Millionaires

gramar · 17-10-2016 8:27am

Andy From Sligo wrote: »

If some people have claimed that they started off with a quid selling apples (the fruit not the computers lol) on a street corner and no other help.... have they really, come on!

Are you saying Bill Cullen didn't start off selling apples out of a pram without an arse in his trousers?

ohnonotgmail · 17-10-2016 9:45am

Irish begrudgery is alive and well i see.

The Backwards Man · 17-10-2016 9:54am

Every single person in this thread is richer than 90% of the world's population. Put that in your pipe and whinge on it.

FURET · 17-10-2016 10:00am

The only long-term study I know on millionaires was an American one which found that the majority of decamillionaires (i.e. those with a net worth of between 1 and 10 million) were self-made, had received little to no help from parents, drove six-year-old cars and lived in modest homes.

The study also found that:

A good husband-wife relationship with sympatico views on finance was vital
Most millionaires don't buy new "stuff" very often
They view money as a means to buy free time rather than consumer items
Children who receive financial gifts from well-intentioned relatives and parents turn out to be less successful as adults
In families that built decamillionaire type wealth, the wealth generally dried up by the third generation

FURET · 17-10-2016 10:02am

Andy From Sligo wrote: »

I do

You cannot tell me that the majority of kids who's parents are rich are very grounded or ever know what 'real' life is like for other kids that are not born into a well off family. - well, you might get a few rich kids that might grow up and do some charity work maybe , but then so do poorer kids do too. - I have seen a lot of spoilt kids where they have been born into money and know no different other than living a rich lifestyle and get everything bought for them

This reeks of envy. If I gave you 2M euro would you take it? Or would you rather stay as you are so that your kids can "live in the real world".

Sam Kade · 17-10-2016 10:13am

Outlaw Pete wrote: »

Rich people don't pay enough tax.

Now I know they pay more tax than anyone else, but's it's still not nearly enough.

It should just be accepted that when you start making millions it's almost pointless as so much will be taken back in tax.

Then raise the minimum wage with that tax.

People will then actually have an incentive to work and small businesses would earn more too as there would be more disposable income around.

A cross between communism and capitalism is what is needed.

Are you with me people?

You're plan is fcuked from the beginning, if you make it pointless to earn millions because of excessive tax then the tax won't be there to pay extra to workers. Did you ever hear the saying give a man a fish feed him for a day teach a man to fish feed him for a lifetime?

valoren · 17-10-2016 10:24am

Millionaires.

Imagine a husband and wife, with a baby on the way, who, 40 years ago, at age 30 came into a small inheritance of $2500.
They decided to invest this along with an additional $2500 of their own savings.

They like the look of Coca Cola. It's been around for 90 years they reckon and has a straightforward, understandable business, they sold soft drinks.
So they invested the 5k at $82.25 per share for 60 shares in the company in October 1976.
They received a small dividend every 3 months but it was so small that they kept it aside.
Eventually it became a bit larger and on the advice of a business friend, they instructed the stockbroker to re-invest the dividend instead.
The dividend would be more shares, which themselves provided a dividend. Money making money.
The investment does well for a few years, and the wife decides to invest an additional $2,500 every 5 years into Coke stock without fail.

Feeling a bit more confident, the husband decides to invest his yearly savings into other enterprises.
With a banking background, with a firm grasp on the industry, through the 80s/90s/00s, he dollar cost averages his savings over time into Enron, WorldCom and Lehman Brothers although he also invests in Royal Dutch Shell, Johnson & Johnson and Colgate Toothpaste as well along the way.
With the coke investment chugging along, he wants to 'diversify'. These investments begin making great returns, so he decides to focus on other industries and plans to let them compound, just like Coke.

Today, 40 years later, they are retired.
They never touched the investment and went about living their lives, while saving and investing.
Not through several market panics where the share price crashed, oil crises, global terrorism, gulf wars, booms and busts.

After a total investment amount of $20,000 over 40 years, they would now hold 39,629 shares in Coca Cola through stock splits and reinvested dividends. The value of the shares would be $1,651,000.

Their dividends will amount to gross $12,820. More than double than they invested initially way back when (5k).
Every 3 months.
The yearly dividend will be $51,280.

As they have cleared their mortgage on their modest 3 bed semi, they are Millionaires through nothing but budgeting, forward planning, discipline and patience.

But you wouldn't think it to look at them. No Mercs or Rolex watches or status symbols. They can well afford them but it's not their thing.
Note: The Enron, WorldCom and Lehman Brothers investments are worth $0. The annual dividend will be $0.

With the additional savings and profitable investments they made through their lives they don't worry about money.
They have told their daughter that the shares will be her's when they pass away.
She is shrewd enough to understand that selling the shares will incur taxes etc.
The Coke dividend alone would currently pay for her mortgage and her monthly expenses.

She knows that she may invest herself in her generations WorldComs but she knows that Coke is the golden goose and it will never be touched as the board of directors raise the cash dividend modestly every year.
That snowball will be allowed to roll down the hill, reinvested for more shares and more and more dividends.

She figures that when she herself passes away her own children's money worries will be non-existent, and their children etc etc.
Intergenerational wealth which began with a modest investment way back in 1976.

You would never bregrudge anyone who had an investing success story like that.

Charles Babbage · 17-10-2016 10:45am

https://www.youtube.com/watch?v=U8Kum8OUTuk

Ragnar Lothbrok · 17-10-2016 11:26am

PolaroidPizza wrote: »

Most civil servants are millionaires. When you account for their pensions.

That's great news! I'm leaving work right now to go down and buy a new yacht

Ush1 · 17-10-2016 11:37am

People talk about kids of rich people being in better positions because they have their parents money.

I think it's not poverty in a financial sense that keeps poor people down, it's a poverty of the mind. A poverty of ideas and motivation.

You don't know what's possible or attainable unless you're inspired/mentored.

Poor Uncle Tom · 17-10-2016 11:54am

Ragnar Lothbrok wrote: »

That's great news! I'm leaving work right now to go down and buy a new yacht

Only in the Civil Service

:D

On a serious note. I have recently seen some Civil Service employees out and about town during work days only to be seen back behind their desks before 5pm to clock out, usually the same faces, usually during Thursdays and Fridays.

Grayson · 17-10-2016 12:08pm

FURET wrote: »

What are your degrees and masters in? Did you enter into education with a view to attaining marketable skills?

Maths, Computer Science and the MSc is in Business Management.

Ragnar Lothbrok · 17-10-2016 12:13pm

Ragnar Lothbrok wrote: »

That's great news! I'm leaving work right now to go down and buy a new yacht

Poor Uncle Tom wrote: »

Only in the Civil Service :D

I was on my tea break

Poor Uncle Tom wrote: »

On a serious note. I have recently seen some Civil Service employees out and about town during work days only to be seen back behind their desks before 5pm to clock out, usually the same faces, usually during Thursdays and Fridays.

Really? How do you know that their job doesn't entail being out and about during the day? If they are just bunking off, they should be reported. The vast majority of civil servants do a good job and are conscientious. A few idiots though, who tend to get us all tarred with the same brush :mad:

osarusan · 17-10-2016 12:24pm

Yes, two, one in Japan and one here.

Both are lovely people to know and very respectful and modest, but I've heard that in business they are both tough as old nails.

FURET · 17-10-2016 12:45pm

Grayson wrote: »

Maths, Computer Science and the MSc is in Business Management.

What went wrong for you?

BrokenArrows · 17-10-2016 12:52pm

The chances are that the people you hear about are self made. But self made is different depending on who you ask.

Donald Trump probably considers himself self made. But that's BS.

The people who literly start a small business and grow it into a large profitable ones while risking their own money are the ones who are self made.

Million/billionaires who inherit it, you generally don't hear about them. They just live their own lives in their money bubble and their financial interests are taken care of automatically.

You can't really blame a rich kid from being an entitled ass because that's how their parents raised them. If you grow up rich then you won't know what real work is unless your parents teach you.

17-10-2016 1:01pm

BrokenArrows wrote: »

You can't really blame a rich kid from being an entitled ass because that's how their parents raised them. If you grow up rich then you won't know what real work is unless your parents teach you.

You could say the same for a poor child too. A child with both parents on the dole, feeling hard done by, entitled to rent allowances, Christmas bonus, being exempt from different tax, free medical care and dentists, growing up with the expectation that they shouldn't be expected to take care of themselves or their own needs, and that one day hopefully soon, they'll be given their own council house, preferably near their mam, to continue the cycle in.
Of course there are poorer families out there who aren't like that, just like the rich families aren't all self entitled either.

Just pointing out self entitlement isn't reserved for the kids of rich parents.

wakka12 · 17-10-2016 1:06pm

Why would you assume that most millionaires didnt work for their money? This isn't medieval times we arent stuck int he socio economic niches we were born into forever now. (within reason..)

Poor Uncle Tom · 17-10-2016 1:09pm

Ragnar Lothbrok wrote: »

Really? How do you know that their job doesn't entail being out and about during the day?

I would love a job that allowed me browse the shelves of New Look too....:p

Ragnar Lothbrok wrote: »

If they are just bunking off, they should be reported. The vast majority of civil servants do a good job and are conscientious. A few idiots though, who tend to get us all tarred with the same brush :mad:

agree with ALL of this......;)

TheDoc · 17-10-2016 1:14pm

Grayson wrote: »

I can't remember who said it but apparently the first million is the hardest. After that it gets far easier to make money because you can just invest.

Not important who said it, it's just the truth.

Once you reach a certain level of income a world of tools and functions become available that are tailored to make you more money, because you are then making the companies,organisations and people who operate these tools, more money.

BrokenArrows · 17-10-2016 1:21pm

TheDoc wrote: »

Not important who said it, it's just the truth.

Once you reach a certain level of income a world of tools and functions become available that are tailored to make you more money, because you are then making the companies,organisations and people who operate these tools, more money.

Thats exactly right. It takes money to make money.

Even given the **** interest rates we have today with a million in cash you can easily make 15k a year alone with some government bonds.

One of the other things is that once you are not a PAYE employee anymore you have the options to "manage" your taxes in a way the we cannot.

FizzleSticks · 17-10-2016 1:22pm

This post has been deleted.

PolaroidPizza · 17-10-2016 1:48pm

If you have a public pension of more than 24k then thats the equivalent of a million euro put into a private pension. Congratulations

Ragnar Lothbrok wrote: »

That's great news! I'm leaving work right now to go down and buy a new yacht

17-10-2016 2:16pm

Well the actual value of 1 million of contemporary currency units is obviously not what it once was. To be a millionaire in 1960 would have probably carried as much prestige as being worth 100 million now, and was probably harder to bring about. Also, the main unit of currency in 1960 was kind of still the shilling rather than the pound at that stage I believe? Even the difference between being a millionaire in 1995 and 2005 was very different - it always strikes me when Fr Ted sees that Fr.Jack left £500,000 in his will and faints - when I was younger that seemed like an unrealistically large sum but nowadays even if it was 1 million it wouldn't seem that extraordinary!

Joe prim · 17-10-2016 2:23pm

Ragnar Lothbrok wrote: »

That's great news! I'm leaving work right now to go down and buy a new yacht

At least wait until after the tea-break!:)

Andy From Sligo · 17-10-2016 2:26pm

The Backwards Man wrote: »

Every single person in this thread is richer than 90% of the world's population. Put that in your pipe and whinge on it.

hello Bono

Andy From Sligo · 17-10-2016 2:28pm

FURET wrote: »

This reeks of envy. If I gave you 2M euro would you take it? Or would you rather stay as you are so that your kids can "live in the real world".

had a long thought about it (about 5 seconds), and I will take it - when and where do we meet - cheers!

Andy From Sligo · 17-10-2016 2:32pm

valoren wrote: »

Millionaires.

Imagine a husband and wife, with a baby on the way, who, 40 years ago, at age 30 came into a small inheritance of $2500.
They decided to invest this along with an additional $2500 of their own savings.

They like the look of Coca Cola. It's been around for 90 years they reckon and has a straightforward, understandable business, they sold soft drinks.
So they invested the 5k at $82.25 per share for 60 shares in the company in October 1976.
They received a small dividend every 3 months but it was so small that they kept it aside.
Eventually it became a bit larger and on the advice of a business friend, they instructed the stockbroker to re-invest the dividend instead.
The dividend would be more shares, which themselves provided a dividend. Money making money.

Feeling a bit more confident, the husband decides to invest his yearly savings into other enterprises.
With a banking background, with a firm grasp on the industry, through the 80s/90s/00s, he dollar cost averages his savings over time into Enron, WorldCom and Lehman Brothers although he also invests in Royal Dutch Shell, Johnson & Johnson and Colgate Toothpaste as well along the way.
With the coke investment chugging along, he wants to 'diversify'. These investments begin making great returns, so he decides to focus on other industries and plans to let them compound, just like Coke.

Today, 40 years later, they are retired.
They never touched the investment and went about living their lives, while saving and investing.
Not through several market panics where the share price crashed, oil crises, global terrorism, gulf wars, booms and busts.

They would now hold 18,680 shares in Coca Cola through stock splits and reinvested dividends. The value of the shares would be $778,436.
Their dividends will amount to gross $6538. More than they invested initially way back when. Every 3 months.
The yearly dividend will be $26,152.

As they have cleared their mortgage on their modest 3 bed semi, they figure that they are millionaires.
And you wouldn't think it to look at them. No Mercs or Rolex watches or status symbols. They can well afford them but it's not their thing.
Note: The Enron, WorldCom and Lehman Brothers investments are worth $0. The annual dividend will be $0.

With the additional savings and profitable investments they made through their lives they don't worry about money.
They have told their daughter that the shares will be her's when they pass away.
She is shrewd enough to understand that selling the shares will incur taxes etc.
The Coke dividend alone would currently pay for her mortgage and her monthly expenses.

She knows that she may invest herself in her generations WorldComs but she knows that Coke is the golden goose and it will never be touched as the board of directors raise the cash dividend modestly every year.
That snowball will be allowed to roll down the hill, reinvested for more shares and more and more dividends.

She figures that when she herself passes away her own children's money worries will be non-existent, and their children etc etc.
Intergenerational wealth which began with a modest investment way back in 1976.

nope u lost me after the "They like the look of Coca Cola.." bit from then on

FURET · 17-10-2016 2:36pm

Some people aren't millionaires, because they're dumb.

ohnonotgmail · 17-10-2016 2:37pm

FURET wrote: »

Some people aren't millionaires, because they're dumb.

Is that you Donald?

Millionaires

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