Comments on: Should the rich invest in Index Funds?

By: Tyler Clarke

Tyler Clarke — Mon, 02 Aug 2010 14:59:02 +0000

wealth building should be the priority of most people not just leisure and playing some online games and stuffs like that-.*

By: Lexi Adams

Lexi Adams — Thu, 10 Jun 2010 16:38:46 +0000

Wealth building is a very interesting job. everyone want to have some financial freedom.:.~

By: It’s not what you earn that counts … « How to Make 7 Million in 7 Years™

Mon, 28 Jul 2008 08:54:21 +0000

[...] It’s not what you earn that counts … Published July 28, 2008 Saving Tags: 7million, millionaire, money, Rich, wealth I wrote a post a short while ago assessing whether the rich should invest in Index Funds. [...]

By: AJC

AJC — Tue, 01 Jul 2008 04:42:48 +0000

@ Creeping – if a TIPS-based retirement strategy is one that you are interested in, then I highly recommend that you ‘invest’ in a copy of the highly qualified/respected Zvi Bodie’s book: Worry Free Investing.

The only problem with the strategy that he outlines that I can see relates to the potential tax implications unless you are investing via a ROTH etc. An alternative that you may want to explore with a suitably qualified financial adviser might be selected inlfation-protected Municipal Bonds (MUNI’s).

By: Mike Hunt

Mike Hunt — Tue, 01 Jul 2008 04:08:20 +0000

Thanks AJC,

I look forward to your perspective on this in a future post.

Regards,

Mike

By: creeping

creeping — Tue, 01 Jul 2008 02:42:16 +0000

can you elaborate on the best inflation protected bond investments?

By: AJC

AJC — Sun, 29 Jun 2008 20:47:01 +0000

@ Mike – thanks for the comment, Mike. Yes, I will post on this; in the meantime keep in mind that it’s not what passes through your hands that matters … it’s what ‘sticks’ that counts!

By: Mike Hunt

Mike Hunt — Sun, 29 Jun 2008 09:31:17 +0000

Hi AJC,

Would you do a post that considers the lifetime earnings of different people? Reason being I read an article that high school graduates earn an average lifetime earnings (from 25 to 64) of $1.2 Million. For people with a college degree this goes up to $2 million, with a Masters it’s up to $2.5 million and a PhD brings in $2.9 million. For people with professional degrees (doctors & lawyers I presume) the number goes up further to $4.4 million. Still not bad, an average of $100K per year for the latter category. For the purpose of this article I’m assuming that all earnings are reconciled to net present values.

So you’ve managed to earn $7 million in 7 years… that’s really impressive and nearly twice that of a doctor’s lifetime earnings. What have you earned throughout your life?

For me I’ve earned $2 Million in my life to date. More than half of this has come in the last 3 years. I’m 35 now and have been working since I was 23. I figure between now and age 65 I should be able to earn a total of about $8 million more with an medium / optimistic case. I will pursue investments but realize high risk brings high reward but potentially devastating losses. For example I’ve taken a large position ($110,000) in a Chinese stock with what I believe to be very strong fundamentals and have researched this company for the last 4 months in detail. In the last 3 weeks the stock is down 30% from where I bought in…! So I don’t put everything into high risk investments for that reason.

I think starting a business has elements of this… if your business crashed you would have lost it all I guess?

-Mike