Making more $ than you can spend....?
Quote: (05-28-2016 01:46 PM)jake1720 Wrote:
Quote: (05-28-2016 09:00 AM)skptc Wrote:
I know Rawmeo's story and it is atleast plausible... I won't go into much detail but, according to him, he speculated on a particular asset at the right time...
Entire life savings in $DWTI in late 2014. Only thing I can think of.
Yea but even doing that if you sold at the peak (which very short lived and bought at the very bottom) is only worth about 14x your money. A guy in his early 20s probably isn't even going to have 50k or 100k to invest and even investing that amount at those time periods is not going to give you money for life. After taxes you might squeak into millionaire status.
You'd have to invest hundreds of thousands to get money for life out of that transaction if that's the transaction that occurred.
I wouldn't consider having a million dollars to be of the money for life variety. Guys with only 1 million dollars aren't going and buying $300,000 sports cars either. That kind of purchase is going to typically for guys spending less than 5-10% of their wealth.
Quote: (05-28-2016 03:14 PM)lavidaloca Wrote:
Quote: (05-28-2016 01:46 PM)jake1720 Wrote:
Quote: (05-28-2016 09:00 AM)skptc Wrote:
I know Rawmeo's story and it is atleast plausible... I won't go into much detail but, according to him, he speculated on a particular asset at the right time...
Entire life savings in $DWTI in late 2014. Only thing I can think of.
Yea but even doing that if you sold at the peak (which very short lived and bought at the very bottom) is only worth about 14x your money. A guy in his early 20s probably isn't even going to have 50k or 100k to invest and even investing that amount at those time periods is not going to give you money for life. After taxes you might squeak into millionaire status.
You'd have to invest hundreds of thousands to get money for life out of that transaction if that's the transaction that occurred.
I wouldn't consider having a million dollars to be of the money for life variety. Guys with only 1 million dollars aren't going and buying $300,000 sports cars either. That kind of purchase is going to typically for guys spending less than 5-10% of their wealth.
Quote from an Investment Management Report that might be relevant:
"The Upper Half of the Top 1%
Membership in this elite group is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting. Some hard working and clever physicians and attorneys can acquire as much as $15M-$20M before retirement but they are rare. Those in the top 0.5% have incomes over $500k if working and a net worth over $1.8M if retired. The higher we go up into the top 0.5% the more likely it is that their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor as do most in the bottom 99.5%. They are much more likely to have built their net worth from stock options and capital gains in stocks and real estate and private business sales, not from income which is taxed at a much higher rate. These opportunities are largely unavailable to the bottom 99.5%."
"The Upper Half of the Top 1%
Membership in this elite group is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting. Some hard working and clever physicians and attorneys can acquire as much as $15M-$20M before retirement but they are rare. Those in the top 0.5% have incomes over $500k if working and a net worth over $1.8M if retired. The higher we go up into the top 0.5% the more likely it is that their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor as do most in the bottom 99.5%. They are much more likely to have built their net worth from stock options and capital gains in stocks and real estate and private business sales, not from income which is taxed at a much higher rate. These opportunities are largely unavailable to the bottom 99.5%."
Quote: (05-29-2016 10:46 PM)Oneeyedjack Wrote:
Quote from an Investment Management Report that might be relevant:
"The Upper Half of the Top 1%
Membership in this elite group is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting. Some hard working and clever physicians and attorneys can acquire as much as $15M-$20M before retirement but they are rare. Those in the top 0.5% have incomes over $500k if working and a net worth over $1.8M if retired. The higher we go up into the top 0.5% the more likely it is that their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor as do most in the bottom 99.5%. They are much more likely to have built their net worth from stock options and capital gains in stocks and real estate and private business sales, not from income which is taxed at a much higher rate. These opportunities are largely unavailable to the bottom 99.5%."
To me the biggest key from that besides obviously making a high income is...
"their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor"
Leverage.
Quote: (05-30-2016 12:46 AM)lavidaloca Wrote:
Quote: (05-29-2016 10:46 PM)Oneeyedjack Wrote:
Quote from an Investment Management Report that might be relevant:
"The Upper Half of the Top 1%
Membership in this elite group is likely to come from being involved in some aspect of the financial services or banking industry, real estate development involved with those industries, or government contracting. Some hard working and clever physicians and attorneys can acquire as much as $15M-$20M before retirement but they are rare. Those in the top 0.5% have incomes over $500k if working and a net worth over $1.8M if retired. The higher we go up into the top 0.5% the more likely it is that their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor as do most in the bottom 99.5%. They are much more likely to have built their net worth from stock options and capital gains in stocks and real estate and private business sales, not from income which is taxed at a much higher rate. These opportunities are largely unavailable to the bottom 99.5%."
To me the biggest key from that besides obviously making a high income is...
"their wealth is in some way tied to the investment industry and borrowed money than from personally selling goods or services or labor"
Leverage.
Indeed.
But one should not forget that leverage is a two sided sword, if you are on the wrong side of the trade you'll witness how your net worth diminishes very fast.
It is best to use leverage in moderation, it is just like cocaine.. Too much will kill you.
Quote: (05-26-2016 01:25 PM)Rawmeo Wrote:
The first thing you should do is, back your ass, as having tons of cash will attract the wrong people.
---
I feel like I have no more sympathy for less successful people, and less tolerance for people who complain about their fate, as I worked my ass off to change my fate. I also realize that being poor is surviving rather than living.
About future expectations, you should expect to life a very healthy and pleasant lifestyle if you continue that way.
Well said.
Quote: (11-21-2018 01:03 AM)JackinMelbourne Wrote:
Quote: (05-26-2016 01:25 PM)Rawmeo Wrote:
The first thing you should do is, back your ass, as having tons of cash will attract the wrong people.
---
I feel like I have no more sympathy for less successful people, and less tolerance for people who complain about their fate, as I worked my ass off to change my fate. I also realize that being poor is surviving rather than living.
About future expectations, you should expect to life a very healthy and pleasant lifestyle if you continue that way.
Well said.
That post (Rawmeo's) didn't age well.
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