Currently have $700,000 at 26 years old get $100,000 a year

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WanderingDoc
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by WanderingDoc »

Sandtrap wrote: Sat Dec 02, 2017 6:13 pm
GrayS26 wrote: Sat Dec 02, 2017 3:58 pm
Sandtrap wrote: Sat Dec 02, 2017 2:05 pm
GrayS26 wrote: Sat Dec 02, 2017 11:25 am
wrongfunds wrote: Thu Nov 30, 2017 10:11 pm With COLA, you are in good shape. But do figure out what you really want to do in your life. Assuming the 3.3M is invested well, it will be worth quite a lot in 30 years. As long as you invest 25-30% of your allowance immediately on getting it, you will be fine. But you will still need to have a budget.

Your parents have the means to support you. I presume they have been extremely successful financially. Why are you not thinking of being able to emulate them or take over their business later in your life? If so, try to get the education which will help you achieve that.
I’m grateful for what I have and proud of what I’ve been able to do. There’s almost always going to be bigger and better no matter how hard one tries, and believe me I’ve tried hard at many things earlier on in my life.
——————————————————————————————————-

Question for everybody:

I have a lease, is that considered debt? My car lease is like $680 a month I think. The reason why I prefer renting condos and leasing cars instead of buying is bc I’d rather have a set amount of bills, let’s say 6,000 a month, and around 750k invested than spend $300k on a house, $60-$70k, on a car, and so on, and then have less invested.
why not 30-40 on a Toyota and have no monthly payments vs lease and never own the car?
May be a bit too frugal a lifestyle though.
j :D
Wait, how can I get a 30-40k Toyota with no monthly payments?

I assume you mean just pay cash? I still would be hesitant spending so much on 1 purchase tbh. Plus i prefer being able to get something new every few years if possible. Perhaps already acquiring "spendy" habits? Suggest spending time at MMM. One can be wealthy or not and still be frugal.

For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it. This is a good way to end up with minimal at an early age or later years from now.

TBH, I prefer not spending too much on cars or frankly anything bc the more cash in the bank the better but that’s just the price for being social I guess.
This is illusory. You do not have more "cash" in the bank because it is being spent on being social. This doesn't mean being antisocial. It means being comfortable with "who" you are vs "what you can buy" compared to others. Define wealth? Define financially independence? At some point in time wouldn't one want to be financially independent and "self made" "despite" having a fortunate leg up on things?
The actionable point I'm making is one of asking yourself:
If one day the income stream were to not exist, would I have structured things such that I wouldn't need it, or in fact would be even better off?
Have I capitalized on my good fortunes to build a sound financial and personal lifestyle base that generates income far beyond what I am being given?
There are threads you can google here on "lifestyle creep" and "hedonic treadmill" that present very real factors that are insidious and can erode wealth and earnings.
This is a very conservative overview and presentation of things to ponder that may be helpful to you.
J :D
I appreciate what you're doing, but you are introducing terms that people learn when they have a lot of time on their hands to read books or forums while saving their money - rather than - going out spending it and being social, like the OP.

To be honest, I just learned both of those terms in 2017, and I am no better for it. When I was too busy partying and dating a new person every few days to a week, I didn't have time to go on BH.org or MMM to learn said terms. I can't say I am any better for doing so! :beer

I have adopted things I've learned from both lifestyles, its always a work in progress. Tilting to what the OP is doing is a lot more fun.

People (men particularly) are being told by the media, feminists, and the government that they should "take responsibility" .. often that means sacrificing their own well being and interests for other people and society at large. However, these people you are working for and supporting don't often have your best interests at heart, and will stab you in the back and take what you've been working for without giving it a second thought.
I'm not looking to get rich quick (stocks), I'm not looking to get rich slow (indexing), I'm looking to get rich, for sure (real estate) | Don't wait to buy real estate. Buy real estate.. and wait.
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Sandtrap
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by Sandtrap »

WanderingDoc wrote: Sat Dec 02, 2017 7:14 pm . . . .
I appreciate what you're doing, but you are introducing terms that people learn when they have a lot of time on their hands to read books or forums while saving their money - rather than - going out spending it and being social, like the OP.

To be honest, I just learned both of those terms in 2017, and I am no better for it. When I was too busy partying and dating a new person every few days to a week, I didn't have time to go on BH.org or MMM to learn said terms. I can't say I am any better for doing so! :beer

I have adopted things I've learned from both lifestyles, its always a work in progress. Tilting to what the OP is doing is a lot more fun.

People (men particularly) are being told by the media, feminists, and the government that they should "take responsibility" .. often that means sacrificing their own well being and interests for other people and society at large. However, these people you are working for and supporting don't often have your best interests at heart, and will stab you in the back and take what you've been working for without giving it a second thought.
You are absolutely correct. Good points well expressed for the benefit of all.
j :D
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vitaflo
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by vitaflo »

GrayS26 wrote: Sat Dec 02, 2017 3:58 pm For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it.
If anything, this will be your downfall. You are one-upping everyone, but have no "sweat equity" to lean on. What happens when the people in your circle get good paying jobs and are pulling in $300k to your $100k? How are you going to keep up with the Jones' then? Even with COLA, you'll fall behind and fall out of the circle because you have no skills to boost you into a higher bracket like your friends do.

IMO, your worry shouldn't be how much you save (you're doing fine there), but how much you make. Your posts show you are continuing to increase your lifestyle, and it seems this is a lifestyle you want to keep. But you're not going to be able to keep this up only making $100k per year. At a certain point the friends you roll with will either move on to a lifestyle that you can't afford, or you'll keep trying to keep up with them and go bankrupt doing so.

I'd try to find a side hustle of some sort. You've certainly got the time without a job. Start the process of finding something else to bring in more income. That is, if you want to keep doing what you're doing. You could always tone it back and then not have to worry about it but that doesn't seem to be what you want to do.
cantos
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by cantos »

The OP's primary concern is a fear that he won't have enough, etc.

The answer seems quite obvious.

Get a good job.

Seriously - earning an income, knowing you have a way to make enough money to cover all your expenses if you need to (starbucks doesn't cut it), failing at something and being able to go on - these will all come from getting a good job.
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GrayS26
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by GrayS26 »

vitaflo wrote: Sat Dec 02, 2017 8:39 pm
GrayS26 wrote: Sat Dec 02, 2017 3:58 pm For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it.
If anything, this will be your downfall. You are one-upping everyone, but have no "sweat equity" to lean on. What happens when the people in your circle get good paying jobs and are pulling in $300k to your $100k? How are you going to keep up with the Jones' then? Even with COLA, you'll fall behind and fall out of the circle because you have no skills to boost you into a higher bracket like your friends do.

IMO, your worry shouldn't be how much you save (you're doing fine there), but how much you make. Your posts show you are continuing to increase your lifestyle, and it seems this is a lifestyle you want to keep. But you're not going to be able to keep this up only making $100k per year. At a certain point the friends you roll with will either move on to a lifestyle that you can't afford, or you'll keep trying to keep up with them and go bankrupt doing so.

I'd try to find a side hustle of some sort. You've certainly got the time without a job. Start the process of finding something else to bring in more income. That is, if you want to keep doing what you're doing. You could always tone it back and then not have to worry about it but that doesn't seem to be what you want to do.
When my friends graduate and leave campus they’re gone and no one really keeps up with them.

The successful people I know my age aren’t making more than 100k-120k a year and I was never really friends with them.
Last edited by GrayS26 on Sat Dec 02, 2017 10:52 pm, edited 3 times in total.
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GrayS26
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by GrayS26 »

WanderingDoc wrote: Sat Dec 02, 2017 7:14 pm
Sandtrap wrote: Sat Dec 02, 2017 6:13 pm
GrayS26 wrote: Sat Dec 02, 2017 3:58 pm
Sandtrap wrote: Sat Dec 02, 2017 2:05 pm
GrayS26 wrote: Sat Dec 02, 2017 11:25 am

I’m grateful for what I have and proud of what I’ve been able to do. There’s almost always going to be bigger and better no matter how hard one tries, and believe me I’ve tried hard at many things earlier on in my life.
——————————————————————————————————-

Question for everybody:

I have a lease, is that considered debt? My car lease is like $680 a month I think. The reason why I prefer renting condos and leasing cars instead of buying is bc I’d rather have a set amount of bills, let’s say 6,000 a month, and around 750k invested than spend $300k on a house, $60-$70k, on a car, and so on, and then have less invested.
why not 30-40 on a Toyota and have no monthly payments vs lease and never own the car?
May be a bit too frugal a lifestyle though.
j :D
Wait, how can I get a 30-40k Toyota with no monthly payments?

I assume you mean just pay cash? I still would be hesitant spending so much on 1 purchase tbh. Plus i prefer being able to get something new every few years if possible. Perhaps already acquiring "spendy" habits? Suggest spending time at MMM. One can be wealthy or not and still be frugal.

For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it. This is a good way to end up with minimal at an early age or later years from now.

TBH, I prefer not spending too much on cars or frankly anything bc the more cash in the bank the better but that’s just the price for being social I guess.
This is illusory. You do not have more "cash" in the bank because it is being spent on being social. This doesn't mean being antisocial. It means being comfortable with "who" you are vs "what you can buy" compared to others. Define wealth? Define financially independence? At some point in time wouldn't one want to be financially independent and "self made" "despite" having a fortunate leg up on things?
The actionable point I'm making is one of asking yourself:
If one day the income stream were to not exist, would I have structured things such that I wouldn't need it, or in fact would be even better off?
Have I capitalized on my good fortunes to build a sound financial and personal lifestyle base that generates income far beyond what I am being given?
There are threads you can google here on "lifestyle creep" and "hedonic treadmill" that present very real factors that are insidious and can erode wealth and earnings.
This is a very conservative overview and presentation of things to ponder that may be helpful to you.
J :D
I appreciate what you're doing, but you are introducing terms that people learn when they have a lot of time on their hands to read books or forums while saving their money - rather than - going out spending it and being social, like the OP.

To be honest, I just learned both of those terms in 2017, and I am no better for it. When I was too busy partying and dating a new person every few days to a week, I didn't have time to go on BH.org or MMM to learn said terms. I can't say I am any better for doing so! :beer

I have adopted things I've learned from both lifestyles, its always a work in progress. Tilting to what the OP is doing is a lot more fun.

People (men particularly) are being told by the media, feminists, and the government that they should "take responsibility" .. often that means sacrificing their own well being and interests for other people and society at large. However, these people you are working for and supporting don't often have your best interests at heart, and will stab you in the back and take what you've been working for without giving it a second thought.
I don’t mind terms idk because it helps me learn. I plan on looking them up soon and learning. Posts like that I haven’t responded to bc I’m still figuring them out lol.

As far as the lifestyle, I agree with a lot of what your saying.

I understand that being frugal can be very smart. Buying a Toyota or something for 25k and running it for 100,000 miles or more is the “right” thing to do according to many assuming it isn’t a lemon or something. But I just like enjoying and having fun and then doing what I can as well to save. Trying to find a balance.
daveydoo
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by daveydoo »

WanderingDoc wrote: Wed Nov 29, 2017 11:54 am
Life is about doing what you enjoy and being happy and carefree. Not doing things imposed by society, the media, or some narrow-minded individuals told you to.
Wah? Imagine what kind of world we'd have if everyone felt this way. You can't eat dessert all day long...

My [parent] told me "Don't be a parasite -- be something!" It didn't really matter what.
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"
Elena
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by Elena »

TreeBeard wrote: Fri Mar 31, 2017 8:59 pm All of the helpful, open-minded responses are why I love this forum. But, I fear OP may be trolling. Happy Friday all in either case!
I agree.
Topic Author
GrayS26
Posts: 96
Joined: Thu Mar 30, 2017 2:43 am

Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by GrayS26 »

Sandtrap wrote: Sat Dec 02, 2017 6:13 pm
GrayS26 wrote: Sat Dec 02, 2017 3:58 pm
Sandtrap wrote: Sat Dec 02, 2017 2:05 pm
GrayS26 wrote: Sat Dec 02, 2017 11:25 am
wrongfunds wrote: Thu Nov 30, 2017 10:11 pm With COLA, you are in good shape. But do figure out what you really want to do in your life. Assuming the 3.3M is invested well, it will be worth quite a lot in 30 years. As long as you invest 25-30% of your allowance immediately on getting it, you will be fine. But you will still need to have a budget.

Your parents have the means to support you. I presume they have been extremely successful financially. Why are you not thinking of being able to emulate them or take over their business later in your life? If so, try to get the education which will help you achieve that.
I’m grateful for what I have and proud of what I’ve been able to do. There’s almost always going to be bigger and better no matter how hard one tries, and believe me I’ve tried hard at many things earlier on in my life.
——————————————————————————————————-

Question for everybody:

I have a lease, is that considered debt? My car lease is like $680 a month I think. The reason why I prefer renting condos and leasing cars instead of buying is bc I’d rather have a set amount of bills, let’s say 6,000 a month, and around 750k invested than spend $300k on a house, $60-$70k, on a car, and so on, and then have less invested.
why not 30-40 on a Toyota and have no monthly payments vs lease and never own the car?
May be a bit too frugal a lifestyle though.
j :D
Wait, how can I get a 30-40k Toyota with no monthly payments?

I assume you mean just pay cash? I still would be hesitant spending so much on 1 purchase tbh. Plus i prefer being able to get something new every few years if possible. Perhaps already acquiring "spendy" habits? Suggest spending time at MMM. One can be wealthy or not and still be frugal.

For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it. This is a good way to end up with minimal at an early age or later years from now.

TBH, I prefer not spending too much on cars or frankly anything bc the more cash in the bank the better but that’s just the price for being social I guess.
This is illusory. You do not have more "cash" in the bank because it is being spent on being social. This doesn't mean being antisocial. It means being comfortable with "who" you are vs "what you can buy" compared to others. Define wealth? Define financially independence? At some point in time wouldn't one want to be financially independent and "self made" "despite" having a fortunate leg up on things?
The actionable point I'm making is one of asking yourself:
If one day the income stream were to not exist, would I have structured things such that I wouldn't need it, or in fact would be even better off?
Have I capitalized on my good fortunes to build a sound financial and personal lifestyle base that generates income far beyond what I am being given?
There are threads you can google here on "lifestyle creep" and "hedonic treadmill" that present very real factors that are insidious and can erode wealth and earnings.
This is a very conservative overview and presentation of things to ponder that may be helpful to you.
J :D
Isnt MMM a wesbite that discusses spending habits and how to be smart with money? I’ve seen it before. I think I heard of it from this site a long time ago when I had first posted.

I understand the merits of being frugal. Not buying into materialism, keeping up with the Jones’, and so on.

How do I define wealth? I guess the answer is assets minus liabilities right?
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vitaflo
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by vitaflo »

GrayS26 wrote: Sat Dec 02, 2017 10:00 pm When my friends graduate and leave campus they’re gone and no one really keeps up with them.

The successful people I know my age aren’t making more than 100k-120k a year and I was never really friends with them.
Do you see the problem here? You're 27 and still think you're in college. You're *that guy*.

Your life is so far removed from any concept of reality that I agree with others, this has to be a troll post.
TroutMD
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by TroutMD »

GrayS26 wrote: Fri Mar 31, 2017 5:52 pm All of your posts have been very helpful. Thank you all so much.

I went to a party school for college. It's considered one of the biggest party schools in the country. My friends and the girls I date are all college students - my entire social life is in college. They understand me and my lifestyle well bc they are all "rich kids." Growing up I went to a good school, and many of the people my age went on to get advanced degrees and great careers, but I don't care to keep up with them. I am who I am and that's all I'm trying to be.

No, dating college girls, or rather TRYING to date college girls isn't easy. It's the biggest headache, but I love it. It's never ending drama, but it's fun. Do they know my situation? Well yeah. But I'm not worried about it. When the time comes for marriage, I'll think about prenups etc then. They come from the nicest neighborhoods in town, and it's nice dating (OR AT LEAST TRYING TO) someone from a similar background. There's a lot of mutual understanding and similarities I appreciate.

Sometimes I do spend more than I mentioned. My fear is that I anticipate having to spend more. I think I may have to bump up my expenses to a point where I'll save around 40K a year. Or worse case maybe even a little less. I'm also ALMOST 27 so that's 1 year older.

I don't have a 9-5 but I do have a hobby and purpose. Yes, on the daily all I do is get Starbucks, YouTube, browse web, Xbox, exercise etc but my social life and the endless drama takes up a lot of energy and time. If MTV wanted to do a reality TV show on us I think people may watch! (I'm kidding, but it really does take up time and energy).

Maybe I'm not the most ambitious person out there like some of the people my age that I knew, but like I said I am who I am. I am trying my best to be responsible. Yes I like to party, but I see nothing wrong with that. It's pretty harmless. It's not like it costs much either. The maximum it costs is like if I go on a date I might end up spending 400-500 bc we get champagne, etc. My bills are cheap overall. College life isn't expensive if you don't have to pay tuition (I already graduated).

I joined here bc I'm always open to learning. There's many things I don't know or understand but I do the best I can. I like listening to others and learning and I'm truly appreciative of everyone's thoughts and feedback. I feel like trying to learn as much as I can about my situation is important for me. Why do I worry about things? Bc I don't want to be a screw up in life. I just want to have fun but be responsible too.

Oh and regarding golf, I'm more of a night owl :)


EDIT: One more thing I should address, I don't own property. My lifestyle as described above is better suited for renting a 1BR condo, which is all I need.
400-500 a night partying doesn't cost much?

The typical college kid is looking for the $1 you call its or $5 a dozen Keystones. Free cover also of course. And campus transportation.

400-500 a night is ballin'
cali
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by cali »

GrayS26 wrote: Sat Dec 02, 2017 10:00 pm
vitaflo wrote: Sat Dec 02, 2017 8:39 pm
GrayS26 wrote: Sat Dec 02, 2017 3:58 pm For 30-40k I could probably get a used luxury car or lower end model luxury car, but most of my circle have really nice cars so I prefer having something a little better than many of them if I can afford it.
.
When my friends graduate and leave campus they’re gone and no one really keeps up with them.

The successful people I know my age aren’t making more than 100k-120k a year and I was never really friends with them.
so when your friends graduate and are gone to their careers then where are you? Are you starting over with another group to party with?

How do you know the successful people your age are not making much money if you aren't friends with them? I know a lot of kids at 26 that are making over $100K a year working with just having a undergrad degree. they love what they do. Some work the typical 40 hr a week and some much more. They also have time to party, travel, get additional degrees/certifications.

I know that is not the lifestyle you want, but I don't see you as having any more wealth in the now present.
colddeadfish
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by colddeadfish »

Please STOP feeding this troll :sharebeer
Eric76
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by Eric76 »

This has been one of the more entertaining BH threads that I've read. Thanks OP. What a troll job. :beer
bighatnohorse
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Re: 3 fund portfolio vs. all-in-one fund

Post by bighatnohorse »

GrayS26 wrote: Thu Mar 30, 2017 3:03 pm
Can someone please give an example of a 1 fund portfolio vs a 3 fund portfolio?

Like if I wanted a 1 fund what could I buy or if I wanted a 3 fund which ones could I buy.

Thank you

A "Set it and forget it" fund with automatic re-balancing - sounds like that maybe what you're looking for?
If so, perhaps you might want to re-phrase you're question to help dial in the responses.
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Re: Currently have $700,000 at 26 years old get $100,000 a year

Post by LadyGeek »

This thread has run its course and is locked (topic exhausted, no longer productive). See: Locked Topics
Moderators or site admins may lock a topic (set it so no more replies may be added) when a violation of posting policy has occurred. Occasionally, even if there are no overt violations of posting policy, a topic (or thread) will reach a point where the information content of the discussion has been essentially exhausted and further replies are much more likely to cause distress to the community than add anything of value.
To the OP - The "MMM" mentioned earlier in the thread is Mr. Money Mustache — Early Retirement through Badassity. We recommend this site to those needing to change their financial lifestyle habits - what the last several pages of discussion have suggested. Please join The Money Mustache Community and ask for help there. They'll set you straight.

Please don't start a new thread to continue this discussion. If you have any questions, PM me.
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