Necris Posted January 11, 2013 Posted January 11, 2013 I agree that while a million is not exactly considered being rich today, if I was a 21 yo graphic designer and had that fall on my head, I'd also consider myself rich Creative professions suck. If I knew what artsy people made I'd have chosen another profession and making twice as much as I do. Sorry but being a designer it will take him at least 15-20 years to make that kind of money. The term "rich" is very subjective, it is all about perspective.
Nightsky Posted January 11, 2013 Posted January 11, 2013 The term "rich" is very subjective, it is all about perspective. over a million dollars in liquid assets is doing very, very well. He kind of is RICH. I mean obviously I hear what you're saying he's no multi millionaire but he is doing very well. Rich certainly is one way to describe it.
carhill Posted January 11, 2013 Posted January 11, 2013 If one were to earn a 10% *after tax* return on that 1.2MM, perhaps a bit optimistic in this economy at reasonable risk rates, that would be 120K plus whatever after-tax salary the young man is currently making. Comfortable, certainly, but not rich by any means. As a comparison, the folks who own the house across the street from me are rich. No one even lives in that place, except one caretaker and a small staff and it's just one house of many the family owns, along with thousands of acres of land. My exW used to give the guy (who owns it) haircuts. He drove a well-used pickup truck with a shovel in the back and his hands looked like they had been using it for years. Sounds like 'grandpa', eh? Long life. No rush.
TheZebra Posted January 11, 2013 Posted January 11, 2013 If one were to earn a 10% *after tax* return on that 1.2MM, perhaps a bit optimistic in this economy at reasonable risk rates, that would be 120K plus whatever after-tax salary the young man is currently making. Comfortable, certainly, but not rich by any means. As a comparison, the folks who own the house across the street from me are rich. No one even lives in that place, except one caretaker and a small staff and it's just one house of many the family owns, along with thousands of acres of land. My exW used to give the guy (who owns it) haircuts. He drove a well-used pickup truck with a shovel in the back and his hands looked like they had been using it for years. Sounds like 'grandpa', eh? Long life. No rush. Definetely possible, I currently get 10.8% on my investments (have not accounted for tax yet) with relatively low risk so it's not impossible. What's tough is to have enough discipline to not go out and spend all of the money. Just don't throw everything at the stock market. again, get a FA!
carhill Posted January 11, 2013 Posted January 11, 2013 At those invested asset levels, taxes can become an issue, dependent upon taxing authority. A friend recently shared a number with me regarding such issues and I'll need to work a couple more years just to pay his annual tax bill on said investments. They're 'comfortable'. Comparatively, I'm 'poor'. As I know zero about taxes in the UK, it'll be one of those YMMV things. Someone did mention getting the money out of the UK so perhaps that's telling, IDK. IMO, all of this should be something discussed with a future spouse/life partner at the appropriate time and should have no play in dating. If questioned, 'why do you want to know?' is a satisfactory response. One's personal finances are just that, personal.
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 As I know zero about taxes in the UK To be honest neither do I... and I live in the UK. I'm 21, I've gone through these early stages of adulthood without paying any attention to tax, I work, I get paid, tax deductions are made automatically... they take whatever they take before it reaches me... maybe every once in a while I get a rebate... I just don't pay any attention unless they're sending me a cheque lol But now me and the other close members of my family who also got money literally have a personal financial adviser, so I could pick up the phone in the morning and learn everything I need to know about these kinds of things if I wanted to... but for now I'm just trying get a grip of my life lol I've heard so much about banks, numbers, tax, investments, bills, numbers, percentages etc etc recently... now it's just going in one ear and out of the other, I'm more worried about fixing things with my girl
Nightsky Posted January 11, 2013 Posted January 11, 2013 At those invested asset levels, taxes can become an issue, dependent upon taxing authority. A friend recently shared a number with me regarding such issues and I'll need to work a couple more years just to pay his annual tax bill on said investments. They're 'comfortable'. Comparatively, I'm 'poor'. As I know zero about taxes in the UK, it'll be one of those YMMV things. Someone did mention getting the money out of the UK so perhaps that's telling, IDK. IMO, all of this should be something discussed with a future spouse/life partner at the appropriate time and should have no play in dating. If questioned, 'why do you want to know?' is a satisfactory response. One's personal finances are just that, personal. I would also get my money out of the US.
FitChick Posted January 11, 2013 Posted January 11, 2013 Do not put your money into currency or stocks. Buy tangible assets. Someone mentioned real estate, which is an excellent investment now. Why do you think foreigners are buying up UK property? Perhaps pool your money with family members and buy an apartment building or several houses, hire a management company play landlord so you don't have the hassles. You'll have extra monthly income and when the real estate market goes back up, you can sell for a profit. That is what Warren Buffett, one of the richest men in the world, has been doing.
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 Do not put your money into currency or stocks. Buy tangible assets. Someone mentioned real estate, which is an excellent investment now. Why do you think foreigners are buying up UK property? Perhaps pool your money with family members and buy an apartment building or several houses, hire a management company play landlord so you don't have the hassles. You'll have extra monthly income and when the real estate market goes back up, you can sell for a profit. That is what Warren Buffett, one of the richest men in the world, has been doing. Any word on what I should do to smooth things out with my girlfriend?
Nightsky Posted January 11, 2013 Posted January 11, 2013 Do not put your money into currency or stocks. Buy tangible assets. Someone mentioned real estate, which is an excellent investment now. Why do you think foreigners are buying up UK property? Perhaps pool your money with family members and buy an apartment building or several houses, hire a management company play landlord so you don't have the hassles. You'll have extra monthly income and when the real estate market goes back up, you can sell for a profit. That is what Warren Buffett, one of the richest men in the world, has been doing. Warren Buffet owns an insurance company. That's what he should do first.
carhill Posted January 11, 2013 Posted January 11, 2013 I'm more worried about fixing things with my girl At your age, there's really nothing to fix. She feels how she feels. If you feel you're being true to yourself and have treated her with care and respect, hold fast and leave her to act in a way which is authentic for her. If things work out to remain together, that's one outcome.
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 (edited) At your age, there's really nothing to fix. She feels how she feels. If you feel you're being true to yourself and have treated her with care and respect, hold fast and leave her to act in a way which is authentic for her. If things work out to remain together, that's one outcome. I'm going to pick her up at midnight, 2 hours from now... I'm gonna to take her for a drive and explain what's been going on for the past 2 weeks. Hopefully she'll understand I've been preoccupied with other things... She's in for a real shock though lol It's either this or dump her really isn't it? But I guess I do want her so I'll just spill the beans and see how things pan out. Edited January 11, 2013 by Prada Class 1
Nightsky Posted January 11, 2013 Posted January 11, 2013 I'm going to pick her up at midnight, 2 hours from now... I'm gonna to take her for a drive and explain what's been going on for the past 2 weeks. Hopefully she'll understand I've been preoccupied with other things... She's in for a real shock though lol It's either this or dump her really isn't it? But I guess I do want her so I'll just spill the beans and see how things pan out. Don't tell her you fool. If you do tell her don't giver her a dollar amount or even make it apparent its so much. Your parents must have got even more money eh... hmmm Look man you tell her how much money you got and you're already setting yourself up. BIG TIME
carhill Posted January 11, 2013 Posted January 11, 2013 IMO, such a talk is unnecessary with a woman one has been dating for two months. Definitely do take her on a date and have fun. That's what dating is about.
Vercetti Posted January 11, 2013 Posted January 11, 2013 A few general tips. Learn the difference between assets and liabilities, to eliminate counter party risk, start hedging, and don't fall into confirmation / normalcy bias. I know people pulling 30K - 50K$ a year in a better position then those that had millions ( 2008 knocked many people out that would still be around if DYODD with first sentence in mind ). One thing I see is lifestyle change that goes with a promotion or inheritance killing people. If costs are increasing relative to wealth then one really hasn't increased wealth. They would buy a car that was a bit much, they would rent out a penthouse that was a bit much, they would eat out three times a day, they would purchase properties then endure maintenance and tax, they would buy cloths counter to personal style simply cause enamored spending quad+ figures on jackets, would overtly travel and drain resources, would start hobbies building more elaborate studios then accomplished artists would require. Any ridiculous thing could think of. Anyhow OP best idea is to say NOTHING TO ANYONE about your money. I know younger people like to brag sometimes. You have gone fast forward 10 - 20 years, perhaps even beyond what many will accomplish in a lifetime. Even if you are low key people will become jealous and you will acquire enemies. You always have rent money / own a house / pay your bills stress free while friends struggle to get by even with room-mates, people can tell the difference. Just the natural progression of life I had lifelong friends become erratic. As for your girlfriend you can always say your inheritance was for a car / cloths / school too help you start life. If you become serious or even married one day for whatever reason, don't think she would be mad there is 500K$ extra floating about. 750K$ is a bunch of money, but if think about sustainable spending 1K a day could be broke in two years. Take care.
Nightsky Posted January 11, 2013 Posted January 11, 2013 IMO, such a talk is unnecessary with a woman one has been dating for two months. Definitely do take her on a date and have fun. That's what dating is about. seriously telling a girl he's just been dating two months the dollar amount or even eluding to getting a lot in inheritance is a bad idea. 1
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 Don't tell her you fool. If you do tell her don't giver her a dollar amount or even make it apparent its so much. Your parents must have got even more money eh... hmmm Look man you tell her how much money you got and you're already setting yourself up. BIG TIME I'm not blinded by love mate lol... and I'm not a mug, she's a nice girl and I like her, she's shown the same interest in me, even more so than I have in her. And it's not like I just met her, we have been dating since early November but have known each other for a few years... I'm on the ball, I might come across as a bag of nerves in this thread because I'm absolutely stressed out to the maximum but I'm not going to let a girl empty my wallet if that's what you're implying.. don't worry
Nightsky Posted January 11, 2013 Posted January 11, 2013 I'm not blinded by love mate lol... and I'm not a mug, she's a nice girl and I like her, she's shown the same interest in me, even more so than I have in her. And it's not like I just met her, we have been dating since early November but have known each other for a few years... I'm on the ball, I might come across as a bag of nerves in this thread because I'm absolutely stressed out to the maximum but I'm not going to let a girl empty my wallet if that's what you're implying.. don't worry It doesn't matter if you let her empty your wallet. Obviously that would be lame. Just telling her is a mistake.
salparadise Posted January 11, 2013 Posted January 11, 2013 If you tell anybody, it's just a matter of time before everybody will know... and then most of them will be upset that you didn't tell them and the rest will expect you to loan the money or take them out on the town and pick u the tab from now on. Just tell her you got a little money and used it to buy the car. You'll also not ever know if women want to be with you for you or for the money if it gets out.
Nightsky Posted January 11, 2013 Posted January 11, 2013 also telling her is a mistake even if she is a good girl. Dude don't do it!
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 I'm gonna explain the money thing by saying my granddad left me some money... How much? New car, apartment and a fat wallet... SNM. And patching up the arguments/paranoia etc... I'm going to say I've had a lot on my plate recently, been excited about getting a new apartment etc etc and I'm sorry for making it seem like I've lost interest/being distant from her etc etc... There's no other girls, I'm not involved in shady antics with my friends... I've just been thinking about my own ***** recently... kiss, smile tell her it's all good. Something along those lines, I'm decent with words in the flesh... I'm sure I'll work it out. And from then on just try to chill out in general and adapt to being fortunate, sensibly.
Nightsky Posted January 11, 2013 Posted January 11, 2013 I'm gonna explain the money thing by saying my granddad left me some money... How much? New car, apartment and a fat wallet... SNM. And patching up the arguments/paranoia etc... I'm going to say I've had a lot on my plate recently, been excited about getting a new apartment etc etc and I'm sorry for making it seem like I've lost interest/being distant from her etc etc... There's no other girls, I'm not involved in shady antics with my friends... I've just been thinking about my own ***** recently... kiss, smile tell her it's all good. Something along those lines, I'm decent with words in the flesh... I'm sure I'll work it out. And from then on just try to chill out in general and adapt to being fortunate, sensibly. Just tell you like her and you've been dealing with a lot of business and you're getting a new apartment. Why say you have lots of money... it's a poor idea.
Author Prada Class Posted January 11, 2013 Author Posted January 11, 2013 Contraceptives. that's actually really funny because I was sitting in the solicitors waiting room when I went to sign for something related to the inheritance after I had been told how much money I was getting, And I was thinking, I've never used condoms before, EVER, besides once or twice when a girl has insisted, I've been pulling out since I first started getting some pussy at like 16/17, and my ex was on the pill so I didn't have pull out. I HATE condoms... And that's what I thought, I guess I've got to start using them to be extra sure I don't get my girlfriend pregnant... but she knows I don't like condoms so that's gonna be a difficult one lol
Recommended Posts