Thursday, May 31, 2007

The rich don't save either

As part of my "Save For Retirement" series, I am obviously poking and prodding you to save for retirement! The goal is to get to a point where you're rich enough to stop working, do what you want to do with your time, and have financial security no matter how old you live to be.

Should rich people save money? "Rich" is obviously a relative term, but I would say that the rich should at least maintain a certain level of net worth and not ever see it go down year-over-year. I've often thought that's how I'd handle myself if I won the lottery. In order to avoid become one of those boobs that squanders away the entire prize, I came up with this - If I received $20 million or so in cash after taxes, my pledge would be to only grow my net worth each year, and never see it go below $20 million due to frivolous spending or careless investing. Perhaps a good way to live anyway, huh?

Not enough Americans are saving for retirement. However, I read this article on how the rich aren't really saving either. In fact, a full 34% of people earning over $250,000 said that paying everyday bills was an obstacle to saving. And 49% say they're not saving more because they just "want some spending money." I suppose once you're earning $250,000 instead of $50,000, your lifestyle gets ratcheted up 500% as well!

9 comments:

samerwriter said...

Not to mention, $250,000 doesn't go nearly as far as one might think when you are paying nearly half of every marginal dollar in federal, state, and local taxes, not to mention medicare.

Anonymous said...

"I suppose once you're earning $250,000 instead of $50,000, your lifestyle gets ratcheted up 500% as well!"

Not always true. My wife and I make in excess of $300K annually and live on about a third of the income and save or invest the rest. I'm currently driving a 14 yr. old car with 160K miles on it and, are you ready for this, we rent for $1125/mo (utilities included). We're in our 30s and having a blast with what we do spend.

Q said...

To anonymous,

You appear to be handling your finances correctly!!! I salute you and your fat salaries!

My wife and I maxed out at about $135,000 annually, and now we're making a bit less. But if you can save and prudently invest no matter how much you're making, it will pile up as you age.

Plus6 said...

As an addition to this article you may want to check out this bankrate article on savings levels projected to rise in 2007:

http://www.bankrate.com/brm/news/pf/YIRguide06-07/Nov06_Checking_saving_preview_2007_a1.asp?caret=2

Q said...

Thanks plus6!

Anonymous said...

Hello !.
might , probably curious to know how one can collect a huge starting capital .
There is no need to invest much at first. You may begin to receive yields with as small sum of money as 20-100 dollars.

AimTrust is what you need
The firm incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with offices everywhere: In USA, Canada, Cyprus.
Do you want to become an affluent person?
That`s your choice That`s what you wish in the long run!

I`m happy and lucky, I began to get real money with the help of this company,
and I invite you to do the same. It`s all about how to choose a correct partner utilizes your funds in a right way - that`s the AimTrust!.
I make 2G daily, and what I started with was a funny sum of 500 bucks!
It`s easy to get involved , just click this link http://ubomemiju.freecities.com/equgowe.html
and go! Let`s take our chance together to feel the smell of real money

Anonymous said...

Hi there!
I would like to burn a theme at this forum. There is such a thing, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

For several years , I make money with the help of these programs.
I don't have problems with money now, but there are heights that must be conquered . I get now up to 2G a day , and I started with funny 500 bucks.
Right now, I'm very close at catching at last a guaranteed variant to make a sharp rise . Turn to my web site to get additional info.

http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Alita Duplanty said...

every marginal dollar in federal, state, and local taxes, not to mention medicare.
pictures of nature

Alita Duplanty said...

nearly half of every marginal dollar in federal, state, and local taxes, not to mention medicare.
amazing pictures of nature