Fire who?
millionaires
532,139 Views |
2316 Replies |
Last: 46 min ago by YouBet
Pacifico said:
You should fire them Monday morning.
And do what? Self manage? This may shock you, but some don't enjoy that at all
QBCade said:Pacifico said:
You should fire them Monday morning.
And do what? Self manage? This may shock you, but some don't enjoy that at all
Self manage what? My Edward jones advisor had me in two mutual funds that I could've easily bought on my own for much cheaper. After I saw that I took my money out with him and have been managing it on my own for over 10 years.
Doesn't require much time or effort at all, and I'm saving myself $10,000 every year.
bam02 said:
I do not. I am sure that I possibly could've gotten there faster with one, but I just try to put my nose down and max everything out.
You got there a lot faster without one, since you're saving yourself from 1%+ of their fees every year.
not everybody wants the worry of managing itPetrino1 said:bam02 said:
I do not. I am sure that I possibly could've gotten there faster with one, but I just try to put my nose down and max everything out.
You got there a lot faster without one, since you're saving yourself from 1%+ of their fees every year.
It's rather passive management. No need to review more than once a year.
I'm not arguing for or against using an advisor, but there was zero worry in managing it for me without using one. Just maxed out as much as I can with mutual funds for the most part.
Correct but people will start selling the minute shtf. People ch aren't rational especially with money
So just dont sell when shtf, Ive never sold and I just keep buying whenever theres a dip. I dont need to pay 1%+ to someone just so they can tell me not to sell whenever theres a market correction lol, I can do that on my own.Dicer said:
Correct but people will start selling the minute shtf. People ch aren't rational especially with money
The advisor fees add up over time, especially when your net worth gets in the millions. We are talking about hundreds of thousands of dollars in management fees over time just so they can stick you in basic stock portfolios that you couldve bought on your own.
Petrino1 said:So just dont sell when shtf, Ive never sold and I just keep buying whenever theres a dip. I dont need to pay 1%+ to someone just so they can tell me not to sell whenever theres a market correction lol, I can do that on my own.Dicer said:
Correct but people will start selling the minute shtf. People ch aren't rational especially with money
The advisor fees add up over time, especially when your net worth gets in the millions. We are talking about hundreds of thousands of dollars in management fees over time just so they can stick you in basic stock portfolios that you couldve bought on your own.
More like stick you in portfolios that they get kickbacks for. Had a northwestern mutual guy go over their management fees once and it was absurd. Like 2-3%.
Well for starters, northwestern mutual is not an advisory officer. They hawk insurance as investment vehicles. Go to an RIA
I'll politely ask everyone to take the financial advisor pro/con to another thread, there are plenty of them. This is the thread for people to post about their success and hitting the 7-figure mark.
(And to learn about becoming and Accredited Investor )
(And to learn about becoming and Accredited Investor )
Yea there needs to be a permanent advisor hate thread or pro bono advice thread since people on here love to shut anybody that has one down
is this really going to turn into a Financial Advisor slap fight ?
Take that to another thread as well.aggiebq03+ said:
I'll politely ask everyone to take the financial advisor pro/con to another thread, there are plenty of them. This is the thread for people to post about their success and hitting the 7-figure mark.
(And to learn about becoming and Accredited Investor )
Sorry for asking the question my fellow millionaires.
I think the issue is people who panic when shtf and need to pay someone 1%+ AUM to babysit them don't spend time on an investment forum
TBH everyone should just take all of their retirement and put it in SPY. It by default is diversified and yields like 7% compounding over its life. Mutual funds have high fees like an advisor does.
Ragoo said:
TBH everyone should just take all of their retirement and put it in SPY. It by default is diversified and yields like 7% compounding over its life. Mutual funds have high fees like an advisor does.
All of my stock portion is in VTI.
All of our money is in accredited investments. We've made 42% compounding interest for 11 years straight.
Do you guys consider the equity in the house you currently live in part of your net worth?
Or for the conversation in this thread do you only consider invest-able assets (401k, 403b, rental real estate, taxable accounts in stocks, crypto, cash, etc)?
Or for the conversation in this thread do you only consider invest-able assets (401k, 403b, rental real estate, taxable accounts in stocks, crypto, cash, etc)?
La Bamba said:
Do you guys consider the equity in the house you currently live in part of your net worth?
Or for the conversation in this thread do you only consider invest-able assets (401k, 403b, rental real estate, taxable accounts in stocks, crypto, cash, etc)?
YES. By definition, your house is part of your net worth. Anyone that says differently is wrong and should use another definition.
YouBet said:La Bamba said:
Do you guys consider the equity in the house you currently live in part of your net worth?
Or for the conversation in this thread do you only consider invest-able assets (401k, 403b, rental real estate, taxable accounts in stocks, crypto, cash, etc)?
YES. By definition, your house is part of your net worth. Anyone that says differently is wrong and should use another definition.
Thanks. Been scrolling through this thread this morning and find it really inspiring. All the stories of different people hitting that million mark in such a variety of ways. There's one poster a few pages back with a yearly return of over a million on his/her investments! The idea of the time it takes to make the first 100k or the first million to then how long it takes to make the next one is powerful. I'm not in the million case but we're getting into the hundred thousand case and it's an incredible feeling. Obviously the goal is to get to the point where our money makes more than what we can spend or make doing our day jobs.
About us:
Married, both 35, one kid.
$557k in a 401k
$107k in BTC
$155k in rental home equity on a property that cash flows each month
$22k in cash (emergency fund)
We currently have about ~$250k of equity in the home we're living in. So by net worth calculations we are over 1MM but it sure doesn't feel that way as I always think about it in terms of my investable assets (we have to live somewhere). This year between our stocks and BTC we've hit ~120k in gains, which darn near doubles my teacher wife's salary. Pretty incredible really how compounding works.
You look to be doing well!
YouBet said:
You look to be doing well!
Thank you! My one question for all the successful people here would be, if you were in my case, would you sell the rental home and invest the equity in the market? I have a hard time seeing the home making more than 10% on rental income plus appreciation per year unless we go through another 2020-2021 housing price spike situation. The market since the COVID recovery has done remarkably well. I worry about that investment underperforming the others.
It's good to be diversified + don't discount tax benefits.
La Bamba said:YouBet said:
You look to be doing well!
Thank you! My one question for all the successful people here would be, if you were in my case, would you sell the rental home and invest the equity in the market? I have a hard time seeing the home making more than 10% on rental income plus appreciation per year unless we go through another 2020-2021 housing price spike situation. The market since the COVID recovery has done remarkably well. I worry about that investment underperforming the others.
I think you have to weigh the likelihood of steady, passive cash flow a bit more vs just comparing a straight appreciation percentage per year. 10% is a great number long-term if I understand you correctly.
Taking all of that out of it...my parents owned a couple of duplexes which they later converted to small, single family homes. They are 81 and 80 have never touched their nest egg because they've been able to live entirely off rental income since they retired about 15(?) years ago.
I don't know what kind of money we are talking about here, but I would be hesitant to unload that rental property if it's generating consistent cash for you. When you get into the gray area of early retirement years (like me), cash flow and taxable assets become important so that you don't have to take any penalties on retirement assets. You don't want to have to touch the latter before you have to.
That's a great point. RIght now it does ~$400-$500 per month after principal+interest+taxes+insurance but over the long term once it gets paid off that will turn to multiple thousands per month probably, assuming healthy inflation of rental prices. Certainly don't see it covering everything but a nice contribution towards retirement life. And as the poster above you said, also has some tax benefits.YouBet said:La Bamba said:YouBet said:
You look to be doing well!
Thank you! My one question for all the successful people here would be, if you were in my case, would you sell the rental home and invest the equity in the market? I have a hard time seeing the home making more than 10% on rental income plus appreciation per year unless we go through another 2020-2021 housing price spike situation. The market since the COVID recovery has done remarkably well. I worry about that investment underperforming the others.
I think you have to weigh the likelihood of steady, passive cash flow a bit more vs just comparing a straight appreciation percentage per year. 10% is a great number long-term if I understand you correctly.
Taking all of that out of it...my parents owned a couple of duplexes which they later converted to small, single family homes. They are 81 and 80 have never touched their nest egg because they've been able to live entirely off rental income since they retired about 15(?) years ago.
I don't know what kind of money we are talking about here, but I would be hesitant to unload that rental property if it's generating consistent cash for you. When you get into the gray area of early retirement years (like me), cash flow and taxable assets become important so that you don't have to take any penalties on retirement assets. You don't want to have to touch the latter before you have to.
I guess thinking about it that way it serves a different purpose versus the other investments that are built more for high growth but with more risk involved.
La Bamba said:
Do you guys consider the equity in the house you currently live in part of your net worth?
Or for the conversation in this thread do you only consider invest-able assets (401k, 403b, rental real estate, taxable accounts in stocks, crypto, cash, etc)?
It depends on why you care about the number. If you're just trying to come up with the biggest number you reasonably can, you should count equity in your home. Yes it is feeding your ego a bit but within reason there is no harm in the morale boost you get from that.
If the intention is to establish whether or not you can retire based on distributions from your net worth, I would only count equity in your home if you are expecting to downsize significantly where you will cash out a significant chunk of your existing equity. otherwise, I would exclude it because it's unlikely you're going to use a home equity line of credit with an attractive enough rate to make that a viable way to pull cash out.
The third reason to worry about net worth is for estate planning, and yes, there you should include equity in your home. That equity needs to be factored into your overall portfolio for tax purposes.
Net Worth = Assets - Liabilities.
Pacifico said:
You will. The first 1M is the hardest.
Yes, it took me 19 years after I started working and 18 after I started investing. most of those years I just muddled along making 10-15k gains each year. I would be thrilled just with that. The 2nd Mil came much quicker. I am on to many more since. These days I make a Mil of gain even in years when I don't do good investing (like 2024).
My ultimate goal is 20M. Don't ask me why, it just seems safe. I don't want to ever worry or penny pinch.
Something tells me you'll still find a way to be miserable regardless of how much you have.infinity ag said:Pacifico said:
You will. The first 1M is the hardest.
Yes, it took me 19 years after I started working and 18 after I started investing. most of those years I just muddled along making 10-15k gains each year. I would be thrilled just with that. The 2nd Mil came much quicker. I am on to many more since. These days I make a Mil of gain even in years when I don't do good investing (like 2024).
My ultimate goal is 20M. Don't ask me why, it just seems safe. I don't want to ever worry or penny pinch.
Just my opinion, but I would keep the rental house and start putting future savings/money in a taxable brokerage account. You are doing well financially but the majority of your net worth is illiquid (401k and home equity) other than the Bitcoin. Would be nice to get some liquid stocks/mutual funds in your portfolio in case you want to retire early, or just when life happens.La Bamba said:YouBet said:
You look to be doing well!
Thank you! My one question for all the successful people here would be, if you were in my case, would you sell the rental home and invest the equity in the market? I have a hard time seeing the home making more than 10% on rental income plus appreciation per year unless we go through another 2020-2021 housing price spike situation. The market since the COVID recovery has done remarkably well. I worry about that investment underperforming the others.
You are doing really well and keep up the good work!
Totally agree with your assessment and my plan for the next 5 years is to build that up (liquidity/taxable account). Last 5 years lots of that got tied up into our current home, which probably wasn't optimal from a financial perspective, but more a "lifestyle" choice.
just happen to go back to page 1 and saw this early reply.Dan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
Man how wrong is this.
Can't be a millionaire working for someone else.
Literally every person I know that has 7 figure net worth works(ed) for an employer their entire career.
My dad was a partial exception, he worked on his own for about 10 years of his career.
Hungry
Elko adds DJ Mann as A&M's Associate Director of Player Personnel
in Billy Liucci's TexAgs Premium
63