Are you a millionaire?

Are you a millionaire

  • Yes

    Votes: 50 37.9%
  • No

    Votes: 38 28.8%
  • Wanabee

    Votes: 49 37.1%
  • DontWanabee

    Votes: 1 0.8%
  • None of your business

    Votes: 5 3.8%

  • Total voters
    132
Just because someone does not have a million dollars in the bank does not negate the fact that they can be classified as a millionaire because there Net Worth is a million dollars.
 
[A person whose wealth amounts to at least a million dollars, pounds, or the equivalent in other currency.

I'm not a english major, rather far from it.

the key word is "wealth" which is; a collective term for riches;material possessions in all their variety; affiuence; opulence. from the home study dictionary.

The mention of the million dollars is the value of "wealth"

Good post np2003, It was like throwing hot chips to the seagulls.

kristine
forward ho? was that your sign? put it back, folding after one comment, what's the business?

Jazper
 
A millionare is someone who can spend freely, including travel, cars and racehorses. Needs a lot more than A$1 in TOTAL assetts.

Bet many who ticked the top box don't own a M5Beemer or equivelent or more to the point can't afford it AND the hols.

My nett MAY (for the sake of argument) be 500k but I sure's ell aint half a millionare.

Just another battler
 
Originally posted by Thommo
A millionare is someone who can spend freely, including travel, cars and racehorses. Needs a lot more than A$1 in TOTAL assetts.

Bet many who ticked the top box don't own a M5Beemer or equivelent or more to the point can't afford it AND the hols.

Thommo,

Are you sure? :)

Is your bet based on knowing these people and their financial positions personally or simply on your personal assumptions and beliefs?

Many forumites I know personally who are worth more than the Magic Million have younger children, thus cannot travel freely, are not interested in race horses and only need one car per driver (at most!). Many do not prefer to spend their money on expensive new cars - they buy cars a few years old. Some even do not LIKE BMWs :)

In fact, these choices may be some of the reasons why they've attained their wealth.

I'd suggest that many people who own a flash car, have a share in a race horse & travel regularly are NOT millionnaires. But they may have more than $1 million in debt! (I could name names here from my former life in management)

I suggest you read a book called 'The Millionnaire Next Door' which is a demographic study of millionnaires.

You'll find that these people don't match your presumptions!


Check your assumptions at the door!


BTW: I agree that $1 million doesn't go that far today - but you only need $1 million to be a millionnaire!

And with a personal wealth of half a million this makes you one of the most wealthy people in Australia - hardly a battler! :)

Don't under-rate your achievement, many people retire with much less than this.

Cheers,

Aceyducey
 
A friend of mine on the weekend said, "The simple man that spends like a millionaire only makes a millionaire richer". (unknown)

Jazper
 
Originally posted by JAZPER

kristine
forward ho? was that your sign? put it back, folding after one comment, what's the business?

Jazper

Hi Jazper

I'm a great believer in the 'silent majority'.

If one person is offended by 'commercial' tags - mine or anyone's, then I take notice of that.

No, I'm not apologetic about being in business. I love being in business. My details are in my profile if anyone wants my professional opinion on anything.

And I'm quite happy to offer lots of information or my point of view on topics which I feel I can contribute to.

However, I'd rather not make myself look like a walking advertisement and the signature thingy is either on - in which case every post is linked, or off. If I feel it is appropriate, that is, to explain how come I am making a particular comment, I can always add it in.

Funny, Mercury must be retrograde at the moment. From about last Friday through till today people have made lots of sarcastic comments to me or in my hearing. Either I'm doing something wrong or the planets are misaligned and making people edgy.

Either way, I'm not here to ruffle feathers or prove points and I have a natural distaste to being 'categorised'. I really value this forum and everyone who contributes to it and I'm happy being 'just one of the crowd'.

But this post is about the most stridently argued post for a long time - I will pose the question 'Do we feel guilty about wealth or about wanting to have wealth?' I make the distinction between having wealth and being wealthy.

I think Kiyosaki's (sic) definition regarding how many weeks with no further income is important. If memory serves me correctly he quoted a survey indicating that most Americans are 19 weeks away from impoverishment. Perhaps, as millionaires, we would feel as if we have taken unfair advantage when really the door is open to all.

It is a complex subject and the mention of the magic word seems to have rattled the cage of our sleeping prejudice.

Cheers

Kristine
 
I think the term "millionaire" doesn't mean a whole lot any more, a million dollars gets you a nice house in sydney, and most people here probably would consider a million dollars not a great amount of money to retire on.

Perhaps there is need for a couple of extra terms, say people who are worth 10 million or 100 million, to describe people who could be considered wealthy.
 
IMHO, It's being a Millionaire is a good start :)

About 33% of voters in this pole ( respresentative or not) have cracked it.

The first $1M is the hardest, I have been working 15 years and I am still not quite there yet.

When I was 25 I didnt think it was possible, but when I was 35 I realized if I had just kept "with the plan", ie buying IP's when I could afford them I would have been there already (and maybe closer to $2M). When I was 25 having a good salary important (particular no lower than my uni-friends). Now of course having a high asset base with a manageable LVA has overtaken any consideration of chasing the bigger salary ( with the 18 hour days of corporate B.S.).

In Japan the 90's bubble was contained in the idea that "asset" values are all that is important and returns dont matter, some people even purchase property with negative returns; I dont mean negatively geared, I mean the rent didnt cover the basic holding costs of the property excluding interest costs. Dont worry about the returns, the underlying asset will always increase and you can borrow more was the thinking at the time. Mind you for those in Sydney's Mosman with a 1.75% gross yeild I would suggest they they too have negative returns if they purchased in the last 2 years.
 
Wow people are getting into this...
Thought I would have my 2 cents worth.

This is for np2003.
Shouldn't that read " a person who has a mill in cash" as oppossed to a mill in wealth as you said. Lets face it if you have a mill. in assets and liquidated them you are going to have a mill. in cash anyway. Cant see the difference quite frankly.
Regards anyway......Elwyn.D
 
The definition should be total assets less PPOR (you have to live somewhere and it isn't income producing) less CGT on sale of the remainder (you more than likely have to pay this if you liquidate.)

LL
 
Originally posted by elwyn.d
... Lets face it if you have a mill. in assets and liquidated them you are going to have a mill. in cash anyway. Cant see the difference quite frankly....

Please allow me to suggest a difference:
1 Mil in assets is 1 Mil in assets for NOW. Maybe those same assets were worth 0.5 Mil 5 years ago, maybe they will be worth 2 Mil or 0.5 Mil, 5 years from NOW. But the worth is not definite till the liquidation.
There is no such thing as "asset's worth" as is, by itself, there are only temporary nominal prices people are ready to pay for similar assets at certain time-bounded circumstances.

Of course for "asset's worth" you can turn to a deceptive cashflow analysis, then 1 Mil in the bank gives you more than 5 Mil current-market-worth of PPOR.

BUT, having 1 Mil in cash is not definite either, minding price inflation and purchasing power, exchange rates, interest rates...

Best definition for "millionaire", IMO, is being stress free with your time, not working for somebody being solely dependant on him, not compromising your living standards, to be able to explore and execute business ventures while not risking your lifestyle. Which is possible to some only with much larger sums than that legendary "1 Million", and to some with quite less.
 
A million bucks is not much money.... (as at 2004)

Hi,


You'll need a few million to live the life of the "rich and famous"...

A million is a million. (* Remember... it's getting hard to buy a fancy home for a flat million as at 2004 on the gold coast.)

Then you need a nice car... a regular income stream... etc...

So...

Millionaire is now about = $ 3 million dlollars (total net worth)



Ross
 
Hi Simon...


Simon said, "$1 million - I would be surprised if many folks whose net worth is over a Million keep that much money in a bank account!"


You'd be surprised how much money some people have got (in a bank account)... a few people can settlement 000,000 deals instantly with cash.

And don't forget... a few multi-millionaire's don't really know what to do with their money..


ROSS
 
Originally posted by Ross Sondergeld
And don't forget... a few multi-millionaire's don't really know what to do with their money..

These people should come and talk to me!

I have no problems finding good opportunities :)

Maybe it's because I work from an abundance mindset...or because I'm open to looking out into left-field & right-field for investments.

Cheers,

Aceyducey
 
Including equity in your PPOR makes you a cashflow poor millionaire doesn't it.

My definition doesn't include my PPOR because it doesn't turn an income and ultimately freedom comes fom the income.

For me its equity liquidated, taxes paid, less PPOR = (answer millionaire or not ).

This for me is a calculation only. Not a suggestion that one should actually sell assets to prove millionaire status.

MJK
 
I'm intriegued. What's the the dif between "no" and "wannabe"

Are there some of us who would go out of their way NOt to be?

Late night musings..... Thommo
 
Originally posted by spark
1 Mil in assets is 1 Mil in assets for NOW. Maybe those same assets were worth 0.5 Mil 5 years ago, maybe they will be worth 2 Mil or 0.5 Mil, 5 years from NOW. But the worth is not definite till the liquidation.

I think that is a given spark, noone here seems to argue that, ie a net profit is not (a net profit) until a sale is realised.

There is no such thing as "asset's worth" as is, by itself, there are only temporary nominal prices people are ready to pay for similar assets at certain time-bounded circumstances.

ho hum, an idealists arguement perhaps, sounds like something an inexperienced economics lecturer or an idealist post grad would sprout. Check you local RE agents window and the little sold stickers.... real time real money, real assets.

Of course for "asset's worth" you can turn to a deceptive cashflow analysis, then 1 Mil in the bank gives you more than 5 Mil current-market-worth of PPOR.

assuming an 80% lend of course. With no lend then 1 mill gives 1 mill current-market-worth of PPOR

BUT, having 1 Mil in cash is not definite either, minding price inflation and purchasing power, exchange rates, interest rates...

of couse, by itself, as 1million in cash is only a temporary nominal value at certain time-bounded circumstances.

Best definition for "millionaire", IMO, is being stress free with your time, not working for somebody being solely dependant on him, not compromising your living standards, to be able to explore and execute business ventures while not risking your lifestyle. Which is possible to some only with much larger sums than that legendary "1 Million", and to some with quite less.

sounds a like a definition for independence to me......

astroboy
 
Originally posted by Thommo
I'm intriegued. What's the the dif between "no" and "wannabe"

Are there some of us who would go out of their way NOt to be?

Late night musings..... Thommo

It is a multiple choice so you can answer "no" and "wanabee".

Some people have a vague notion that being a millionaire would be good but dont have any plan nor in reality have the desire ie. "No". Clearly few would doubt it is possible to have a "rich" and meaningfull life without material assets.

In my "describe your perfect day" thread here I was hoping that some people would consider that in many ways living a perfect day is all about how you feel and how you make others feel (let's stay above the waistline :D for a moment); feeling good and making other feel good has almost nothing to do with money.

However wealth gives you one thing, time and freedom of choice!

Oh well enough late nights, got to get up early for the daily grind (Tokyo trains...terrible one minute, horrible the next)
 
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