View Poll Results: What do you consider wealthy (money, not life experience or love etc.)?

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  • $100,000 liquid regardless of net worth

    4 11.11%
  • $50,000 liquid and $500,000 net worth

    3 8.33%
  • $500,000 net worth regardless of liquidity

    3 8.33%
  • $100,000 in liquidity and $1,000,000 net worth

    7 19.44%
  • $1,000,000 net worth regardless of liquidity

    8 22.22%
  • $200,000 in liquidity and $4 million net worth

    17 47.22%
  • $4 million net worth regardless of liquidity

    11 30.56%
  • $5 million or over net worth regardless of liquidity

    11 30.56%
  • $10 million or over net worth regardless of liquidity

    12 33.33%
  • It takes much more to impress me, and it needs to be liquid.

    1 2.78%
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Thread: What do you consider wealthy (money, not life experience or love etc)?

  1. #41
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    Re: What do you consider wealthy (money, not life experience or love etc)?

    Quote Originally Posted by cpwill View Post
    Combined Annualized Growth Rate of the S&P 500 (counting for inflation) since 1980 has been 7.68%. He's pretty much on the right track.
    Using that same site, the inflation-adjusted CAGR from 2000 to the end of 2010 was negative 2.07% -- with significant losses in 4 of those years.

    Quote Originally Posted by cpwill View Post
    without even knowing you I already know: you need to fire your financial adviser.
    I wasn't talking about what I have done myself. I was talking about future expectations -- what you could plan on when it comes to retirement -- not past performance.

    In addition, I know a number of people with very expensive financial advisers whose portfolios are worth less today than they were in 2000, even in nominal terms; inflation-adjusted makes it that much worse. If they had achieved a 2% post-inflation yield, they would be ecstatic.

  2. #42
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    Re: What do you consider wealthy (money, not life experience or love etc)?

    Quote Originally Posted by Lord Tammerlain View Post
    I know of two mutual funds with yieds above 9% right now. Both provide regular payouts of $0.06 per unit per month and have done so for years. Of course both have taken hits in the unit price. But as unit price goes down I can buy more units with the regular payout or through extra purchases
    A 9% yield with a declining unit price means a net yield below 9% -- it's easy to have a high yield if the yield includes part of your capital....

    The current CPI, after correction for government lies, is about 11% (see shadowstats.com) -- so at 9%, that's a negative 2% inflation-corrected yield. If you use the government-published CPI, which is about 4%, the net would be 5%, which is still short of the original 7% claim, even before correcting for the declining unit value.

  3. #43
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    Re: What do you consider wealthy (money, not life experience or love etc)?

    Quote Originally Posted by cpwill View Post
    Combined Annualized Growth Rate of the S&P 500 (counting for inflation) since 1980 has been 7.68%. He's pretty much on the right track.
    Using that same site, the inflation-adjusted CAGR from 2000 to 2010 was negative 2.07%.

    Quote Originally Posted by cpwill View Post
    without even knowing you I already know: you need to fire your financial adviser.
    I was talking about typical future expectations in the context of retirement, not my personal past performance.

    I know a number of people with expensive financial advisers who have portfolios that are worth less in nominal terms now than they were in 2000 -- and of course inflation just magnifies the problem. They would be thrilled to have had a +2% after-inflation yield.

  4. #44
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    Re: What do you consider wealthy (money, not life experience or love etc)?

    Quote Originally Posted by megaprogman View Post
    If you aren't willing to make a distinction between types of social spending and the underlying reasonings and goals, then your blind spot will cause you to suffer in your ability to debate policy accordingly.
    redistribution of wealth is redistribution of wealth. sounds like someone doesn't want to pay their fair share.

    You want to buy plane tickets out as far as possible and spend the extra $10 to change it at the last minute.
    We got one flight canceled - we had purchased on that theory, but then it turned out the insurance only covered "for medical reasons". dang corporations, being all corporationy - it's their fault I didn't read the fine print.

  5. #45
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    Re: What do you consider wealthy (money, not life experience or love etc)?

    Quote Originally Posted by SpeakUp View Post
    Using that same site, the inflation-adjusted CAGR from 2000 to 2010 was negative 2.07%.

    I was talking about typical future expectations in the context of retirement, not my personal past performance.
    then your earlier focus on 2000-2010 is in direct contradiction. Until this period there wasn't a single instance of a 10-year period in which the stock market had lost money. furthermore, we are discussing retirement plans, which run closer to 30 years.

    1940-1970: 8.04%
    1950-1980: 6.98%
    1960-1990: 4.59% (looks like inflation in the 70's was a real killer of real return)
    1970-2000: 7.52%
    1980-2010: 7.68%

    or, you could make an argument that properly, retirement savings should be done over 40-45 years:

    1940-1980: 6.12%
    1950-1990: 7.49%
    1960-2000: 6.93%
    1970-2010: 5.38%


    7% remains a far more likely scenario than -2.

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