We had a very interesting conversation with an attorney a few years ago who is a social contact of my husband in a conservation group they are both active in. His practice consists of doing estate planning for top tier individuals, doctors/lawyers/Indian chiefs (ie CEO/COO/CFO level businessmen and women)GCD wrote: ↑Fri Mar 16, 2018 10:05 amYou also have to keep in mind that salary doesn't equate to net worth. I have a good friend whose wife makes around 1.2M, but their lifestyle doesn't reflect it. And that's NOT because they are LBYM! They just make horrible financial and real estate decisions that put them into debt that they are forever trying to out from under. Despite being high wage earners they need Dave Ramsey more than BH.
He was advising us and surprised us very much by saying that our net worth was that of many of his clients. As midlevel college administrators we always assumed those folks were worth far more than us. As our friend said though, the doctors would roll in and tell him they had a million dollar primary house-with a mortgage of $700K. A second home worth another million-with a mortgage of $600K. Leased luxury cars. Private school tuition up to and including full pay for Ivy League schools if the kids got accepted. And so on. It was a good reminder that as the saying also goes 'it's not what you make, it's what you keep.'
My sense is there are a lot of folks here who are at the stage in life in which many years of cautious living-and yes healthy incomes but not necessarily 1% level paychecks-are yielding those dividends of being able to humblebrag ask if they can retire with their $3-4 million in 401K assets.