Are you Millionaire material?
The ClubHouse: General Discussions - Jan -Apr. 2001: January:
Are you Millionaire material?
| Subtopic | Msgs | Last Updated |
Spamgirl | Friday, January 12, 2001 - 11:32 am  Guru! WHO isn't open minded? Look at you - when Neil took your stupid game posts away, you huffed around for about 2 days saying "I wasn't a bad boy"... if you had been open minded, you would have looked at the situation from Neil's perspecitve and realized that what you were doing, although maybe fun, was also somewhat destructive... So what exactly do you know about being open minded? (I guess it takes one to know one, eh Guru?) |
Rollerboy | Friday, January 12, 2001 - 12:53 pm  Tukuul is correct. If you work for 25 yrs or so and save 10-20% of your Gross income from all sources, you will be a millionaire with a pension and depending on how you invested your savings, you will be liquid vs. a paper millionaire. Use mutual funds and save closer to 20% than 10% if possible. I guarantee this will work for anyone. |
Noslonna | Friday, January 12, 2001 - 01:11 pm  Guru guru guru... tsk tsk.. That went over the heads... try and relate to how you are coming across... I hope you can stay with us here. |
Tukuul | Friday, January 12, 2001 - 07:16 pm  This is stupid. First, I believe Flint knows I don't have a newsletter. He was trying to be sarcastic when I was only trying to help. Second, you don't have to defend me Gu. I can do just fine on my own. Finally, and this goes to everyone, don't make specific types of comments if you can't handle getting them back in your face. |
Digilady | Friday, January 12, 2001 - 08:09 pm  Tuk: Per your previous post, you're right. 25 years and that would do it. But who thinks that far ahead? I sure didn't (dagnabbit!) gee, if I start now, I'll be a millionaire when I'm 94!!! OH boy. Gold plated wheelchair, with afterburners... |
Moondance | Friday, January 12, 2001 - 08:13 pm  I am would love to know what to do if you start too late myself, Tuk! |
Twiggyish | Friday, January 12, 2001 - 08:37 pm  My theory based on my life's experiences and family history, retirement is not a given. Who's to say any of us ever make it to that age? I would rather live in the here and now, enjoy my life and when the time comes later, think about retirement. Too many people scrimp and save their whole lives for something which may never come..retirement. While I am saving a bit for the future, I would rather enjoy my time now. |
Moondance | Friday, January 12, 2001 - 08:49 pm  Twiggy makes me feel better! |
Juju2bigdog | Friday, January 12, 2001 - 10:31 pm  Tuk, take a deep breath. None of anything is all that serious. You kids on the board, put away whatever, twenty-five cents, twenty-five dollars, every day, every week, every month. Just do it. You will be very, very glad later. Put it in an interest bearing account. Okay, Tuk, you can come back in with more specific advice.
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Flint | Friday, January 12, 2001 - 10:42 pm  Actually Tukuul, it wasn't a sarcastic jab at you. It was a line from The Simpson's that Homer used when Bart expounded a theory that interested him. I was interested in what you were saying. |
Guruchaz | Friday, January 12, 2001 - 11:45 pm  It seems the concensus here is that there is no use in saving money beyond a specific age. Others say that there is no use in scrimping and saving while they are young and they will deal with retirement later. Would the folks who wished they had saved money when they were younger please talk to the ones who think they ought to wait until they are older to save? It's a lot of fun to wait isn't it? I know I want to be working at Wal-Mart at age 70. Not. Tuk gave some great advice during the game but I guess I was the only one who listened to it. It's your life. |
Guruchaz | Friday, January 12, 2001 - 11:52 pm  Meals on Wheels for everyone! Uh huh huh |
Tukuul | Saturday, January 13, 2001 - 12:11 am  That's not helping much, Gu. This is a serious matter these days. Great show, by the way. LOL Anyway, back to the quiz... |
Twiggyish | Saturday, January 13, 2001 - 06:28 pm  Well, I am not saying NOT to save, but I am saying don't count on being able to spend it. As I said, my opinion is based on my own life and family history (Longevity of life is not a family trait) I am not saying to eat, drink and be merry..but we should enjoy each day as it comes. Tomorrow is a mystery and we never know what it brings. No, I am not negative nor am I depressed.. just realistic. Believe me, where I live in Florida, I see retirees every day so I know the "good life" can be had. But, I also worked in a nursing home as an office manager (about 5 years ago) and I saw the other side of the coin. One surprise was seeing the various ages of the residents (not all of them were elderly). |
Tukuul | Sunday, January 14, 2001 - 01:32 pm  The question is: What seperates the elderly in nursing homes from the elderly in nice retirement homes? I guarantee you that most in the nice retirement homes didn't wait until the last years of their life to decide. So, do you spend all your money when you get your check? Does it all vaporize instantly? I'm not trying to put you on the spot, but to think. I never thought about this at a younger age but I wish I had known about it. What I was trying to get across is the power of compound interest. Whether you save it in a retirement account or an investment account, the important thing to realize is how fast each of your dollars will multiply in a short amount of time. Look up the Rule of 72 on the internet. You take the number 72, divide it by the number of your interest rate and that equals the years it take a one lump sum to double. You'd be surprised at the difference a percentage point makes and in an investment account, you don't have to wait until 59 1/2 to take it out. However, if you don't have some sort of retirement account established, what are you counting on for income when you decide to no longer work or aren't able to work due to age? Yes, these are things most people 50 and above regret but it doesn't mean they have to give up. Yes, these are also things that kids need to know at a young age because they have more doubling periods in their lifetime and won't have to save as much money per month (or their parents). Anyway, back to the quiz... |
Lancecrossfire | Sunday, January 14, 2001 - 02:18 pm  Tukuul--I knew a person who ended up with quite a bit of money, although to begin with it was just their intention to have a decent life (not great) after done working. They realized this early in life, which of course helps. They went into the service when 18--stayed for 20 years. "Retired" at the age of 38 with 50% of their wage coming in every month for the rest of their life, plus medical paid for, base privileges, and education money from Montgomery GI Bill. They were also bright enough to finish college while in the service, so when they got out, they had their BS. Got another job with Uncle Sam--postal worker. Stayed for 20 years (I don't remember of they got an advanced degree or not). He didn't live high off the hog, so he used his service money to invest with, and his postal worker wage (along with spouse's wage)to live. After that 20 years, now 58, with two pensions that are each 50% of a full wage, and had 20 years of investing going on with that chunk of money he got each month from service retirement. If you can imagine, he ended up being able to do anything he wanted at the age of 58, and barring any catastrophic medical event it would be that way the rest of his life. |
Tukuul | Monday, January 15, 2001 - 12:06 pm  That's one route to go, but why work 40 years of your life (unless, of course, you want to)? Most individuals don't believe they can have millions of dollars saved up at retirement. A good nestegg is one that you can draw 10% from each year while it's still generating interest for itself. One must also take the inflation rate into consideration. $40,000 in 20 years or more isn't going to buy what it does today. Also, I'm not counting on the $600 or so a month from Social Security to be there when I turn 62, are you? I'm not willing to take that risk. Let's say that a 24 year old placing a one lump sum deposit of $2000 in a mutual fund (averaging 12 percent over the duration) let's it sit there until age 66 without disturbing it. 72 / 12 = 6 His/Her money would double every 6 years so at age: 30: $4000 36: $8000 42: $16,000 48: $32,000 54: $64,000 60: $128,000 66: $256,000 Now, picture if that 24 year old put $2000 a year in for 10 or 15 years in a row...or more. If most people knew what they could realistically have, they'd have no hesitation in setting back $166 a month for that. Most people think they can retire on $60,000 and it doesn't take one long to figure out how long that will last. It's something people would rather get depressed about than do something about. Of course, consumer debt doesn't help the situation either. The yuppies in the 80's started a trend of spending more than they make to get the things they want and the credit card companies ate it up. Now, it's eating those people up. It's bad but not impossible to overcome. I had a long discussion the other day with a firend of mine who works in banking and he told me that he's about sick of his job and told me the things that goes on. First of all, people who bounce checks and pay the fees are very high on the bank's customer lists for service. They love those types of people. Second, many mortgage loans are immediately sold off so they don't have to deal with them. Third, you may start out as a "preferred customer" on a personal loan with a great interest rate, but if you aren't bringing the bank any revenue then they will slowly raise your interest rate, especially on future personal loans, until you go away. You may think they care, but they wave "bye bye" and focus on revenue earning customers. This isn't just one particular bank. It's the way all competitive banks operate. Yet, we place the highest trust in these institutions because we are brought up to believe they are there to help us and they know what they are doing. Your bank representative is nothing but a sales person. They are there to sell you products and will rarely take the time to find out what your needs are or to help you get out of debt without paying them more interest and fees. It's eye opening when you take the time to look and listen and investigate. I'm not trying to bash banks, but give some realistic insight on how they make their money. Anyway, I'm done again. I throw this stuff out there and hope people will learn something. |
Twiggyish | Monday, January 15, 2001 - 12:52 pm  Tuk, we learn and maybe have some wisdom of our own. My husband and I have been putting a bit aside for over 20 years. My post was a bit about enjoying life each day. Don't count on your retirement to finally enjoy the good life. Take each day as it comes. That is my philosophy. |
Tukuul | Tuesday, January 16, 2001 - 08:50 am  Just because I save doesn't mean I don't have money to enjoy each day. One of my friends uses that excuse too and he has all this great stuff and financial stress to the max. It's sad. One doesn't have to suffer to save properly. It's just proper financial techniques aren't taught to us in school or at a young age when it really begins to count. |
Tukuul | Tuesday, January 16, 2001 - 11:25 pm  Sorry I went off here. It's a touchy subject with a lot of people and didn't mean to mangle the thread. |
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