Post: #76

(10-24-2012 08:11 PM)pitt Wrote:  By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

It's pretty easy to say what you would do if you did this compared to actually doing it. Weren't you the one that gave up a job making good money because it was too hard? Besides, not everyone wants to live on such a low budget as some.

Post: #77

(10-24-2012 08:11 PM)pitt Wrote:  By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

What net worth do you expect a man in his late 30s/early 40s to have?

Post: #78

(10-24-2012 08:26 PM)worldwidetraveler Wrote:  

(10-24-2012 08:11 PM)pitt Wrote:  By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

It's pretty easy to say what you would do if you did this compared to actually doing it. Weren't you the one that gave up a job making good money because it was too hard? Besides, not everyone wants to live on such a low budget as some.

Wrong

I was getting shit money, reason why i didnt take their bullshit and walked away.

Post: #79

(10-24-2012 08:33 PM)pitt Wrote:  

(10-24-2012 08:26 PM)worldwidetraveler Wrote:  

(10-24-2012 08:11 PM)pitt Wrote:  By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

It's pretty easy to say what you would do if you did this compared to actually doing it. Weren't you the one that gave up a job making good money because it was too hard? Besides, not everyone wants to live on such a low budget as some.

Wrong

I was getting shit money, reason why i didnt take their bullshit and walked away.

You said you were making $900 a month passive but think guys in their 30's and 40's should have 500k in the bank? I think most of the guys you are criticizing were also talking about earning potential, something you won't have much of if all you do is travel around living off of $900 a month.

Post: #80

(10-24-2012 08:33 PM)MikeCF Wrote:  

(10-24-2012 08:11 PM)pitt Wrote:  By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

What net worth do you expect a man in his late 30s/early 40s to have?

I think it just depends on what your priorities were during your 20s and early 30s. If you were all about making money and becoming rich, then i expect you to have 500k at the very least. If you were all about travelling, fucking women and enjoying life then i wouldnt expect that much from you.

Note that im not calling out anybody on here. Everybody is different, i dont know what happened on your road to success.

Post: #81

(10-24-2012 03:04 PM)smashley Wrote:  Also with real estate, run the numbers.... Investing the entire 500,000 in a house will only make you 3000 a month in rent (roughly..) thats $36,000 a year, just slightly over what you would make in the Cd. Plus you have management costs, maintenance, hoa's, time, everything else, it makes you question whether it's worth it. And by no means is it even guaranteed. It could take 90 days to evict without payment, costs to replace after the tennant trashes your place, etc. It's not all gravy... That 36,000 would probably be down significantly on average. Yes the house appreciates, but it also depreciates in certain scenarios.

Nobody buys one investment property outright and lives off rent.
(unless you're in rural Louisiana)

It would not be wise to put 500K in any one investment vehicle. Not bonds, cd's, stocks, mutual funds, real estate, a business, an education...

Even though Market Portfolio Theory has been thoroughly discredited by the 2008 financial crisis, diversity of assets is still key, and the alternative of picking the one asset class that will never lose, is a bad one

WIA

Post: #82

Damn, Athlone's post kinda hit a soft spot (no homo). If I had $500K, I would buy my mom a 3 floor house first. No worrying about rent while still getting income from tenants. With whats left would finish my education second (probably cost $35,000 max if even that). Third, buy myself a fucking car because Im tired of fucking buses and taxis (probably use $30000, no more than that). Fourth, buy some dynamite and take down a couple of old buildings (with the city's permission of course lol). After cleaning the debris what I will do with the empty space will be renting out a shit load of garage spots (gotta have some money coming in for myself). Whatever is left after that will be used to make a bunch of t shirts to be sent to each forum member with the Roosh avatar and under it the words "Based on what I'm seeing this is definitely not poosey paradise" (USA VERSION ONLY)

Post: #83

(10-24-2012 08:11 PM)pitt Wrote:  I am currently living off passive income. If i had 500k right now, i could live the rest of my life without working for anybody (although i dont work fo anybody right now). I may invest 150k in order to make more money, but if i decide not to stress myself, this 500k could be enough for the rest of my life.

By the way, its funny how many guys here in their 30s and 40s advise younger cats to focus in making money and then when we see them in these type of threads, i get the idea that they dont have that much money saved. If i was to spend my 20s solely on making money, i would make sure that i would be WELL off by the time i get to my late 30s.

I'm comfortable. I've driven nice cars, eaten at nice restaurants, taken fancy trips overseas, and I got money in my savings account and my retirement account.

Most of my friends went my route. They got education, they work for corporations, they bought houses, they got married and had kids. They all have nice sedans and minivans, retirement funds, college funds, and all the toys their wives will let them have.

And all of them are at the mercy of their companies. Sure, they may be able to find jobs if something pops off, but that's not security.

We've got a few friends that opened their businesses in their late 20's early 30's, and all of them stuck with it, and are now banking, but on their own terms. (one in insurance, one in real estate, one in party promotion/club ownership)

Nobody can fire them. They fire people.

That's security, that's freedom.

When you are young, it's much easier to get it done. You can live in filth and have the energy to try lots of things, until you find something good.

I'm not telling you to start a business cause i'm broke. Far from it.

I'm telling you to start one, so that you can be truly rich.

WIA

Post: #84

500k is a tough amount. It's not enough that you can just stop worrying about money for the rest of your life, but it's enough to make getting up for work every day much much harder.

I'd probably set myself up in a better place, drop some on a better wardrobe, and buy a few toys.

The rest I'd lock up in investments in a way that balanced capital preservation with allowing me ten to twenty grand a year for travel. You got to find a way to stay hungry; otherwise, that money would just be an excuse to sit around drinking myself stupid and banging random skanks.

Post: #85

Most men will not have made 500k by the time they are 30*, much less have been able to save that much, especially if they went to college, no matter how hard they work at earning money. It takes a combination of exceptional talent, skill, hard work, good decisions, and dumb luck to make that much money when you're young.

Personally, I had made $250k by the time I was 30. Most of it was spent on basic stuff (rent, utilities, transportation, college, food, tools). I was a little unlucky in some ways but hardly unusual. My guess is guys in a similar situation to me who made slightly better choices, were better at negotiating and marketing themselves, or were lucky might have made an additional $100k over that time.

*I'm assuming men born between 1972 and 1982 who actually are over 30 today.

Post: #86

I would not invest all 500k into a house if it was the only money I was ever going to have. However, the point of investing in real estate isn't just for the ROI, it's for the use value of the property itself.

Post: #87

With 500K, I would:
- give 100k to my dad and siblings to help them as they've helped me a lot.
- give 50k to charity such as building a school or football academy in Afghanistan for orphans.
- take 50k to go on a round the world trip for a year or 2 a la Neil Skywalker but I will film it, create my own travel show in other languages, a mix between Anthony Bourdain and Naughty Nomad.
- put 100k in a foreign bank account giving me at least 8-10% return as a back up for a rainy day.
- once I'm done with my round the world trip, go to China and use 100k to live for 3-4 years there while building a few businesses there (e-commerce, import-export, consulting etc...) while living it up like a rock star in China and around Asia.
- keep the remaining 100k as a seed money to invest in my businesses.

I'm actually half way there and in 2-4 years of hard work in the oil fields I'll get there, then it'll be show time.

Post: #88

(10-24-2012 08:41 PM)pitt Wrote:  I think it just depends on what your priorities were during your 20s and early 30s. If you were all about making money and becoming rich, then i expect you to have 500k at the very least. If you were all about travelling, fucking women and enjoying life then i wouldnt expect that much from you.

That is extremely unrealistic.

Do the math.

Let's say you start working at 22.

How much would you need to earn, every year and before taxes, in order to have 500K saved?

Post: #89

(10-24-2012 10:50 PM)Vacancier Permanent Wrote:  With 500K, I would:
- give 100k to my dad and siblings to help them as they've helped me a lot.
- give 50k to charity such as building a school or football academy in Afghanistan for orphans.
- take 50k to go on a round the world trip for a year or 2 a la Neil Skywalker but I will film it, create my own travel show in other languages, a mix between Anthony Bourdain and Naughty Nomad.
- put 100k in a foreign bank account giving me at least 8-10% return as a back up for a rainy day.
- once I'm done with my round the world trip, go to China and use 100k to live for 3-4 years there while building a few businesses there (e-commerce, import-export, consulting etc...) while living it up like a rock star in China and around Asia.
- keep the remaining 100k as a seed money to invest in my businesses.

I'm actually half way there and in 2-4 years of hard work in the oil fields I'll get there, then it'll be show time.

You over in ND?

Post: #90

This comes from the heart gents. I grew up in a lower middle class family. My dad was bad mofo. He laid bricks, rocks and blocks. Mom had a biz, and catered to the wealthy women from the NE corridor. I remember this like it was yesterday. This old women from NYC came in and bought some things, and haggled over the price. She had a sedan that we couldn't afford. Here's what she said:

"My husband and I never spent a penny, even on our kids. We saved every dime, until it was millions. Now he is dead, my kids are waiting until I die to split up the fortune. I am miserable and alone. Spend it when you have it."

My parents took that to heart and spent a lot on us. Every summer we went to the beach for weeks to clam, fish, and live life. My parents are still alive and don't regret ONE dollar on that. Had they "saved", they could have retired much sooner. We were afforded nice clothes. A house, things for school, but were still humble. My parents will die without much in the bank, but they gave us a life that I cannot complain about.

So for $500K? I'd throw it away and be happy. My last job was making $550 per day. Dream all you want. Spend it like you stole it.

Post: #91

(10-24-2012 03:49 PM)Katatonic Wrote:  

(10-24-2012 03:04 PM)smashley Wrote:  I know a lot of you guys criticize living off the interest as i've seen by a few comments, and that all you need to do is start a business or by a four-plex, but it's really not that simple.

Lets break down the living off the interest thing. Yes, I know CD's are making only 1% but lets look at CD's over history.

http://3.bp.blogspot.com/-qxi8eUIvnAI/Ti...istory.jpg

You could average Cd's over the last 50 years at roughly 5-6%. Now 5-6% of 500,000 is $20,000 to $30,000 per year, EVERY YEAR.. Guaranteed with no work!! Yes there is inflation, but add 30,000 to your current salary every year and you'll see that it more than helps pay bills/ travel, etc. Good luck taking risky business ventures at the shot to make 30,0000 a year. I've started various businesses and let me tell you the best businesses to start take little to no financial investment... Only lots of time, but with that you can stop at any time without losing money. Also making 30,000 with your own business is not easy.

Once the FED stops keeping rates down as inflation increases, you will CD rates raise again. Quantitative easing is in place now, but with time inflation will creep up and CD rates will increase again and things will be better again for savers.

Don't downplay living off the interest.

Also with real estate, run the numbers.... Investing the entire 500,000 in a house will only make you 3000 a month in rent (roughly..) thats $36,000 a year, just slightly over what you would make in the Cd. Plus you have management costs, maintenance, hoa's, time, everything else, it makes you question whether it's worth it. And by no means is it even guaranteed. It could take 90 days to evict without payment, costs to replace after the tennant trashes your place, etc. It's not all gravy... That 36,000 would probably be down significantly on average. Yes the house appreciates, but it also depreciates in certain scenarios.

So you're advocating buying variable rate CD's today in the hopes that the rates will go up sometime soon? You do know that super ultra commander Bernanke has stated that the Fed is going to keep rates artificially low for the next few years right? Anyone who buys a CD today is assured to lose money for the next few years as inflation is greater than the interest rate.

What I'm saying is that don't expect CD rates to always be down. I think in todays world it's just about asset protection or fuckup avoidance. Just take it in the ass with low rates now but know they will go back up. And overtime they will help make you some coin. Don't longterm lock down any low rates in a cd now, but just accept losing to inflation for the time being. May not be for everyone but I'd rather get a steady income over time then lose out on some years by taking risky chances with businesses, stocks, and real estate which is more of a time sink.

Post: #92

(10-24-2012 08:59 PM)WestIndianArchie Wrote:  

(10-24-2012 03:04 PM)smashley Wrote:  Also with real estate, run the numbers.... Investing the entire 500,000 in a house will only make you 3000 a month in rent (roughly..) thats $36,000 a year, just slightly over what you would make in the Cd. Plus you have management costs, maintenance, hoa's, time, everything else, it makes you question whether it's worth it. And by no means is it even guaranteed. It could take 90 days to evict without payment, costs to replace after the tennant trashes your place, etc. It's not all gravy... That 36,000 would probably be down significantly on average. Yes the house appreciates, but it also depreciates in certain scenarios.

Nobody buys one investment property outright and lives off rent.
(unless you're in rural Louisiana)

It would not be wise to put 500K in any one investment vehicle. Not bonds, cd's, stocks, mutual funds, real estate, a business, an education...

Even though Market Portfolio Theory has been thoroughly discredited by the 2008 financial crisis, diversity of assets is still key, and the alternative of picking the one asset class that will never lose, is a bad one

WIA

Totally agree! Was just trying to make the point that a lot of people downplay living off interest and always feel they have to pump it into real estate or businesses. The reality is sometimes that simple bank interest (in normal times) adds up and may beat your other investments with less risk and WAY less work.

Post: #93

You need to have a greater understanding of money, debt and inflation, and its impact on asset prices before you make such a statement,.

Post: #94

I'd actually invest most of that money into rental properties, even though most people think it's a bad idea, if you buy in the right area and buy out right, without a mortgage, it's a wise investment IMO.

Home prices have typically dropped about 20% comparative to what they were a few years ago, while the rental market has remained steady. In some regions of the country you can buy a pretty nice 3 bedroom house for $125 K, that same house can rent for $1200 a month.

So let's say you buy 3 homes for $125 K each, that's $375 K, you rent each out for $1200 a month, that comes out to $3600 of passive income a month. Now some guys will say there are taxes, maintance, etc., but that won't cut into your profits that much but let's just say that takes off $600 a month, you're still clearing over 30 K a year.


This is all assuming you have $500 K, if you bought 3 homes for that price, that still leaves you with $125 K to live on and potentially invest in other things.

Post: #95

I'd buy Catarina Migliorni's virginity!

Oh wait... not enough money

I'd probably put half into bank, half into investment funds, and live off the interest rate, which is enough to have a comfortable lifestyle in most countries in the world. Live a life of leisure, banging new girls and travel. 500 000$ is already a mind-boggling amount of money - heck, even 200 000$ is. My entire family's net worth - house, inheritance from my grandparents, car, furniture, savings - is about 500 000$ total.

Post: #96

I get this feeling like there's a fair few lurkers in this place that bank really hard but stay out of financial & business discussions, and that people don't take them seriously when they do emerge.

Post: #97

(10-25-2012 04:51 AM)Rah Wrote:  I get this feeling like there's a fair few lurkers in this place that bank really hard but stay out of financial & business discussions, and that people don't take them seriously when they do emerge.

Yes and they are probably laughing at our petty discussion about 500k saying things like "I remember my first million"

Post: #98

For the guys who say they'll spend it they'll never have it so it's immaterial. Alibaba you say you've blown 20g's in the DR, you've been there for over 5 months so I wouldn't call that crazy spending especially if you can make $500/600 per day when you get back to work.

I prefer to spend income rather than capital, capital is better kept for investments or business ideas.

Pitt it's strange how you were always the guy on here who was dead set on making a lot of money and now you've gone in the totally opposite direction, it just shows how quickly peoples ideas can change.

Post: #99

What's with guys and taking extreme sides. It's all about balance. You're a fool to spend all your money partying it up and you're just as big of a fool for investing and never take the time to enjoy it.

Post: #100

I would definitely travel the world again. Assuming 6% is very possible at some banks or with some minor investing, that's 30K a year and 2500 dollars a month. I wouldn't travel that quick anymore and stay longer in different places, maybe move once a month. Kinda like Roosh's style. 2.5K dollar a month buys a comfortable lifestyle in lots of countries around the world especially when staying in apartments in stead of expensive hotels.

To kill time I would do all the things I want to do now but have no time or money for. Hire private teachers for everything and learn fast. Things like learning how to dance very well in different styles, start with martial arts again, learn how to play chess well. Learn how to speak multiple languages on a good level. Read books and watch interesting movies and documentaries.

Maybe go out 3 times a week. Do some writing, it will make some extra income and kills time. If you live in the Phils then 2.5K month gives you the near baller lifestyle. My Canadian friend rented a American house sized crib in a safe neighborhood for less than 500 dollars a month including utils. That leaves 2K a month for food and spending.

Personally, I would probably live in Ecuador. It's dirtcheap so you have a good life and it's close to Colombia. There are still lots of hot girls around. It isn't that bad as people make it to be.

I have no urge to be a baller and throw around thousands of dollars. I'm happy with banging 7's who love me and my small amount of monthly money not because I throw money around like a mofo.
I have no urge to start a biz if it means working my fingers to the bone while taxes eat away my profits. I say fuck working, if I get too bored or fed up with my lifestyle I can always find some job I like.

Ideally 5K a month would be the best. You can live the life in most countries on that kind of money. Even the US probably.