Not trying to be a troll but based on the description, compound interest has nothing to do with this. Interest comes from a savings account (and right now interest rates are so low that compound interest is minimal). The jump from 320-594k is just the increase in the value of your investments (which could be wiped out if there is a huge stock market drop). If this gain was in a savings account and due to compound interest, it wouldn't be wiped out unless you spent it.
Experience wrote:
Looks like your spouse died in late 2018. Condolences from us at LR.
This is why I keep returning to let’s run. You made me laugh out loud.
ivyrunner wrote:
Not trying to be a troll but based on the description, compound interest has nothing to do with this. Interest comes from a savings account (and right now interest rates are so low that compound interest is minimal). The jump from 320-594k is just the increase in the value of your investments (which could be wiped out if there is a huge stock market drop). If this gain was in a savings account and due to compound interest, it wouldn't be wiped out unless you spent it.
Compound interest is a term frequently used to describe compounding growth in the stock market. It may be a slight misnomer in the sense that it isn't really a defined interest rate as part of an investment product but it is frequently used nonetheless to describe the phenomenon of runaway growth over time when invested in equities.
To people saying that $1 mil isn't enough money to retire:
* Plenty of Baby Boomers are "retiring" with like $300k, plus SS and pensions.
* It's only about 2 years away from being $1.5 mil, which could generate a $70k income, enough to live a decent life in plenty of nice areas of the U.S.
* Who says you have to retire in the U.S.? Countries like Portugal are dirt-cheap and will give you automatic citizenship if you have assets over $500k and move there to retire. You can live in a town home in a sunny town overlooking the ocean/sea and dine on fresh fish and produce every day.
* Who says you have to retire at all? You can use a $70k/yr cashflow from $1.5 mil saved to supplement a lower-paying job that you actually enjoy. You could be a running coach, a park ranger, a tour guide in Rome, whatever.
Millionaires are a dime a dozen these days. Probably won't see a general market equity increase like recently again for a couple generations.
Experience wrote:
Looks like your spouse died in late 2018. Condolences from us at LR.
This is why I come to LR. funny stuff t that flies under the radar.
bravo
Maybe he’s the workaholic husband in this thread: “In love with a (unhappily) married woman who is also in love with me... Would like some input”
The problem comes if there is any sort of crash in the market. A 50% or more crash isn't unfathomable. That cashflow you talk about will dry up and then you have to actually start pulling from your dwindling principal. Sure the recent market has been incredible. Personally, I have seen several of my holding with over 1000% gains in the past 5 or10 years. Do I think that's gonna stay like that? No way in hell...
I'm not going to read this whole Dopey thread but I'm sure someone else has mentioned that a millionaire is someone who has $1000000 free and clear
That is on top of whatever other assets they need to live such as a house and car and property
Having a million dollars and non-liquid assets does not make you a millionaire
And I imagine your wife owns half of everything so you don't even have half a million dollars in liquid assets. Stop annoying us with your drivel
Ios the Lessor wrote:
Maybe he’s the workaholic husband in this thread: “In love with a (unhappily) married woman who is also in love with me... Would like some input”
Nope I don't travel much. Not a workaholic either, I average 45-50 hrs per week and take a full 3-4 weeks of vacation each year.
Contextual wrote:
I'm not going to read this whole Dopey thread but I'm sure someone else has mentioned that a millionaire is someone who has $1000000 free and clear
That is on top of whatever other assets they need to live such as a house and car and property
Having a million dollars and non-liquid assets does not make you a millionaire
And I imagine your wife owns half of everything so you don't even have half a million dollars in liquid assets. Stop annoying us with your drivel
Sorry this is just not true. A simple google could have avoided your mistake.
Warren Boufay wrote:
The answer to this AMA: make a lot of money from an early age, get increasing raises on top of that great salary, save as much as possible, enjoy a minor windfall in the form of COVID relief dollars and increasing investment value.
Mind blown!
^^^ It's not complicated. Pay yourself 1st, save early, save often and even modest salaries that gradually increase over time will pave a road to financial security.
the long road wrote:
Contextual wrote:
I'm not going to read this whole Dopey thread but I'm sure someone else has mentioned that a millionaire is someone who has $1000000 free and clear
That is on top of whatever other assets they need to live such as a house and car and property
Having a million dollars and non-liquid assets does not make you a millionaire
And I imagine your wife owns half of everything so you don't even have half a million dollars in liquid assets. Stop annoying us with your drivel
Sorry this is just not true. A simple google could have avoided your mistake.
Didn't I tell you to stop annoying people with your drivel. First of all a millionaire is one person you and your wife have to split the wealth
Second is other people have mentioned their taxes
3rd you would have to liquidate everything and you might not get as much as you think for your house and other possessions
Finally who cares it's a measly pittance in today's day and age. It's not like you made any wise Investments or did anything that any Average Joe couldn't do living in their parents basements
What am I going to live in my parents basement and make 100K for 10 years and then brag about it on the internet. What did I tell you about the drivel?
If you have a million dollars liquid you can live off the interest in your case I don't know what the hell you can do
10 grand in early bit coin would be worth well over a 100 million.... even doge coin went up 250x... then ethereum, and tesla.... how did we miss tesla... such a no brainer.... and Netflix 500x since ipo.... so many chances to turn 10 k into several million.... at least I got in on lucid and roku, still hope....
Contextual wrote:
the long road wrote:
Sorry this is just not true. A simple google could have avoided your mistake.
Didn't I tell you to stop annoying people with your drivel. First of all a millionaire is one person you and your wife have to split the wealth
Second is other people have mentioned their taxes
3rd you would have to liquidate everything and you might not get as much as you think for your house and other possessions
Finally who cares it's a measly pittance in today's day and age. It's not like you made any wise Investments or did anything that any Average Joe couldn't do living in their parents basements
What am I going to live in my parents basement and make 100K for 10 years and then brag about it on the internet. What did I tell you about the drivel?
If you have a million dollars liquid you can live off the interest in your case I don't know what the hell you can do
It's just a definition not sure how you argue with that, gross assets minus liablities = net worth. Future taxes payable are not a liability because individuals are not on the accrual basis of accounting.
Sounds like u might have 350k to your name... thanks for sharing....
YOUR MARRIED CUT IT IN HALF GENIUS.... and it's a common saying that usually implies something different than the strict definition. Jesus what's wrong with you man. A millionaire is usually someone who has well over a million dollars in liquid assets. It's not reserved for every Tom Dick and Harry whose assets might be right around a million dollars oh, but they're not easily liquid and they would be tax burdens
ihatejoe wrote:
If Trump were still president I might be a millionaire too. Covid ruined Trump's reelection campaign and ruined my world. Everything in my world was fine til the last week of February 2020 and it has been a steaming pile of Sh!t ever since. Because of Biden I am going to have to work to 70 in order to retire.
Us conservatives have such a hypocritical viewpoint at times. When comes to helping the poor and less fortunate we rely on the age old "pull yourself up by your boot straps" attitude and tell people they can make something of themselves if they just work hard. Yet when we have a president we don't agree with, we blame them for our financial struggles.
I'm not an expert but utilizing index funds for a long period of time is as stable of a plan as any, because history shows over many years, you are going to have appreciation in your assets. Index funds are well diversified which is a smart strategy for people who don't want to pay exorbitant broker fees and aren't knowledgeable enough to invest in individual assets. Plus it's still a guessing game when trying to time the market and bet on individual stocks. Will the economy collapse at some point and our assets drop in value? Absolutely, and that's why it's about the long term and being in the game for a long time. Additionally, living within your means is a essential factor to long term financial stability.
Someone mentioned living off of 70k which is a very nice lifestyle for many. I can't live on 40k right now, but when we eliminate the mortgage, daycare, commuting cost, it is absolutely feasible for me to do with my family and that's what we are striving for as we build up our retirement accounts.
You do not appear to have any idea what you are talking about lol
highhoppingworm wrote:
You do not appear to have any idea what you are talking about lol
Also his wife really did die? I apologize then