Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Lars who wrote (3288)	2/11/1999 2:53:00 AM
From: Prestone	Read Replies (1) \| Respond to of 15132

* Millionaire Next Door * How much money should you have now? Multiply your age by your realized pre-tax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be. ********************************** Now that one is a tall order. I am 26 and considered a money grubber by my friends. I happened to meet the above criteria with only $150 to spare. I suppose I need to make less so that it is easier to match that criteria!! Of the 20 people I work with. Only one other would make that list. I am only aware of two others that I know that can also say the same. Does it say anything about age brackets on there? That seems like pretty high standards. Just Curious?

To: Lars who wrote (3288)	2/11/1999 9:23:00 AM
From: Thomas M. Carroll	Read Replies (1) \| Respond to of 15132

You just made my day. I'm about one-third in excess of your formula. But then again I have 65 years to multiply by !!! Tom C

To: Lars who wrote (3288)	2/11/1999 10:53:00 PM
From: Lars	Respond to of 15132

* Millionaire Next Door * Are you a PAW? A Prodigious Accumulator of Wealth has twice the expected net worth for his age/income.* * Multiply your age by your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.

To: Lars who wrote (3288)	2/11/1999 10:55:00 PM
From: Lars	Respond to of 15132

* Millionaire Next Door * Are you a UAW? An Under Accumulator of Wealth has less than one half the expected net worth for his age/income.

To: Lars who wrote (3288)	2/12/1999 8:43:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 15132

Lars: re:<"How much money should you have now?"> For purposes of making the calculation you refer to, I saw nothing in the book that adequately clarified the definition of "your REALIZED PRE-TAX ANNUAL HOUSEHOLD INCOME from all sources except inheritances". After reading the book and trying to make the calculation, I had to make the following assumptions without knowing for sure that I was making a correct calculation. For example: (1) Assume MUTUAL FUND DISTRIBUTIONS of realized income and cap gains would be EXCLUDED as "non-household" and of a not necessarily continuing nature. Do you agree - if not why ? (2) Assume you'd need to ADD BACK taken (a) depreciation deductions (b) deductions taken for business portion of home expenses (c) deductions taken for payment(s) to Keogh Plan(s) to arrive at "REALIZED" BUSINESS INCOME. Do you agree - if not, which would you not adjust business income (per tax return) by and why ? (3) Assume PENSION INCOME would be INCLUDED as REALIZED HOUSEHOLD INCOME. Do you agree - if not, why ? (4) Assume ONE-TIME Income Tax Refunds recognized on one's tax return would be EXCLUDED as NON-RECURRING Special Items. Do you agree, if not why ? (5) Assume you'd ADD BACK taken deductions for DEPRECIATION to arrive at REALIZED Income From RENTAL PROPERTIES. Do you agree - if not, why? Your posts of excerpts from "The Millionaire Next Door" are outstanding. I found the book to be model of behavior to aspire to for those seeking to build their personal assets to "critical mass". P