Author Topic: $5 m No Longer Enough  (Read 3451 times)

Acastus

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$5 m No Longer Enough
« on: June 15, 2018, 09:28:39 PM »
We had fun with the "everybody needs 5 million" article. Somebody topped it. Now we need $10 million.

https://www.cnbc.com/2018/06/15/self-made-millionare-grant-cardone-1-million-isnt-enough-to-retire.html

Hula Hoop

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Re: $5 m No Longer Enough
« Reply #1 on: June 16, 2018, 02:06:45 AM »
What is wrong with these people?

Zamboni

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Re: $5 m No Longer Enough
« Reply #2 on: June 16, 2018, 03:28:52 AM »
Meh, he's just another Joe Peacock peddling real estate investment strategies . . . nothing wrong with real estate investment suggestions until one starts writing the likes of this:

"If you retire today at 65 with $1 million in cash (after taxes) and no new income from any source . . . "
 

Bucksandreds

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Re: $5 m No Longer Enough
« Reply #3 on: June 16, 2018, 05:47:11 AM »
He assumed that you retired at 65 and immediately lived in assisted living and took $0 from Social security. For many people $1 million isnít enough but his argument is intellectually dishonest.

FIREby35

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Re: $5 m No Longer Enough
« Reply #4 on: June 16, 2018, 06:35:39 AM »
Plus, there are places where a million dollars goes a long way. In low cost midwestern states, like the one I live in, a million bucks is a lot. If I ever think it won't be enough, I've got winters on Mexican beaches as a money saving option!

fuzzy math

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Re: $5 m No Longer Enough
« Reply #5 on: June 16, 2018, 06:44:26 AM »
I can't even buy a watch at $5M ??? well, I guess I'm never going to own a watch!

YttriumNitrate

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Re: $5 m No Longer Enough
« Reply #6 on: June 16, 2018, 06:48:40 AM »
Grant Cardone's "thing" is to multiply financial numbers by the number of fingers he has. While it can be inspirational and get people to expand their goals, most people will be happy with quite less.

BudgetSlasher

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Re: $5 m No Longer Enough
« Reply #7 on: June 16, 2018, 07:38:17 AM »
He assumed that you retired at 65 and immediately lived in assisted living and took $0 from Social security. For many people $1 million isnít enough but his argument is intellectually dishonest.

It is also dishonest in that his no new income with the 1 million includes not investing it (1 million will run out at 40,000/yr in 25 years).

His 10 million also appears to avoid risk in exchange for lower returns "Invest surplus cash in illiquid assets that produce additional flows of income. Invest for cash flow with the potential of appreciation long term and never invest where you could lose your capital." I am no sure what no risk of lost capital investments look like.

fdhs_runner

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Re: $5 m No Longer Enough
« Reply #8 on: June 16, 2018, 07:54:26 AM »
I haven't read up on this Grant Cardone, but right off that bat after reading that article I have to wonder if he's just another Robert Kiyosaki (https://toughnickel.com/personal-finance/Robert-Kiyosaki-May-Not-Be-the-Financial-Genius-You-Think-He-Is). Kiyosaki wrote a "non-fiction" book and apparently started out as an Amway salesman ... but that's about all anyone knows for sure about the guy. He claims he made untold millions as a real estate guru, but the only thing known for sure is that he peddles expensive real estate seminars (https://johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1).

Our library had Rich Dad, Poor Dad. I read the book before I Googled the author. I'm glad I didn't pay for the book.

inline five

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Re: $5 m No Longer Enough
« Reply #9 on: June 16, 2018, 08:56:35 AM »
Rich Dad, Poor Dad was written by a salesman but the point was pretty good. I read it when I was fairly young and it taught me to buy things that make money not cost money.

Personally I felt it was a pretty good resource but you could tell he was trying to sell his additional books in it. That IMO took away from some of the authenticity of it.

Still a good read for those who don't have wealthy parents to teach them these things. I grew up in a household that spent what it made on new cars, vacations, clothes, eating out, etc.

DreamFIRE

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Re: $5 m No Longer Enough
« Reply #10 on: June 16, 2018, 09:12:43 AM »
These type of articles get old - more click bait.  They're not fooling me.

tralfamadorian

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Re: $5 m No Longer Enough
« Reply #11 on: June 16, 2018, 10:38:41 AM »
I am no sure what no risk of lost capital investments look like.

Why his multifamily investment syndication, of course!

scissorbill

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Re: $5 m No Longer Enough
« Reply #12 on: June 16, 2018, 12:55:20 PM »
-Trade your $1 million target in for a net worth target of $10 million. (Okay, why not?
Avoid all showoff purchases until you hit $10 million target. That includes homes, fancy cars, watches, etc. I would agree with this
Get your income levels to where you can save 40 percent of your gross income before taxes. How about lower your expenses AND raise your income to this point
Invest surplus cash in illiquid assets that produce additional flows of income. Invest for cash flow with the potential of appreciation long term and never invest where you could lose your capital. Diversify.  Good.
Repeat this cycle until you have investments producing passive income equal or exceeding your main flow of income. I plan to retire before this!