Comments on: How much does it take to feel wealthy? http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/ How to make 7 million in 7 years ... Thu, 24 May 2012 09:20:05 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Adrian http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-6118 Adrian Sun, 08 Aug 2010 14:03:12 +0000 http://7million7years.com/?p=1391#comment-6118 @ Five Aussie Dollar - This is so obviously link-bait spam, but (a) you're Aussie and (b) I actually like your site, so here's a free plug for you: http://www.fiveaussiedollar.com.au/ .... even though, I don't allow advertising on my site. I'm obviously in a good mood! :) @ Five Aussie Dollar – This is so obviously link-bait spam, but (a) you’re Aussie and (b) I actually like your site, so here’s a free plug for you: http://www.fiveaussiedollar.com.au/

…. even though, I don’t allow advertising on my site. I’m obviously in a good mood! :)

]]> By: Five Aussie Dollar http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-6114 Five Aussie Dollar Sun, 08 Aug 2010 11:33:16 +0000 http://7million7years.com/?p=1391#comment-6114 I loved your blog It relates to what I've been searching on the internet for aussie dollar, been searching for a long time, so finally I've found it, and I'm thankful! Gosh, it's already Sunday today, I forgot to do my groceries :P I'll make sure I'll order some pizza tonight. I know it's unhealthy but as long as I have something to eat, I don't mind! Yum! Pizza's are delicious! I loved your blog It relates to what I’ve been searching on the internet for aussie dollar, been searching for a long time, so finally I’ve found it, and I’m thankful! Gosh, it’s already Sunday today, I forgot to do my groceries :P I’ll make sure I’ll order some pizza tonight. I know it’s unhealthy but as long as I have something to eat, I don’t mind! Yum! Pizza’s are delicious!

]]> By: Mike Hunt http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2234 Mike Hunt Sat, 31 Jan 2009 15:26:00 +0000 http://7million7years.com/?p=1391#comment-2234 AJC, Thanks for the response. I've been using multiple currencies for diversification. The last 2 years I was being paid in British Pounds while working in Thailand. I had an arrangement where every month when I got paid my salary would be converted to USD at the interbank rate then transferred to my account in the US. This was from 2006 - 2008. Now that was just dumb luck as I had no exposure to the pound during this massive downturn. Following this I decided to spread my currency risk to US & Asia, hence the strategy of holding Singapore Dollars. I also have a bit of Thai baht exposure since I live and work here now. I try to buy low and sell when the time is right, or hold... like your last sentence. The one concern I had at the time with AUD & NZD was that with interest rates relatively high in 2008 I didn't think they would be pushed higher... so when they were to go down the currency would get creamed. I believe the unwinding of the Yen carry trade (and now USD carry trade) helped push down NZD and AUD. Swings and roundabouts as they say. -Mike AJC,

Thanks for the response. I’ve been using multiple currencies for diversification. The last 2 years I was being paid in British Pounds while working in Thailand. I had an arrangement where every month when I got paid my salary would be converted to USD at the interbank rate then transferred to my account in the US. This was from 2006 – 2008. Now that was just dumb luck as I had no exposure to the pound during this massive downturn.

Following this I decided to spread my currency risk to US & Asia, hence the strategy of holding Singapore Dollars. I also have a bit of Thai baht exposure since I live and work here now. I try to buy low and sell when the time is right, or hold… like your last sentence.

The one concern I had at the time with AUD & NZD was that with interest rates relatively high in 2008 I didn’t think they would be pushed higher… so when they were to go down the currency would get creamed. I believe the unwinding of the Yen carry trade (and now USD carry trade) helped push down NZD and AUD. Swings and roundabouts as they say.

-Mike

]]> By: Adrian http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2233 Adrian Sat, 31 Jan 2009 08:08:24 +0000 http://7million7years.com/?p=1391#comment-2233 @ Mike - I moved $US to $AUS at .80 cents (i.e. 80 cents US buys $1 Aus) and was getting 8%+ in a 'top 4' Aussie bank ... but look what happened over the ensuing months: Aussie dollar nearly reaches 1:1 to the US dollar, then plummets to 67 cents (i.e. 67 US cents buy you $1 Aussie dollar). Who can call that anything but gambling (a.k.a. speculating). Lots of people lost money a few years back hedging Aus and US currency against the Swiss franc, from memory. So, on the one hand the whole world is a bank and who says you should ONLY have your money in CD's in the US ... on the other hand, you open yourself up to massive interest rate changes caused not by local economics but the currency FOREX (foreign exchange). So, I generally look at investments inside one country/economy at a time ... I may invest in the US, Aus, NZ, UK - in fact, do - but each is a separate long-term investment that I may hold onto forever, or may sell if the current situation pushes events in my favor ... I either win quick or slow, but I still win, or die tryin' ... :) @ Mike – I moved $US to $AUS at .80 cents (i.e. 80 cents US buys $1 Aus) and was getting 8%+ in a ‘top 4′ Aussie bank … but look what happened over the ensuing months: Aussie dollar nearly reaches 1:1 to the US dollar, then plummets to 67 cents (i.e. 67 US cents buy you $1 Aussie dollar). Who can call that anything but gambling (a.k.a. speculating).

Lots of people lost money a few years back hedging Aus and US currency against the Swiss franc, from memory. So, on the one hand the whole world is a bank and who says you should ONLY have your money in CD’s in the US … on the other hand, you open yourself up to massive interest rate changes caused not by local economics but the currency FOREX (foreign exchange).

So, I generally look at investments inside one country/economy at a time … I may invest in the US, Aus, NZ, UK – in fact, do – but each is a separate long-term investment that I may hold onto forever, or may sell if the current situation pushes events in my favor … I either win quick or slow, but I still win, or die tryin’ … :)

]]> By: Mike Hunt http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2232 Mike Hunt Sat, 31 Jan 2009 06:39:31 +0000 http://7million7years.com/?p=1391#comment-2232 Adrian, Do you think inflation will play out that way in the future like you are saying? The times we are in right now are pretty deflationary... lots of wealth being lost. That makes it very hard to compute payback assumptions for projects and investments, even if you use a high discount rate in the assumptions of future cash flows. Example: I have a few hundred K cash to plunk down, and in early 2008 I was looking at New Zealand dollars because I could get a CD or bank rate at 8%. At that time 1 USD would buy 1.40 NZD or so. Today the Bank of New Zealand dropped the rate to 2% and 1 USD buys nearly 2 NZD. It makes it very hard to plan an investment strategy under these conditions. So going back in time, what I really did is hold it in Singapore dollars as a hedge against USD. The interest rate was shite but so far the currency has held up, not as well as the US but better than AUD or NZD. A better play would have been Yen but I didn't consider that at the time. It's a giant, global casino. -Mike Adrian,

Do you think inflation will play out that way in the future like you are saying? The times we are in right now are pretty deflationary… lots of wealth being lost. That makes it very hard to compute payback assumptions for projects and investments, even if you use a high discount rate in the assumptions of future cash flows.

Example: I have a few hundred K cash to plunk down, and in early 2008 I was looking at New Zealand dollars because I could get a CD or bank rate at 8%. At that time 1 USD would buy 1.40 NZD or so. Today the Bank of New Zealand dropped the rate to 2% and 1 USD buys nearly 2 NZD. It makes it very hard to plan an investment strategy under these conditions.

So going back in time, what I really did is hold it in Singapore dollars as a hedge against USD. The interest rate was shite but so far the currency has held up, not as well as the US but better than AUD or NZD. A better play would have been Yen but I didn’t consider that at the time. It’s a giant, global casino.

-Mike

]]> By: Adrian http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2227 Adrian Wed, 28 Jan 2009 11:18:28 +0000 http://7million7years.com/?p=1391#comment-2227 @ Mike - At least you're on your way .... don't forget that $250k p.a. today is $375k p.a. (approx.) in 10 years and over $500k p.a. in 20 years ... the power of inflation (NOT) working for you :) @ Mike – At least you’re on your way …. don’t forget that $250k p.a. today is $375k p.a. (approx.) in 10 years and over $500k p.a. in 20 years … the power of inflation (NOT) working for you :)

]]> By: Mike Hunt http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2228 Mike Hunt Wed, 28 Jan 2009 08:26:22 +0000 http://7million7years.com/?p=1391#comment-2228 Well, forget about comparing incomes. If I could earn a steady $250K in passive net income (rent minus expenses in the case of renting out property) then I'd be feeling pretty rich. Currently I'm earning only about $12k in passive interest income... still far away from the target. Seems like quite a challenge to get there. -Mike Well, forget about comparing incomes. If I could earn a steady $250K in passive net income (rent minus expenses in the case of renting out property) then I’d be feeling pretty rich. Currently I’m earning only about $12k in passive interest income… still far away from the target. Seems like quite a challenge to get there.

-Mike

]]> By: Money Funk http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2230 Money Funk Tue, 27 Jan 2009 16:45:13 +0000 http://7million7years.com/?p=1391#comment-2230 Diane, how I envy you ex-in-laws. But, I know that is going to be my financial issue, as it is now with some of my personal issues... Knowing when to say when. Breaking into a comfort level is going to be harder for me than making it. Well... maybe. ;) Diane, how I envy you ex-in-laws.

But, I know that is going to be my financial issue, as it is now with some of my personal issues… Knowing when to say when. Breaking into a comfort level is going to be harder for me than making it. Well… maybe. ;)

]]> By: Diane http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2229 Diane Tue, 27 Jan 2009 15:50:44 +0000 http://7million7years.com/?p=1391#comment-2229 I know that I consider my ex-in-laws to be rich (they lived on a canal just off the intercoastal canal in Ft Lauderdale, invested in real estate, ranches, had worked as a surgeon, bought whatever they wanted, etc.,) and my ex-mil said, "Oh we're not rich! We've got friends who are much richer!!" (and she was referring to their knowing Dave Thomas, founder of Wendy's, plus others who lived in the gated communities around Ft. Lauderdale, Boca, Palm Beach, etc.) I was astounded that she would consider those folks "normal" and not "super" rich. I know that I consider my ex-in-laws to be rich (they lived on a canal just off the intercoastal canal in Ft Lauderdale, invested in real estate, ranches, had worked as a surgeon, bought whatever they wanted, etc.,) and my ex-mil said, “Oh we’re not rich! We’ve got friends who are much richer!!” (and she was referring to their knowing Dave Thomas, founder of Wendy’s, plus others who lived in the gated communities around Ft. Lauderdale, Boca, Palm Beach, etc.) I was astounded that she would consider those folks “normal” and not “super” rich.

]]> By: Scott http://7million7years.com/2009/01/27/how-much-does-it-take-to-feel-wealthy/comment-page-1/#comment-2231 Scott Tue, 27 Jan 2009 14:18:29 +0000 http://7million7years.com/?p=1391#comment-2231 I would have to say that I agree with this study as it has applied to my own thinking along the way. It seems that at every point in my adult life, i've always felt that if I had twice the amount of money or income than I currently had, that I would feel 'rich'. Very interesting. I would have to say that I agree with this study as it has applied to my own thinking along the way. It seems that at every point in my adult life, i’ve always felt that if I had twice the amount of money or income than I currently had, that I would feel ‘rich’. Very interesting.

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