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re: Is $1 million a lot of money in 2019?
Posted on 7/5/19 at 7:56 pm to TxTiger82
Posted on 7/5/19 at 7:56 pm to TxTiger82
quote:
wealth managers
Ought to never come into the conversation if you educate yourself and your kids properly. Using one is essentially an admittal of financial incompetence/laziness.
No one is EVER going to take care of your money as well as you will.
3
Posted on 7/5/19 at 8:22 pm to Decisions
quote:Exactly this! I feel the same way.
Ought to never come into the conversation if you educate yourself and your kids properly. Using one is essentially an admittal of financial incompetence/laziness.
No one is EVER going to take care of your money as well as you will.
I also hold this position with personal health. I teach my kids how to live healthy and never to pay a doctor to tell them what to do. No one is EVER going to take care of your health as well as you will.
Same goes with home repairs. Learning how to do plumbing and wiring is just a matter of time. Providing a shelter for your family is a fundamental responsibility. No one is EVER going to take care of your home as well as you will.
This post was edited on 7/5/19 at 8:23 pm
Posted on 7/5/19 at 8:29 pm to Decisions
quote:That's an odd take.
Ought to never come into the conversation if you educate yourself and your kids properly.
E.g., we are highly educated and successful managing finances. We keep about 1/2 of ours under roof, and divvy the rest out to managers. Each manager has differing expertise, resource access, and each comes at challenges slightly differently. Exposure to differing opinions provides good food for thought.
Aside from "educating yourself", the other DIY element is time and timing. Presuming one works in a field which prohibits continuous monitoring of personal portfolio(s), ability to take advantage of market moves, and stay atop contingency research is limited, even for the most educated investor.
This post was edited on 7/5/19 at 8:33 pm
Posted on 7/5/19 at 9:17 pm to NC_Tigah
quote:I agree with you but not your strategy which requires continuous monitoring, etc. You're giving away a lot of money to people who will not earn it.
Presuming one works in a field which prohibits continuous monitoring of personal portfolio(s), ability to take advantage of market moves, and stay atop contingency research is limited, even for the most educated investor.
Posted on 7/5/19 at 11:01 pm to NC_Tigah
quote:
(A) Irrelevant to the OP
What wealth managers will work with is an indicator of what "a lot of money" is in 2019. These folks only deal with people who have "a lot of money." JPM Private Banking recently changed their policy on this. People with $1 million used to get the premium treatment, but they just got bounced down a tier.
You guys had a funny reaction to my post. I must have touched a nerve. Again, wealth managers are indicative of what "a lot of money" is today, and that is the point of the thread.
So my answer is "no," $1 million is not a lot of money in 2019. You are not "rich" with $1 million.
This post was edited on 7/5/19 at 11:03 pm
Posted on 7/5/19 at 11:03 pm to TxTiger82
$1M at 30 versus 65 are two very different situations.
A 30 year old with that kind of wealth would be “rich” in my mind.
A 30 year old with that kind of wealth would be “rich” in my mind.
Posted on 7/5/19 at 11:05 pm to Decisions
quote:
Ought to never come into the conversation if you educate yourself and your kids properly. Using one is essentially an admittal of financial incompetence/laziness.
Nah, that's a good way to lose everything, TBH. I'm not some investing genius who is going to beat the market. My assumption is that the less I do, the better. Sorry, but (at least in my case), "laziness" is the correct strategy. I recognize this cuts against the grain of some unarticulated principles you have, but your principles won't keep me from making stupid investment mistakes if I try to do it all myself.
This post was edited on 7/5/19 at 11:14 pm
Posted on 7/5/19 at 11:12 pm to lynxcat
quote:
A 30 year old with that kind of wealth would be “rich” in my mind.
This is a tricky proposition, honestly. I mean, there are situational factors to consider. Does the person have a spouse? Kids? A house? What is that person's annual household income? Is person living on the money or is the person making more? Etc. The fact that it depends on the situation kinda tells me that $1 million is not, in and of itself, enough money to last.
Now, ironically, if the 30-year-old is unable to access the money (because they inherited it -- which is the most common way for a 30-year-old to get that kind of money), then they have much greater potential in the future. But they wouldn't have anything in the short term, and they wouldn't come across as "rich" to anyone.
Like I said -- tricky question.
This post was edited on 7/5/19 at 11:14 pm
Posted on 7/5/19 at 11:53 pm to TxTiger82
quote:
Nah, that's a good way to lose everything, TBH. I'm not some investing genius who is going to beat the market. My assumption is that the less I do, the better. Sorry, but (at least in my case), "laziness" is the correct strategy.
You just made yourself Exhibit A for what I was saying. I’m not saying I nor anyone else here is an investing genius, but I’m more than capable of going out there and learning how to value and buy bonds/treasuries/indexes/whatever and do it myself over hiring a middleman to do it and giving him a cut. It’s not rocket science.
quote:
your principles won't keep me from making stupid investment mistakes if I try to do it all myself.
Exactly what principles are you suggesting are a better use of your time than learning how to invest/manage your money yourself? Financial literacy is the most valuable skill an individual can possibly cultivate (followed closely by social networking).
Coming back to NC....
quote:
Each manager has differing expertise, resource access, and each comes at challenges slightly differently. Exposure to differing opinions provides good food for thought.
I DO like this train of thought. I agree that we should listen to different perspectives and it’s a key reason as to why I’m on the MT Board and read other communities like it.
This post was edited on 7/6/19 at 1:21 am
Posted on 7/6/19 at 5:59 am to TxTiger82
quote:Because it was a ridiculous statement.
You guys had a funny reaction to my post.
First off you're talking "rich", while the OP was basically talking "sustainable" living.
Second, exclusive wealth managers are . . . wait4it . . . exclusive.
They are not the norm.
Someone like the OP would find loads of solid managers more than willing to assist.
$10m-minimum managers exist, obviously. But saying "a lot of wealth managers" won't work with less than $20 million, is silly.
quote:Your reference is to JPM-Manhattan.
JPM Private Banking recently changed their policy on this.
There is a great deal of money in Manhattan. In order to continue to offer Manhattan clients exclusive services, JPMPB client numbers and access had to be limited. Upping qualification was necessary. Simple as that.
JPM has private banking branches outside of NYC. FYI, you need nowhere near $1m (much less $10m) to open a Private Banking account at one of those locations. IIRC, the minimum is $250K.
But look, if your comparative is the ability to handpick the crème de la crème of JPMorgan’s U.S. private banking unit managers, or you want Appaloosa Management, Pershing Square, Metropolitan Capital Advisors, etc to handle your money, $40m-$50m may not be enough.
More money equals more access . . . sort of goes without saying.
Posted on 7/6/19 at 11:52 am to NC_Tigah
quote:
JPM has private banking branches outside of NYC. FYI, you need nowhere near $1m (much less $10m) to open a Private Banking account at one of those locations. IIRC, the minimum is $250K.
I'm talking about the one in Austin. $1M used to get you the top tier. Now it doesn't. The change happened a couple months ago -- very recent.
quote:
Because it was a ridiculous statement.
No, you just didn't care to see the validity in it. The wealth managers thing was just a lens on the idea that $1M doesn't make you rich in 2019. The threshold for being "rich" is much higher -- closer to $20M than $1M.
This post was edited on 7/6/19 at 12:31 pm
Posted on 7/6/19 at 11:58 am to Decisions
quote:
You just made yourself Exhibit A for what I was saying. I’m not saying I nor anyone else here is an investing genius, but I’m more than capable of going out there and learning how to value and buy bonds/treasuries/indexes/whatever and do it myself over hiring a middleman to do it and giving him a cut. It’s not rocket science.
I'm fine with index funds and mutual funds, but I have zero capacity to research alternative assets and the bond market is more confusing than it seems at first glance. On top of that, I have a job and a family and I don't spend my days researching investments.
This post was edited on 7/6/19 at 12:22 pm
Posted on 7/6/19 at 1:13 pm to TxTiger82
quote:
Yea I'm talking about the one in Austin. $1M used to get you the top tier. Now it doesn't.
quote:in Austin?
A lot of wealth managers won't work with less than $20 million
"A lot of wealth managers won't work with less than $20 million" in Austin Tx?
Look, I'm not busting your chops here.
I just see no need to intimate on this board that folks with six digit savings don't have access to good resources and reasonable professional assistance if they need it. A lot of access at that.
quote:Again, I simply understood the OP to ask "is $1-to-$2million enough to retire on?"quote:The threshold for being "rich"
First off you're talking "rich", while the OP was basically talking "sustainable" living.
Not whether it qualifies as "rich".
If I misunderstood though, and the OP was asking whether $2m would support lifestyles of the rich and famous, I'd agree with you 100%. Living off of $2m won't set you up as Richey Rich.
Posted on 7/6/19 at 1:32 pm to TxTiger82
quote:Right. There certainly is more than one way to skin that cat. The "right answer" for you is the one generating best ROI after taxes and expenses. It's all about end result.
I'm fine with index funds and mutual funds, but I have zero capacity to research alternative assets and the bond market is more confusing than it seems at first glance. On top of that, I have a job and a family and I don't spend my days researching investments.
If you're in a hedge fund w/ a 2 and 20 fee structure, yet you're up 30% on the year, despite the management fees, you're in high cotton. If your DIY alternative would yield 5% ROI, the DIY savings were pretty damed expensive.
Posted on 7/6/19 at 4:08 pm to NC_Tigah
There’s always gotta be the guy who thinks he’s setting all the dumb hayseeds straight. Poor frickers don’t realize how typically foolish they look in trying to do so.
Posted on 7/6/19 at 5:51 pm to Ace Midnight
It is if you don’t have it
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