The Captain
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Post by The Captain on Aug 12, 2014 17:40:57 GMT -5
Uh, now I feel like crap! We have hardly anything at 33 and 34, and what we do have is from me saving and investing. MY DH finally starting saving for retirement last year at 32 years old. I basically told him if he didnt, I was going provide him the bare basics from my retirement, and he would have to live with it, since he had no desire to save and always wants to spend spend spend. His company has an amazing 401k, and I think he has a pretty good amount in there for only working 2/3 of the year for them.
I'm hoping we can start aggressively saving over the next 25 years, so we can have between $1-2 million when we retire, but we are pretty far off right now. We only have about $120k total. ![](http://syonidv.hodginsmedia.com/vsmileys/melancholy.png) According to my Phil Script, a lump sum investment of $120,000.00 bearing an annual return of 11% could grow to $1,630,255.66 in 25 years! ![](http://images.proboards.com/new/wink.png)
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hurley1980
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Post by hurley1980 on Aug 12, 2014 18:24:07 GMT -5
Uh, now I feel like crap! We have hardly anything at 33 and 34, and what we do have is from me saving and investing. MY DH finally starting saving for retirement last year at 32 years old. I basically told him if he didnt, I was going provide him the bare basics from my retirement, and he would have to live with it, since he had no desire to save and always wants to spend spend spend. His company has an amazing 401k, and I think he has a pretty good amount in there for only working 2/3 of the year for them.
I'm hoping we can start aggressively saving over the next 25 years, so we can have between $1-2 million when we retire, but we are pretty far off right now. We only have about $120k total. ![](http://syonidv.hodginsmedia.com/vsmileys/melancholy.png) I'm 32 and we have about $110k and I feel good about it. I've got 25-30 years of working for it to grow and contribute. Our finances have been screwy do to medical bills. I think if we can manage the last 7 years like we have (we've only been investing for about 8 years), then we'll be fine in the long run. Just keep your head down and keep doing what you are doing. Yes, I've been investing for about 7 years, and my DH just 1. But we also paid off some medical bills on his part too. I'm not a high income earner, but he is, so I think we have plenty of time to catch up. Thanks for the positive comments everyone!
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phil5185
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Post by phil5185 on Aug 12, 2014 18:27:31 GMT -5
I got my degree in 1963, my first engineering job paid about $8500/yr. So I probably invested less than $1000/yr. It takes a long time to grow a million at $1000/yr. But after you have a million in your account, it takes only about 7 yrs to double it. And 7 more yrs to turn $2M into $4M. And so on. You have half of the work done already - if you don't touch that $120k and keep it invested @ 11%/yr for 25 years that is $1.6M, ie you could quit adding to it right now. But hopefully you will add - your $120k @ 11%/yr PLUS $10k/yr is $2.8M in 25 yrs. (Note how your existing $120k is responsible for more than half of the $2.8M). ![](http://images.proboards.com/new/smiley.png)
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cronewitch
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Post by cronewitch on Aug 12, 2014 18:50:50 GMT -5
I started slow 30 years ago. Got divorced and took control of my life and money. I saved $2K in my first IRA in 1984, kept saving 2K a year. I paid off my ex what I owed him and my parents gave me 13K in 1985 and I bought a house in 1985. Interest rates were high so I paid down my mortgage still saving 2K a year in IRA. I lived in poverty sending all overtime and bonuses and every cent I could squeese out to the mortgage. By 1989 I had the mortgage down so I went back to college at 41 yo got a degree in 91 passed CPA exam in 91. Got major promotion at work an mortgage was under 5K left so I bought a bigger house sold the old one two years later for 90K that I paid 51.5K for so made a nice profit. We got a 401K at work so was allowed to put in 15% so I did but soon lost that job so rolled it over. New job didn't have 401K at first but after a few years got one so put in 15% never had a match. When ROTH came out I converted my IRA that was up to 67K at that time. Left that job and rolled over to IRA then converted that so from 1984 to 2003 I had saved 100K. It was really hard I didn't have a lot of nice things except a few boats but did without many other things. 2003 my new job allowed me in the 401K and later allowed 14K a year instead of 15% so I put in the max and increased the max every year until this year. I saved about 445K in that 401K. Mean while I refinanced the house and invested 113K cash out and last year my mom died leaving me 110K last week I got another 60K from selling her house. My investments went up 153K last year and are up 37K this year. So now I have over 997K counting bank accounts. My house is worth around 300K and I owe 126K so even low ball I made my first million but will be happier to have my first million invested. I am 66 now so no spring chicken but not bad for a single person.
I only get 780 a month SS so I am low income elderly now and on a fixed income, you can feel sorry for me now.
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thyme4change
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Post by thyme4change on Aug 12, 2014 19:20:45 GMT -5
I am curious - for those who count your house towards your "number" - how often do you adjust it? Are you counting as the price you paid for it? The assessed value? I look at zillow every once in a while. It doesn't really matter if I get it right or wrong during my calculation. There aren't too many numbers that would come up that would change my course of action - which is to live here and pay the mortgage and not take a lot of money out. The reason I do count it is because when I get old and it is just the two of us, or possibly the one of us, I can sell it and go smaller, or rent. If I take the total value of my house today (minus 10% for selling costs) and theoretically moved into the apartment complex that is a mile from here that is pretty nice I could rent for at least 15 years. Likely a lot more than that. If I run out of money I would still have to pay taxes and upkeep - so selling and using it to rent (and assuming the house-to-rent ratio is similar) I would get at least 10 years before I was destitute. And then, I will just become a burden on the state.
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TheHaitian
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Post by TheHaitian on Aug 12, 2014 19:36:56 GMT -5
I'm 30 and currently at -$5k, a long way to go. When I joined these forums I was at -$22k, so at least I'm finally heading in the right direction. We are 29 and at about -115k.... So don't feel too bad ![](//images.proboards.com/v5/smiley/smiley.png) Almost under 6 digits; feeling good! ![](http://images.proboards.com/new/cool.png)
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bimetalaupt
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Post by bimetalaupt on Aug 14, 2014 18:05:24 GMT -5
When I was a New PharmB at the age of 27 the District Manager for Walgreen came down to talk me into being a full time employee (1973) with the possibility of my Profit sharing being worth $1,100,390 by the time I was 67!!!. That was compounding at 10% which they did. Now he was offering me $15,652 per year Plus profit-sharing of about $4 per every one I put into the plan plus About $50,000 in life insurance. You would not have thought of the expression I had thinking about retiring at $10,000 a month including my SS income. I have yet to spend my first $$$$ from my first retirement fund I created with part time work. I had a plan and reduced cost of living and increased my investments. I did my MBA on profits from MRK and LLY: did my thesis on risk investing and re-balancing RISK reduction. Just a thought, BiMetalAuPt ![](http://syonidv.hodginsmedia.com/vsmileys/nerdy.png)
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achelois
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Post by achelois on Aug 14, 2014 18:18:23 GMT -5
Mostly working a lot of hours, saving(investing) a significant percentage of it, investing it in index funds at Vanguard. Had $100,000 in 2000, after divorce which was up from $10,000 after a previous one. Learned lesson. ![](http://images.proboards.com/new/smiley.png) Sometimes I am a slow learner. My brother is the Mensa member, not me. As I said before, I am the least successful sibling of my family. I had over one million in invested assets since middle of 2012, a little before if you count home equity, but I don't. I retired the end of June this year, though still with intense bag lady fears, left over from my younger years. Last year was great for the market. Gave enough of a boost that I felt ok to retire this year sort of on the spur of the moment. I will have a small pension at age 65 (62 now), $1250/month, and Social Security at ? age. IDK yet when I will take. I have been spending $2500/month, but had budgeted $3000, just to see how it goes. I can spend a bit less, but had a vet bill and a landscape bill. In September, I will try to spend only $2,000. So far, have not cut out too much. Still with the monthly pedicure. Maybe once I am more comfortable, will spend more or when also getting SS and pension. For now, I am really enjoying relaxing and spending time with my doxies and drinking iced tea on the back porch. Have had wonderful weather this summer so far.
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8 Bit WWBG
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Post by 8 Bit WWBG on Aug 14, 2014 20:27:16 GMT -5
How are you factoring it in for couples that worked together? Like, you "both" have a NW of a million, but its the same million?
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ArchietheDragon
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Post by ArchietheDragon on Aug 14, 2014 20:35:47 GMT -5
How are you factoring it in for couples that worked together? Like, you "both" have a NW of a million, but its the same million? that's how I would do it.
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TheHaitian
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Post by TheHaitian on Aug 14, 2014 20:45:45 GMT -5
How are you factoring it in for couples that worked together? Like, you "both" have a NW of a million, but its the same million? How else would you do it? Are you thinking for a "couple" to actually have a net worth of a million they need to each have a million? So a couple would need 2 millions???
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Deleted
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Post by Deleted on Aug 14, 2014 20:52:48 GMT -5
I think it was asked just because the question was how did YOU reach a million. It's a lot easier to do with two wage earners and if you were to divorce with a million, you'd probably drop to 500K pretty fast. ![](http://images.proboards.com/new/tongue.png)
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ArchietheDragon
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Post by ArchietheDragon on Aug 14, 2014 20:54:05 GMT -5
I think it was asked just because the question was how did YOU reach a million. It's a lot easier to do with two wage earners and if you were to divorce with a million, you'd probably drop to 500K pretty fast. ![](http://images.proboards.com/new/tongue.png) yup
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8 Bit WWBG
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Post by 8 Bit WWBG on Aug 14, 2014 20:56:57 GMT -5
I mean I guess it depends a lot on what the asset actually is.
If two people each max their own 401(k)s and Roths (and for arguments sake, have comparable balances), that seems a little different than if, like, one person in the marriage owns a business, or bought that lottery ticket. The original question was how people got there.
I never really think of "our" net worth. I have a NW, and DW has a NW. It almost seems like YM cheating if I include her numbers in mine. When I report that I'm a millionaire, I want it to be on my own!
ETA: I mean I'm not opposed if people did it collectively or anything. Like MPL re-iterated, its how you got there. If you got there because you and your spouse both committed to investing <x>% every year, and/or you picked the investments together, or bought the rentals out of joint funds...
There are no wrong answers... well unless like, an unemployed boy toy reported that he had a NW of $1M but got there because his sugar-mama is partner at some prestigious firm.
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TheHaitian
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Post by TheHaitian on Aug 14, 2014 21:29:16 GMT -5
I mean I guess it depends a lot on what the asset actually is. If two people each max their own 401(k)s and Roths (and for arguments sake, have comparable balances), that seems a little different than if, like, one person in the marriage owns a business, or bought that lottery ticket. The original question was how people got there. I never really think of "our" net worth. I have a NW, and DW has a NW. It almost seems like YM cheating if I include her numbers in mine. When I report that I'm a millionaire, I want it to be on my own! ETA: I mean I'm not opposed if people did it collectively or anything. Like MPL re-iterated, its how you got there. If you got there because you and your spouse both committed to investing <x>% every year, and/or you picked the investments together, or bought the rentals out of joint funds... There are no wrong answers... well unless like, an unemployed boy toy reported that he had a NW of $1M but got there because his sugar-mama is partner at some prestigious firm. I can see your point but got to admit, while you have your NW and your wife has her NW... If hers is significantly less or non existent; she can possibly take a big bite out of yours during a divorce ![;)](//storage.proboards.com/forum/images/smiley/wink.png)
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cronewitch
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Post by cronewitch on Aug 14, 2014 21:32:24 GMT -5
I wish more people counted it per person so it would seem more equal. How many divorced at 50-60 and cut net worth in half because they count jointly? But if you get widowed you get both halves so that seems fair too. Married people pretty much have it made anyhow since they get two SS checks so if both worked might get 5K a month just from that. So until one dies or divorces they don't need much savings to survive.
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8 Bit WWBG
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Post by 8 Bit WWBG on Aug 14, 2014 21:38:56 GMT -5
...:::"I can see your point but got to admit, while you have your NW and your wife has her NW... If hers is significantly less or non existent; she can possibly take a big bite out of yours during a divorce ![](http://images.proboards.com/new/wink.png) ":::... But that is always a risk in an uneven situation. What is my alternative? Slow my investing to match DW's and blow money that could build worth just so I don't get too far ahead? I hope I never have to deal with it, but that would be an interesting battle. If there is going to be a division, then EVERYTHING will be divided -- not just "my" stuff. Its going to be interesting to see when we hit $1M -- whether individually or jointly, and how. Maxing retirement for me has been the biggest advancement. I haven't invested much outside of that yet.
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Deleted
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Post by Deleted on Aug 15, 2014 9:00:29 GMT -5
I wish more people counted it per person so it would seem more equal. How many divorced at 50-60 and cut net worth in half because they count jointly? But if you get widowed you get both halves so that seems fair too. Married people pretty much have it made anyhow since they get two SS checks so if both worked might get 5K a month just from that. So until one dies or divorces they don't need much savings to survive. welp - I can see both points - or maybe more points: iI divorce if will by (assets-divorce expenses)/2 so dividing by 2 gives a more accurate - or per person figure. A single person with 500k is rather equal to the above couple with 1MM. but In the event of no divorce, the couple has significantly decreased expenses as a couple rather than 2 singles - so as a couple that sticks together - maybe 500k for a single is really only equal to 750k as a couple. Or some such. 5k a month SS would be awesome - are a lot of people really getting something like that? I thought on another thread that you crone said you were getting about 1k?When my parents were both alive - they were not even getting 2k together in SS. They both worked all their lives, although, not professionally - very middle class. I think the maximum benefit amount is something around $2500/month. But, I don't think many get that much.
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Baby Fawkes
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Post by Baby Fawkes on Aug 16, 2014 0:19:16 GMT -5
I wish more people counted it per person so it would seem more equal. How many divorced at 50-60 and cut net worth in half because they count jointly? But if you get widowed you get both halves so that seems fair too. Married people pretty much have it made anyhow since they get two SS checks so if both worked might get 5K a month just from that. So until one dies or divorces they don't need much savings to survive. welp - I can see both points - or maybe more points: iI divorce if will by (assets-divorce expenses)/2 so dividing by 2 gives a more accurate - or per person figure. A single person with 500k is rather equal to the above couple with 1MM. but In the event of no divorce, the couple has significantly decreased expenses as a couple rather than 2 singles - so as a couple that sticks together - maybe 500k for a single is really only equal to 750k as a couple. Or some such. 5k a month SS would be awesome - are a lot of people really getting something like that? I thought on another thread that you crone said you were getting about 1k? When my parents were both alive - they were not even getting 2k together in SS. They both worked all their lives, although, not professionally - very middle class. That's likely true in a dual wage earning couple. For us DW doesn't work, so I think it's a closer approximation to a single. We still have the benefits of not being 2x the costs that two couples have, but anything we have is from my earnings. I can see both sides but for me there really isn't a single view. If there was it would be about 98% from me and 2% from her so it's almost the same as comparing to a single person.
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truthbound
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Post by truthbound on Aug 16, 2014 4:37:59 GMT -5
I took a bunch of LSD and imagined I had that much.
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imanangel
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Post by imanangel on Aug 16, 2014 5:49:25 GMT -5
I'm not there yet. Now I feel inadequate. ![](http://syonidv.hodginsmedia.com/vsmileys/melancholy.png) I am not even close. ![](http://syonidv.hodginsmedia.com/vsmileys/melancholy.png)
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resolution
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Post by resolution on Aug 16, 2014 6:50:41 GMT -5
I think it was asked just because the question was how did YOU reach a million. It's a lot easier to do with two wage earners and if you were to divorce with a million, you'd probably drop to 500K pretty fast. ![](http://images.proboards.com/new/tongue.png) At least us singletons know that everything we have is in our names only and no one can just up and take a big chunk away. Dual wage earners are certainly at the advantage for savings - but at least we have some increased security ![](http://images.proboards.com/new/tongue.png) That reminds me of the time DH went to an equipment auction by himself, and when he came home I was the proud owner of six different kinds of drills... I didn't even know there were six different kinds of drills!
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8 Bit WWBG
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Post by 8 Bit WWBG on Aug 16, 2014 7:02:47 GMT -5
...:::"That reminds me of the time DH went to an equipment auction by himself, and when he came home I was the proud owner of six different kinds of drills... I didn't even know there were six different kinds of drills!":::...
When he described what they did, was it boring? N'ha ha.
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resolution
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Post by resolution on Aug 16, 2014 7:07:37 GMT -5
Well he was all excited and happy, but I immediately forgot what they all did as soon as he stopped talking.
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resolution
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Post by resolution on Aug 16, 2014 7:09:01 GMT -5
We aren't up to a million yet either, but I suppose if I added up all the power tools it might bring us a little closer. Do power tools count? ![](http://images.proboards.com/new/huh.gif)
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Bonny
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Post by Bonny on Aug 16, 2014 10:17:00 GMT -5
First million from a combination of savings, investments, and real estate. The second million was an inheritance. The third was ROI on the first two. Working on the fourth now. I'm 65, so compared with many, this is not a particularly remarkable achievement. Our story is pretty similar with us reaching $1M & $2M at the same time in 2002.
Twelve years later and we've more than doubled that but that's not that remarkable either. While the stocks have done well and three of the properties have done well about $500k has been treading water in a couple of homes in So. CA.
No complaints here though. We're damn lucky to have what we do. We've been able to retire early and also lead a fairly modest lifestyle with the ability to do some nice traveling.
My advice is pretty boring; mind your recurring costs (housing, cars, et cetera), treat yourself occasionally, and invest for the long run.
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DVM gone riding
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Post by DVM gone riding on Aug 16, 2014 10:39:42 GMT -5
resolution--my mother counts them!! for the last 15 years she has been telling me when my dad dies she is having a huge estate sale and selling ALL the tools--if she happens to sale the house too... ![](http://images.proboards.com/new/wink.png) Might have thrown things for a loop because now my brother is running the business and thinks that means he gets the tools too!
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Nazgul Girl
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Post by Nazgul Girl on Aug 16, 2014 19:02:22 GMT -5
I think we reached a million dollars in net worth by having a high percentage of our money in the stock market but getting out when it was hitting some extreme highs ( we've done that twice ) and going back in when it was low ( we are now following Jim Stack's signals so we're still in at this point ), keeping a fairly tight control on expenses, especially since we have to maintain 3 buildings instead of just one like many homeowners, saving vigorously so that we will have a good lump of cash for investments in real estate, not being afraid to make sacrifices, working hard, and practicing deferred gratifications at times.
We would live a much more luxurious life if we spent our savings and investments, but we'd be sacrificing our long-term security. Also, unlike my mother and sister, I don't need everything to be of the finest quality. I would like to eventually get granite countertops in one of the houses which we own after we move there, but right now, it's a rental, and we don't need tenants gorking up our nice new countertops. So, they live with white formica countertops. When we move in, we'll update the kitchen counters, but keep the same cabinets. They'll need a paint job, but that should be it.
We also drive cars to death, and have no problems riding around in an twelve year old car ( DH's 2002 Mazda Protege ).
We also try to figure out inventive ways to save money, to wit: While I was mowing the lawn tonight with our 30 y.o. Honda electric mower, I just figured out how we can make our own checks, and never buy another box of checks again. (We don't write out that many checks, but a box of checks is so expensive now ). It should be easy with our color printer and a little White Out to get rid of the check numbers. I figure we can make pages of 4 for our 3 checking accounts, and just cut them out. When we need to write a check, we just fill in the next check number. We have checkbook covers and registers coming out of our ears, so we don't need to get any more of those. Viola ! Free checks !
I've retired at the age of 61 so that we can enjoy our years together, and if we weren't thrifty people and bold investers/savers, I wouldn't have been able to do so. We hope to hit our second million in about 6 years.
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phil5185
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Post by phil5185 on Aug 16, 2014 20:08:01 GMT -5
IMO, our appetite for luxury has a lot to do with it. I would be content with a 400 sq foot log cabin and a 10-yr-old 4WD truck - as long as I had electricity, computer, TV, HVAC, and a good bed. Plank countertops would be fine, plank floorings, log interior walls. OTOH, if I had leased a pair of new beemers for the past 35 yrs ($10k/yr in 'now' dollars), my NW would be $4M lower.
Eg, you mention granite counters - that's just a KUWTJ appetite item,15 years ago you had never heard of granite counters so formica seemed cool. Same with flooring - 15 yrs ago formica was fine - now only tile or wood is acceptable.
I have a friend who flipped over 30 houses in the 2005 to 2009 era. He said he put granite, tile, wood, SS appliances in every one of them - the buyers appetites were very focused at that time - check with someone you know that bought in that period, The Haitian?)
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Nazgul Girl
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Post by Nazgul Girl on Aug 16, 2014 22:06:32 GMT -5
IMO, our appetite for luxury has a lot to do with it. I would be content with a 400 sq foot log cabin and a 10-yr-old 4WD truck - as long as I had electricity, computer, TV, HVAC, and a good bed. Plank countertops would be fine, plank floorings, log interior walls. OTOH, if I had leased a pair of new beemers for the past 35 yrs ($10k/yr in 'now' dollars), my NW would be $4M lower. Eg, you mention granite counters - that's just a KUWTJ appetite item,15 years ago you had never heard of granite counters so formica seemed cool. Same with flooring - 15 yrs ago formica was fine - now only tile or wood is acceptable. I have a friend who flipped over 30 houses in the 2005 to 2009 era. He said he put granite, tile, wood, SS appliances in every one of them - the buyers appetites were very focused at that time - check with someone you know that bought in that period, The Haitian?) I know and agree with what you said about our society's appetite for luxury hindering peoples' long-term goals. But, the formica in the rental house is white, and it has never really been my favorite color. I didn't pick it out; my husband's first wife did. I do like the durability of granite, and we've discussed it at length. We'll save up the money, probably find a slab that's a little unusual in color that nobody else liked, and just replace the white formica. We'll have the best way to obtain it scoped out within the next 4-5 years, which is probably when we'd be moving there. The house brings in so much money right now that we just haven't had the heart to move into it and forego the rent. Hopefully, we'll get into it some day. ![](http://images.proboards.com/new/grin.png) A funny thing happened when we were recently describing remodeling our second rental last year at my retirement dinner given by my family. The house had good bones, but was in sorry shape, and cost us more than we had budgeted due to some fairly expensive surprises along the way. We had said that we put in good, basic carpeting and painted the walls beige throughout the house. My sister, who is an architect and designer, was distressed, and commented at length about how we should break up the rooms, give more visual interest, offer the tenants a big rug to go over the "boring" carpet, etc. I told her it wasn't our job to make everything perfect in their home and furnishings, it was to give them a solid, decent, clean place to live, and besides, some tenants would steal the rug. I explained the difference between carpet ( part of the house ), and a rug (furnishing ), and I was surprised that she didn't understand the difference prior to our discussion. She's never been a landlord. ![](http://images.proboards.com/new/grin.png)
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