Why do you want to be superwealthy?
Real Estate Professional · Las Vegas, NV · Member since 2013 · 225 posts · 74 votes
Why do you want to be superwealthy?
Most Popular Reply
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8yJust need to clarify that I don't desire super wealth. To me that's GC 10x type flying around in your jet working all the time.
Our goals change over time of course. First for me was content FI. I just wanted freedom. Freedom from the commute and rules, freedom to do or don't take a nap.
Then it was- what if my kids never had debt, ever (except a house maybe). What if their kids didn't either. Never a car loan, never a cc, never a student loan. What a leg up they would have. I'll be the first one ever in my family to pass something down. Legacy.
Then it was- what if my parents who were 'poor' but always provided could donate a 3rd of their estate (my share someday, maybe $75-100k) to local causes they supported for decades. My dad had tears when I told him I would like to do that. Giving.
We'll never be 'super wealthy' but will impact at least 2 subsequent generations. There's been enough sacrificing and doing without in my family tree. Time to let some younguns not have to start from scratch. I think that's my biggest why. Good discussion!
125 Replies
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Jerryll Noorden:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
Originally posted by @DL Martin:
Originally posted by @Joe Splitrock:
"With money I can hire someone to mow my lawn... which are things I am happier not doing."
Joe, you obviously don't own a Zero Turn. : )
DL
I had a zero turn for years when I owned an acreage. I used to mow 3.5 acres of grass. When I upgraded from my Craftsman 42" to a 60" zero turn, my mowing time went from 4.5 hours to just over 2 hours. The zero turn was awesome, but ultimately I sold the acreage and the zero turn. I hear what you are saying. If you are going to do any job, having the right tools sure makes it easier.
closest I came to dying on a machine that moved.. including flying my own plane.. driving my own boat.. driving cars. etc etc.
was the day I decided to mow our office lawn.. there was an old riding mower in the back .. normally we hire this stuff out of course.
but I hop on that and back yard was going good then I decide to go out front and now I am heading for the street trying to figure out how to stop the thing I end up in the middles of the street with a car 3 inchs from me that braked and skidded to a stop.. No more riding mowers for me.. :)
This happened to me, but substitute lawn mower with a crazy horse. Ever been on a horse with horse shoes on asphalt? Its like Ice to them.
learned early on never to get on a horse. I rode motor cycles that was crazy enough but I could control the throttle.. It was the riding mower at mach .0002 that I could not get into neutral and the brake did not work right.. that just about took me down.. !
- Financial Advisor · San Diego, CA · Member since 2015 · 51 posts · 37 votes8y
For me, wealth = freedom. The more wealth I have, the more freedom I have to work on the things I enjoy. The more time I have to spend with my friends and family. The more time I have to give back to others as well as more money to give.
It seems like a lot of people believe that being super wealthy is greedy and a bad thing, but I completely disagree. These are the people who create jobs and improve the world. They're the ones who improve and advance our technology and our lives. They create wealth for everyone, not just themselves. I don't think there's anything wrong with wanting to be super wealthy.
- Rental Property Investor · Cincinnati, OH · Member since 2013 · 292 posts · 280 votes8y
Originally posted by @Joe Splitrock:
Originally posted by @DL Martin:
Originally posted by @Joe Splitrock:
"With money I can hire someone to mow my lawn... which are things I am happier not doing."
Joe, you obviously don't own a Zero Turn. : )
DL
I had a zero turn for years when I owned an acreage. I used to mow 3.5 acres of grass. When I upgraded from my Craftsman 42" to a 60" zero turn, my mowing time went from 4.5 hours to just over 2 hours. The zero turn was awesome, but ultimately I sold the acreage and the zero turn. I hear what you are saying. If you are going to do any job, having the right tools sure makes it easier.
: ) I only have .55 acre, flat as a pancake, and I have a little entry level 42" zero turn. 18 minutes for the back yard and 12 minutes for the front yard.
In CA we paid to have our yard mowed/edged. In my defense, I had a 40-60 hour a week "job" and some rentals... Now I'm "retired" and more or less a "hobby" landlord.
I really enjoy riding that stupid zero turn... Whoduh thunk????
DL
- Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes8y
Originally posted by @Alex Silang:
Just an honest question.
Besides being able to "retire early" and maybe do a couple international trips a year, why do you want to acquire a massive amount of wealth?
I used to fall into this category. But then I switched jobs and enjoyed my job a lot more (so much so that I think i'll work til 65 or whatever the retirement age will be). Also investing in real estate has made me pay attention to my budget more. I find "cutting back" on luxuries doesn't hurt me at all and it's kind of the situation where buying real estate to make me wealthy is making me realize I don't need to be wealth to be happy.
What do you think?
My answer depends upon what you consider super wealthy
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
Originally posted by @Jason D.:
@Joe Splitrock I think the findings of the studies about income (not wealth) is that there is a dollar amount where happiness peaks, and having an income higher than that doesnt increase happiness. Wealth has no correlation with happiness, otherwise every wealthy person would be happy and everyone else would not be. If I made $150k per year in passive income, I could support my family and do whatever I wanted. That is my peak happiness. If I made $500k per year, I would still do the same things, so there would be no increase in happiness. Buying things dont correlate into happiness for me, so more money doesnt make me more happy.That is not how correlation works. It is not a black and white connection, meaning not all wealthy people are happy and not all poor people are unhappy. A correlation can be casual. For example, college educated people make more money on average than high school educated people. That does NOT mean that EVERY college educated person makes more money. Money eliminates problems and opens opportunity, which is why it leads to more happiness. It is not about buying stuff.
The difficulty with measuring happiness is that it is very subjective and relative. Measuring salaries is easy, but happiness requires some level of self reporting which is biased and relative. There is overwhelming evidence that lack of money is a disadvantage and having money affords opportunity, yet people without money still claim money doesn't buy happiness. My original post acknowledged that a homeless person can be happy, because happiness is relative. A prisoner is happy when they get one hour outside a day.
You can say that making $500K will not make you happier than $150K, but you lack perspective on what it is like to make $500K per year. I suspect if you made $500K that you could find a beneficial use for the money - not talking about stuff...
My point on the studies is that the outcome shows the people administering the studies are at optimal income happiness. This is because cognitive dissonance creates mental discomfort if the outcome of the study yielded a different result. If you believed that making $500K a year would make you happier, this would create major mental discomfort for you. Your brain chooses to believe what makes you more comfortable. That is honestly what holds most of us back. This is what keeps people stuck in the poverty cycle.
Wealth isn't about accumulating things to make you happy. It is about affording opportunities, experiences, giving you time and allowing you to make a difference in other peoples lives.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Matt Schuberg:
For me, wealth = freedom. The more wealth I have, the more freedom I have to work on the things I enjoy. The more time I have to spend with my friends and family. The more time I have to give back to others as well as more money to give.
It seems like a lot of people believe that being super wealthy is greedy and a bad thing, but I completely disagree. These are the people who create jobs and improve the world. They're the ones who improve and advance our technology and our lives. They create wealth for everyone, not just themselves. I don't think there's anything wrong with wanting to be super wealthy.
if people did not want to be super wealthy no one would play lotto and power ball.. just think how many people dream when power ball is at 300 million or some silly number like that.. we all do it.. what would I do with my life if I won that amount of money.. ???
for me in all seriousness its just the lifestyle I chose way back at 17 18 .. I was going to sell and work in real estate ... I got a taste of it early on as a freshly minted agent at 18.. when my friends were making 2 bucks an hour I was making 1k commissions in 3 or 4 hours of work.. Not hard to understand that concept.. sales done right is needed.. every manufacturer has a sales rep.. most real estate in some form is SOLD your either doing it on your own so your your own salesmen.. or through agents.. Sure there are ups and downs.. but there is freedom and it is a lifestyle.. if for one minute you think I HAVE to work then your not living the real estate lifestyle. there are no hours. there are no days.. you do what you need to do to transact..
- 8yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
Originally posted by @Jerryll Noorden:
Originally posted by @Mindy Jensen:
@Jerryll Noorden , I want a Speeder Bike!
I am seriously designing one!!!
When I am filthy (rich) you will see me on the news hunting Ewoks with my leopard skin towel around my butt speeding on my speeder bike smacking ewoks on the back of their heads as I zoom by!
Thanks for the visual...
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Jerryll Noorden:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
Originally posted by @DL Martin:
Originally posted by @Joe Splitrock:
"With money I can hire someone to mow my lawn... which are things I am happier not doing."
Joe, you obviously don't own a Zero Turn. : )
DL
I had a zero turn for years when I owned an acreage. I used to mow 3.5 acres of grass. When I upgraded from my Craftsman 42" to a 60" zero turn, my mowing time went from 4.5 hours to just over 2 hours. The zero turn was awesome, but ultimately I sold the acreage and the zero turn. I hear what you are saying. If you are going to do any job, having the right tools sure makes it easier.
closest I came to dying on a machine that moved.. including flying my own plane.. driving my own boat.. driving cars. etc etc.
was the day I decided to mow our office lawn.. there was an old riding mower in the back .. normally we hire this stuff out of course.
but I hop on that and back yard was going good then I decide to go out front and now I am heading for the street trying to figure out how to stop the thing I end up in the middles of the street with a car 3 inchs from me that braked and skidded to a stop.. No more riding mowers for me.. :)
This happened to me, but substitute lawn mower with a crazy horse. Ever been on a horse with horse shoes on asphalt? Its like Ice to them.
learned early on never to get on a horse. I rode motor cycles that was crazy enough but I could control the throttle.. It was the riding mower at mach .0002 that I could not get into neutral and the brake did not work right.. that just about took me down.. !
So this was in Curacao, and there was a ranch next to our house. Always little American tourists came by to ride horses. We were young eager energetic silly little monkeys then that like to go super fast on horses. Some back info on horses. Gallop like a wimp, and it is bouncy and hurts your butt. But go full speed and the ride is super smooth gliding in the air.. sighh good ol days.
So these silly little Americans, often older... want to go slow. SO BORING. So we always go fast.. and when one horse starts sprinting... OMG.. ALL blast off..
All you hear is wind and faint yelling swearing and cursing, of the little americans in the back! "OMG STOOOOP in STOP HELP HEEEEELP".. I turn around and say '' Whaaaat? Me no speaking English" ... Then when full speed is reached, it is DEAD quiet. They have this incredibly shocked look in their eyes, and entire body is tense ... they are too scared to yell. It is hilarious!!!! We loved it. And in the end. they gave us tips too. little freaks!
Well there was this one horse called Negro. (colombian "Paso Fino" shining black beautiful... just like me) That little bastard was freaker than I am. No one can ride him, but moi.... So we go to the wilderness to a secluded beach (our normal route)... but as we fly through the brush, on a HOT curacaoan day... the horses get thirsty and tired.
On the way back yo DO NOT SPRINT!!!! because it takes all you have to pull the rope tight .. that thing in their mouths.. to keep them from sprinting back (back tot he ranch means rest and water).. welllll.. this freak could not be stopped. On the way back you simply can not do anything. You just have to sit and hope you don't die! These stupid horses do not understand that the center of gravity is different when there is a monkey on their back. And they think there is no difference whether someone is on top riding or not. Well he became crazy, and it was either a ravine or a busy road... as he sprinted home with me yelling like a crazy baboon. We fell, horse on asfalt My on the horse and we tumbled down the road with speeding cars. It was AWESOME!
We were covered in Blood.. and from that day on, that horse and I became blood brothers!
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes8y
Originally posted by @Mindy Jensen:
Originally posted by @Jerryll Noorden:
Originally posted by @Mindy Jensen:
@Jerryll Noorden , I want a Speeder Bike!
I am seriously designing one!!!
When I am filthy (rich) you will see me on the news hunting Ewoks with my leopard skin towel around my butt speeding on my speeder bike smacking ewoks on the back of their heads as I zoom by!
Thanks for the visual...
^_^
So welcome!!
- 8yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Originally posted by @Caleb Heimsoth:
Joe Villeneuve here’s a link to the study I was referring to: http://www.thisisinsider.com/how-much-money-you-ne...
The original paper is linked in this article. To be clear, I’m not saying being super wealthy is a bad goal or bad if you are wealthy. To me super wealthy would probably kick in at a net worth of 10M or more. If I’m remembering correctly I believe around 4-5 percent of American households are millionaires and less then 10 percent of that is above 5M so statistically you’re up there if you’re in excess of 5 or 10M.
If you achieve that that’s great but for myself I don’t think I’d need anywhere near that amount to accomplish anything I could ever want. I think somewhere in the neighborhood of 3-4M would be plenty.
Thanks for the link. I took a look at it, and as I suspected, the entire thing was bogus. It was based on a poll, which is in reality a series of questions (conveniently not listed) in which the answers are nothing more than the opinions of the people questioned.
There's another even more important factor negating this (and I bet any other "poll") as a valid source facts. This poll, and article, is basing the source of income on a job/salary...with no mention or impact from Real Estate Investing.
They also blur the line between rich and wealth. They're not the same. The article, and I assume the poll it's based on, is referring to "riches", but defining the results as wealth.
Also, since the riches come from a job, and in order to increase those riches I would have to work more hours, I would expect those "questioned" to reply the way they did.
I wonder what the answers would be in that poll, if they were asked, "If you didn't have to work any additional hours, and the income came from a passive source (like REI),...[then fill in the same questions they originally asked]" .
- Financial Advisor · San Diego, CA · Member since 2015 · 51 posts · 37 votes8y
@Jay Hinrichs couldn't agree more. I think deep down everyone has some desire to be super wealthy. As you mentioned, the lotto is a great example to prove that. I think that's why most of us got into real estate, too.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @DL Martin:
Originally posted by @Roger S.:
I don't. I don't need a massive amount of wealth to retire early or travel internationally. I can do all that on 40k a year.
Roger, I get what you are saying, but... stuff is expensive. Health insurance alone is $1,000 per month. Vehicle insurance. Life insurance. property insurance. If you don't have a large pension or large 401k to draw on, then add in long term disability insurance.
Federal, state and local taxes.
Vehicle registrations.
I don't know about that $40k annual income number...
DL
when your 30 you don't think about those things.. when your aging like a fine wine your exactly right.. I have no clue how anyone could live on 40k a year.. Just sayin... I guess no vehicle... medicad but if your too young for that.. house paid for.. but even tax's and food will run you a few grand.. this is why rentals can be precarious..
- Investor · New York, NY · Member since 2016 · 65 posts · 38 votes8y
I grew up really poor. I had like 3 shirts growing up so I would wear the same clothes twice a week. I would of course wash them but when you're in elementary school/middle school the kids will notice and make fun of you. I do not want my future kids to ever go through that. I also have friends who couldn't go to the college that they wanted to or study the field that they wanted to because they couldn't afford tuition/living expenses while going to school. I want to be able to allow my family to have every advantage they can. I don't want them not to be able to live to their full potential because of something I could have done but didn't.
Yes people say you can live happily with 100k a yr salary but what if i have 3 kids and they get into harvard, yale, Princeton? Thats 200k a year in tuition/living. I can easily tell them to get loans but why would I put that burden on them if I can do something about it now so they don't have to suffer later.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Thomas S.:
"or if their not interested I’ll liquidate it all."
In my case I will be liquidating all my assets within the next couple of years. At that time I may be a money partner in my children's investments. Retirement for me will be long over due. My children are building their own wealth so if they wait for me to die to inherit they will be retired themselves and definatly not interested in working to carry my business.
I believe it is a wasted goal to work to hand over a business to the next generation unless the next generation is actively involved in building the business during their prime working years. If you want to assist the next generation share your wealth while they are still young enough to benefit. When you are dead they will be too old.
just curious is there no depreciation in CA or depreciation recapture.. this is one thing the US investor usually does not understand going into rentals.. there is NO just sell them off.. the pain of selling is too great when you have to recapture depreciation for years and years. I know there is no capital gain on your personal resi in CA right ? at least in BC when I was there that was correct.. but I had to pay 25% cap gain as a foreigner and I thought investors had to pay that.. but if there is no recapture then the 25% cap gain is a real bonus.. you only pay if you have a gain..
- 8yNicole A.Pro MemberRental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
It's fun to daydream about being *super* wealthy, but it's honestly not a goal of mine to have hundreds of millions of dollars/worth.
Years ago, my goal was to simply not have bad debt. I achieved that and life got easier because I got to keep more of my money.
Then I wanted to be able to retire early on rental income, and I still do, but I don't feel the burning need as much, and that's likely because I enjoy my day job. I'm still working towards building up rental income though because I'd like the option to retire when I want and I do not want to rely just on my 401K.
I also used to be hyperfocused on my goals and not appreciate what I had in the moment. I found that once I shifted my mindset a bit to appreciate the present, I *was* indeed happy.
I'm in a great position in life where I can travel pretty much whenever I want. I can donate my money, time, and skills to causes important to me. I live 10 minutes from Old Ellicott City, which just flooded for the 2nd time in 2 years, and I am signed up to start helping with clean-up this weekend (weather and county permitting). This is the kind of stuff that makes my life have meaning, fulfillment, and excitement.
Finally, I have a good savings account and I can pay for repairs in my personal home without needing to use a credit card. My loved ones and I are healthy. I really couldn't ask for more.
I just keep pushing forward with bettering myself, so that I can continue to help both myself, my loved ones, and others.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes8y
Originally posted by @Jorge De Jesus:
Define wealth
To me wealth is measured in time. How long can you go without a paycheck and maintain your lifestyle?
Most in the US have like 2 week wealth, if that. Super wealthy to them would be 4 months and a lot of them look 'rich' in nice houses with nice cars and toys. Sad, really.
Rich is a measure of income, wealth a measure of time. My view anyway.
- 8yJana CainPro MemberEnrolled Agent · Richmond, CA · Member since 2016 · 225 posts · 148 votes
Originally posted by @Jay Hinrichs:
Originally posted by @Jerryll Noorden:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
Originally posted by @DL Martin:
Originally posted by @Joe Splitrock:
"With money I can hire someone to mow my lawn... which are things I am happier not doing."
Joe, you obviously don't own a Zero Turn. : )
DL
I had a zero turn for years when I owned an acreage. I used to mow 3.5 acres of grass. When I upgraded from my Craftsman 42" to a 60" zero turn, my mowing time went from 4.5 hours to just over 2 hours. The zero turn was awesome, but ultimately I sold the acreage and the zero turn. I hear what you are saying. If you are going to do any job, having the right tools sure makes it easier.
closest I came to dying on a machine that moved.. including flying my own plane.. driving my own boat.. driving cars. etc etc.
was the day I decided to mow our office lawn.. there was an old riding mower in the back .. normally we hire this stuff out of course.
but I hop on that and back yard was going good then I decide to go out front and now I am heading for the street trying to figure out how to stop the thing I end up in the middles of the street with a car 3 inchs from me that braked and skidded to a stop.. No more riding mowers for me.. :)
This happened to me, but substitute lawn mower with a crazy horse. Ever been on a horse with horse shoes on asphalt? Its like Ice to them.
learned early on never to get on a horse. I rode motor cycles that was crazy enough but I could control the throttle.. It was the riding mower at mach .0002 that I could not get into neutral and the brake did not work right.. that just about took me down.. !
Horses top my list of "material things to blow scores of cash on". I would argue that being into horses can be considered a vice like any other, lol. ☺
- Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 143 posts · 105 votes8y
I get where you're coming from. Money doesn't always equal wealth... so the correct question would be: is having a lot of money worth it? Well, it depends.
If having a lot of money is a means to being able to do what you want to really do with your life, then yes... it's worth it. Also, more times than not, having a lot of money is merely a byproduct of someone doing something they are really passionate about and loves doing. Being "superwealthy," by itself, isn't a bad thing... the process of getting to that point is what would need to be examined.
My opinion is that having a lot of money shouldn't be a primary objective at all... ever.
I might seem narrow minded in saying this, but I think people who only want to amass a lot of money are the worst kind of people, inside and out. It doesn't matter the career path, these individuals do whatever it takes to make more money. In real estate, those are the people that make investors and real estate agents look like swindlers; in the justice system, those are the people that give lawyers a bad wrap... etc., etc. These money hungry, slime-cups are everywhere.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Steve Vaughan:
Originally posted by @Jorge De Jesus:
Define wealth
To me wealth is measured in time. How long can you go without a paycheck and maintain your lifestyle?
Most in the US have like 2 week wealth, if that. Super wealthy to them would be 4 months and a lot of them look 'rich' in nice houses with nice cars and toys. Sad, really.
Rich is a measure of income, wealth a measure of time. My view anyway.
if we took this to the logical end of time how long would investors last if they had no rental income? at that point only cash
OR land that you can hunt fish and grow your own food on has any value..
And seeds to grow crops are more valuable than gold.
- Calumet City, IL · Member since 2018 · 2 posts · 2 votes8yI want to be “super wealthy” so that my family, generations down the line won’t have to start out in debt like I am. I would like for them to have a head start when they want to chase their dreams.
- Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes8yTo give back. Yes I focus on looking after my family but the bigger picture is giving back. I am setting up a Foundation where at least 70% of the proceeds from our RE investments will go towards local, national and international charities. Not just giving them the assets but assigning the passive income to be distributed to the charities. This way they tree will keep on giving.
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