From Forbes.com
I got a call from a newly "rich" executive. Having worked 60-hour weeks for years and now ready to retire at 55, he sold his business for $4 million. He was ready to live out his dream life and live off that tidy nest egg. The problem is, to do so--on $4 million--he must cut his standard of living.
It's the plight of the "mMillionaire" -- the middle-class Millionaire.
Mansions and yachts are out. The mMillionaires who want to retire before age 65 or 72, find they must live in three- and four-bedroom homes and drive mid-priced four-door sedans and mini-vans.
They are your neighbors--millionaires who live middle-class lifestyles even though they may have millions in liquid assets.
These mMillionaires have between $2
million and $10 million of investable assets, beyond their homes. Many have sold businesses or inherited money, yet few believe they can retire and continue living the high life.
The key question facing the mMillionaire is, "Can I continue to live the way I am living for the rest of my life?" The answer for most of these millionaires is "no."
Just a generation ago, a person with $2 million or more in liquid assets would have had enough for a secure retirement. But not today. Combine longer life expectancies and the rising costs of health care, food, transportation and property, and you have financial challenges ahead for the mMillionaire.
When Social Security was passed 72 years ago, life expectancy was less than 70. Now it's well above that and may continue to rise with advances in medical treatment. As a result, the mMillionaires in this high net worth class are finding they must scale back their lifestyles or delay retirement. That's something most of them, who are high-earners today, can't imagine.
For many of the executives and mMillionaires that I speak with everyday, this comes as a shock. Often their biggest obstacle is changing their own attitudes about what their wealth can afford them. Some are reluctant to embrace projections about their nest eggs' staying power. They believe that lower expenses in retirement will offset inflation and lost income.
Even with no mortgage or tuition payments, many mMillionaires underestimate the effects of inflation, especially on the cost of health care services for the aging.
We find that people don't always want to confront bad news. There's no question that more people are accumulating wealth at an unprecedented rate. They're living the good life, banking on retiring when they want to and continuing that quality through retirement. What they haven't counted on is that retirement can be a 40-year experience and that conditions can change drastically. In fact, in about 30 years, people will need more than $2 million to equal the purchasing power of $1 million today.
Many mMillionaires who are used to running businesses or managing others often want very specific answers on how to manage their middle-class millionaire status. Unfortunately, there's no formula for long-term financial security. Everyone's needs vary.
But, there are certain principles that can guide the mMillionaire's actions. If you are an mMillionaire, congratulations, but there are still a number of things you should keep in mind--ranging from managing your tax liabilities, to taking a really critical look at your investment portfolio (are you too heavily in tech stocks or consumer durables?), and of course guarding your estate, the nest egg you will leave behind.
Carrie Coghill Kuntz is a certified financial planner in Pittsburgh. She is a registered representative of Commonwealth Financial Network, a member of the Financial Industry Regulatory Authority and the Securities Investor Protector Corporation.
Copyrighted, Forbes.com. All rights reserved.
Do you suppose this was written to be taken seriously? Or just having a little fun?
Replies
77
Beach Fanatic
"...still keeping my financial priorities in order, not by racking up debts and draining my bank accounts. ..."
It's a bummer doing without all the little things other people have:
High-speed internet
Cable TV
Cell phones
Dinners out
The latest clothes
Starbucks coffee
etc. etc.
But its a real trip to walk into a car dealership and buy a new
car for cash.
And it's a bigger trip to walk into a title company and close on
real estate purchased for cash.
I have done both.
The wife and I put aside about 35% of gross.
It's a bummer doing without all the little things other people have:
High-speed internet
Cable TV
Cell phones
Dinners out
The latest clothes
Starbucks coffee
etc. etc.
But its a real trip to walk into a car dealership and buy a new
car for cash.
And it's a bigger trip to walk into a title company and close on
real estate purchased for cash.
I have done both.
The wife and I put aside about 35% of gross.
Beach FanaticAuthor
"...still keeping my financial priorities in order, not by racking up debts and draining my bank accounts. ..."Buy a two year old car and enjoy some of those "little things" other people have.
It's a bummer doing without all the little things other people have:
High-speed internet
Cable TV
Cell phones
Dinners out
The latest clothes
Starbucks coffee
etc. etc.
But its a real trip to walk into a car dealership and buy a new
car for cash.
And it's a bigger trip to walk into a title company and close on
real estate purchased for cash.
I have done both.
The wife and I put aside about 35% of gross.
Beach Fanatic
"...Buy a two year old car and enjoy some of those "little things" other people have..."
At this stage of our lives (I'm 48) and at this level of
net worth, if the wife wants a new car to replace the
one we bought for cash in 1996, she gets it.
Besides, you can't hardly buy a (2) year old car for it's
true worth.
A private party usually owes too much to sell it for the depreciated
value, and a dealer wants a preminum price.
At this stage of our lives (I'm 48) and at this level of
net worth, if the wife wants a new car to replace the
one we bought for cash in 1996, she gets it.
Besides, you can't hardly buy a (2) year old car for it's
true worth.
A private party usually owes too much to sell it for the depreciated
value, and a dealer wants a preminum price.
SoWal Expert
The look on a car dealer's face when they start their financing spiel and you just say "no" and take out a checkbook is priceless isn't it?
I don't have high-speed internet and I'll finance a good portion of my next real estate purchase.................but I think that's a fair trade off for being able to leave the house for dinner, watch a variety of TV shows, chat on my cell phone, and take great vacations.
Kudos on your thriftiness, but it sounds like you might be denying yourself too many things - so many great experiences may have a price tag, but the memories and joy are priceless!
I don't have high-speed internet and I'll finance a good portion of my next real estate purchase.................but I think that's a fair trade off for being able to leave the house for dinner, watch a variety of TV shows, chat on my cell phone, and take great vacations.
Kudos on your thriftiness, but it sounds like you might be denying yourself too many things - so many great experiences may have a price tag, but the memories and joy are priceless!
Beach Fanatic
Buy a two year old car and enjoy some of those "little things" other people have.
Beach Fanatic
"..Kudos on your thriftiness, but it sounds like you might be denying yourself too many things - so many great experiences may have a price tag, but the memories and joy are priceless!..."
I don't need to spend money: I get my jollies for free on this board.
You keep your "eyes on the prize" (for lack of a better quote) and
you will get to where you want to be.
I don't need to spend money: I get my jollies for free on this board.
You keep your "eyes on the prize" (for lack of a better quote) and
you will get to where you want to be.
Beach Fanatic
It's a bummer doing without all the little things other people have:
High-speed internet
Cable TV
Cell phones
Dinners out
The latest clothes
Starbucks coffee
etc. etc.
But its a real trip to walk into a car dealership and buy a new
car for cash.
And it's a bigger trip to walk into a title company and close on
real estate purchased for cash.
I have done both.
The wife and I put aside about 35% of gross.
You paint everything with too broad a brush, it seems. Some people may have the means for those 'little things' and it's no big deal and doesn't impact their finances in the slightest. Folks like yourself may have the means and choose to spend their money on other things (or save more of it), but you do say "it's a bummer", as if you are denying yourself something you might enjoy.
Then there are the folks like the aforementioned Duncan's who should not be buying any of the things you mention.
SoWal Insider
"...Buy a two year old car and enjoy some of those "little things" other people have..."very true on hondas,toyotas.....very untrue on the rest, domestics. the biggest depreciating asset normally is your brand new car. que Shelly for the real estate depreciation quote.
At this stage of our lives (I'm 48) and at this level of
net worth, if the wife wants a new car to replace the
one we bought for cash in 1996, she gets it.
Besides, you can't hardly buy a (2) year old car for it's
true worth.
A private party usually owes too much to sell it for the depreciated
value, and a dealer wants a preminum price.
Beach Comber
"Some people may have the means for those 'little things' and it's no big deal and doesn't impact their finances in the slightest."
First, I am glad we are done picking on the poor Duncans. It is so much easier to see the spec in our brother's eye. But I like where this is going. It seems we have so much negativity in this forum. If things go great, then I am a genius. If things go poorly, then it's not my fault. It's Bush, Government, Mortgage brokers or even you real estate folk.
There is no requirement to spend what you make regardless of financial impact. Self indulgence certainly isn't a virtue. While I don't look at the best use of every dollar, I have enough Scot in me to look at an ROI on many purchases. (I buy Starbucks brand for my home brewing!)
First, I am glad we are done picking on the poor Duncans. It is so much easier to see the spec in our brother's eye. But I like where this is going. It seems we have so much negativity in this forum. If things go great, then I am a genius. If things go poorly, then it's not my fault. It's Bush, Government, Mortgage brokers or even you real estate folk.
There is no requirement to spend what you make regardless of financial impact. Self indulgence certainly isn't a virtue. While I don't look at the best use of every dollar, I have enough Scot in me to look at an ROI on many purchases. (I buy Starbucks brand for my home brewing!)
Beach Fanatic
"Some people may have the means for those 'little things' and it's no big deal and doesn't impact their finances in the slightest."
True.
Everyone's situation is different. If a 5 buck Starbucks
is immaterial to your bottom line, then great
But there seems to be a 'disconnect' in many people concerning
their priorities and their resources.
Which is fine. It creates opportunities for others.
That's capitalism.
If someone blows all their money on booze and cars, it's
not the fault of the brewery or the auto companies for
taking advantage of that person's flaws.
Or is it?
And if someone buys a house and pays too much money for it,
or borrows money under extremely unfavorable terms, and then loses
said house to foreclosure, is it the fault of the real estate agent
who sold them the house, or the loan officer who lent the money?
If I am in a situation where I DO need to watch the "little things"
in order to get to where I want to be financially, then who is
responsible for that?
Me. And it's up to me to do something about it. Which I am.
As for the Duncan's, they placed themselves in the public eye
and they should expect a measure of abuse.
Just as I expect a measure of abuse by posting non-mainstream
opinions here.
And am rarely dissapointed.
True.
Everyone's situation is different. If a 5 buck Starbucks
is immaterial to your bottom line, then great
But there seems to be a 'disconnect' in many people concerning
their priorities and their resources.
Which is fine. It creates opportunities for others.
That's capitalism.
If someone blows all their money on booze and cars, it's
not the fault of the brewery or the auto companies for
taking advantage of that person's flaws.
Or is it?
And if someone buys a house and pays too much money for it,
or borrows money under extremely unfavorable terms, and then loses
said house to foreclosure, is it the fault of the real estate agent
who sold them the house, or the loan officer who lent the money?
If I am in a situation where I DO need to watch the "little things"
in order to get to where I want to be financially, then who is
responsible for that?
Me. And it's up to me to do something about it. Which I am.
As for the Duncan's, they placed themselves in the public eye
and they should expect a measure of abuse.
Just as I expect a measure of abuse by posting non-mainstream
opinions here.
And am rarely dissapointed.
Beach Lover
"Some people may have the means for those 'little things' and it's no big deal and doesn't impact their finances in the slightest."
True.
Everyone's situation is different. If a 5 buck Starbucks
is immaterial to your bottom line, then great
But there seems to be a 'disconnect' in many people concerning
their priorities and their resources.
Which is fine. It creates opportunities for others.
That's capitalism.
If someone blows all their money on booze and cars, it's
not the fault of the brewery or the auto companies for
taking advantage of that person's flaws.
Or is it?
And if someone buys a house and pays too much money for it,
or borrows money under extremely unfavorable terms, and then loses
said house to foreclosure, is it the fault of the real estate agent
who sold them the house, or the loan officer who lent the money?
If I am in a situation where I DO need to watch the "little things"
in order to get to where I want to be financially, then who is
responsible for that?
Me. And it's up to me to do something about it. Which I am.
As for the Duncan's, they placed themselves in the public eye
and they should expect a measure of abuse.
Just as I expect a measure of abuse by posting non-mainstream
opinions here.
And am rarely dissapointed.
What ever happened to personal responsibility...It seems to me that a lot of people try to blame others for their problems..
Beach Fanatic
What ever happened to personal responsibility...It seems to me that a lot of people try to blame others for their problems..
Didn't you get the memo? Personal responsibility is out. Playing victim is in.
It all starts with the downfall of certain types of parenting, mainly discipline, which hurts a child's 'self esteem', or so some would have us believe.
SoWal Expert
Didn't you get the memo? Personal responsibility is out. Playing victim is in.
It all starts with the downfall of certain types of parenting, mainly discipline, which hurts a child's 'self esteem', or so some would have us believe.
What a crock - my parents were strict disciplinarians and both my and my brother's self esteem levels are quite healthy!
Sometimes life sucks and it's noone's fault but yours! Hopefully it teaches you to make a better choice the next time.
Beach Fanatic
What a crock - my parents were strict disciplinarians and both my and my brother's self esteem levels are quite healthy!
Sometimes life sucks and it's noone's fault but yours! Hopefully it teaches you to make a better choice the next time.
That is my point - I agree 100%. The espousal by mamby pamby types that 8 year little Johnny needs to be self-actualized and can do no wrong brings about the lack of personal responsibility and an entitlement/victim attitude in later years when little Johnny makes the wrong choice(s).
SoWal Expert
That is my point - I agree 100%. The espousal by mamby pamby types that 8 year little Johnny needs to be self-actualized and can do no wrong brings about the lack of personal responsibility and an entitlement/victim attitude in later years when little Johnny makes the wrong choice(s).
I was echoing your words, not disagreeing. (though I can see how quoting you and starting with "what a crock" could be misleading)
Poor lil' Johnny always has a rough time when the Scooterbug babysits and he gets disciplined. He's always the kid who has the bummer moment before he realizes that unlike mom & dad I mean what I say...........then gets over it once he realizes that if he follows the rules he'll have more fun than with mom & dad. ;-)
Edited
Beach Fanatic
Stir the pot.
Remember when mom stayed home and raised the kids?
Now some temporary employee in a day care center has the responsibility to instill discipline, values, knowledge, etc.
So how do we expect our children to grow up like us? they can't. they grow up like the people that raised them, whoever that is on any given day.
Remember when mom stayed home and raised the kids?
Now some temporary employee in a day care center has the responsibility to instill discipline, values, knowledge, etc.
So how do we expect our children to grow up like us? they can't. they grow up like the people that raised them, whoever that is on any given day.
SoWal Expert
You can't place all the blame on daycare and both parents working. Once you factor in the school day and any afterschool sports & activities, that "stranger" only has the kids for one or two hours - if that.
Both my parents worked full time (though Mom worked for a college so she had summers off with us) and did a stellar job of raising us.
Both my parents worked full time (though Mom worked for a college so she had summers off with us) and did a stellar job of raising us.
SoWal Insider
Stir the pot.do you really believe that?
Remember when mom stayed home and raised the kids?
Now some temporary employee in a day care center has the responsibility to instill discipline, values, knowledge, etc.
So how do we expect our children to grow up like us? they can't. they grow up like the people that raised them, whoever that is on any given day.
Beach Fanatic
Scooter and Bob
To a certain extent, yes.
Kids get dropped off at 7 am, picked up at 6 PM, put to bed at 8 PM, See Mom and Dad 2 hrs/ day, Sat, Sun and holidays at best.
So when does the child have an opportunity to learn what that particular family wants it to learn?
Personally, I am glad that I had to chance to learn from my parents. I am convinced the little seaside had the same.
Can daycare give the kids an education? Yes, but in what? Watching TV?
To a certain extent, yes.
Kids get dropped off at 7 am, picked up at 6 PM, put to bed at 8 PM, See Mom and Dad 2 hrs/ day, Sat, Sun and holidays at best.
So when does the child have an opportunity to learn what that particular family wants it to learn?
Personally, I am glad that I had to chance to learn from my parents. I am convinced the little seaside had the same.
Can daycare give the kids an education? Yes, but in what? Watching TV?
SoWal Expert
If you really can't devote more than 2 hours a day to your kids, you shouldn't have them. It's called having priorities and birth control!
My world:
-Homecooked breakfast w/ Mom reading aloud to you
-school from 7:45 until 3:30
-after school activities, sports or daycare until 4:30/5 when Dad picks you up
-play outside or homework, depending
-Mom home at 5:30
-Dinner w/ entire family at 6:30
-chores, homework, family time, tv etc.
-bedtime at 9 or 9:30 (age dependent)
My world:
-Homecooked breakfast w/ Mom reading aloud to you
-school from 7:45 until 3:30
-after school activities, sports or daycare until 4:30/5 when Dad picks you up
-play outside or homework, depending
-Mom home at 5:30
-Dinner w/ entire family at 6:30
-chores, homework, family time, tv etc.
-bedtime at 9 or 9:30 (age dependent)
Darlene is my middle name, not my nickname
Scooter and Bob
To a certain extent, yes.
Kids get dropped off at 7 am, picked up at 6 PM, put to bed at 8 PM, See Mom and Dad 2 hrs/ day, Sat, Sun and holidays at best.
So when does the child have an opportunity to learn what that particular family wants it to learn?
Personally, I am glad that I had to chance to learn from my parents. I am convinced the little seaside had the same.
Can daycare give the kids an education? Yes, but in what? Watching TV?
Just my 2 cents. My son started daycare at 11 months old. His father and I work full time jobs. By the time he started kindergarten he knew all of his colors, ABC's, and could count to 20. He could write his name, knew his address and phone number. He learned all of this at daycare and practiced at home with his father and I. He is an only child and is 14 right now. He is friends include most of the kids he went to "dreaded daycare" with. He is an A/B student, is a great soccer player, basketball player, baseball player, plays the saxophone, and is a GREAT Kid all around. I will not let you or anyone else put the "daycare guilt on me". His father and I work hard for what we have and he is the one who benefits from it. Ok, off soap box now. Carry on.
SoWal Expert
They just blame daycare because it's not fun to point at yourself or your priorities w/ the finger of blame!
I'll take daycare/montessori school, whatever you want to call it, over an uninterested parent or the "TV as babysitter" anyday! For the record, my daycare didn't even HAVE a tv!
Started daycare at 6 months, had a great childhood, and the best parents ever!
I'll take daycare/montessori school, whatever you want to call it, over an uninterested parent or the "TV as babysitter" anyday! For the record, my daycare didn't even HAVE a tv!
Started daycare at 6 months, had a great childhood, and the best parents ever!
Edited
Meow
This is not going well. I despise people beating up on moms. Do not throw stones. There is no "better" way to raise your child...only the best you can do way. Believe this...I was and hung out with many stay at home moms and working moms...I bet if we made a graph or a pie chart of which group of moms had the most "perfect" children, it would be blank. Just do your best...even if there is a hiccup, face it, work through it and keep loving your child.
hmmmm......can't remember
This is not going well. I despise people beating up on moms. Do not throw stones. There is no "better" way to raise your child...only the best you can do way. Believe this...I was and hung out with many stay at home moms and working moms...I bet if we made a graph or a pie chart of which group of moms had the most "perfect" children, it would be blank. Just do your best...even if there is a hiccup, face it, work through it and keep loving your child.
SoWal Insider
This is not going well. I despise people beating up on moms. Do not throw stones. There is no "better" way to raise your child...only the best you can do way. Believe this...I was and hung out with many stay at home moms and working moms...I bet if we made a graph or a pie chart of which group of moms had the most "perfect" children, it would be blank. Just do your best...even if there is a hiccup, face it, work through it and keep loving your child.and for God's sake don't serve those cakey brownies!
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