Thread: Help Me Figure This Out Please

Originally Posted by Cat Man Du

I have followed this thread with some amusement!

I have read what are PIPE-DREAMS ... not goals.

Your posts are so far - out that you could not even see your progress.

Why not GOAL something that you could obtain in 2 years..... Drive a Porsch/vette?

Not something that is so far away that it's NOT attainable. Not that you could not obtain these things, but you are TOO far ahead of yourself.

Also, some of your "goals" will change with age .... 5 to 10 years they will not be important!

I'm surprised that some of the level-headed guys got caught up in your folly.

MINUS Rep..... if I could do that!

Time to Get Real!!!!!

Now hang on Mr. Cat Man Du,

There is nothing wrong with the dreams or goals that have been put down here. And there is no reason to shoot him down. This is a place where we can get away from all the people with that mentality that say "you can't do it!" - we all hear that enough don't you agree?

The first thing to do is to see where you are today, then, where you want to be tomorrow, now that Mr. RyanDrake has where he wants to be, we can all help with with a plan to getting from here to there!

The only way to achieve a goal is to figure out what the gap is and then figure out a way to chunk that gap down to smaller achievable steps.

Originally Posted by Cat Man Du

I have followed this thread with some amusement!

I have read what are PIPE-DREAMS ... not goals.

Your posts are so far - out that you could not even see your progress.

Why not GOAL something that you could obtain in 2 years..... Drive a Porsch/vette?

Not something that is so far away that it's NOT attainable. Not that you could not obtain these things, but you are TOO far ahead of yourself.

Also, some of your "goals" will change with age .... 5 to 10 years they will not be important!

I'm surprised that some of the level-headed guys got caught up in your folly.

MINUS Rep..... if I could do that!

Time to Get Real!!!!!

I likewise have followed this thread. Ryan, I am glad that you are able to to set such high goals, and now it is time to develop a plan to get there. Who knows, maybe you will be able to buy a Lambo in 2-3 years. It is up to you.

No offense Cat Man Du, but I just disagree with you. The fact that you said these goals were unattainable at the moment, just gets me a little irritated. It took the founders of YouTube about 2-3 years to make it to "High-Roller" status.

My goal is to buy a Lamborghini in my early 20s. Many people think I fell off a tree and hit my head on the way down, but I don't care. How many 17 year olds can you name that have a patent of their own? Many of us young bucks, are wayyy different than your average youth. We dream big, set our goals high, and plan our way to achieve it. Everything and anything is achievable, no matter how high.

And to answer your first question Ryan, if you want all of those toys and no headaches, $10-$15 million liquid. As JScott said earlier, if you can't buy it in cash full, you can't afford it.

Good Luck!

Ryan - I'm sure you already know this, but don't let anyone's opinions about what is or isn't attainable deter you from your dreams / living the life you want. They don't know you, they don't know what you're capable of!

The way I figure it... SOMEONE is going to be driving that Lambo / Ferrari and SOMEONE is going to be living in that 2MM house, it might as well be you (if you want it bad enough and are willing to put in the work to get it)!

I wish you the fucking best on your journey! Send me a postcard when you get there!

Originally Posted by maximus20895

Saving is not a slowlane word. When you use your savings as a vehicle to retire on then it becomes a slowlane. Just because you make $1 million a day doesn't mean that you shouldn't save it and put it into a high interest account to make the money work for you.

Saving is only slow when that is the only plan you have. It would be ridiculous to spend every penny you make every year. I for one think that you are being absurd with how much you think you can afford with the income you are receiving.

I have no idea how much you make currently, but I bet the car you drive isn't more than your annually salary and your house is probably not five times as much either. In your example this is exactly what you say you can afford. At most, I believe you can afford a car that is top 25% of your annual income.

I would seriously do some rethinking on materials you would like or other ways to make more money. I am no way saying what you want to have is crazy since I am wanting the exact same things you are. I am just saying you might want to tone it down a bit or up your revenue.

This is excellent advice.

I understand that you're "aiming high"-- but think about it: Your PLAN should reflect-- accurately-- what you seek.

Do you really want these things? If so, then by all means, go for it!

But it reminds me of another young fastlaner who wanted to own 3 major sports franchises. Note that not even BILLIONAIRES own 3 different sports teams. So why set the bar at that crazy height?

So if you'd be a happy dude in a paid-for $1M house w/one 2-year old exotic (cost: $150K), why tie yourself to a crazy lifestyle that demands $1M or more a year?

Example:

Your approach:

3 status cars, all very expensive
Big expensive house
Lifestyle to fit (I assume this): costing anywhere from $1M or more per year (you're not going to be eating Top Ramen, or going to Mickie D's every day, right?)

So:

$900K in interest payments (cars/house)
$1M per year in incidentals (eating, travel, etc)
$500K-$3M per year for your gf/wife
________________
$2,500,000 per year (or twice that w/a wife or gf who spends like you do).

If you were "retired" and had money that you were getting 10% on (that's a great rate of return), you'd need $2.5M x 10 = $25,000,000-$50,000,000 set aside.

Note that if you just had it all in T-Bills, you'd need more: $58 million to $100,000,000+.

**********

Compare that to a different lifestyle, less of an MTV approach:

-Own $1M house outright (so, only prop taxes)
-Own ONE used exotic outright ($150,000, here's one example. and another.). Sell after a few years, buy another (different) exotic.

The above requires an intial outlay of $1,150,000, and yearly costs of ~$100K (prop tax + car maintenance)

Let's say you hire an executive chef to cook all of your meals. Pay them $100K per year, and have a food budget of $100/day ($36,500 per year). Add another $13,500 per year to buy wines to cellar and enjoy in a few years.

Other costs (travel/etc) might run $200K-800K/yr, depending on your lifestyle.

In this scenario, I'd get a gf who is also wealthy, and generates her own spending money (big savings, and waaaaay more interesting to live with-- as you know they're not with you for your money).

This approach:

$1,150,000 upfront
$400K - 1,000K per year for chef, food, wine, travel, prop tax, etc.

You'd only need $10,000,000 @ 10% to get $1M per year (plus the initial $1.15M)

(or $4M @ 10% to get $400K/yr)

So, this option would require an initial nest egg of $11,150,000 (or $5.15M for the lesser lifestyle).

If you had T-bills (4.3% interest), you'd be looking at plus the initial $1,150,000 plus $23,255,000, or about $25 mil to start ($10.5M for the lesser lifestyle).

********

Our PLAN (much more sedate):

Own modest wine country and beach houses outright. Cost: $1,400,000 total.

Own several classic cars, and an around town Toyota or similar (all paid for): $100K

Modest lifestyle, including several modest trips per year (at least one international trip each year):$250K/yr

Total required:

$2.5M @ 10% = $250K/yr
$5.8M @ 4.3% = $250K/yr.

Plus the initial $1,500,000.

We're planning on having $5-7M, and doing T-bills.

Very low maintenance/oversight.

******

Interesting story:

Someone once asked Groucho Marx what he invested in, and he said "Treasury Bills".

The person laughed and said, "That's dumb. They don't pay very much!"

To which Groucho replied: "They do if you have enough of them."

-Russ H.

Thanks for sharing Russ. I'd rep+ you again, but the system tells me I have to spread it around before I can.

Originally Posted by Kung Fu Steve

Now hang on Mr. Cat Man Du,

There is nothing wrong with the dreams or goals that have been put down here. And there is no reason to shoot him down. This is a place where we can get away from all the people with that mentality that say "you can't do it!" - we all hear that enough don't you agree?

The first thing to do is to see where you are today, then, where you want to be tomorrow, now that Mr. RyanDrake has where he wants to be, we can all help with with a plan to getting from here to there!

The only way to achieve a goal is to figure out what the gap is and then figure out a way to chunk that gap down to smaller achievable steps.

Not something that is so far away that it's NOT attainable. Not that you could not obtain these things, but you are TOO far ahead of yourself.

My quote from above.

Originally Posted by Russ H

This is excellent advice.

I understand that you're "aiming high"-- but think about it: Your PLAN should reflect-- accurately-- what you seek.

Do you really want these things? If so, then by all means, go for it!

But it reminds me of another young fastlaner who wanted to own 3 major sports franchises. Note that not even BILLIONAIRES own 3 different sports teams. So why set the bar at that crazy height?


-Russ H.

See Ryan - Russ is telling you the same thing --- only in a more gentle way.

What is your RE deal coming up.. I'm a RE guy and would be interested?

The Journey of a THOUSAND miles, starts with one small step.



I don't believe in just affirmation. You can't just hope something is going to happen, and hope and hope, like these guys are saying, you have to have a plan!

So in a sense, I agree, but we already have too many people saying "it's impossible", you "can't do it", but I've been told that several times and proven many, many people wrong.

Originally Posted by Cat Man Du

See Ryan - Russ is telling you the same thing --- only in a more gentle way.

No I'm not.

Your post and mine had very different messages.

If that's really what he wants, then my advice is: GO FOR IT.

My only question was: Is this what you really want?

And I gave some examples of different options.

If this was your advice, my apologies. I thought you said he was dreaming, and not setting realistic goals.

-Russ H.

Thread locked at OP request.

Originally Posted by Kung Fu Steve

The Journey of a THOUSAND miles, starts with one small step.



I don't believe in just affirmation. You can't just hope something is going to happen, and hope and hope, like these guys are saying, you have to have a plan!

So in a sense, I agree, but we already have too many people saying "it's impossible", you "can't do it", but I've been told that several times and proven many, many people wrong.

I completely and totally agree.

The first time my wife and I were driving home from an "impossible" real estate deal we'd just put an offer on, I turned to her and said: "Can you believe someone would loan us a MILLION DOLLARS!!?"

For some reason, a million $$$ was my "way too much" level.

I once wrote a post about this. Called it ""Don't Fear the Zeros!"".

I continue to revise my horizons.

But Cat Man Du-- had I been encouraged to set my sights higher, when I was younger, who knows where I would be now?

Consider that many of the RE billionaires of today came from families that owned RE.

Could it be that these mothers and fathers had conquered their "fear of zeros"-- and passed on this trait to their children?

-Russ H.

Oops-- I was writing my response while the thread was being locked.

Ryan, if you'd like my comments pulled, happy to do so.

Just PM me.

-Russ H.