I always struggle with the idea of saving and investing. I get that its a good Idea to save and compounding interest is 8th wonder of the world... blah blah... but I can't help but feel that I should save less and enjoy more now. Like is it bad to think I can ball out here or there?
I think this all seeded from a idea that a $5-10MM net worth doesn't really afford you that nice of a lifestyle. What does a $5-10MM net worth actually afford you?
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Real estate ownership / 200k+ passive annual income,
But that's what I am saying. Does 200K really buy you that much of a better lifestyle than 100K
Probably not. Depends how creative you are / family situation / what city you're in
Honestly not that much.. In NYC, Bay Area, or LA, that is not going to get you far. Definitely not private school for your kids, and probably a modest 1-2 million dollar home in a 2nd class neighborhood. You won't have to worry about paying the bills, but you certainly will have to think twice about eating out every night.
I worked at an RIA in LA. They said to live a comfortable life- (private school, vacations, a little charity, the occasional splurge) it takes 20 million+your primary residence in California. Comfortable 1 million in interest after taxes
MS me all you want, doesn't mean I'm wrong
Yeah, you're wrong. But please tell us about your deep understanding of how net worth can influence lifestyle through your decades of experience.
That's just wrong - grew up in one of the most expensive neighborhoods in LA and checked all those boxes. My parents were in that 5-10m range so inaccurate
So many of these posts, it is crazy. $1mm after taxes is comfortable? Sure it’s comfortable, so I guess not wrong, but what is required to be comfortable? No, that’s insane.
I understand we are talking about retirement savings (so no income growth or future income outside of investment returns), but I’ll skip over that right now. I make a bit more than that after taxes, and I still have debt (only a mortgage) but the lifestyle you can afford with $1mm after taxes is way above and beyond what any rational person would consider “comfortable”. With that much money you don’t worry about expenses unless you are doing crazy stupid shit (and I’ve even done crazy stupid shit with money)
These posts come around every few months and everyone always has a different definition of comfortable. Easiest way to sort this out is describe what you want to be able to do, what lifestyle you want (house, multiple houses? Michelin Star food every night? Etc) and work from there. Rarely do you get to $1mm post tax income. But outside of that you’ll end up with these back and forth conversations about what level of income is required, some people grew up flying private so they think you need $5mm a year to “maintain my lifestyle” while others want a small house in the middle of nowhere, it comes down to how you define comfortable.
I was more approaching it from the mindset of you don't need that much and learning to live on less is probably better. And I was looking for people to address what you missing out on if you aren't worth X net worth?
I'm always amazed at how some people can be so out of touch with reality. There's something seriously wrong with this country if you need $20M+ in net worth to live "comfortably" by any standard.
Jesus Christ
What?
$20m and $1m/year in interest to live comfortably?
Duplicate Post - Deleted
If you have 5M - 10M liquid with no debt you can live very comfortably anywhere. Figure a 4% rate of return in very conservative vehicles including a blend with munis for tax treatment and you're talking 200k -400k per yr (with lots of that tax favored). Debt free is the key. If you don't owe anyone anything, this goes a long way.
This is the most elitist bullshit I’ve ever seen. In what privileged bubble do you live in where you can’t live comfortably on this?
Oh sorry I wasn't really approaching it like that. I was more approaching it from the mindset of you don't need that much and learning to live on less is probably better. And I was looking for people to address what you missing out on if you aren't worth X net worth?
To turn this around... how many people starting out in IB will accomplish this if they make MD?
Following ^
Most MDs (assuming average performance and average savings) should definitely be able to reach a $5-10MM net worth by the time they retire.
I would hesitate to say most. There's a lifestyle creep trend amongst them. It's a very stressful job that they blow steam off by spendign money. Divorce / alimonies common among my old MD's. Living in NY? Kids gotta go to private school, wives joining social clubs. Keep in mind the key word is "net" in net worth.
Money is def nice but some of you need to grow up and realize money isnt everything in life. Can’t believe we’re even debating if $5-10mm can get you to live comfortably.
Oh sorry I wasn't really approaching it like that. I was more approaching it from the mindset of you don't need that much and learning to live on less is probably better. And I was looking for people to address what you missing out on if you aren't worth X net worth?
ive been homeless and lived semi comfortably on nothing but random couches. Funny to see other perspectives. Personally could be comfortably with 70k EASY.
Some bragging rights in front of your less fortunate college buddy at your 10th year reunion, but quickly trumped by someone standing next to you for the 20th year reunion with 10x net worth
Sometimes I feel like when people don't pickup their head they done realize how well off they really are.
LMFAO at this thread. As someone who has been homeless and also dated in extremely wealthy families, my perspective that some of you are batshit insane.
Btw, and I am being 100% serious ---- if you aren't above $50mm net worth, you are still a fucking plebian in terms of class, just a "well off" one. Enjoy the race :p
Wow, I want my claim to fame to be that one day I date wealthy and thus negate the need for reading comprehension. Alas, I'm not dating extremely wealthy and have to spend time reading things like, you know, the thread where there was no mention of some nebulous notion of class and talked about being comfortable.
Wow this guy has dated in EXTREMELY WEALTHY families!? Wow what an INSIDER! How incredible!
Another one of these...5-10m affords you security. Can you do whatever you want? No. But at minimum, you'll have a decent/nice house and can live a modest lifestyle without doing a lot.
Yeah but he dated extremely wealth and was once homeless so he knows what's up.
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