If you are ‘upper class’ how did you make your fortune?

amother

Poppy ↓

Sun, Nov 24 2024, 6:23 am

amother Linen wrote:

For those criticizing the Ramsey method, we’ll have by earning 200k annually (100k each), almost 2 million by the age of 50. On paper, we’re not there yet. We live in Israel and we do plan on saving about 100k per child, a little less. Tuition for college is cheap here also so it’s a smaller consideration. It’s more than enough, we grew up with nothing and didn’t know basics of finances. I do recommend.

Not to put a damper on your life, but 2 million for us (living in the US) would barely allow us to be in the middle class, not the upper class. The income from that would not be enough to live on, plus if we would want to marry off our kids and help support, as is usual in our community, that would use up a big chunk... barely leaving enough for retirement. It's quite depressing, but there it is... 2 million is not very much nowadays.

amother

↑ Linen ↓

Sun, Nov 24 2024, 7:22 am

amother Mintgreen wrote:

Thanks so much for sharing your story. We live in Israel and my husband is a real tech nerd, but with a very low salary. If you're comfortable, can you share how you both found your jobs/what you specialize in?

Of course, I was sharing for those who would be interested in taking such an approach. We’re very happy with it b”h a million times over. No regrets. And it’s more than enough for us.

I’ll stay very general in jobs unless you want to post under your user name and I can send an email. My dh is a software engineer. He found a job by friends of friends. The olim engineering community has a lot of contacts so just keep talking to more and more olim and someone will know something. I found my job by just googling companies and sending out my resume asking for advice of how to enter the field as an olah. Someone offered me a job.

amother

↑ Khaki ↓

Sun, Nov 24 2024, 7:25 am

amother Poppy wrote:

Right so if you’re planning to constantly help your kids need need more. 2 million is for a couple to retire, not their whole family.

But remember that you’ll be paying less taxes if all your income is long term capital gains.

It’s for retirement only, not making weddings or supporting kids. (And no one said it’ll give you an upper middle class life! Just the ability to stop working sooner.)

amother

↑ Linen ↓

Sun, Nov 24 2024, 7:42 am

Only on this site can being a lower end net worth millionaire be worth nothing! B”h it’s more than enough for my family. I was posting only for those interested in this approach because I only discovered it a little late in life.

Lizzie4

Sun, Nov 24 2024, 7:49 am

amother Linen wrote:

Yes, please email me Smile

My husband is also worried about working in a good environment etc.

amother

Brown ↓

Sun, Nov 24 2024, 8:10 am

amother Poppy wrote:

The idea is not to use up the 2 million but you live off the interest. If you get 5 percent, you'll have 100,000 annually. Plus social security income, which could be at least another 75k annually. My personal goal is to save 2 million by retirement but also max out my 401k. I also have separate accounts for post high school education for my kids and hope to retire after everyone is married off IYH.

And , we would hopefully have fewer regular expenses with our mortgage paid off.

Of course this is just a plan, who knows really.

amother

Skyblue

Sun, Nov 24 2024, 8:11 am

amother Stone wrote:

The only thing that matters with an index fund is fees. Get the one with the lowest fees.

(Other mutual funds are different. I'm talking about index fund.)

regarding this- If I invest in Fidelity index funds on the Fidelity platform- are my fees low?
I never check...

amother

↑ Poppy ↓

Sun, Nov 24 2024, 8:13 am

amother Brown wrote:

So the two million does not include the net worth of your house?

amother

↑ Khaki ↓

Sun, Nov 24 2024, 8:14 am

amother Poppy wrote:

So the two million does not include the net worth of your house?

No. It’s two million in mutual funds where you are never touching the principal. That’s in addition to your house (which is hopefully paid off and one less expense cutting into your retirement funds.)

You won’t pay any taxes on the first 90k of income from the investments bec its long term gains

amother

↑ Poppy ↓

Sun, Nov 24 2024, 8:16 am

amother Linen wrote:

My calculation was including the net worth of my house - like many who bought years ago in a frum neighborhood in the US, my house is worth over 1 million. Some frum houses (depending on the area) are worth close to two million. You obviously can't live off that, although its nice not to have a mortgage.

If you have two million in investments, yes that's really nice and great for retirement.

amother

↑ Periwinkle

Sun, Nov 24 2024, 8:17 am

amother OP wrote:

Can people post their main sources for financial literacy?

I too am a big fan of Dave Ramsey and listen to his podcast and podcasts alike

As I posted on page 1, I'd recommend starting with the kosher money podcast. Their advice is tailored for frum people and the frum lifestyle. Once you start, you will learn ebough basics that you can dive deeper into topics that interest you on YouTube, like for example compound interest.

As people have mentioned, Dave ramsey is good too, and his framework makes a lot of sense (7 steps), but difficult to apply to the frum lifestyle.

(A frum family just Isn't going to spend a year eating rice and beans as they claw their way out of debt. We have shabbas, Yom tov, tuitions....)

amother

↑ Poppy ↓

Sun, Nov 24 2024, 8:17 am

amother Khaki wrote:

So your net worth will be somewhere between 3 and 4 million, not 2 million.

amother

↑ Khaki ↓

Sun, Nov 24 2024, 8:19 am

amother Poppy wrote:

So your net worth will be somewhere between 3 and 4 million, not 2 million.

Correct, I never said net worth needs to be 2 million.

amother

Snowdrop

Sun, Nov 24 2024, 8:24 am

I really really think a lot comes down to mazal and effort. My husband is in a high earning profession but due to his personality has remained at a relatively low income for over a decade. I have begged him to show more motivation and davened for things to change but as of now we are just stuck in the middle class rut.

amother

↑ Brown

Sun, Nov 24 2024, 8:25 am

amother Linen wrote:

Nobody is saying it's nothing, but to retire and live off of? You'd have to live very frugally.

happy chick

Sun, Nov 24 2024, 8:28 am

amother Quince wrote:

When hashem decided our mazel should change he made our business successful. Until then we where poor like church mice. Hundreds of people in the same field don’t make money and we do. Everything is a mazel.

This!!! 💯

Someone can become rich by being a janitor and another can be poor working on wall st, doctor or any other profession people deem money-making.

amother

↑ Khaki ↓

Sun, Nov 24 2024, 8:32 am

amother Brown wrote:

Nobody is saying it's nothing, but to retire and live off of? You'd have to live very frugally.

Not really! Again, you have no big expenses like tuition, feeding a huge family. You pay less in taxes on long term capital gains. This is not including weddings or support of kids- that is not part of retirement and would require additional money.
Additionally some people have a pension due to their jobs, social security if it’s still around. It’s a very decent and normal plan!

But some choose to work for more years and save up more to be able to spend more. It’s all about your priorities.