not wealthy ", I don't agree.
I know some wealthy people, and they are all workaholics. They live to go to the job and be involved.
This includes my brother, who retired a few years ago and is having a hard time adjusting, still! He said if he was physically able, he would go back to work in a heart beat!

Some wealthy I know who have more money than they know what to do with, don’t sit on their butts , continue looking for the next venture , investment etc even on weekends continually networking .

Agreed. The drive for money never really stops…it feeds itself

Like ice cream

 

[Lilofan]

Agreed. The drive for money never really stops…it feeds itself

Like ice cream

Billionaire 91 year old Warren Buffett still working and enjoying his meals at Dairy Queen and McDonalds.

 

[Sirwalterraleigh]

Billionaire 91 year old Warren Buffett still working and enjoying his budget meals at Dairy Queen and McDonalds.

Wealth means when you like something…you buy it so it never goes away.

Which Buffett did with Dairy Queen decades ago

 

[SteveAZee]

But you can do nothing really with it. Hate to be the bearer of bad news.

You can use stock as an asset to lend to yourself from.

401Ks are fine…iras are better…but you can’t spend it until you’ve passed 3rd base.

While it's true that retirement accounts aren't easily used to pay for Disney trip (a loan against your 401K notwithstanding), it should be considered as a part of one's net worth. I guess you could look at it this way... if you have $500K in a retirement account, that's $500K(minus taxes) that you don't have to save up in post-tax earnings to have a decent retirement nest egg. If someone had $2M in 401K funds then they're much closer to 'wealthy' than if they didn't.

"Disney" wealthy, and perhaps the point of your comments, are people with a boatload of liquidity to throw into a lavish WDW vacation, which may (or may not) be connected to how well their retirement accounts are doing and more relates to liquidity.