Thread: Help Me Figure This Out Please

Hey all,

I'm struggling to stay motivated because I can't figure out what it is that I"m trying to reach (dollar figure net worth/annual income). I need to know what I'm aiming for before I figure out my PLAN. (I'll be aiming higher than what I need, and hopefully land among the stars)

With basic number crunching, how much would I need to make per month/year to support the following lifestyle;

-1 Custom Lamborghini (sell and buy new every few years, make down payment, and pay monthly installments) *not leasing (400K)
-1 Custom Ferrari (same as for the Lambo) (350K)
-1 Custom Audi (same as the other two) (250K)

-1 house (shared with others paying rent 3-5 other people) ($2M-$5M dollar valuation)

-$15K/month for charities
-$20K/month in non-essential purchases

Obviously I only included the major items, so I have to account for extras.

I keep coming up with a figure of $650,000US -$800,000US per year after taxes, which is obviously possible, but some what of a pain in that it is so large.

Anyone have any idea of an approximate yearly income that accounts for everything above? (My math is somewhat faulty).

Thanks a million!

Originally Posted by maximus20895

I don't have an equation, but I can tell you that while you should have a BIG goal such as making 800k a year you should also have smaller goals that help you achieve it. It seems you are getting overwhelmed by the amount that you want.

You also also need to take in account that the fastlane is all about growing at an EXPONENTIAL rate. While you may earn $3,000 this month next month it might jump up to 6k then 20k and so on.

My end goals and my plan are completely different. I need to have something to shoot for, so that I can determine my action steps.

Originally Posted by maximus20895

Not to bring you down, but you are talking about 1 million dollars worth of automobiles and you are saying you need, at most, 800k. I highly doubt you would be able to afford cars that cost more than your annual income.

10%-20% down

Lambo ~ 7K/month x 12
Ferrari ~ 7K/month x 12
Audi ~ 4K/month x 12

84 + 84 + 48 = 216K

Originally Posted by Montexan

I'll entertain some quick numbers for you:

*Lamborghini - $320k financed @ 7% for 60 = $76,032/yr
*Ferrari = $66,528/yr
*Audi = $47,520/yr
*$3M house - $2.4M financed @ 6.5% for 30 yrs = $185,040/yr
*Insurance on Cars & house = $65,000/yr??
*$15K/month for charities = $180,000/yr
*$20K/month in non-essential purchases = $240,000/yr
Total = $860,000/yr

I didn't net out rent from your 3-5 tenants because your buddies would probably kick your ass for charging them rent if you are balling this hard and I doubt Tiger would (will be) charge any of his "friends" rent either. Just sayin'.

So what is your plan to get there??

Excellent! Thanks

As for the house, it would be a baller house (poker), so each partner would more than be able to pay their share.

Yep, working on my plan, but it involves RE (Residential), poker (playing and staking), paper assets (Stocks, Options)

Originally Posted by maximus20895

Where is your savings as well? If you make that much money you need to make some of the money work for you. It sounds like you are stretching your limits.

My income will be contingent on my net worth/asset accumulation (positive cash flow) being reinvested. Repeat. Repeat. Repeat. Success.

Saving is a slowlane word. Reinvest profits to accrue positive cash flow over a diverse (within reason) range of assets

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.

Number 1: Did you not understand this calculation (Obviously I would be able to afford all three and the house) (remember the 800K is AFTER taxes...1.6M at least before;

*Lamborghini - $320k financed @ 7% for 60 = $76,032/yr
*Ferrari = $66,528/yr
*Audi = $47,520/yr
*$3M house - $2.4M financed @ 6.5% for 30 yrs = $185,040/yr

Number 2: Do you understand cash flow? (I get my income from cash flow)



Number 3: Saving is an incredibly slowlane concept, even when mixed into a fastlane plan. Even with a high interest account (Max rate I can find at this hour is 5%-6% you are barely keeping pace with inflation.

I'm half asleep, but from what I remember, Peter Schiff explained in very convincing terms that real inflation is actually quite a bit higher than what is stated in the CPI. So in essence you are losing money,

Saving is not a Slowlane word ... the only way I was able to retire was to save. Saving 10% of your paycheck (Slowlane) is different than saving 50% of your $150,000/mo income (Fastlane). The latter allows you to simultaneously accrue passive cash flow while also elevating your lifestyle to live dreams now, instead of later.

Originally Posted by JScott

My personal opinion...

If you can't afford to pay cash for the cars and house, you can't afford it. Not saying you always need to pay cash for these things, but if your goal is to have "toys," you should be able to afford those toys outright, not financed over 5, 10, or 30 years.

So, in my opinion, you need about $6M in cash (for your cars and house), plus another $35K/month for your charities and incidentals. On top of that, you would need to accrue about $8-10M to consider supporting yourself in that same lifestyle after you stop working.

In all, I'd suggest that once you have $15M in the bank, you can start to afford the lifestyle you want...

Oh, and if you plan to make a significant portion of that from poker, you'll probably need a multi-million dollar bankroll. So, get to work!

Yes, I was getting a number of around $15M-$20M to put in some passive income producing assets.

I've been crunching numbers (going over ptr results) and it's realistic to beat 2000NL. After that, if I want to move up PLO would be the way to go... but the variance is insane.

Once I get to a level where I'm no longer profitable over a decent sample size, I will stick to staking.

Tournament winnings will largely go towards RE assets... I'm still working on my plan.

As of now, I see most of my money coming from paper assets, and I don't want to play ring games beyond 25 years old.. It's an easy enough way to get starting capital, but the variance tends to get annoying.

Thanks for your reply!

Originally Posted by EastWind

instead of worrying about how much you need to make to achieve all that. just start doing it. why are you putting a ceiling on what you want to make? why stop at $800k a year? who says you can't make $8million a year or $80mil? I say. Go make the first dollar right now, figure out a way to get it to $100, $10,000, $100,000, $1,000,000 and keep going.

I use to imagine how much I will need to retire and afford all the toys that I wanted. I no longer think like that. When it's time for me to bank, I will have so much money, I will be able to afford all the toys I want, and be sick of em. Have so much money in the bank, I wouldn't need to earn an interest for the rest of my damn life. Yeah, that kind of man. Super fastlane.

Because I don't want to be doing this my entire life (building wealth). I want to travel the world (every month), and just experience all that I can. I have no interest, nor any motivation to make any more income after that amount...It would basically turn in to a game, and that's a game that I don't want to play.

I'm looking at reaching my goal from 25-50 yrs old and then just working on wealth retention.

Originally Posted by PhxMJ

Saving is not a Slowlane word ... the only way I was able to retire was to save. Saving 10% of your paycheck (Slowlane) is different than saving 50% of your $150,000/mo income (Fastlane). The latter allows you to simultaneously accrue passive cash flow while also elevating your lifestyle to live dreams now, instead of later.

I'm just being a stickler on the word "saving" . What you describe is in my view investing that money.

I just have a problem with using the word saving, as like you mentioned, it is typically stereotyped as a slowlane word.

Originally Posted by kwerner

Maybe this thread will help you put your plan together Ryan.

HTH

Awesome thread, thanks! That was posted when I was MIA

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!!!!!

No.

Obviously I have smaller goals before that. Why can't you understand that what I posted are the culminations of its (goal list) apex?

Negative rep to you as well for not assuming the obvious

If nothing else, you've added extra fuel to the fire, so thank you.

Ps: These are not pipe-dreams. I've attained 5-digits in cash and assets, and will have 6-digits and my first RE deal down by the summer.

*It's a shame only one person answered the only question I asked. (great reply though!)