what's your target net worth?

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

 

I really just want to be able to afford to travel / eat out often. A sexy car would be nice too. On a side note, being able to afford to buy all the video games I want would be awesome as well! I definitely wouldn't need a 500k annual salary to be happy, but I am sure I could find a way to spend it....

 
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.
 
Will Hunting:
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

He said "this isn't some insignificant sum." He meant that he realizes that 500k is still alot of money.
 
deutschemorgangoldsuisse:
Will Hunting:
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

He said "this isn't some insignificant sum." He meant that he realizes that 500k is still alot of money.

oops. I need to sleep

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.
 
Will Hunting:
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

Well that's not very professional.

 
Will Hunting:
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

Not going to start a keyboard war with cokehead here, but I want to point out that 1) that's not what I said in OP and 2) I signed my full time offer a month ago

 

Wow. That's pretty hostile. 500k a year at your peak is doable.

That nontarget rethoric is laughable. There are industries in certain regions in the U.S where people command those types of salaries and don't give a shit if you went to a target. If your pompous self tried to assert dominance by claiming your target status in those places, you would be shown the door.

 
machineman13:

Wow. That's pretty hostile. 500k a year at your peak is doable.

That nontarget rethoric is laughable. There are industries in certain regions in the U.S where people command those types of salaries and don't give a shit if you went to a target. If your pompous self tried to assert dominance by claiming your target status in those places, you would be shown the door.

Was not saying he couldn't / shouldn't be making 500k in his peak BC he went to a non-target. I was merely trying to alert him that worrying about how much you want to make a year is not as important as landing a full time job especially when you go to a non-target (i.e it will be harder and you should probably focus on that instead of this bullshit thread).

Apologies if it came off otherwise.

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.
 
Will Hunting:
turnyasystemup:

Do you guys aspire for serious f*ck you money? I would really be happy pulling down $500K a year at my peak(providing for inflation adjustments). I realize this still isn't some insignificant sum, but I know people who make considerably more and live fairly modestly. How about you all?

You're a fucking summer analyst and went to a non-target and you realize 500k/ year isn't "some significant some"? GTFO bro. You should probably focus on the FT offer and being able to pass your senior year classes.

Holy shit sometimes.

I usually don't comment on here, but you need to GTFO. I went to a non-target and now work at a top 3 BB. You're a joke, get a life. This kid has aspirations, respect them. And the thread is a decent one.

 

I don't give a fuck. I just wanna be happy, travel a lot, and fuck a lot.

You really don't know where you're gonna be in 10 years. I don't know where I'll be in 1 year. How are you gonna set goals like that? Why not just do your best and follow your dreams and shit and see what happens?

 

I don't think $3m is enough. Between my wife and I, we're at >$3m in my late 30s, her mid 30s. That number includes 3 property bought over 2007 - 2012 that we carry at ~$1.5m acquisition rather than market value.

To give you an idea of our trajectory, we were at $100k net wealth around beginning of 2005, $1.5m in mid 2010.

No kids and no plans to have them, which eases the financial strain a lot. Also, wife earns and doesn't spend (eg no fetish for jewellery, clothes or other consumables).

Current vague game plan is to hit $10m some time in our 40s, then use around $4m of that to invest in our own micro-private equity projects, with some consulting on the side. But we're also happy to go where life takes us.

Money is nice, but if we don't hit those targets, so be it. I'd rather have an interesting life that retire early with a lot of $. We're lucky that we're both in jobs we find interesting that pay good money.

Having kids probably changes your perspective on how much financial security you need.

At some point my parents will unfortunately die and I'll get a dump of assets from that. My current thought is that I'll invest that to grow it, but keep it separate from my own assets and pass it on to my two nieces as family legacy. I'll leave all my on assets to charity.

Those who can, do. Those who can't, post threads about how to do it on WSO.
 
AndyLouis:
SSits:

Also, wife earns and doesn't spend (eg no fetish for jewellery, clothes or other consumables).

she have a sister?

"@"SSits"" "AndyLouis, I don't get it. What does that have to do with anything?

"He that hath a beard is more than a youth, and he that hath no beard is less than a man." ― William Shakespeare, Much Ado About Nothing
 
SSits:

I don't think $3m is enough. Between my wife and I, we're at >$3m in my late 30s, her mid 30s. That number includes 3 property bought over 2007 - 2012 that we carry at ~$1.5m acquisition rather than market value.

To give you an idea of our trajectory, we were at $100k net wealth around beginning of 2005, $1.5m in mid 2010.

No kids and no plans to have them, which eases the financial strain a lot. Also, wife earns and doesn't spend (eg no fetish for jewellery, clothes or other consumables).

Current vague game plan is to hit $10m some time in our 40s, then use around $4m of that to invest in our own micro-private equity projects, with some consulting on the side. But we're also happy to go where life takes us.

Money is nice, but if we don't hit those targets, so be it. I'd rather have an interesting life that retire early with a lot of $. We're lucky that we're both in jobs we find interesting that pay good money.

Having kids probably changes your perspective on how much financial security you need.

At some point my parents will unfortunately die and I'll get a dump of assets from that. My current thought is that I'll invest that to grow it, but keep it separate from my own assets and pass it on to my two nieces as family legacy. I'll leave all my on assets to charity.

@"SSits" Primary residence/house doesn't count: it has to be investable assets.

$10M by 40s is really good. Few people hit that number, even in finance. If I may, what line of work are you/your wife in? Are you both very conservative spenders? That level of growth is very impressive. Must require a lot of self control.

 
SSits:

I don't think $3m is enough. Between my wife and I, we're at >$3m in my late 30s, her mid 30s. That number includes 3 property bought over 2007 - 2012 that we carry at ~$1.5m acquisition rather than market value.

To give you an idea of our trajectory, we were at $100k net wealth around beginning of 2005, $1.5m in mid 2010.

No kids and no plans to have them, which eases the financial strain a lot. Also, wife earns and doesn't spend (eg no fetish for jewellery, clothes or other consumables).

Current vague game plan is to hit $10m some time in our 40s, then use around $4m of that to invest in our own micro-private equity projects, with some consulting on the side. But we're also happy to go where life takes us.

Money is nice, but if we don't hit those targets, so be it. I'd rather have an interesting life that retire early with a lot of $. We're lucky that we're both in jobs we find interesting that pay good money.

Having kids probably changes your perspective on how much financial security you need.

At some point my parents will unfortunately die and I'll get a dump of assets from that. My current thought is that I'll invest that to grow it, but keep it separate from my own assets and pass it on to my two nieces as family legacy. I'll leave all my on assets to charity.

Does your wife have any cute friends in their 20's?

 

Make mid 6 figures by mid 20s. Buy a house next to the water. Then money doesn't matter anymore, I'm just doing it for fun after that.

Maybe have some kids, but i'm not going to spoil them. I grew up dirt poor and turned out fine.

 

The number is a constantly changing one for me. But right now its hovering around 10 mil, assuming that inflation is an ever present constant.

 

@techie674 - All are investment properties. We rent where we live. The >$3m is also net of debt and other liabilities.

We're both conservative spenders and buying books, traveling and cooking are our primary vices.

Living in Hong Kong for 9 years at 15% tax rate was a key reason behind the accumulation rate. The other is that we both worked in front office while in HK. I've shuffled to middle office now, but she remains in front office.

@Lucky Charms - read books, go to lectures and museums, listen to podcasts, cook, walk our dogs a lot. Neither Excel nor dollar signs involved in our discussions.

Those who can, do. Those who can't, post threads about how to do it on WSO.
 
SSits:

@techie674 - All are investment properties. We rent where we live. The >$3m is also net of debt and other liabilities.

We're both conservative spenders and buying books, traveling and cooking are our primary vices.

Living in Hong Kong for 9 years at 15% tax rate was a key reason behind the accumulation rate. The other is that we both worked in front office while in HK. I've shuffled to middle office now, but she remains in front office.

@lucky Charms - read books, go to lectures and museums, listen to podcasts, cook, walk our dogs a lot. Neither Excel nor dollar signs involved in our discussions.

That would do it. Last year, my all-in effective tax rate was close to 50% and I paid 6 figures in federal income tax for the first time. I've heard that with the right tax accountant, you can essentially pay low-single-digit %'s in HK, with minimal chance of any recourse.

 

We're both conservative spenders and buying books, traveling and cooking are our primary vices.

@lucky Charms - read books, go to lectures and museums, listen to podcasts, cook, walk our dogs a lot. Neither Excel nor dollar signs involved in our discussions.

[/quote]

You may be one of the few people here who actually has their shit together. Kudos! Out of curiosity, How long have you and your wife been together & how long have you been married?

 

Enjoying life is easy. I would argue that the best way to enjoy life is to be ignorantly poor. That is getting to be harder and harder these days, the ignorant part not the poor part. The old saying more money more problems is with out a doubt true. Granted they are different problems but they still exist. When you get to where you have a very large net worth but not a level where you can completely farm out your entire life to a host of advisers you have a time problem. There isn't enough time to manage everything in your life and still enjoy it. That is why I advise in as little diversification as possible. If you have a goal of 10MM+ you are much better off limiting your investment pool to one to three assets. Not just classes. Granted I look at some classes as one asset. For example I have a lot of real estate in many places but I look at my entire real estate holdings as just one asset because of the time demand it puts on me would be about equal to the amount of work it would take to manage your stock holdings in one company. Does this add risk? Yes but it lowers costs. Costs kill you. Once you reach the 10MM level it is actually much easier to grow your wealth at a much faster rate.

I haven't even answered the question yet.

1) I all ready have this. (10MM) 2) I all ready have this. (50MM) 3) Hopeful lifetime goal (1B)

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
heister:
I haven't even answered the question yet.

1) I all ready have this. (10MM)
2) I all ready have this. (50MM)
3) Hopeful lifetime goal (1B)

I think it's been established that you misunderstand the "net" in "net worth." You admitted that you have $50m in assets, but you could have a net worth near zero depending on debt.
 

*8% body fat with a 18 minute 3 mile run & >20 pullups *14 chix in rotation *parking spot at the crib *subwoofers in the bathroom *all wooden hangers

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 
OpsDude:

18 minute 3 mile is super hard. I was at 8% body fat and able to do 20 pull ups...my 5k time was still around 22:30.

I'm shooting for the stars, bro. Wanna be able to do that in boots, too.
heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 
OpsDude:

@heister You don't "hold a networth." Networth is just equity minus debt. The passive income (minus debt payments) you earn gets added to your net worth. I think you misunderstanding the concepts...

Again semantics of your choice of vocabulary. Does it really mater how you describe it. You either have worth net of debt of you don't. But the point that I made went right over your head. Guess that's why you work in operations.
Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
rufiolove:

How could your effective tax rate possibly have been 50%?

You serious? Federal + state + local/city + FICA + 0.9% over 200k for Obamacare

non LT cap gains income aka salary

the 300k to 500k you take in at the pre / post MBA associate or VP level is not a ton of money.

 

@heister I don't work in operations anymore, I go to a M7 business school. For someone with a lot of money, maybe you should learn intro level finance/accounting. It has nothing to do with "semantics," There's a HUGE difference between having assets worth $40 million and having a net worth of $ 40 million. I'm flabbergasted you don't understand this, and even more surprised you decide to be a dick instead of admitting you need to touch up on the concepts.

 
OpsDude:

@heister I don't work in operations anymore, I go to a M7 business school. For someone with a lot of money, maybe you should learn intro level finance/accounting. It has nothing to do with "semantics," There's a HUGE difference between having assets worth $40 million and having a net worth of $ 40 million. I'm flabbergasted you don't understand this, and even more surprised you decide to be a dick instead of admitting you need to touch up on the concepts.

I full well know the difference, what you seem to have stuck in your head is that I own 50MM worth of assets. I never said that I only own assets in that value with of the debt I hold. Net worth doesn't mean dick, its just a measuring contest for those guys whose dicks are too small to be measured. The difference here is that the point I was making has no bearing as to the value of anyone's net worth. Besides for anyone who thinks I shouldn't be a dick, I shouldn't have to repeat myself several times over to make a point that obviously others don't want to hear or understand.
Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
heister:
OpsDude:

@heister I don't work in operations anymore, I go to a M7 business school. For someone with a lot of money, maybe you should learn intro level finance/accounting. It has nothing to do with "semantics," There's a HUGE difference between having assets worth $40 million and having a net worth of $ 40 million. I'm flabbergasted you don't understand this, and even more surprised you decide to be a dick instead of admitting you need to touch up on the concepts.

I full well know the difference, what you seem to have stuck in your head is that I own 50MM worth of assets. I never said that I only own assets in that value with of the debt I hold. Net worth doesn't mean dick, its just a measuring contest for those guys whose dicks are too small to be measured.
The difference here is that the point I was making has no bearing as to the value of anyone's net worth. Besides for anyone who thinks I shouldn't be a dick, I shouldn't have to repeat myself several times over to make a point that obviously others don't want to hear or understand.

What's a better metric than net worth to measure somebody's financial... level?

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 
heister:

A better metric is the fact that I can sit on a beach all day drinking, and fucking blondes.

Okay, so can someone with a lot lower net worth. Also, you inherited your start. Your lack of humility is pretty unwarranted.
heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

DCF duh

GoldenCinderblock:
heister:
OpsDude:

@heister I don't work in operations anymore, I go to a M7 business school. For someone with a lot of money, maybe you should learn intro level finance/accounting. It has nothing to do with "semantics," There's a HUGE difference between having assets worth $40 million and having a net worth of $ 40 million. I'm flabbergasted you don't understand this, and even more surprised you decide to be a dick instead of admitting you need to touch up on the concepts.

I full well know the difference, what you seem to have stuck in your head is that I own 50MM worth of assets. I never said that I only own assets in that value with of the debt I hold. Net worth doesn't mean dick, its just a measuring contest for those guys whose dicks are too small to be measured.
The difference here is that the point I was making has no bearing as to the value of anyone's net worth. Besides for anyone who thinks I shouldn't be a dick, I shouldn't have to repeat myself several times over to make a point that obviously others don't want to hear or understand.

What's a better metric than net worth to measure somebody's financial... level?

If the glove don't fit, you must acquit!
 

You are describing a different hypo than the one originally presented. You said "has 10MM net worth". If I was 22 and could choose between the next 40 years of my life being 80 hours/week to retire at 62 w/ $10m, or $55k/year usd working 10 hours from potentially a very low COL country such that at PPP it is more like $200k+, I would choose the latter.

The point is, this is a forum for financial professionals. We are all accutely aware of what amounts to elementary personal finance. Some of us (not me) have dealt with very high level corporate finance and all of us are rightly annoyed by your misuse of language and obnoxiously patronizing tone.

 

I think Heister has a point though. Like why are people getting so pissed that he expanded a hypothetical? Jesus Christ why are people so invested in the integrity of the hypothetical to care? Like honestly I'm just baffled about how seriously people are taking this question. How retarded do you have to be to get upset over the difference between Net Worth and Cash flow, when in spirit the question is asking for what level of wealth one wants?

 

I think this conversation is extremely superficial because it's wrong to get hung up on a "number," you should focus on creating good habits early on. the reason being if you have good habits (saving, investing, etc.), you will likely surpass your number (happened to a client last year). Or, you could experience hardship and never be able to attain your number but still be able to live comfortably. begin with the end in mind, but not literally death as Covey suggests, think about what you want your life to look like in 10, 20, 30 years and work backwards. if you're not sure, save & invest as much as you can and you won't have to play catch up later on.

I agree with heister's point about basing "worth" off of income, but I also do not agree with being heavily leveraged. leverage makes sense in real estate because of the large amounts of capital you deal with, but only to an extent.

and for everyone who's curious about humility & worth, I've met plenty of people with 7,8, even 9 figures net worth; some self made, some were heirs. every single one of the self made people were humble, not always the case with heirs. heirs tend to have the mindset that they hit a triple in life when really, they were just born on third base. nothing wrong with being an heir, but humility is terribly important I think (unless your only goal is to be Dan Bilzerian, in which case yolo). this may be because I'm in the South, or because of the company I keep, but to everyone who's curious, every rich person I've met who's made their own money is humble about it. sometimes snooty, yes, but always humble.

 

Yea the whole Dan Bilzerian thing kind of baffles me. He makes it look like he has an unlimited check book, but in reality I don't think he does.

I also think to your point about heirs vs the self-mades, its up to the self made to instill in the heirs the right qualities. I have a few buddies who are worth $100+ and are very humble, mostly because their parents made them work and didn't coddle to their every need. There's a fine line though between the self-righteous and humble, though.

 

$5.0MM liquid/investment money by late 50's.

Assuming you have a nice house that is paid off and are on a 4.0% draw, $200M/yr draw with no debt in a nice house at 60 doesn't sound too bad.

I don't know how people are saying $40MM late 30s? You must have a trust fund. Even in the most ballerish of finance jobs stacking $40MM after taxes and cost of living doesn't even make any sense. Maybe at 65 but even then most people won't get that far.

Any ways, real world for me is $5.0MM and if I can hit $10MM I'll be on some fuck you shit.

 

$1m - $2m The comfortable poor

$3m - $4m The comfortably off

$5m - $15m The comfortably wealthy

$16m - $39m The lesser rich

$40m - $74m The comfortably rich

$75m - $99m The rich

$100m - $199m The seriously rich

$200m - $399m The truly rich

$400m - $999m The filthy rich

Over $1bn The super rich

According to Felix Dennis my target net worth is anywhere between $40-200 million. I'm not shooting for a specific number just a range. The crazy part is I think the billionaire works just as much as the person with a net worth of $15 million (not all but most).

 

$5m by age 40 to retire, $10m for fuck everything money. There's a lot of non-monetary goals I'd like to accomplish before retiring though.

Currently: future neurologist, current psychotherapist Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)
 

No 401k for a hustla, 401k on my wrist doe...

Disclaimer for the Kids: Any forward-looking statements are solely for informational purposes and cannot be taken as investment advice. Consult your moms before deciding where to invest.
 

I agree with you garry, life so far hasn't been that easy for me so when i see some people saying over $10MM by 30? That would be some fucking magic. I would just like to be out of my student loans by then. But $10MM for me would be bridge burning money so if i ever hit that number (adjust for inflation) I would be a happy man.

 

A fair number of people I knew back in college (mostly of Asian descent) were first generation immigrants. Their parents came to the US from Asia / third-world countries to provide their kids with opportunities in the US. Their parents slaved away at lower middle class jobs with limited upward mobility, maxing out at 60k in their 50s and never reaching higher levels of management due to issues with language, discrimination, etc.

Every extra bit of money and time was put into the children's education. The successful ones get into Ivy's such as my school and when these kids graduate they take jobs in finance and immediately get all-in compensation in the low-6 figures - easily surpassing their parents after just one year of professional experience.

For them, the hurdle was set really low. Surpassing their parents was not even something that they actively sought to do. It just happened naturally as they set themselves on a path to better their lives for themselves as well as their parents (who they are expected to support in old age).

For me, I have the exact opposite problem. I was born into a wealthy family. My father was incredibly successful and so was my grand-father and great-grandfather, etc., going back many generations. The bar was set very high in my life. Even if I work twice as hard as my father/ancestors, realistically speaking, I don't think I can surpass them with just hard work alone.

 
Deo et Patriae:

A fair number of people I knew back in college (mostly of Asian descent) were first generation immigrants. Their parents came to the US from Asia / third-world countries to provide their kids with opportunities in the US. Their parents slaved away at lower middle class jobs with limited upward mobility, maxing out at 60k in their 50s and never reaching higher levels of management due to issues with language, discrimination, etc.

Every extra bit of money and time was put into the children's education. The successful ones get into Ivy's such as my school and when these kids graduate they take jobs in finance and immediately get all-in compensation in the low-6 figures - easily surpassing their parents after just one year of professional experience.

For them, the hurdle was set really low. Surpassing their parents was not even something that they actively sought to do. It just happened naturally as they set themselves on a path to better their lives for themselves as well as their parents (who they are expected to support in old age).

For me, I have the exact opposite problem. I was born into a wealthy family. My father was incredibly successful and so was my grand-father and great-grandfather, etc., going back many generations. The bar was set very high in my life. Even if I work twice as hard as my father/ancestors, realistically speaking, I don't think I can surpass them with just hard work alone.

God forbid you admit that here.
Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
Deo et Patriae:

A fair number of people I knew back in college (mostly of Asian descent) were first generation immigrants. Their parents came to the US from Asia / third-world countries to provide their kids with opportunities in the US. Their parents slaved away at lower middle class jobs with limited upward mobility, maxing out at 60k in their 50s and never reaching higher levels of management due to issues with language, discrimination, etc.

Every extra bit of money and time was put into the children's education. The successful ones get into Ivy's such as my school and when these kids graduate they take jobs in finance and immediately get all-in compensation in the low-6 figures - easily surpassing their parents after just one year of professional experience.

For them, the hurdle was set really low. Surpassing their parents was not even something that they actively sought to do. It just happened naturally as they set themselves on a path to better their lives for themselves as well as their parents (who they are expected to support in old age).

For me, I have the exact opposite problem. I was born into a wealthy family. My father was incredibly successful and so was my grand-father and great-grandfather, etc., going back many generations. The bar was set very high in my life. Even if I work twice as hard as my father/ancestors, realistically speaking, I don't think I can surpass them with just hard work alone.

Same problem - not that its a bad problem to have. Definitely won't get there doing a normal corporate job, that's for sure.
 

lol at rich dudes complaining about growing up rich. I'm sure those Asians you alluded to would rather have grown up in your situation. full disclosure; also have a successful father - former congressman, lawyer, and law professor, current entrepreneur.

 
paidoff:

lol at rich dudes complaining about growing up rich. I'm sure those Asians you alluded to would rather have grown up in your situation. full disclosure; also have a successful father - former congressman, lawyer, and law professor, current entrepreneur.

Are you sure you are comprehending what he was saying?
Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

I don't have a number in mind, and I don't even being to entertain that a certain number could make me happy, since I'm internally happy regardless; well most of the time anyhow.

Now if you're talking about what money can bring, my goal is to be able to travel and go after my passions unbridled, I'm more interested in the freedom that money can bring more then anything. I do not want to worry about the daily survival things that a lot of people worry about such as rent, medical expenses, etc

But mostly it would be about going after my hobbies without restraint, I've been fortunate enough lately that I can afford my recent hobbies without much trouble, which would be an adventure once a month, along with my motorcycle and bicycle / scuba stuff & general adventure stuff.

Now if I picked up yachting as a sport I might just have to pick it up a notch.

 

30-35: $5m

Fuck you money- $20m

I think a lot of things that helps you add up your wealth has to do with learning better habits at an early age. When i was younger i paid for everything by getting a job and saving for something i wanted, which i think taught me a lot of the value of a dollar and knowing how to have the ability to do and achieve the things you want financially. In my opinion, someones wealth target has a lot to do with their surroundings and ways you were brought up.

VPA
 

It's only a rule of thumb and depends largely on inflation and market returns, but an easy way to get this number is to take the annual salary you'd be happy with and divide it by 4%. if you've got a portfolio invested 50/50 in stocks and bonds, you can withdraw 4% of that balance and give yourself a 3% raise for inflation each year without ever touching the principal balance (in theory).

That said, I'm surprised anyone would say they need more than $10M unless they feel they need more than $400k per year to live on. I'd happily retire with $3M on hand and fuck you money would be $5M.

Cash on hand | Annual income $1,000,000 $40,000 $2,000,000 $80,000 $3,000,000 $120,000 $4,000,000 $160,000 $5,000,000 $200,000 $6,000,000 $240,000 $7,000,000 $280,000 $8,000,000 $320,000 $9,000,000 $360,000 $10,000,000 $400,000

 

Quoting the antagonist from Wall Street 2, "More"

Value investor working in the hedge fund industry. Portfolio Manager, Analyst at a $380+ million Texas-based value investing HF. Former Research Consultant, Analyst at a NYC-Based deep value and special situations HF.
 

@"WalMartShopper" @"SSits" What are you discounting? This makes no sense.

@"thebrofessor" I agree re: concentrated positions and wealth creation. I was just saying that it's high risk and you also increase chances of losing w/ higher risk/concentrated positions. My personal preference would be to play it safe once I had several million $. Financial theory tells us that investors are rational and their utility from increasing returns decreases as their wealth increases. I guess I am that rational investor that academics talk about!

 

@techie674 - I agree it makes no sense. That's what I was getting at with my comment, perhaps too obliquely.

Those who can, do. Those who can't, post threads about how to do it on WSO.
 
techie674:

@WalMartShopper @SSits What are you discounting? This makes no sense.

@thebrofessor I agree re: concentrated positions and wealth creation. I was just saying that it's high risk and you also increase chances of losing w/ higher risk/concentrated positions. My personal preference would be to play it safe once I had several million $. Financial theory tells us that investors are rational and their utility from increasing returns decreases as their wealth increases. I guess I am that rational investor that academics talk about!

Are you fucking serious? It was joke

If the glove don't fit, you must acquit!
 

At our peak debt, we were 2.3:1 in debt over gross income, most of which was at a 3.85% interest rate. To compensate we cut discretionary spending significantly to pay down debt. Renting out the Provence property which is paying down very quickly. By 45 should have the Provence house paid off and a good portion of the note for the US home done as well.

We have very low overhead at this time and I think escape velocity can be achieved in 8-10 years. Mainly write options on discounted dividend players, when assigned I flip the script and write covered calls to generate more income or get taken out a good price, re-invest the dividends. Though right now, apart from my short term trading account, all cash.

Your biggest hurdle is going to be what compliance at your firm will let you invest in. So a dollar value, I guess 2mln and owning both properties free and clear. Maybe rent one or both out, or some combination involving liquidating one.

It all depends on your goals, for some people 500k barely finances the living they lead now. My advice, lower overhead, lower debt, escape velocity isn't too hard, and don't chase assets/yield in a very overvalued environment.

 

I think a lot of the people who are giving high 7-figure or 8-figure numbers look at it not as the money they need to survive or even live off of in retirement, but as the money they want to pass down to their children. I know that is the mindset my parents have and I have and will benefit from it tremendously during my life. I intend to do the same thing for my children.

 

Starting to think OP, has not seen a day of real life outside of finance class in school. Lots of valid points and all I keep hearing is the bs textbook crap. Not the kind of textbook stuff even theprofessor has in his lectures but more like your typical finance 101 prof who makes his $$$ off selling textbooks type.

Heister as usual goes all Dan B when he posts. But in reality he does some great points. If you doubt his view of leverage and networth, then I suggest you look up Donald Trump's career. Just like any trade being more leveraged at times than others does not mean your networth magically disappears.

Working 60+ hours every week for 52 weeks, for many years sucks MAJOR balls. The idea that your "net worth" increases closer to your # after each year, and diminishing of that use net worth does not...well not sure what to say. Your utility curve sure ramps up once you get near 50% of your so-called #.

DIversificaiton, blah blah crap. I thought 2008 and 2010 taught us all to forget this bs crap. The thought that a guy with no net worth is somehow in trouble if the market turns sour, while the guy who is working daily and has this massive net worth due no debt but "diversified and invested" is perfectly fine when the market goes sour. Uhmm really, we teach this crap still?

Family/kids/etc...Some of us out there are already the "family bank" i.e most wealth of anyone in your family or extended family, therefore a wife/kids aint the only issue when it comes to making sure have enough wealth. Same goes with if you are one of the most wealthy of your friends, you are not going to cheap out on your friends bachelor party or bday etc...

Lastly, being a 2008 disciple, I suggest you always up your # by 20% to 120%...20% just put aside to shit that will go wrong at some point.

 

These $10-xM targets are ridiculous, you better start praying to the Lloyd if you even want to hit $3M when you live in NYC and can't invest in a damn thing because your bank puts everything on their restricted list.

 
techie674:

No point having unrealistic goals and being disappointed.

This is coming from a guy with a USA soccer emblem in their profile.....

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

Having some huge amount in the bank would be nice but I honestly don't care as long as my bills and retirement planning are paid. I'd love to end up rich, but balance is key: I'd hate to look back and have given up too much of real life (everything outside of work) trying to add a few more zeros to my bank account. You can't take it to hell with you.

Get busy living
 
UFOinsider:

Having some huge amount in the bank would be nice but I honestly don't care as long as my bills and retirement planning are paid. I'd love to end up rich, but balance is key: I'd hate to look back and have given up too much of real life (everything outside of work) trying to add a few more zeros to my bank account. You can't take it to hell with you.

But you can buy an amusement park and modify a roller coaster to carry a cryogenic freezer coffin and ride the loopy rails until they resurrect you and Disney.
 

Why is everyone talking income, when the question is net worth?

I like what I do, so I think the "walk away" number is less relevant. But what would I like to be worth?

I think $30M in today's dollars, would be more than enough. Will I ever get there (or even close)? Who knows? The way life expectancy is increasing...I think all of us will be working for a very long time...or until the technological singularity.

Please don't quote Patrick Bateman.
 

Go big, why settle for the pick 6 when there's the mega millions?

Seriously, as stated above its about net worth and roi. It's difficult to quantify an exact number, but if I looked deep into the crystal ball and 20 years from now I had 50 mil, I wouldn't be crying. Or maybe I would? Tears of joy. Yum.

 

Top 30 under 30. If Top 40 under 40 I will consider myself a failure and disgrace, and thus go live in the woods with the bears and wolves.

I'm on my way though, got another 9 cents in interest in my moneymarket account today... baller.

Don't waste your life only thinking about money and prestige
 

I don't look forward to retirement as much as I look forward to being a conspicuously wealthy executive. The annoying partner emeritus who still retains enough control of the firm to prevent it from going public. That guy who has a secretary and an office even though he hasn't been at his desk for 10 years. The person who, whenever management screws something up, the weather turns chilly and it starts to rain as the partners place a conference call to my satellite phone somewhere in the Indian ocean. The mysterious signature on everyone's offer letter, and who the interns believe is a made-up person until they get theirs. And when markets turn bearish and layoffs are coming, at the height of everyone's panic, the guy who HR needs to send out a firm-wide email about; "Please be aware that Mr. Kassad will be in the office next week. For their own safety, everyone is encouraged to stay home. This excludes management."

Basically, like the founder of a company I once worked for. All anybody heard was, "... people are coming from Geneva next week." everyone ran like roaches in the sunlight. Good thing I was an intern.

in it 2 win it
 
Magneton:

Real answer: It's never enough. You just learn to live without 5 cars.

This is about right. I probably have as much savings as the CFO of my company who makes 10 times what I do.

In all honesty, I don't have a number. I just want to keep doing better. Stagnation is the worst enemy, not a number. If i'm making 500k by 35 I won't be happy making 500k at 50.

 

I put my chances at close to 80%. But I could be a bit conservative in that estimate. I just invested in an O/G exploration firm, bought a coffee plantation, and purchased another 700 acres of farm land over the last 12 months. I still need to unload a lot of cash from the sale of my company. So I have a good chance of doing it.

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

I think it was a reasonable question. I would personally be happy with $10M by the time I retire, which may or may not be realistic depending on the next few years. As far as income, I'd really like to clear $1M in total income (pre-tax) for at least one year. Beyond that I'm not too worried about it. Where I choose to live, my dollar goes a lot further than it would in NYC, so I don't doubt I'll have plenty of money for travel, food, modest splurging on tech, a nice home, and all the activities my kids might want to try.

 

My f*ck you number is probably $10M before 40, with a sliding scale moving Onward from there. Not sure I'll ever get there, but earning $500k a year at the peak of your career is certainly doable. I know a lot of guys that do that practically working out of their house.

 

By the time we're elderly the life expectancy will probably be 90. I don't ever plan on retiring--the idea is disgusting. So I will probably work until I die, so I'm not too worried about net worth and retirement. My biggest concern is doing well at work, earning a good income, building my real estate portfolio, and ensuring my children are very well educated and well positioned for the increasingly competitive world.

I do fear that one day in the not-so-distant future we will be looking at a society sort of like the movie "Elysium" where there is major stratification between the rich and poor. I want my posterity to be in a good position in terms of inherited wealth and education so that they don't end up on the outside looking in.

 
DCDepository:

By the time we're elderly the life expectancy will probably be 90. I don't ever plan on retiring--the idea is disgusting. So I will probably work until I die, so I'm not too worried about net worth and retirement. My biggest concern is doing well at work, earning a good income, building my real estate portfolio, and ensuring my children are very well educated and well positioned for the increasingly competitive world.

I do fear that one day in the not-so-distant future we will be looking at a society sort of like the movie "Elysium" where there is major stratification between the rich and poor. I want my posterity to be in a good position in terms of inherited wealth and education so that they don't end up on the outside looking in.

The idea of retirement is disgusting? lol. The idea of doing whatever I want day in and day out while traveling the world is the reason I go to work.
 
AllDay_028:
DCDepository:

By the time we're elderly the life expectancy will probably be 90. I don't ever plan on retiring--the idea is disgusting. So I will probably work until I die, so I'm not too worried about net worth and retirement. My biggest concern is doing well at work, earning a good income, building my real estate portfolio, and ensuring my children are very well educated and well positioned for the increasingly competitive world.

I do fear that one day in the not-so-distant future we will be looking at a society sort of like the movie "Elysium" where there is major stratification between the rich and poor. I want my posterity to be in a good position in terms of inherited wealth and education so that they don't end up on the outside looking in.

The idea of retirement is disgusting? lol. The idea of doing whatever I want day in and day out while traveling the world is the reason I go to work.

If you live in Washington, D.C. or NYC (two very culturally diverse cities with people from all over the world) for any meaningful amount of time you'll find out that people are remarkably similar no matter what they look like, where they're from, what their socioeconomic status is, what level of education they have, or what their tastes are in popular culture. Human beings are fundamentally homogenous in many respects (dreams, desires, interests, etc.)--traveling the world would be great for a few months--heck, even a few years--but there would be diminishing marginal utility in it.

A life devoted to traveling was put into perspective for me by my mother several years ago. She went to Canada with some friends to go hiking. When she got back I asked her how hiking in Canada was. She responded: "Dirt looks about the same in Canada as it does in Virginia."

 

My target net worth: More!

Seriously, I am not chasing a number. I am chasing myself and knowing myself, I will always want to become better than I am --> i.e. no number will ever be enough. But on the other hand, as long as I am alive and healthy. It's enough. So my "enough" is very different than "target".

The surest way to make a monkey of a man is to quote him.
 

I don't mean to pick on you, because I assume this is half in jest. That being said, going into financial services with a goal of having a $10MM net worth by the age of 35 is almost impossible. Let's think of what it would take to get there, assuming you start out at the age of 22 (I'll use some generous assumptions):

  1. You will need to average $1.3MM in pay per year between the ages of 22-35 and assume that your earnings from investments paid for 100% of your spending (assumed a 40% income tax rate, which is optimistic). Frankly, you'd be lucky to earn $1.3MM by the time you hit 35, let alone average that from your first job out of college. Needless to say, it is extraordinarily unlikely that you can have your investments pay for 100% of your living expenses when you're young.

  2. You will need to invest in something equivalent to Bitcoin that you buy for pennies and sell for hundreds of dollars. If you buy something for $0.10 and sell it for $100, you would need to invest $10,000 to get to $10,000,000. I don't know too many people that would have invested $10,000 in Bitcoin (or equivalent) several years ago. Even fewer would have held on all the way to a $10MM gain.

  3. You will need to have a meaningful stake in a company you helped start. If this is the case, you may have a $10MM net worth, but it won't be liquid and you couldn't retire. It's basically a made up number because you can 'value' your private company however you'd like if you're not selling it.

I just don't think many of you know how much $10,000,00 actually is and how difficult it is to accumulate that much money, especially at a young age. Keep in mind, you end up spending more money as you make more money. You don't see too many guys earning 7 figures who have the spending habits of a college sophomore. You need to let your money compound to get a significant net worth. Simply earning a lot of money is not enough to become rich/wealthy. Peak earning years are usually in your forties or fifties. If you don't believe me go look at prominent hedge fund managers or bank CEOs, you won't find many under 35. Granted, you don't have to be the absolute top earner to bank $10MM, but at least you can get an idea of when people make the most money during their career, because the odds are you won't be Soros, Dimon, or Fuld anyway.

If you were actually able to attain a $10,000,000 net worth by the age of 35 in financial services, it would most likely mean you earned north of $5,000,000 last year per-tax. Very, very few people would decide to leave that kind of pay on the table to "retire into a less stressful and more meaningful job".

 

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"When a defining moment comes along you define the moment or the moment defines you."
 

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