Thread: Millionaire in the making profile

I don't understand people who have this kind of thinking....
They want to retire at 50! with ONLY 2 Million......

What is it that holds people back from striving for something greater, for something they REALLY want....

Originally Posted by eTyler19

I don't understand people who have this kind of thinking....
They want to retire at 50! with ONLY 2 Million......

I don't see it as something that wrong.
Investing their $2MM at a 5% return will net them $100K a year which is not bad at all living in the area where they live.

Now, having to wait another 25 years to get there is slow, we all agree, but I don't see anything wrong with the goal they have.

Originally Posted by andviv

I don't see it as something that wrong.
Investing their $2MM at a 5% return will net them $100K a year which is not bad at all living in the area where they live.

Now, having to wait another 25 years to get there is slow, we all agree, but I don't see anything wrong with the goal they have.

I agree, if I could make 100k/year and spend all my time with my family I would be happy.

I would be happy also, but not at 50. When I am 50 my parents wont be here anymore.... I agree with the having 2 mill and getting the passive income off of it.... but not at that age. They are going to have medical expenses and everything.

Correct. Also, keep in mind these guys probably don't know anything better, so they are the prime target for our message here in this forum. Their thinking and plan are slow. There are better, faster, probably safer ways to make it, they just don't know it. Who is going to tell them?

By the time they are 50, $2mm will be about $300K in today's money.

>Scoff!<

I wanna be profiled as a millionaire in the making. I'm a year younger, making as much as both (combined), and own more property with less in expenses! Sign me up to retire with $300K! LOL!

There is absolutly easier ways to make $2MM in a fraction of that time. Many people talk about working hard and saving their way to high numbers in the bank account. The main problem is, if they lose everything or just a part of that money, they are toast pretty quickly. They are toast because the time they used to accumulate a certain amount is not coming back. That spells trouble all over. Especially if they are old people.

As I mentioned in a previous post, creating fortune/wealth is not rocket science in itself. Being worth $2MM is just a number on the balance sheet and doesn't mean money in the bank at all times. What matters is getting cashflow from that fortune/wealth.

People focus very much on networth, but networth comes and goes like the seasons of the year. One year you have a networth of $1MM. The next year $10MM. Year 3 your networth has shrunk to -$1MM. Networth is just a play with numbers as I see it.

People should focus on how much passive income they can get with what they currently have in their possession. What kind of yield can I get from this car, this house, these savings etc. Income VS networth. Big difference.

Originally Posted by eTyler19

I would be happy also, but not at 50. When I am 50 my parents wont be here anymore.... I agree with the having 2 mill and getting the passive income off of it.... but not at that age. They are going to have medical expenses and everything.

You make me feel old at the age of 56.
By the way, eTyler even at this age you can be lucky to still have (one of) your parents around. My father died of a heart disease when I was 23, but my mother is still healthy, both mentally and physically, at the age of 92.

Luckiliy I am still very healthy (that is not something that I can taker credit, it's luck and I am grateful for it every single day) and full of energy. Presently, I'm starting up a new B-type business that has an enormous potential. So, the chance of reaching the € 25 M net worth mark before I'm 60 isn't imaginary. Anyway, I feel like I'm still 35 and won't give up my fastlane goals.

Some of the comments at the bottom of that story are great.

"They need to stop what they are doing and invest in something really important: Education. At least one of them should get an MBA to get top dollars." MBA = financial freedom?

Wouldn't that mean more debt?

Many are suggesting J O B educations and not $$$ educations...

In my opnion, it is difficult to generalize. Of course, the years you spend in college cannot be used (fully) in achieving your fastlane goals.

For me personally, getting a Master's degree in engineering opened the possibility to get an expat job with a multinational. What you learn from working in other countries and getting to know other cultures and languages may not make you rich in the financial sense but does enrich your mind. This is invaluable.
I have to say that I was lucky that my parents were able and willing to pay for my university education. So, I did not build up any debt while studying.

Hé Henk, are you sure your last post was meant for this thread? If so, it does not make much sense since it does not relate to a millionaire in the making profile.

I love the picture that they put up of the couple. The husbands facial expression says it all. "This is not what I signed up for..." I feel like the article is trying to make the couple sound better than they really are. And about the mustang...what is that all about. Next thing they buy will be the 22 inch spinna rims and a window tint.

It's like...you say you want to get out of debt and pay off your student loans but you drop a third of your years salary on a gas guzzling (Not to mention gas prices) pos Ford. Oops I forgot...he's a car salesman, gotta roll off the lot in style.

Prioritize people! It doesn't make financial sense for these people to purchase or own a mustang. The purchase was strictly made by the husband to look like a 'badass' who has important places to be (and clearly doesn't).

People who don't buy hybrid technology cars are just insanely out of touch with reality. America is plagued with the misconception that the only hybrid vehicle is the Prius. Well it's not and trying to save energy and gas does not make you a metro sexual. WAKE UP OIL IS AT 115 PEOPLE. By about June I speculate gas prices will be around 4.00 a gal.

You can kiss that 2 million by age 50 bs good bye if this country doesn't find a way to alleviate the oil crisis.

The demand for oil is only going to increase with China becoming the largest economy in the world and also the largest consumer of oil. If oil prices continue grow at the current rate (likely more) over the next 20 years we will see the worlds most powerful of economies collapse before our very eyes.

100 $/Gal (2015 estimate) - I kid I kid...but for real though support alternative energies. (Specifically solar and wind)

Like I said before, this is very mainstreet thinking. I certainly hope that websites like this help a lot to increase financial knowledge so more people can see how the industry sells you the wrong product (wrong for you, but great for them).

Originally Posted by HenkHolland

the years you spend in college cannot be used (fully) in achieving your fastlane goals.

For me personally, getting a Master's degree in engineering opened the possibility to get an expat job with a multinational. What you learn from working in other countries and getting to know other cultures and languages may not make you rich in the financial sense but does enrich your mind. This is invaluable.

I have to say that I was lucky that my parents were able and willing to pay for my university education. So, I did not build up any debt while studying.

Originally Posted by Venturer

Hé Henk, are you sure your last post was meant for this thread? If so, it does not make much sense since it does not relate to a millionaire in the making profile.

Seems to make sense to me, Venturer.

Henk is responding to a post, just prior, that questions the value of an MBA. Henk points out that getting a Masters in Engineering gave him many options, which he lists. He then goes on to point out that his parents paid for University, so he didn't incur the debt (this debt is also referred to in an earlier post).

I think we're all in agreement that advanced degrees and taking 25 years to get $2M are not fastlane. But there are other things here being discussed-- like the value of things other than money.

Sorry if I put words in your mouth, Henk. Lemme know if I misunderstood.

-Russ H.

And because I'm feeling contrary today, I can't let this one go.

**Rant alert**

I hear this again and again... I'm going to become a multi-bazzillionaire and not ever worry about "slow lane" things like compound interest or budgets or creating assets. I'm going to buy fast cars, travel the world first class and generally have the life of the rich and fabulous. And it's all because I'm going to discover that one big thing that will make it all happen.

There seems to be an element of that in the disdain about saving $2 million. It seems so worthless (or at least that's my interpretation from some comments on this and other threads) that you might as well not even do it. IMHO, that thinking is dangerous.

It reminds me of the thinking during the inflationary times in the 1980's....might as well spend the money as fast you can because it will be worth less tomorrow anyway. And, that was when we got into this habit of using credit cards and NEVER delaying gratification and never saving, etc etc

I'm sure I'll get shot down in this post. I did the last time I brought up the concept of "shudder" compound interest. It's just so much easier to live in the fantasy world where someone shows up at your door with a big check, instead of realizing that there is real education and real change you have to do.

I remember that MJ posted somewhere that it IS possible to "get rich quick" but you can't "get rich lazy." I couldn't agree more. You've got to know the fundamentals.

Big plans start with small steps. Don't shoot down the people who are willing to take action. It might not be the optimum step, but it's a step and we all start somewhere. just THINKING about the financial future and taking steps in that direction, whatever they might be, is more than most Americans do.

**Rant over**

Originally Posted by Diane Kennedy

Don't shoot down the people who are willing to take action. It might not be the optimum step, but it's a step and we all start somewhere. just THINKING about the financial future and taking steps in that direction, whatever they might be, is more than most Americans do.

I've found the same situation too often. Criticizing people is too easy, but these guys at least are thinking about something they'd like to get and are working on getting there. As I mentioned before, they don't know anything better so they are working with what they got.
Diane, great post, I couldn't Rep++ in this thread as I just did in another one.

From what I experienced, we all have a desire and hope for the magic carpet to get us on the fastlane. Most of us are laying plans to get there. I agree about compounding. However, I also see compounding of everything, money, interest, resources, time, etc.

Also, as has been noted before, if you are an E and you are told of many of these success stories and strategies, you will not believe that you can do it too. It's too much info too soon. It takes different levels of learning which takes focus and time. Most people won't commit. Perhaps in a couple of years this couple will be ready to take the next step or maybe they will continue on with their current plan. At least they have a plan.