Millionaire?

Discussion in 'The Pub' started by AZChilicat, Dec 17, 2017.

What's A Millionaire?

  1. Only assets under investment.

    28 vote(s)
    24.6%
  2. It all counts.

    72 vote(s)
    63.2%
  3. I'm a Millennial.

    4 vote(s)
    3.5%
  4. Avo Toast

    10 vote(s)
    8.8%
  1. AZChilicat

    AZChilicat Member

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    When characterizing a "millionaire" do you only count assets under investment or do you include other things like equity in primary residence?
     
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  2. scott58

    scott58 Member

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  3. Chris Scott

    Chris Scott Silver Supporting Member

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    I dunno, I think net worth is just that - whaddya got, and what's it all worth.

    ...and for what it's worth (he he) a net worth of a million bucks doesn't mean much in the grand scheme of things these days.
     
  4. korby

    korby Member

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    Better than a stick in the eye.
     
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  5. AZChilicat

    AZChilicat Member

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    I agree a net worth of a million doesn't necessarily mean much but a million invested means much more. I mean, if you have no cash flow and have a million equity in your home, that's a far different story than having a million invested at a 10% cap rate.
     
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  6. AaeCee

    AaeCee Member

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    All.

    I know of people who are low on liquid assets but have businesses worth tens of millions. One good friend with maybe a +/-$500,000. investment account, just sold his business for an all cash transaction of 40 million.

    But to put a finer, more contemporary point on the term, I contend that 10 million is the new 1 million anyway. A million seemed like a good bit 25 years ago, but not so much anymore.
     
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  7. Floyd Eye

    Floyd Eye Member

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    Having a million dollars worth of stuff doesn't make you a millionaire does it? Personally I would think that if you don't have the ability to have a million cash in your hand by the end of business today, you ain't a millionaire.
     
  8. AZChilicat

    AZChilicat Member

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    Well, guess I need another dry wall crew. :mad:
     
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  9. Chris Scott

    Chris Scott Silver Supporting Member

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    Agreed, but I was just thinking that most people aren't thinking in those terms when considering someone's net worth. Business people, and accountants, different story.

    ...or, I'm an idiot - it's happened.:D
     
  10. michael patrick

    michael patrick Supporting Member

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  11. AaeCee

    AaeCee Member

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    As long as you can get them to work weekends, it sounds like money in the bank!
     
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  12. Chris Scott

    Chris Scott Silver Supporting Member

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    Good point...liquidity seems to be a more realistic criteria than holdings.
     
  13. AZChilicat

    AZChilicat Member

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    Correct answer.
     
  14. Blue410

    Blue410 Silver Supporting Member

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    It should include everything bestowed on you by the sisters and others in the non-TGP membership as an act of gratitude for any sustenance you shared.
     
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  15. Darby Crash

    Darby Crash Member

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    Do you count your guitars at the sale price or the trade value?
     
  16. mvsr990

    mvsr990 Supporting Member

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    Liquid assets/investments. Maybe if you're talking about someone set to retire, the difference in the home equity and what it would take to purchase a suitable dwelling to replace it with if they're wanting to downsize. My mom probably has $150k in equity in her house right now, but that would be the bare minimum to buy a house in good condition with a yard for her dogs so it's a wash in my book.
     
  17. rumbletone

    rumbletone Silver Supporting Member

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    I suppose it depends on where the home is ... my other investments have been averaging 8%, but my last home generated over 75% in less than 5 years (not sure what that works out to as an annual return) - and took less than a week to sell, with no subjects.


     
  18. pickdropper

    pickdropper Supporting Member

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    Everything counts in large amounts.
     
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  19. Bob Longo

    Bob Longo Gold Supporting Member

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    Assets-Liabilities>$1M
     
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  20. slipbeer

    slipbeer Supporting Member

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    I don't think you're a millionaire unless you can sell your assets and sit there with a million dollars cash.

    Value and liquidation capability are 2 different things. If you have all your money tied up in Digitech Whammy pedals for instance and you value one at 100 bucks, how long does it take to sell 10,000 of them?

    Has Digitech even sold 10,000 of them?
     
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