Author Topic: $5 million: itís the new $1 million  (Read 3885 times)

TheStachery

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$5 million: itís the new $1 million
« on: January 10, 2017, 12:02:37 PM »

gimp

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Re: $5 million: itís the new $1 million
« Reply #1 on: January 10, 2017, 04:05:10 PM »
I mean, when the word "millionaire" came into use, it meant a hell of a lot more than it does now.

Mr. Green

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Re: $5 million: itís the new $1 million
« Reply #2 on: January 10, 2017, 05:08:04 PM »
Unfortunately there's no word that scales well for the effects of inflation. I suppose in a couple hundred years a billionaire will have the allure that a millionaire did 30-40 years ago.

maizeman

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Re: $5 million: itís the new $1 million
« Reply #3 on: January 10, 2017, 05:52:56 PM »
See also: the decline and fall of the phrase "six-figure salary"
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talltexan

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Re: $5 million: itís the new $1 million
« Reply #4 on: January 12, 2017, 02:00:09 PM »
In CAPITAL IN THE 21ST CENTURY, Thomas Picketty describes the threshold for a truly opulent life as being about 15x the median household income.

Average HH income: $50 K, so $750 K would be "opulent" (for a roughly average-size family unit of 2.3 persons). Based on the 4% rule, that's a stash of roughly $18 mill.

maizeman

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Re: $5 million: itís the new $1 million
« Reply #5 on: January 12, 2017, 02:10:59 PM »
I would imagine that there are a lot more folks living an "opulent" lifestyle on $750k/year salaries than there are $18 millionaires. But then again I guess the same is probably true at any income/stash level.

Seems as good a benchmark as any.
"Itís a selective retirement," Richard explained, "a retirement from boring s**t."

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soupcxan

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Re: $5 million: itís the new $1 million
« Reply #6 on: January 12, 2017, 02:16:16 PM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

dandarc

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Re: $5 million: itís the new $1 million
« Reply #7 on: January 12, 2017, 02:19:39 PM »
Pushing a 50% savings rate in the "8 steps" section - nice!
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chucklesmcgee

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Re: $5 million: itís the new $1 million
« Reply #8 on: January 12, 2017, 07:48:06 PM »
W$1 mil in 1950 has the same purchasing power at $10 mil in 2016 so go figure.

talltexan

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Re: $5 million: itís the new $1 million
« Reply #9 on: January 13, 2017, 08:46:28 AM »
Chuckles, I just checked the St. Louis FRB website, and your statement is basically dead-on right. Well done!

dude

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Re: $5 million: itís the new $1 million
« Reply #10 on: January 13, 2017, 10:55:21 AM »
Clickbait title, but more or less Mustachian advice for non-1%'ers, so kudos to Ms. Weston (who has written about MMM in the past).

Metric Mouse

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Re: $5 million: itís the new $1 million
« Reply #11 on: January 15, 2017, 02:19:31 AM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

Shoot... here I was thinking I was living an opulent retired lifestyle with a stache of less than that. Turns out I wasn't really retired, no wonder.
Give me one fine day of plain sailing weather and I can mess up anything.

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soupcxan

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Re: $5 million: itís the new $1 million
« Reply #12 on: January 15, 2017, 06:54:18 PM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

Shoot... here I was thinking I was living an opulent retired lifestyle with a stache of less than that. Turns out I wasn't really retired, no wonder.

You have a spouse and a kid?

JLee

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Re: $5 million: itís the new $1 million
« Reply #13 on: January 15, 2017, 06:56:43 PM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

Maybe it's time to become a permanent resident of Canada. Unfortunately, it's cold up there...

Metric Mouse

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Re: $5 million: itís the new $1 million
« Reply #14 on: January 15, 2017, 11:08:31 PM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

Shoot... here I was thinking I was living an opulent retired lifestyle with a stache of less than that. Turns out I wasn't really retired, no wonder.

You have a spouse and a kid?

No spouse. And not in my 30's yet. I really am a mess, aren't I?
Give me one fine day of plain sailing weather and I can mess up anything.

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soupcxan

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Re: $5 million: itís the new $1 million
« Reply #15 on: January 16, 2017, 06:34:19 AM »
If you are in your 30s with spouse+kid and have to buy your own health insurance now that the ACA is going away, $1m is not a lot of money for the next +50 years. If you want to keep working part time for health benefits and spending money, sure go for it, but don't kid yourself that you "retired" on $1M - you're still tied to a job.

Shoot... here I was thinking I was living an opulent retired lifestyle with a stache of less than that. Turns out I wasn't really retired, no wonder.

You have a spouse and a kid?

No spouse. And not in my 30's yet. I really am a mess, aren't I?

You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Metric Mouse

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Re: $5 million: itís the new $1 million
« Reply #16 on: January 16, 2017, 12:57:45 PM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.
Give me one fine day of plain sailing weather and I can mess up anything.

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JLee

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Re: $5 million: itís the new $1 million
« Reply #17 on: January 16, 2017, 01:12:18 PM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.

To clarify, you're paying for family health insurance with no subsidy?

Metric Mouse

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Re: $5 million: itís the new $1 million
« Reply #18 on: January 16, 2017, 01:22:51 PM »

To clarify, you're paying for family health insurance with no subsidy?

Our health insurance is not purchased through the exchange/marketplace, if that is what you mean.
Give me one fine day of plain sailing weather and I can mess up anything.

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JLee

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Re: $5 million: itís the new $1 million
« Reply #19 on: January 16, 2017, 02:29:46 PM »

To clarify, you're paying for family health insurance with no subsidy?

Our health insurance is not purchased through the exchange/marketplace, if that is what you mean.

I meant "you're paying for family health insurance with no subsidy."  In other words, full health coverage for your entire family with all expenses paid out of your own pocket, and no portion funded by an employer, school, religious institution, or any other third party.

soupcxan

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Re: $5 million: itís the new $1 million
« Reply #20 on: January 18, 2017, 05:00:31 AM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.

You're 23, and you have a SO and a kid, and your household is "retired" on less than $1M in the US? How is that sustainable?

WildJager

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Re: $5 million: itís the new $1 million
« Reply #21 on: January 18, 2017, 02:24:16 PM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.

You're 23, and you have a SO and a kid, and your household is "retired" on less than $1M in the US? How is that sustainable?

Wait, wasn't that the whole premise of this blog?  Pete did it.  Granted, he now makes a shit ton off the blog and side gigs, but the initial premise was a family of 3, paid off house, with about $700k. 

Now, personally, I think that's a bit light if you don't plan on making any other income due to my biases (I'm also concerned about the future of healthcare in the US), but the concept theoretically is sustainable.

JLee

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Re: $5 million: itís the new $1 million
« Reply #22 on: January 18, 2017, 02:33:48 PM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.

You're 23, and you have a SO and a kid, and your household is "retired" on less than $1M in the US? How is that sustainable?

Wait, wasn't that the whole premise of this blog?  Pete did it.  Granted, he now makes a shit ton off the blog and side gigs, but the initial premise was a family of 3, paid off house, with about $700k. 

Now, personally, I think that's a bit light if you don't plan on making any other income due to my biases (I'm also concerned about the future of healthcare in the US), but the concept theoretically is sustainable.

MMM also had a $20,000 deductible with his insurance plan (pre-ACA, when that was legal).

Metric Mouse

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Re: $5 million: itís the new $1 million
« Reply #23 on: January 19, 2017, 02:03:02 PM »
You totally missed what I said - that $1M is not much if you are a young family of three. Reading comprehension is important.

Oh, totally a family of three. Just not married. And 'young' in that all three are under 30.

You're 23, and you have a SO and a kid, and your household is "retired" on less than $1M in the US? How is that sustainable?

Wait, wasn't that the whole premise of this blog?  Pete did it.  Granted, he now makes a shit ton off the blog and side gigs, but the initial premise was a family of 3, paid off house, with about $700k. 

Now, personally, I think that's a bit light if you don't plan on making any other income due to my biases (I'm also concerned about the future of healthcare in the US), but the concept theoretically is sustainable.
Yeah... Wasn't sure i was in the right place for a moment.

And while it might be "light" by many people's standards, it's obviously far from impossible, as shown by the many people even just on this forum who have done it. I mean, there is plenty of information on this site on how to make such a life sustainable; i couldn't begin to do it justice in one post soupcxan.

And yeah, earning money after fire is so ridiculously easy that I have zero worries about my original fire amount being "light" . My stache continues to grow every year, despite me spending it faster and faster every year. I would caution against working too long long before arguing against firing too soon.
Give me one fine day of plain sailing weather and I can mess up anything.

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Bicycle_B

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Re: $5 million: itís the new $1 million
« Reply #24 on: January 19, 2017, 08:52:08 PM »
The most interesting thing about the article is the statistic that half of the people with $1 to $5 million and a third of those over $5 million feel they would not be rich if there was a market drop or some other bad event. 

It really put the whole Mustache concept in a positive light.  Whatever the dollar amount is - and it's obviously less than $1 million for a significant number of forum members - a market drop should make little to no difference; market drops are already prepared for.  Which is exactly the type of "wealth" I'm seeking - that which brings peace of mind.  Thanks MMM, and to those who illuminate the ins and outs of stashin'.  (Talking to you Metric Mouse!)

mohawkbrah

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Re: $5 million: itís the new $1 million
« Reply #25 on: January 29, 2017, 02:09:35 AM »
1mill is still a lot of moolah. at least in the UK it is. Buy a good house for 300k live off the rest easy peasy.
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