Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
Did you see this article yet?
http://millionaires.blogs.cnnmoney.cnn.com/2007/10/29/43/
It's so weird 2 years ago I would have read that article and said wow, now when I read it I just shake my head and it breaks my heart. I think man what they could do with that lifestyle if they would only use RE and leverage as the vehicle.
York, PA · Member since 2008 · 227 posts · 0 votes
18y
A round of applause for them. The vast majority of the country can only look at that level of financial freedom and wonder what it's like.
I like how the CFP said that they are doing well but they could be doing more. Makes the article somewhat disheartening.
As to REI ... what's the saying ... "horses for courses". They are doing well with the "low and slow" method. They have the somewhat rare combination of frugality, a moderately high income and no mortgage. The first and the last can help almost anyone acquire a fair amount of wealth. The second one can go either way. Plenty of high income earners are broke.
Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
18y
If you use the wealth formula that Stanley & Danko use in Millionaire next door ( (Gross Annual income*age)/10= Target Net worth ), they are 30k ahead of where they are supposed to be for their income & age.
Which is further than I am but I hope to see that change in the next 5 years.
Which brings me to my next question. I'm not quite sure how to incorporate that formula into REI. Do you add your cashflow to the gross annual income number. If you added the gross rental income I'd never meet my target net worth.