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$5 million in the bank -- rich?

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  • #46
    Note I said 'didn't want to work'.

    I agree that a good income that would make 1m by the time you are 25 + even 2m in the bank would make you rich.

    JM
    Jon Miller-
    I AM.CANADIAN
    GENERATION 35: The first time you see this, copy it into your sig on any forum and add 1 to the generation. Social experiment.

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    • #47
      $5 million in hand makes you rich at 25 or 65 or 75.
      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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      • #48
        JM reserves the right to DanS anything he wants.

        $5MM is rich regardless of your age. A bond paying 5% annually (easy to find in normal economies) would yield $250k/year, assuming a treasury that would be tax free. So, I could make $250k/year by structuring a nifty little bond ladder, maybe reinvest some while investing in some corporate bonds at higher yields.

        Is $250k/year rich? It is definitely well-off, but I don't think I would spend with reckless abandonment.
        Monkey!!!

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        • #49
          It depends on what is owed.

          $5 million today is rich. In forty years, it might simply be well off. Remember the scene from Austin Powers when Dr. Evil demands one million dollars?
          Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...

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          • #50
            I think we're assuming $5MM in present dollar value...

            -Arrian
            grog want tank...Grog Want Tank... GROG WANT TANK!

            The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.

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            • #51
              Originally posted by snoopy369 View Post
              Honestly I took the '4 kids' with a grain of salt...
              It was meant to be taken that way, but it does illustrate a point. Most people assume that their taxes will go way up when they make more money, get married, and start to have children. This is not necessarily true.

              401(k)s are pre-tax. The couple making $120k is suffering from a marginal federal income tax rate of 25%. Many people have sizeable state income taxes as well. So the government is in effect paying about 1/3rd of their 401(k) contribution. This makes it a lot easier and more attractive to save.

              Kids get tax breaks. The exemption is $3,500 per kid plus a $1,000 tax credit per kid. This isn't exactly a huge amount, but it does offset the expenses for kids somewhat.
              I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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              • #52
                Depends on the bank.

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                • #53
                  Originally posted by Arrian View Post
                  I think we're assuming $5MM in present dollar value...

                  -Arrian
                  Since the question revolves around retirement in 40 years, I doubt it.

                  It also depends on how much wealth is coming in and going out of their savings.
                  I'm consitently stupid- Japher
                  I think that opinion in the United States is decidedly different from the rest of the world because we have a free press -- by free, I mean a virgorously presented right wing point of view on the air and available to all.- Ned

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                  • #54
                    It assumes that the $5 million is at present value.
                    I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                    • #55
                      Was there a question in another thread I'm missing?
                      I'm consitently stupid- Japher
                      I think that opinion in the United States is decidedly different from the rest of the world because we have a free press -- by free, I mean a virgorously presented right wing point of view on the air and available to all.- Ned

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                      • #56
                        It was a troll by rtwinger with a kernel of truth in the OP.
                        I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                        • #57
                          $5M in bank account at 2% APY = living on $160,000/yr for 50 years. Sign me up. I don't even know how I would spend that much money.
                          meet the new boss, same as the old boss

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                          • #58
                            2%?

                            12-17-10 Mohamed Bouazizi NEVER FORGET
                            Stadtluft Macht Frei
                            Killing it is the new killing it
                            Ultima Ratio Regum

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                            • #59
                              KH: I forgot to include the employer's match on the 401(k). In some instances, that's substantial, pre-tax, and doesn't count toward the max limit.

                              Btw, I think he's just taking "in the bank" literally. The math is wrong, however.
                              Last edited by DanS; March 31, 2009, 15:27.
                              I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                              • #60
                                The math is wrong, however


                                No.
                                12-17-10 Mohamed Bouazizi NEVER FORGET
                                Stadtluft Macht Frei
                                Killing it is the new killing it
                                Ultima Ratio Regum

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