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How to get rich without getting lucky

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Re: How to get rich without getting lucky

#441

Post by Jack000 »

20years wrote: post #236
falcolas wrote: post #187

Earlier quoted context omitted.

Counterpoint: Your chances of dying before "making it big" and retiring are somewhere in the 1-in-10 range. Investing works mostly because of the current trend of artificially propping up the stock market. Any failure in your investment strategy leave you in the same boat as the current boomer retirees who are trying to get back in the workforce. Not to mention, your life is going to be pretty miserable if you're wor…

This is a good counterpoint and something my Dad points out often. He was very frugal, worked long hours and saved as much as he could so him and my mom could have a good retirement. She passed away at 42, so that never happened. He has so many regrets and wishes he invested more of his money & time in experiences with her while she was alive. I think there needs to be a balance. The trend of working crazy hours to s…

this happened to my family as well. The amount of money you can save by being frugal is very limited. IMO you're better off living a reasonable lifestyle and focus on income rather than expenditures.

Re: How to get rich without getting lucky

#443

Post by jandrese »

11thEarlOfMar wrote: post #158

The highest probability for success for the 'everyday person': - Earn as much as you can from your own work. Take a 2nd job, change to a higher paying job, ask for more responsibility and a raise at your current job, go back to school for a more lucrative degree, ... - Spend much less than you earn. Economize, share an apartment, buy an inexpensive car, shop at Trader Joe's and Costco, .... - Learn how to invest. Thi…

- Make sure you don't marry, or if you do absolutely don't have kids.

- Become a hermit

Saving money was so easy before I had kids. Once you have kids you need a car big enough to transport them. You need a house big enough to hold them. The missus insists that just going camping isn't really a vacation and they need to see some sights (real travel). And travel with kids isn't cheap. You gotta start getting the family insurance plans and the million little school fees and your bigger house has more stuff to break in it and the kids break stuff... Worst of all you multiply your chances of having some big medical problem--the death knell for any frugal living plan--the more people you have to care for.

Also, Costco doesn't really save you that much money unless you were the kind of person who always bought the top-of-the-line premium whatever. For people who typically only buy the base model widget the price is pretty similar or slightly more expensive typically.

Re: How to get rich without getting lucky

#444

Post by arielweisberg »

muzz wrote: post #282
aboodman wrote: post #248

Earlier quoted context omitted.

No you need to work 15-20 years, depending on tax rates. Unless you meant 130k after tax (which is doable today for many engineers).

This is a very important point because taxes affect decisions around money. For example, the ability to contribute to a 401k plan can defer $18,500 a year from taxes per person (more if over age 50, and more if there is a company match). For someone with a $130k gross, the employer having a 401k plan or not could affect the choice of which job they choose.

Only per person if you are are dual or multiple income. For some asinine reason 401k limits are not only very low, but don't take into account how many people are going to depend on that 401k.

Re: How to get rich without getting lucky

#445

Post by tyrust »

Jack000 wrote: post #428
tyrust wrote: post #327

Earlier quoted context omitted.

>Your chances of dying before "making it big" and retiring are somewhere in the 1-in-10 range. I'd like to see how you came to this conclusion. Painting with broad strokes, one can retire after working in tech for 15-25 years. Start at 25 and they are done by 50. Current death rates for dying between 25 and 50 are less than 0.7% [0]; that's not even correcting for the fact that the wealthy likely have a reduced morta…

I don't think that's the right way to look at the graph. It says that out of 100k 15-24 yr olds 74 died, and also out of 100k 85-1xx yr olds 13k died. This is purely a measure of death rates and doesn't take the age distribution into account. to get the probability of dying before 50 you have to look at the total number of deaths/pear, distributed by age: https://www.statcan.gc.ca/pub/91-209-x/2013001/article/11867..…

>It says that out of 100k 15-24 yr olds 74 died, and also out of 100k 85-1xx yr olds 13k died.

Yes, which is why I took the sum of those numbers for ages 25 to 50.

>the area under the curve for 0->50 looks about 1/10 of the overall, so I'd say the op is about right

You're describing the conditional probability that, given you have died, you are under the age of 50.

Re: How to get rich without getting lucky

#446

Post by rconti »

sametmax wrote: post #422
billbrown wrote: post #417

Earlier quoted context omitted.

Or you can just have a car? Why is not having a car an ideal for you? Why do you have to bike? Can't you just walk places? I don't have a car because society is telling me to have a car. I have a car because it's faster to get places I want to go; it's damn hot in the summer; and it's great for carrying around purchases and the family.

I'm just amazed, not mad.

As a childless American with 3 cars, 1 motorcycle, and 3 bicycles... I must say that plenty of folks would find your "don't have kids" comment equally bizarre.

And on the flipside, cars are cheaper than kids :)

Re: How to get rich without getting lucky

#447

Post by [deleted] »

jandrese wrote: post #436
s73v3r_ wrote: post #348

Earlier quoted context omitted.

In the vast majority of the US, if you don't have a car, you don't go anywhere.

Vast majority by land area. Per person it isn't so clear cut. Many people live in the city and don't own a car because using a car in the city is somewhat impractical and the public transport options are sufficient.

[deleted]

Re: How to get rich without getting lucky

#448

Post by toomuchtodo »

kentm wrote: post #425
toomuchtodo wrote: post #237

Earlier quoted context omitted.

To live off of $30k/year, you only need $750k saved, not $1MM (@ 4% annual withdrawal rate).

The 4% withdrawal rate has been challenged, and one shouldn't use it as a guaranteed safe rate. It included massive bull runs that may not be repeated going forward. A lot of research has predicted lower real rates of return (around 4% average) in the next date.

It is based off of the best available information.

Re: How to get rich without getting lucky

#449

Post by pascalxus »

ryandrake wrote: post #228
jacquesm wrote: post #8

I know very few people that got rich without getting lucky and none of them would have been rich if they had followed this list. The majority of them simply went into finance, consulting or real estate at a young age and invested their income smartly (retrospectively!). After the first million rolls in if you're young enough compound returns will take care of the rest if you can postpone altering your life-style.

Yea, I saw the headline and thought: “Guaranteed this is some already-rich guy spouting generalizations and philosophy rather than revealing actual, actionable tactics.” And, well... I was right. I’d like to see someone actually take a normal, unlucky person and connect the dots showing all the steps between this “advice” and money entering a bank account. Now THAT would be impressive.

You NEED to check this NY Times article out: "96-Year-Old Secretary Quietly Amasses Fortune, Then Donates $8.2 Million"

https://www.nytimes.com/2018/05/06/nyregion/secretary-fortun...

Re: How to get rich without getting lucky

#450

Post by s73v3r_ »

jandrese wrote: post #436
s73v3r_ wrote: post #348

Earlier quoted context omitted.

In the vast majority of the US, if you don't have a car, you don't go anywhere.

Vast majority by land area. Per person it isn't so clear cut. Many people live in the city and don't own a car because using a car in the city is somewhat impractical and the public transport options are sufficient.

That's really only doable in a couple cities in the US, though. Not having a car in Los Angeles, for instance, is extremely impractical.
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