How Many Of You Guys Are Wealthy or Living Paycheck To Paycheck?

[pezdispenser]

So if you include your house in your NW does that somehow account for if you own vs have a mortgage? How many actaully have a positive net worth>1M?

Or does my question even make sense?

I'm somewhat perplexed by this discussion as well.

By definition, net worth = assets [minus] liabilities.

If you have a 1M house but also have an 800k mortgage against it then your NW is 200k, or the amount of your home equity. So buying a 1M house doesn't make you an automatic millionaire.

Now, you could've bought it for cheap, say 300k, and the value has risen greatly since then to 1M, so if your current mortgage balance is 150k then your NW is 850k. But if you take out a HELOC and spend it on stuff like travel and lifestyle, then that subtracts from your NW. So in short, you really can't tell.

---

Members don't see this ad.

 

[Dr. Galazkiewicz]

Even if your primary residence is free and clear, it should be considered off balance sheet. It's liquid net worth that should be the focus.

If you sell your residence it's most likely a lateral move unless downsizing significantly or moving to a much lower COL area. It's great if you have a massive cap gain in an up market but you still have to live somewhere. The new home will likely be inflated in price as well with a higher tax bill.

This nonsense started with Bob Brinker's show. On the quest for critical mass that crowd would always put the primary home on the balance sheet.

 

[PharmDBro2017]

Lol @ the poster saying a BMW will help you find a woman. You better get a prenup brah. Ironic stuff coming from the guy who perpetually hates on “toxic masculinity and the male gender”.

You’d be much better off focusing on improving yourself: skills, education, trades, health/fitness probably #1).






Sent from my iPhone using SDN mobile

 

[Sabril]

It's OK dude. Personal finance doesn't come as first nature for many. I hope you at least paid off your student loans.

Attending the local chapter isn't necessary. You will probably meet a lot of old retired old dudes there XD I tried going to the one in San Diego but they always have the meeting on Monday, so I never go since I have work. Finish the Boglehead book. Try to minimize your expenses, and max out all your retirement accounts, then open a Vanguard account and start monthly automatic contribution. Set it and forget it. Ask more questions in their forums or here.

Thanks! I work at a small independent so no retirement accounts or anything like that. So I have to do my own hustle. The only good thing is I was able to work long enough to be done with student loan and I am currently debt-free with some saving. I am dumb enough to just recently consider putting most of my money into a whole life insurance policy even though I have no kids.

I am trying to figure out what kind of additional insurance to get and to cover what, then I guess I can go boglehead with the rest.

 

[Momus]

I am dumb enough to just recently consider putting most of my money into a whole life insurance policy even though I have no kids.QUOTE]

Oh noooooooo... I would cut my loses and stop contributing. No whole life insurance. Buy term only.

You can consider disability insurance if your employer doesn't offer one that's good enough for you.

 

[Modest_anteater]

Thanks! I work at a small independent so no retirement accounts or anything like that. So I have to do my own hustle. The only good thing is I was able to work long enough to be done with student loan and I am currently debt-free with some saving. I am dumb enough to just recently consider putting most of my money into a whole life insurance policy even though I have no kids.

I am trying to figure out what kind of additional insurance to get and to cover what, then I guess I can go boglehead with the rest.

Why would you get life insurance if you have no dependents? you realize that if you die the government will bury your body for free in a pine box right? i would only ever get life insurance if i had kids 1-17 years old. Otherwise if i die they can fend for themselves with the cash I have in a shoe box in the basement.

 

[Modest_anteater]

So if you include your house in your NW does that somehow account for if you own vs have a mortgage? How many actaully have a positive net worth>1M?

Or does my question even make sense?

if you have a mortgage it means you don't own your house so you should only count the percent equity you have in the loan towards your NW.

 

[Momus]

if you have a mortgage it means you don't own your house so you should only count the percent equity you have in the loan towards your NW.

That's basically what everyone does when they calculate NW.

There is a big difference having $1M portfolio + 200k house equity vs. 200k portfolio + $1M house equity. The latter you won't be able to retire unless you move to cheaper COLA areas.

 

[gwarm01]

My latest hairbrained scheme is to purchase a tiny art deco studio in Miami Beach, rent it on airbnb, spend my free time there, and surely lose tons of money over a course of several years before the ocean finally swallows the entirety of Florida.

 

[Wickett]

I have seen


I have seen 80ish k for a hospital in Macon, but that is low compared to most other institutions in the state. For a staff job with little or no experience you should be right around 95-100k here in Georgia.

I too have been very fortunate with pharmacy and feel I am in a lot better situation then fellow 13 classmates mainly due to being in the right place and right time and willingness to live in a small town that isn't desirable to most my peers.

I am fine with my choice, but to pretend my choice and the choices people are making now to go into pharmacy are equivalent is disingenuous. Even in Georgia the hope scholarship has completely changed and doesn't pay near what it did for me and tuition keeps climbing.

PAtopharm you keep talking about orthodontist salaries, when I was talking about plain general dentist. I don't know how easy it is to specialize and get into the fellowship/residencies but I would imagine it is not a cake walk and you should plan for the worst. Having said that a general dentist still has a lot better worklife then a normal pharmacist

My uncle is an orthodontist...one of the best jobs you can have. It's also the hardest to get residency for a dental grad/on the level of derm for physicians. Orthodontics averages about 80-100 applicants per residency spot...you basically have to be the top student in your class or have a family practice/close connection to get into it. It's an outlier for the profession.