How to become a millionaire.

[CHCRandy]

Back when Peabody coal was going big. Employee's were working 7 days a week for years on end. Lots of overtime at a very very good hourly wage. Most of those same employees were hurting big time if they went out on strike and it lasted more than 2 weeks. Ugh.

I did not help my 4 kids with their first anything. I think you are missing a great teaching experience for them by doing otherwise.
All of them now well into adult hood, and doing very well.

I used to run a business that hired many kids for their first job. It was very clear that the kids that mom and dad gave them everything did not appreciate it in the least.

Teach them about money and saving at an early wage, make it a habit.

Most people do not "need" that $150-$200 per month cell phone bill nor that $200 per month cable/internet bill.

I suspect Dave Ramsey's message hits home or should hit with many more people then the educated investors believe in this thread.

401K loans for the average Joe is stupid.

You a Peabody guy? My family was all coal miners from Virginia and WV.....I have heard the Peabody name a lot in my life. I am 47 and probably the first generation from my family who didnt mine. I have been in the mines and don't know how them guys do it everyday.

 

[looney2ns]

You a Peabody guy? My family was all coal miners from Virginia and WV.....I have heard the Peabody name a lot in my life. I am 47 and probably the first generation from my family who didnt mine. I have been in the mines and don't know how them guys do it everyday.

No I'm not. Just used to live in the Linton area back in the day when there where lots of Peabody mines around. Thus I knew a lot of PB folks.

My grandfather worked in a deep mine back in the teens and 20's and 30's. Started when he was 15.
They were a very tough breed.

 

[jd4320t]

Just wanna make sure everyone is saving

[video=youtube;Y0cibIa1N38]https://www.youtube.com/watch?v=Y0cibIa1N38[/video]

 

[CHCRandy]

I just can't listen to him........

 

[CHCRandy]

How about Buffet and Berkshire.........$1,000 invested in 1964, when Buffett took over the company and shares cost just $19, would be worth about $11.6 million dollars today, based on the last available closing price of $221,180 on February 27.

 

[jd4320t]

Yep.

I really should stop buying guns and knives so I can save even more....

 

[Shadow]

Yep.

I really should stop buying guns and knives so I can save even more....

OMG !!!! Did you really say that ?

 

[jd4320t]

OMG !!!! Did you really say that ?

Well, either way I'm kinda saving lol

 

[Shadow]

Well, either way I'm kinda saving lol

But still buying

 

[dirtfarmerz]

Invest in brass. Pay off your debts. What will you own if there is an economic collapse? You will probably lose all savings and retirement promises. The government has prepped for an economic collapse and so should you; National Resources Preparedness Order signed March 16, 2012.

Obama's Plan To Seize Control Of Our Economy And Our Lives - Forbes

The system does work for now, but if there is a next Great Depression it will make the first one look like "the good old days". It'll probably be called "The Great Tribulation".

 

[PeaShooter]

You make some good points and I have heard them all from the brokerage houses that pretty much lost my life savings.

There is a reason that they are called "brokers". Because you are "broker" after they get done with you. If you have a good chunk of money to manage, you need a Certified Financial Planner who is a fiduciary. "Fiduciary" is the key word here. It means that they have to do what is in YOUR best interest, not theirs. Brokers only make money when you buy or sell something, so guess what they are always trying to get you to do....buy and sell your positions.

 

[mellowwetto]

GO VOLS!!!

 

[GodFearinGunTotin]

GO VOLS!!!

Tennessee folks are good people.








<-----------------

 

[Huzrjim]

When I first saw this thread title, I immediately thought of Steve Martin's old routine about how to be a millionaire and not pay taxes.

"You.. can be a millionaire.. and never pay taxes! You can be a millionaire.. and never pay taxes! You say.. "Steve.. how can I be a millionaire.. and never pay taxes?" First.. get a million dollars. Now.. you say, "Steve.. what do I say to the tax man when he comes to my door and says, 'You.. have never paid taxes'?" Two simple words. Two simple words in the English language: "I forgot!" How many times do we let ourselves get into terrible situations because we don't say "I forgot"? Let's say you're on trial for armed robbery. You say to the judge, "I forgot armed robbery was illegal." Let's suppose he says back to you, "You have committed a foul crime. you have stolen hundreds and thousands of dollars from people at random, and you say, 'I forgot'?" Two simple words: Excuuuuuse me!!"

Credit:
SNL Transcripts: Steve Martin: 01/21/78: Steve Martin's Monologue

 

[Jackson]

This is actually not true.It is a math gimmick.
February 17,1984 Ford stock was $39.50 meaning you could buy 166 shares.
Those same shares are now worth $16.23
You would earn dividends when Ford paid them(I have the full payout chart below).
The first year you would have earned a 9 cent dividend times 166 shares=$14.94 not enough to buy another share,but dividends did have a 15% tax in 1984,so you made $12.7,less the money you paid the broker to buy the stock.

I used a dividend Reinvestment calculator(http://www.buyupside.com/calculators/dividendreinvestmentdec07.htm)with an average of .28 cents per year dividend(generous considering the chart) with zero grow.Total earned $8044.36
Mind you that is paying zero taxes,and reinvesting every dividend back into the stock.

Your initial investment was $6572
Your portfolio would have grown in shares,to 191(*Edit I found a math error,you would have 203 shares in 2015,not enough of a difference to recalculate everything though) at 16.23 per share,you have a current worth of 3099.93 in stock(you have lost 3473 of your original investment in the stock)+your 8044.36 in dividends.
For a grand total of $4571.36 total profit(less your original investment,and the lost value of the stock).

So how do investment advisers come up with such unrealistic numbers?
Easy,the calculator they use does not allow for you to lose money.The stock price can not go down,and they figure in an annual dividend and stock growth rate usually around 6-8%,and they charge no fees or taxes when showing you how much you could have made "if" or how much you stand to make if you buy Blaaa blaa stock(mutual fund ect)from them today."In ten years you will triple your money,you would be stupid to not invest!"



No one who purchased 166 shares of Ford in 1984 made the money your figure claims(sorry I did not use 1982,I misread it and am not doing the math over),in 32 years you made a profit of $4571.36 and would have done much better in a savings account.

Point being.That statement,and the ones above it are most likely false.


Historical Stock price and Dividend paid for Ford.
F Historical Prices | Ford Motor Company Common Stock Stock - Yahoo! Finance

Did you account for the three stock splits and the 1.7:1 recharacterization that have occurred since 1984? If not, wouldn't that leave significantly more shares than you've calculated?

Nevermind. I see a few people already brought this up.

 

[longbow]

A million doesn't go far these days.....

3 million gets my attention as I age..........