Sad, but I think I’m out

[mkg3]

Technically 720K 10 yrs ago is todays million..

Based on average annual inflation rate?

The thing is, almost nothing goes up like the "average annual inflation rate". For an example, average new car price in 2016 was ~$34K and today its $52K or increase of 53% from 10 yrs ago. Other things have gone up less than the annual inflation rate.

Another data point, since you're in CA like myself, is the average home prices. Statewide it was $440K in 2016 and today is $930K more than 2x.

So from the practical point of view, maybe it not $200K, 10 yrs ago but certainly lot less than $720K

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[Millbarge]

If "I may not have a place to live and will be forced to sell my house and its contents at a distressed price if my income suddenly stops due to... [economic downturn, industry shake up, illness, AI/robots, etc.] ... " is a trade you are willing to make for a nominal average of 3% p.a. with high volatility, then sure it is excellent advice.

If you want to plan your wealth growth for your worst case scenario, you can certainly do that. But that doesn't mean that is typical financial advice--that is the most conservative approach possible.

 

[mkg3]

you can feel free to measure your net worth however you want, but including equity in your home is standard in determining "net worth". Your home is an asset, with the value reduced by the liability of your outstanding mortgage.

Clearly how it's calculated is with home equity included. All I was saying was that one has to live somewhere so from the practical household spending, the equity is not really an ordinary reserve. Its a much more of a big deal need to access kind of asset.

 

[Jeremy3292]

Net worth does not equal liquidity. Two very different but equally important terms.

 

[Millbarge]

Clearly how it's calculated is with home equity included. All I was saying was that one has to live somewhere so from the practical household spending, the equity is not really an ordinary reserve. Its a much more of a big deal need to access kind of asset.

Whether someone is a "millionaire" isn't about cash reserves - it's net worth.

 

[Zathras]

You’re not going to find a 0.9% rate on a new car other than an OEM that is moving product (Rivian has some low APR offers for the R1T and R1S).. that said, you can always finance after the fact within 30-60 days, and rates are ~ 4.3-4.6% for new cars and good credit.

Yep, my credit union has approved me for 4.69.

 

[Zathras]

Net worth does not equal liquidity. Two very different but equally important terms.

And?

 

[Jeremy3292]

And?

And?

 

[mkg3]

Whether someone is a "millionaire" isn't about cash reserves - it's net worth.

Not talking about cash reserves. Its the cash and cash equivalent.

In other words, it's all the liquid investments. Cash is the worst thing to hold onto.

Since this thread is about spending money on R2, my original point was that including what equity someone has in his/her house, which is very illiquid, doesn't make sense. Quite aware of what net worth means.

 

[Millbarge]

Not talking about cash reserves. Its the cash and cash equivalent.

In other words, it's all the liquid investments. Cash is the worst thing to hold onto.

Since this thread is about spending money on R2, my original point was that including what equity someone has in his/her house, which is very illiquid, doesn't make sense. Quite aware of what net worth means.

the back and forth is about who is a "millionaire". the equity in someone's house counts toward that because being a millionaire or not is a measurement of net worth. so if you aren't talking about "net worth" then you really aren't participating in the part of the conversation about the number of millionaires in the US.

 

[mkg3]

....so if you aren't talking about "net worth" then you really aren't participating in the part of the conversation about the number of millionaires in the US.

Correct. I am not. I am talking about what part of the net worth is practically useful to do things. Not what makes up a millionaire or how many they are.

According to the Federal Reserve data, there are 18% of the population households are millionaires so that number is over 60 million people in US. Sincerely hope that you are one on many.

 

[FlyingPilot2012]

Correct. I am not. I am talking about what part of the net worth is practically useful to do things. Not what makes up a millionaire or how many they are.

According to the Federal Reserve data, there are 18% of the population households are millionaires so that number is over 60 million people in US. Sincerely hope that you are one on many.

"US households" does not equal "US population"

"The United States has approximately 133 million households compared to a total population of nearly 337 million people." - AI

I think you may be over inflating the number of millionaires in the US, which is closer to 25 million.

https://finance.yahoo.com/personal-...LDlBfyBXW7EfU-3EO8OPEstFF273RJCq8cfV1GA95fhEA

https://www.investopedia.com/new-re...es-and-how-many-the-us-added-in-2025-12012474

 

[LevelHeaded]

Not another car forum thread that has devolved into a financial advice debate among armchair economists

 

[mkg3]

"US households" does not equal "US population"

"The United States has approximately 133 million households compared to a total population of nearly 337 million people." - AI

I think you may be over inflating the number of millionaires in the US, which is closer to 25 million.

https://finance.yahoo.com/personal-...LDlBfyBXW7EfU-3EO8OPEstFF273RJCq8cfV1GA95fhEA

https://www.investopedia.com/new-re...es-and-how-many-the-us-added-in-2025-12012474

Okay, great. So what? Do you really care how many millionaires are in US? I do not.

All I care is how I am able to do whatever, whenever and have the sufficient resource to do so. How about bringing back basic personal finance education to schools and universities so that more people can help themselves to a better place.

 

[FlyingPilot2012]

As for the millionaire in this country, there are roughly 18% of households in US according to the Federal Reserve data. So in the country of 350 million people, that's 63 million people - much more than 25 million.

According to the Federal Reserve data, there are 18% of the population households are millionaires so that number is over 60 million people in US. Sincerely hope that you are one on many.

Okay, great. So what? Do you really care how many millionaires are in US? I do not.

Can't say I care how many there are, but I assumed you did as you mentioned it in multiple posts

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