Comments on: At What Age Do You Want To Become A Millionaire? http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/ This is where your finance takes place Mon, 01 Dec 2008 21:41:54 +0000 http://wordpress.org/?v=abc By: James-Montreal http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2571 James-Montreal Tue, 17 Jun 2008 17:58:53 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2571 I live in the Montreal area. I have been saving money for years. I am 28 and have in the area of 60,000 +/- mostly RRSP and mutual funds. We have a lot in common. Keep it up. 2000/month is completely unrealistic in Quebec or most of Canada. Living in Quebec is a disaster from a taxable point of view. I was working a few evenings a week and managed to increase my 250/month to 1000/month in the past few months. Here are a few tips -Make sure you trust your financial advisor and the firm he/she works for -Make arrangements to transfer funds directly from your bank account to your Investiment account -Make sure the funds you own are low-fees. When you owe several funds and have less then 100,000$ in the market, these fees can add up to a significant amount. -Be patient, you have many years ahead of you I live in the Montreal area. I have been saving money for years. I am 28 and have in the area of 60,000 +/- mostly RRSP and mutual funds. We have a lot in common. Keep it up. 2000/month is completely unrealistic in Quebec or most of Canada. Living in Quebec is a disaster from a taxable point of view. I was working a few evenings a week and managed to increase my 250/month to 1000/month in the past few months.

Here are a few tips
-Make sure you trust your financial advisor and the firm he/she works for
-Make arrangements to transfer funds directly from your bank account to your Investiment account
-Make sure the funds you own are low-fees. When you owe several funds and have less then 100,000$ in the market, these fees can add up to a significant amount.
-Be patient, you have many years ahead of you

]]> By: MoneyEnergy http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2496 MoneyEnergy Tue, 27 May 2008 01:40:40 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2496 My only tricks are reinvesting dividends. Yep, so far that is my only "trick." Of course, that includes things like saving and not spending money on junk, etc. But my income just isn't high enough yet for larger investments like RE. Since I'll need 26 mil (at least) by the time I'm "retiring," I have to get working.... since I'm still in negative net worth. But I'm an optimist when it comes to age. I started young, but I wasn't able to start with much. I have more and more confidence going forward, and that starts to snowball too. My only tricks are reinvesting dividends. Yep, so far that is my only “trick.” Of course, that includes things like saving and not spending money on junk, etc. But my income just isn’t high enough yet for larger investments like RE.

Since I’ll need 26 mil (at least) by the time I’m “retiring,” I have to get working…. since I’m still in negative net worth.

But I’m an optimist when it comes to age. I started young, but I wasn’t able to start with much. I have more and more confidence going forward, and that starts to snowball too.

]]> By: The Financial Blogger | At What Age Do You Want To Become A Millionnaire? Part 2 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2493 The Financial Blogger | At What Age Do You Want To Become A Millionnaire? Part 2 Mon, 26 May 2008 10:01:24 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2493 [...] I have been given the opportunity to write for The Financial Blogger about when I expect to become a millionaire. Mike asked me to write about this topic as to complement his article on when he expects to be a millionaire. [...] [...] I have been given the opportunity to write for The Financial Blogger about when I expect to become a millionaire. Mike asked me to write about this topic as to complement his article on when he expects to be a millionaire. [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2435 The Financial Blogger Mon, 19 May 2008 12:53:03 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2435 Enough Wealth, thx for the tips ; I already did a few moves though: - Got a job with a high bonus potential (which cannot be calculated now) - Leverage to invest so my mortgage will become tax deductible - I can't move elsewhere for now. We pay a lot of taxes, but I really like where I live... - I will definitely start investing for my children so they get their first 1M$ before their daddy did ;-) Enough Wealth,
thx for the tips ; I already did a few moves though:
- Got a job with a high bonus potential (which cannot be calculated now)
- Leverage to invest so my mortgage will become tax deductible
- I can’t move elsewhere for now. We pay a lot of taxes, but I really like where I live…
- I will definitely start investing for my children so they get their first 1M$ before their daddy did ;-)

]]> By: Enough Wealth http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2428 Enough Wealth Sat, 17 May 2008 07:27:34 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2428 I made the $1m mark around age 46 with a similar plan to yours. If I'd wanted to become a millionaire by 30 I would have had to start earning money sooner (I stayed at Uni till my mid-20's and continued studying part-time after that) and either started a business or invested with lots of gearing in real estate. I would have either made a million by 30, or been broke at that age. I chose the "slow and steady" route ;) My eldest son has just turned 8 and has a NW similar to yours - I invested a few thousand for him in shares that have done really well (the opposite to diversification sometimes pays off!) and he earned about $10K doing a paper round for two years (with a LOT of help from dad) which invested in an online savings account paying 7%. Since this investment is "earned" income, he is entitled to the usual $6K pa tax-free threshold, so it's tax free. I expect he'll make $1m NW by the time he turns 30, even following the "slow and steady" route. Goes to show the massive benefit of starting early. To get to $1m sooner I'd suggest you look at moving to a higher paid job (maybe get higher education qualifications) and a lower taxed locality. Paying 50% tax on an income of $24K is insane. For example,iIn Australia the typical starting salary for a graduate is around $36K and the marginal tax rate is 30% at that income level, and the average tax rate is only 17% (ie. you pay around $6150 tax on $36K taxable income). If you used leverage to invest, having tax-deductible interest greated than the investment income (negative gearing) would reduce your income tax even further. You'd end up paying capital gains tax on the investment growth instead, but the CGT rate is half the income tax rate for investment held for more than 12 months. I made the $1m mark around age 46 with a similar plan to yours. If I’d wanted to become a millionaire by 30 I would have had to start earning money sooner (I stayed at Uni till my mid-20’s and continued studying part-time after that) and either started a business or invested with lots of gearing in real estate. I would have either made a million by 30, or been broke at that age. I chose the “slow and steady” route ;)

My eldest son has just turned 8 and has a NW similar to yours - I invested a few thousand for him in shares that have done really well (the opposite to diversification sometimes pays off!) and he earned about $10K doing a paper round for two years (with a LOT of help from dad) which invested in an online savings account paying 7%. Since this investment is “earned” income, he is entitled to the usual $6K pa tax-free threshold, so it’s tax free. I expect he’ll make $1m NW by the time he turns 30, even following the “slow and steady” route. Goes to show the massive benefit of starting early.

To get to $1m sooner I’d suggest you look at moving to a higher paid job (maybe get higher education qualifications) and a lower taxed locality. Paying 50% tax on an income of $24K is insane.

For example,iIn Australia the typical starting salary for a graduate is around $36K and the marginal tax rate is 30% at that income level, and the average tax rate is only 17% (ie. you pay around $6150 tax on $36K taxable income). If you used leverage to invest, having tax-deductible interest greated than the investment income (negative gearing) would reduce your income tax even further. You’d end up paying capital gains tax on the investment growth instead, but the CGT rate is half the income tax rate for investment held for more than 12 months.

]]> By: The Baglady http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2426 The Baglady Fri, 16 May 2008 23:42:01 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2426 For me, I think maybe by the time I'm 35 (that's in 10 years), but it won't be just my money since I'm married. The hubby and I have around 240k now and we're saving maybe 80k a year. I want to quit working before then and just manage my portfolio and write. For me, I think maybe by the time I’m 35 (that’s in 10 years), but it won’t be just my money since I’m married. The hubby and I have around 240k now and we’re saving maybe 80k a year. I want to quit working before then and just manage my portfolio and write.

]]> By: Alex - My Trader's Journal http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2415 Alex - My Trader's Journal Wed, 14 May 2008 23:38:12 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2415 I'll likely stop working before I can become a millionaire (outside of retirement accounts and home owned value). I think I can make enough investing before I have $1 mil. to keep me happy and that's all I want. I’ll likely stop working before I can become a millionaire (outside of retirement accounts and home owned value). I think I can make enough investing before I have $1 mil. to keep me happy and that’s all I want.

]]> By: telly http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2411 telly Tue, 13 May 2008 16:08:31 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2411 FB, when I was your age (not that long ago ;) ), I think I had a negative net worth so I think you're doing great. Remember that your salary will increase, and possibly substantially since you're quite young so the $400/mth, the RRSP contribution AND the pension will increase and compound as well. That right there will probably be enough to get you to $1MM by 40 if you keep or increase your savings rate. FB, when I was your age (not that long ago ;) ), I think I had a negative net worth so I think you’re doing great.

Remember that your salary will increase, and possibly substantially since you’re quite young so the $400/mth, the RRSP contribution AND the pension will increase and compound as well. That right there will probably be enough to get you to $1MM by 40 if you keep or increase your savings rate.

]]> By: moneygardener http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2410 moneygardener Tue, 13 May 2008 12:16:45 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2410 "So even then, I would not be a real millionaire" Yes you will, but $1 Million will not be worth what it is today. I may draft a similar post on my blog to attempt to extrapolate when I'll reach the million $ mark. I might simply just use the average value that I have been able to increase my net worth per month and extrapolate that out. This should be a conservative estimate though because as numbers get larger, investment returns get larger and this would not take this growth into account. I think you'll probably reach your goals sooner than you think you will because you are dedicated to this goal. You are likely not accounting for windfalls, and raises in your income over the years... “So even then, I would not be a real millionaire”

Yes you will, but $1 Million will not be worth what it is today.

I may draft a similar post on my blog to attempt to extrapolate when I’ll reach the million $ mark. I might simply just use the average value that I have been able to increase my net worth per month and extrapolate that out. This should be a conservative estimate though because as numbers get larger, investment returns get larger and this would not take this growth into account. I think you’ll probably reach your goals sooner than you think you will because you are dedicated to this goal. You are likely not accounting for windfalls, and raises in your income over the years…

]]> By: The Financial Blogger http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2409 The Financial Blogger Tue, 13 May 2008 10:36:51 +0000 http://www.thefinancialblogger.com/at-what-age-do-you-want-to-become-a-millionaire/#comment-2409 Pete: $2000 a month is about what I make net (I live in Qc, so I'm taxed at 50% :-( ). I think the side business would definitely become my alternative. At least, I'm on pace to become a millionaire at 50 ;-) Pete: $2000 a month is about what I make net (I live in Qc, so I’m taxed at 50% :-( ). I think the side business would definitely become my alternative. At least, I’m on pace to become a millionaire at 50 ;-)

]]>