10% population in SD county are millionaires (exclude Primary RE)?!

[Raybyrnes]

But couldn’t you argue that same for any business that you invest in. For instance Sears owns a ton of real estate. If I own a Mutual fund and it has performed well because in part Sears is doing well, then the value of my wealth is indirectly tied to real estate aswell. There are many companies who are set up to leverage their value in the form of real estate investment trusts etc.

[(former)FormerSanDiegan]

Also, what are the ramifications of excluding one’s primary residence. I know it’s supposed to balance things out. But what if you have 500K of equity in your house and 700K in other assets. Your net worth is 700K according to the survey. Suppose tomorrow, you take out a Home Equity Loan for 300K and put it in the bank. Presto, you are a millionaire.

Consider two cases:

Joe Frugal: Joe owns his 1.3 Million personal residence, complete with 20-acres, a fallout shelter and supplies for armageddon after the housing bust. Joe also owns 350K of gold bullion, and 350K of Euro-denominated CD’s. According to the survey his net worth is 700K. (If you included his residence it would be 2 million)

Jim Upsidown: Jim bought his house in 2005 for 2 Million with a zero-down option ARM. He used what would have been his downpayment to invest in Ostrich Futures, which paid off big.
His house is now worth 1.3 Million, but he built up an ostrich nest-egg of 1.1 Million. According to the survey Jim has a net worth of 1.1 Million. He’s on of our lucky millionaires. (unofortunately, if you include his principle residence his is worth only about 400K.)

[(former)FormerSanDiegan]

Also, what are the ramifications of excluding one’s primary residence. I know it’s supposed to balance things out. But what if you have 500K of equity in your house and 700K in other assets. Your net worth is 700K according to the survey. Suppose tomorrow, you take out a Home Equity Loan for 300K and put it in the bank. Presto, you are a millionaire.

Consider two cases:

Joe Frugal: Joe owns his 1.3 Million personal residence, complete with 20-acres, a fallout shelter and supplies for armageddon after the housing bust. Joe also owns 350K of gold bullion, and 350K of Euro-denominated CD’s. According to the survey his net worth is 700K. (If you included his residence it would be 2 million)

Jim Upsidown: Jim bought his house in 2005 for 2 Million with a zero-down option ARM. He used what would have been his downpayment to invest in Ostrich Futures, which paid off big.
His house is now worth 1.3 Million, but he built up an ostrich nest-egg of 1.1 Million. According to the survey Jim has a net worth of 1.1 Million. He’s on of our lucky millionaires. (unofortunately, if you include his principle residence his is worth only about 400K.)

[(former)FormerSanDiegan]

Also, what are the ramifications of excluding one’s primary residence. I know it’s supposed to balance things out. But what if you have 500K of equity in your house and 700K in other assets. Your net worth is 700K according to the survey. Suppose tomorrow, you take out a Home Equity Loan for 300K and put it in the bank. Presto, you are a millionaire.

Consider two cases:

Joe Frugal: Joe owns his 1.3 Million personal residence, complete with 20-acres, a fallout shelter and supplies for armageddon after the housing bust. Joe also owns 350K of gold bullion, and 350K of Euro-denominated CD’s. According to the survey his net worth is 700K. (If you included his residence it would be 2 million)

Jim Upsidown: Jim bought his house in 2005 for 2 Million with a zero-down option ARM. He used what would have been his downpayment to invest in Ostrich Futures, which paid off big.
His house is now worth 1.3 Million, but he built up an ostrich nest-egg of 1.1 Million. According to the survey Jim has a net worth of 1.1 Million. He’s on of our lucky millionaires. (unofortunately, if you include his principle residence his is worth only about 400K.)

[NotCranky]

As if RE deprecitation is the only way a persons portfolio could lose value? Aren’t a few people here pissed because it is going to be hard to support non RE assets and even cash in some scenarios in a crash? My mortgage payment is still going to be zero regardless or what happens to my overall net worth and I can have cash flow from it anytime I want, without loosing the asset. Some of you are at least as biased as Joe Realtor.

I know some you think this is very rude but I am talking to people who can presumably dish it out, and take it.

[NotCranky]

As if RE deprecitation is the only way a persons portfolio could lose value? Aren’t a few people here pissed because it is going to be hard to support non RE assets and even cash in some scenarios in a crash? My mortgage payment is still going to be zero regardless or what happens to my overall net worth and I can have cash flow from it anytime I want, without loosing the asset. Some of you are at least as biased as Joe Realtor.

I know some you think this is very rude but I am talking to people who can presumably dish it out, and take it.

[NotCranky]

As if RE deprecitation is the only way a persons portfolio could lose value? Aren’t a few people here pissed because it is going to be hard to support non RE assets and even cash in some scenarios in a crash? My mortgage payment is still going to be zero regardless or what happens to my overall net worth and I can have cash flow from it anytime I want, without loosing the asset. Some of you are at least as biased as Joe Realtor.

I know some you think this is very rude but I am talking to people who can presumably dish it out, and take it.

[(former)FormerSanDiegan]

It might just be me, but ignoring what is typically one’s largest asset in computing net worth seems ridiculous.

[(former)FormerSanDiegan]

It might just be me, but ignoring what is typically one’s largest asset in computing net worth seems ridiculous.

[(former)FormerSanDiegan]

It might just be me, but ignoring what is typically one’s largest asset in computing net worth seems ridiculous.

[NotCranky]

See, you have such a way with words. I was going to say it was a system designed by bitter renters! Just kidding,Just kidding really!

Man you could not get away with this fair and balanced approach on anyone else’s blog.

Thanks Rich

[NotCranky]

See, you have such a way with words. I was going to say it was a system designed by bitter renters! Just kidding,Just kidding really!

Man you could not get away with this fair and balanced approach on anyone else’s blog.

Thanks Rich

[NotCranky]

See, you have such a way with words. I was going to say it was a system designed by bitter renters! Just kidding,Just kidding really!

Man you could not get away with this fair and balanced approach on anyone else’s blog.

Thanks Rich

[VoZangre]

RW Emerson…

“Mind you that there are pleanty of folks who live very modestly and have few possessions and are “financially independent” from frugal savings and don’t have to work either. Those are not the type of folks society thinks of when they think of “rich” people, but many are more happy than your typical rich person. ”

Plenty? While I aspire to be of the above populace…

I doubt that many is really an accurate term.

Am thinking of ways to encourage (brainwash) the bride to be toward this goal…

[VoZangre]

RW Emerson…

“Mind you that there are pleanty of folks who live very modestly and have few possessions and are “financially independent” from frugal savings and don’t have to work either. Those are not the type of folks society thinks of when they think of “rich” people, but many are more happy than your typical rich person. ”

Plenty? While I aspire to be of the above populace…

I doubt that many is really an accurate term.

Am thinking of ways to encourage (brainwash) the bride to be toward this goal…

[Author]

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