Millionaires in the Making

[pyriel]

http://money.cnn.com/2007/01/29/pf/millionaire/fike/index.htm

I like reading this column at Yahoo. It is very motivational and shows that ordinary folks like us can actually be a millionaire in the making. The only thing I don't like about this is that almost every single family that has been featured within this column emphasizes on savings and living below their means or just plain being frugal.

This is one way to get to the million dollar mark and hopefully become financially independent. It is also the safest route to take and it is best for average investors. Unlike the individual featured for this month's article, I can't see myself lowering my standard of living to attain the million dollar mark goal.

Since i started late in the game of investing (god i feel so old), I have to find ways to be financially independent. I hope that this investment vehicle I chose would get me there faster. We'll see what happen...

P

[Spaf]

I'm all ready on my 2nd million. The first million was too hard, so I decided to try again..........:D

[TiCKed]

The sad thing is that most of us "late baby boomers" will HAVE to be millionaires when we retire! (I just hope a loaf of bread doesn't go for $10,000 by then). :)

A million just ain't what it used to be.....

[Birchtree]

And it does take money to make more money. If the market is as responsive as I anticipate it to be, I plan to increase my outside oceanic account by $500K and my TSP tugboat account to increase by $125K. It never hurts to dream.

[pyriel]

Maybe we are going around this the wrong way. Instead of looking on how much money we will have when we retire, we should be looking at how much do we need on a monthly basis and keep the same (or more) standard of living that we have now. What I am seeing from others is that they are planning on lowering their standard of living to accomodate the loss of current income.

As for me, 10k-15k spending money every month is fine with me. This is not inclusive of other bill payments (just plain spending money). Just plain spending money;-) I wonder how many of us have calculated their retirement plans this way. A million dollars will definitely be gone within 10 years even if its earning 10% per year with this kind of spending. This is the goal I am trying to attain and i have less than 8 years to make it happen. I'm sure i'll make it...;-)

How much do you need monthly (spending money) to retire (not to include any bills)? And how far are you in reaching that goal...

P

[TRAFFIC_DOG]

Maybe we are going around this the wrong way. Instead of looking on how much money we will have when we retire, we should be looking at how much do we need on a monthly basis and keep the same (or more) standard of living that we have now. What I am seeing from others is that they are planning on lowering their standard of living to accomodate the loss of current income.

As for me, 10k-15k spending money every month is fine with me. This is not inclusive of other bill payments (just plain spending money). Just plain spending money;-) I wonder how many of us have calculated their retirement plans this way. A million dollars will definitely be gone within 10 years even if its earning 10% per year with this kind of spending. This is the goal I am trying to attain and i have less than 8 years to make it happen. I'm sure i'll make it...;-)

How much do you need monthly (spending money) to retire (not to include any bills)? And how far are you in reaching that goal...

P

Congrats on your imminent financial independence. May I be so bold as to say 120K to 180K in retirement and after expenses is way out of reach for 95% of those reading this. I read and respect your input, but throwing this out "As for me, 10k-15k spending money every month is fine with me." as if you could settle for that, could be (please forgive me) insulting.

The difference between sucking it up and paring down their standard of living to be able to retire, and having 180k per year of fun money is not simply rearranging how one looks at the problem.

Life is too short for most to have it all. Some are willing (need) to sacrifice in order to walk down the sun drenched path with nostrils flared sucking in deeply the sweet ethereal essence that we are so fortunate to experience during our all too brief stay on this magnificent earth. Doubly so with family clutching our hand. Some simply cannot do this during their working years. Sometimes I think about doing with a lot less in order to immerse myself into my family. The reality is I'm very lucky, I'm hoping to be in great shape. I shouldn't need to make any hard choices.

Again, I respect the work you've done with your real estate ventures and wish you well. You will deserve the fruits of your hard labor. -cheers

WOW, I just realized you could be only 23 or 24 years old, in which case 120-180K won't be that much in 25 years. If this is the case, disregard all after "congrats--"

[pyriel]

I would like to clarify that the meaning behind my message is about how one looks at their financial independence. 10k-15k a month is my goal. Others will have different numbers based on their needs and requirement. What I do not want to see and hope that others who are reading this will learn is that paring down to meet retirement expenditure shouldn't be our goal. Financial independence to do the things that we want to do whenever we want it should be the goal.

Millionaires are dimes in a dozen nowaday. Many of them are not even financially secured. What people need to realize is that a goal must be set now on what they will need to retire comfortably. Worrying whether we reach a million shouldn't be a priority for as i've written earlier, it could easily be squandered if not properly managed.

It is never too late for anyone to try to take the path of financially independence. Unfortunately, majority use excuses. Excuse is a dream killer. A virus that is unwanted and should be dispensed with. My sensei, a 63 year old aikido master (one that beats me up twice a week) is able to open up her own dojo and live comfortably. She is not there to make money from her dojo but to fulfill her lifelong dreams of teaching others the arts of aikido. She did in her late years ventured into an investment that is now allowing her to fulfill her lifeling dream and live financially independent.

To close this, I just want to say that we have to choose the path within that forked road. We can either pursue our dreams for that financial independence or take the easy way and give up trying. Usually, people chooses the latter for it is the easy way out.

BTW, i'm 39 and 7.5 years for retirement. My son was born with a bilateral cleft lip and cleft pallete. Fortunately for us, we are in a position to fix him up. I've learned that an organization "Operation Smile" do yearly missions to help others in need. I plan on joining them and helping out. To do this, I have to start planning now and become financially independent.

Pyriel

[VirginiaBob]

As a FERS employee, when I retire without a mortgage, if I had to, I could pretty much live out my years on my measly 35% pension, without even touching my IRA, TSP, or taxable accounts. Half of my money goes to taxes, SS taxes, and my mortgage now. Also, assuming I get a few promotions from now until I retire. So my TSP, IRA, and taxable accounts are all bonus money really.

[VirginiaBob]

double post