No Lambo for Get-Rich-Slow Folks?

[PEERless]

I'm building systems that can be protected as intellectual property by my LLC, creating content on my sites, buying rental property, and continuing my financial education.:smx3:

 

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[Russ H]

Um, no, that's not what I meant.

Is $100,000,000 one of your goals/part of your PLAN?

If not, then

1. Why not?

or,

2. Why do you want something that you haven't planned for?

(and no, I'm not being sarcastic here)

Part of being happy/content is getting what you want (or need).

-Russ H.

 

[PEERless]

Not sure what you're getting at... Okay, so I plan to have $100M. And I plan to do that by building systems, creating content, buying property, and continuing education. In writing, there's more flesh than that, but... what're you saying?

 

[Russ H]

What I'm saying is, we are all here to help each other accomplish our goals.

Most of us has developed specific plans for how to get to our goals.

For instance, SteveO set a goal to get to $5M, and he did.

Then he decided to take it even higher (to $15 or 20M, I believe-- I'd have to check his past posts re this, or ask him).

My first big goal was to get to $200K, then semi retire by earning money by freelance writing and teaching workshops.

I got there, then decided to get to $500K, still writing and teaching.

When I met my wife, we decided to get to $2M (as this would give us $100K per year,
just from the interest generated by $2M in 5% t-bills).

We got there in 2003, and decided to take it further: $250K in passive income
(which requires $4-5M in income-generating assets).

So that's what we're working on now.

So far, you are the only person on these boards who has set the bar at such a high level ($100,000,000.00).

I applaud you, if that is specifically your goal (perhaps it is higher, I don't know).

But I am asking, specifically, how you plan to generate $100M,
and how long you think it will take to get there.

Perhaps a different question:

How far are you on your journey to $100M? Have you just started? Have you, like others on these forums, reached prior goals, and are now working on $100M?

I'm happy to elaborate further or rephrase things if what I have said does not make sense.

-Russ H.

 

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[PEERless]

I see where you're going with this. My financial goal in my own words is: "I want to earn more passive income than I could reasonably spend." That threshold is probably going to fluctuate with the value of the dollar, but $100M is probably above that line.
In the mean time, I have mini-goals -- stepping stones along the way. For instance, this year I'd like to earn enough income from my own ventures to make my day job(s) obsolete. In 2009, I'd like to double that, etc.
And at some point, I'd like an old Diablo SV... just to bring things back around to topic.

So, specifically, how long would it take me to generate $100M? An optimistic calculation (annual income-doubling) puts it at 13 years (I'd be 37 years old). So, with a little cushion: I want $100M by 40.

 

[Russ H]

OK, 13 years. Or 16 years, with cushion.

Give me milestones, and how you will get to them.

So far, all I'm getting from you is air.

I can show you how to become a billionaire in less than 2 months, selling apples:

http://richdad.com/Forum/forum.aspx?g=posts&t=195925

But that kind of thinking, while fun, is bogus.

I have not seen any real in depth thought that you've put into this.

So, either you haven't.

Or, you have not shared it with us yet.

Looking forward to hearing how.

Feel free to start a separate thread if you feel our dialogue is hijacking this thread.

-Russ H.

 

[PEERless]

...all I'm getting from you is air.

Feeling flamed, unwilling to discuss my systems, unable to PM...

 

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[MJ DeMarco]

http://richdad.com/Forum/forum.aspx?g=posts&t=195925

OMG, I forgot I wrote that. Thanks for finding it!

 

[Russ H]

Feeling flamed, unwilling to discuss my systems, unable to PM...

Sorry if you feel flamed, PEERless.

Please consider this my public apology.

It's certainly your choice if you choose not to share what you're doing w/others, or explain your comments.

But as I have pointed out, I think saying "I will double my income every year" is a bit naive.

And please, don't be surprised or offended if you find others frustrated when they ask you questions and you don't feel like answering them.

Again, no flame or critique intended here.

Just an observation.

My best wishes to you on your journey.

-Russ H.

 

[Russ H]

http://richdad.com/Forum/forum.aspx?g=posts&t=195925

OMG, I forgot I wrote that. Thanks for finding it!

You bet!

I was actually surprised (and a bit delighted) that it was originally your post.

Seems like we had a few good ones back there.

-Russ H.

 

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[LamboMP]

I printed that off a while ago, I'm playing the game.

 

[PEERless]

I didn't think optimistic goals would be met here with such pessimism. I think it is absolutely possible to double my income next year. If I can do it once, I can do it again. I think that "earning more passive income than I could reasonably spend" by 40 is definitely doable. At 23 I had my first cash-flowing real estate and at 24 I have my own business with intellectual property and scalable systems. Luckily I'm the only one I have to convince...

 

[CarrieW]

yeah peer I thought the same thing... check out my trading fast or slow thread.

It can be frusterating for sure. but for me it only gave me more drive to succeed at what I want to do. ya never know you may just open some minds to possibilities they never imagined existed!

eta- I dont think russ is trying to say it cant be done persay. I think he is just tryin to figure out what your doing to accomplish your goals.

 

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[PEERless]

Understood. I get grilled by the slowlaners in my life all the time, so I get burned out on explaining myself. I guess I just got a bit sensitive. Sorry.

I'd gladly look forward to discussing my ideas and projects in private messages, but not here.

 

[Rawr]

There is time for dreaming, and time for planning.

I can dream about a Lambo all I want, but will only get there once I have the plan (i.e. roadmap) to getting it.

Russ, I think the problem might be "wrong dreams"

For a guy to say "I want 100mil" is easy. But to define why exactly he needs that number or what he plans to do with it is another story.

I remember reading this in Tim Ferriss's book (did I mention this guy kicks a$$?)

If you want a Lambo, a Condo in NYC and a 3 month vacation to Europe, you will have to do a little homework.

First, figure out how much a Lambo costs - then what financing you need - say you come up with $2000 /month bill.

Then the condo - research the area, find what they are selling for, plug it into a 30 fixed and you will get another number - say $7000 a month

Then instead of "Europe" pick the exact spots - Berlin, Amsterdam, Nice, Barcelona. Figure plane tickets + hotel + expenditures + fun x 3 months / number of months before departure = another figure.

Once you get those numbers, you know exactly what you need to be pulling every month. ONLY THEN CAN YOU KNOW WHAT EXACTLY YOU WILL NEED TO GET THERE.

A "Lambo" is a dream. "I have to make $2000 extra per month for this beauty" is a plan type of statement.

Russ, did I get anything right?

 

[Russ H]

RAWR- did this reply and then saw your post.

Will respond to you next.

I dont think Russ is trying to say it can't be done persay. I think he is just trying to figure out what your doing to accomplish your goals.

Thanks, Carrie. You are correct.

Just because we advocate building wealth strategies on these boards, Skyler, doesn't mean we're cheerleaders.

When an experienced investor asks you a question, they're trying to help you, not put you on the spot.

If we see something that doesn't ring true, or looks to be long on optimism but short on actual details or real planning, some folks here will call you on it.

Again, not to flame you, or ridicule you, or make you look (or feel) stupid.

Quite the opposite.

Some of us do this b/c we were once young bucks, full of promise and dreams, but woke up 10 or 15 years later finding that things hadn't gone the way we "planned".

Only to discover that the reason they didn't, was b/c we didn't really HAVE a detailed plan-- just lots of desire and drive, and what we *thought* was a plan.

As Carrie's sig line says, Speed is irrelevant if you're going in the wrong direction.

I can attest to that. Done it many times.

So just b/c I ask you questions, please don't think I'm trying to criticize you.

I may just be trying to sow the seeds of questions you will be asking yourself, one day.

Hopefully sooner, rather than 15 years from now.

-Russ H.

 

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[Russ H]

For a guy to say "I want 100mil" is easy. But to define why exactly he needs that number or what he plans to do with it is another story.

If you want a Lambo, a Condo in NYC and a 3 month vacation to Europe, you will have to do a little homework.

First, figure out how much a Lambo costs - then what financing you need - say you come up with $2000 /month bill.

Then the condo - research the area, find what they are selling for, plug it into a 30 fixed and you will get another number - say $7000 a month

Then instead of "Europe" pick the exact spots - Berlin, Amsterdam, Nice, Barcelona. Figure plane tickets + hotel + expenditures + fun x 3 months / number of months before departure = another figure.

Once you get those numbers, you know exactly what you need to be pulling every month. ONLY THEN CAN YOU KNOW WHAT EXACTLY YOU WILL NEED TO GET THERE.

A "Lambo" is a dream. "I have to make $2000 extra per month for this beauty" is a plan type of statement.

Russ, did I get anything right?

RAWR, you nailed it.

Your answer to PEERless is better than mine-- b/c it hits at the heart of what I was trying to say.

If I'm at a cocktail party and I ask someone what they're up to, and they say, "I'm going to have $100M by the time I'm 40", I say, "Cool! How are you going about that?"

And I listen. Because I'm interested. And, b/c I may be able to help.

If they just told me the $100M goal, but clearly haven't thought it through-- OR-- if they get defensive (who the F are you?!), then I just roll on.

Not worth my time.

It's easy to say you want (or will make) $100,000,000.00

Anyone can make this statement.

Getting there-- and figuring out how, exactly, to achieve this-- that's work.

In fact, it's the work we do here on the fastlane forums. Each day.

As I said before, Skyler, if you have a PLAN all worked out and just don't care to share it w/us, no worries.

-Russ H.

(signing off-- got about 2 hrs of sleep last night-- our little one had a restless night, and it was my shift).

You know you're getting old when sleep is something you actually look *forward* to . . . :sleep: )

 

[PEERless]

I do appreciate constructive criticism. I definitely appreciate the wisdom of smarter, richer people. And I appreciate the questions you've made me ask. Even if things don't go as I hope/plan, I may still wake up at 40 with $1M in the bank. Or $10M. Or maybe $100M.

I am definitely willing to listen and stand on the shoulders of giants. My rich dad cultivated an inventor's spirit in me and an entrepreneur's drive.

I admit to needing technical help. My map may not be clear enough. My benchmarks too broad. But I'm flexible, and I have time on my side.

Thanks again for your thoughtfulness.

 

[PEERless]

FYI: following the program in Russ's Legendary Thread. This may help me harden my plan.

 

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[Russ H]

PEERless-

That's great. Feel free to post any questions you may have to that thread.

It's a process that takes time, but in reality, the more time (and thought) you put into your PLAN, the faster everything else goes in real life. :banana:

-Russ H.

 

[PEERless]

Yeah, analyzing the basics (like in Seven Habits) is really helping.

 

[Colbehh]

Another reason I won't buy a new car for as long as possible --

I've bought 2 brand new from the dealer, and both times I've walked away from the lot feeling absolutely dirty, taken advantage of, like a rape victim must feel after the deed is done. I wanted to go home and shower again and again, but no amount of soap could cleanse my soul after that disgusting experience.

Who wants to sit there for 8 hours, sweating and haggling and arguing, and making false threats just to get your way? I expext many others have had the same experience

Cheers,

- Hakrjak

This is the best way to possible describe the feeling of leaving a dealership. When the new Civic Si came out I wanted one, badly. I didnt care how I got one I just wanted one, so I went over to the dealership to find one sitting there for about 21k. It apparently had been sitting on the lot for a while since I guess most people in my little town arent interested in sport coupes like that. I went in and dealt with them for about an hour to get the pricing and payments I wanted and as I was driving the car home I had realized that I didnt really feel good about my purchase. I loved the car, but I now had the burden of an encroaching $400 payment every month for it. It kept me up that night thinking about how stupid I had been over some car that I cant even enjoy now because of the payments. I decided to sell the car and luckily I broke even. After that, I went and found a used car that I have been driving for about 2 years. It's a 95 Acura Integra thats a fun car to drive and I can enjoy it without the huge payment every month. :smxF:

 

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[PEERless]

Last week, a friend of mine asked for my advice on buying a new car. "Don't," was all I had to say -- for all of the reasons already listed. She did anyway. Not only did she pay full MSRP, we looked it up on KBB together, and she overpaid by $3000!

Buy used (private party, if possible) or certified pre-owned.

 

[KyJoe]

:smxF:I would almost bet, that in the end, I will lose less money on my Lamborghinis, than others will lose on their cars. Mine were pretty much depreciated when I got them. My Countach will qualify for antique (ugh!) tags in a few months, but the bright side is I will be done paying property tax on it. Yes, I have money tied up in them, but it never has bothered me. I am a true car nut. There is a flip side to these type of cars also. I have used mine at events like the Dream Factory (the pictures are at the last one during setup), which helps make wishes come true for terminal children. I have met more motivated people with it. I can have a really bad day, & a few minutes in the Countach can smooth things out for me & put a smile back on.

 

[hatterasguy]

I can't wait to get a super car. I want an F355, or F430 in a bad way. If I can swing it a Zonda S or Porsche Carrera GT. The Zonda's are my favorite though, they are nuts and use one of my favorite engines. The Mercedes M120 V12. Mercedes doesn't even make that engine anymore for production cars, havn't since 1999. But its so good, and after the AMG guys have their fun with it, its simply amazing.

I'd also like to put a pre war Mercedes in my garage if I can afford the entry fee. A 540K or SSK would be amazing, but I don't think one can be had for under seven or eight figures.

I'll only pay for a vehical or any other toy with cash, so a 540K would require one hell of a check!

I'll probably buy a Swan before a nice car though. Well I'll never give up messing with Mercedes, I have to much fun.

 

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[marktech101]

I know a guy who only pays for cars in cash. Literally, he brought $11,000 cash (in twenties and hundreds) to a dealership and left with a Volvo. It seems strange, but it must be refreshing to completely cut the bank out of the equation.

Like many of you, I dream of someday owning a Lamborghini. :coolgleamA:

 

[Russ H]

Marktech-

You now know 2 guys who only pay for cars in cash.

I used to do it with stacks of cash, but about 10 years ago I changed over to funds transfers (wires) or cashier's checks.

So I guess I do keep banks in the equation. Gets easier when you get lots of zeros after the first number.

In the past 20 or so years, I've purchased more than 20 cars (and 3 bikes).

Nothing big or exotic. Just basic wheels.

I currently own 3 convertibles, 2 SUVs, and a classic Benz sedan.

OK, 4 convertibles. But one's for sale, so it doesn't count.

My second Porsche had a small loan, that I paid back in 5 months.

Every thing else?

Cash.

All cash.

-Russ H.

 

[MJ DeMarco]

The best way to buy a new car is to research the car first, walk in with a pre-made cashiers check, made out to the dealer, and say to the car guy, "That car over there? I have a $[car offer] cashiers check for that car. Yes or no?"

This avoids their BS and keeps your offer firm. I've done this several times with success ... the best is avoiding the car sales BS.

Guys that are bringing in suitcases of cash most likely own businesses that deal in cash and are avoiding income taxes. I had a girlfriend years ago that owned a cash-heavy business - she walked around with mountains of cash and paid cash for everything. Soon as you drop it into the bank, it becomes traceable. She knew that and probably didn't report 1/2 of her income ... needless to say, my relationship with her didn't work out. :smx3:

 

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[hatterasguy]

Russ what kind of Mercedes do you own?

I wouldn't bring cash to buy a car if it was over say $10k or $15k. Not worth it IMHO. I remember my uncle brought $14k in cash to buy a 1992 500SL last winter. Guy was dreaming wanting $18k, and had money so the pile of hundreds didn't really entice him much.

If I were buying a $50k-$100k Mercedes I'd pay by check. My friends brother runs a Mercedes dealer, so I would deal directly with him or the owner. F the sales guys.

 

[jaytrader43]

But wouldnt a loan make more sense in some cases. For example, you have the money for a brand new Lamborghini Gallardo LP560-4 ($210k), and you decide you want the lambo. If you can get a 5% PA loan and a $80k down payment, why not drop that $130k into some 8-12% PA bonds or some 10-15% PA Preferred Stock. That way you get more each year from the investment than you would be paying on the lambo.

Debt can be good if done right.