Originally Posted by MrChip72 (Post 2253815)

I'm not sure if that is completely accurate that most people bought with the proceeds of their previous home. In the South of 44 areas it feels like more the exception than the rule. I feel confident that more than 50% of the owners in the newer areas of TV that it's not their only home. Plenty of snowbirds, snowflakes, people buying a few years before retirement, etc.

Originally Posted by manaboutown (Post 2253273)

My brother just took over managing his in-law's finances as the husband, who handled them, has developed dementia. He was astonished they did not have enough in their bank account to pay their latest income tax bill. Their pensions bring in $180K per year but they spend it all. He sold their motor home and second home, a 'cabin' in the mountains of Colorado for over $1M so he was able to pay their taxes and set aside some savings. He told me they had substantial credit card balances and no savings! He wants to sell their primary home up there but he must first move safes containing large coin, gold and gun collections down to Tucson where they are now living in their third (winter) home. He tells me his sister-in-law still spends wildly and has bought all new furniture for their Tucson house. He is still buying gold using credit cards. Years ago the couple lived across the street from me. He had several cars, a Bronco, a pickup truck with a camper on it and a large motorhome. They live wealthy but have never saved a dime other than in hard assets.

Originally Posted by Pairadocs (Post 2253824)

I'm sure that is not an unusual story ! A wide range of how people choose to live their lives, and how they spend. Definitely believe there are many like him. Then there are always those stories each year (many of them occur in Florida ?) of seniors, found in homes with no AC, malnourished, often with a malnourished or deceased from starvation, pet. Only to find the person had hundreds of thousands of dollars in a savings account. Dementia is a cruel disease that can make you believe you are starving because you have no money to buy food !

Originally Posted by Blackbird45 (Post 2253633)

I could be wrong, but I do not believe that people living here in The Villages who have reach the million plus status inherited their money. People who inherited their money are usually younger than retirement age. I personally knew a woman who was worth millions and she told me her son was going to inherit a million when he reached 21, that was in the 70s. Shes long gone I don't know she was worth, but we are talking big bucks.

Originally Posted by margaretmattson (Post 2254076)

I am going to side with those who believe 39% is high. I spent some time trying to research this. I could only find the average yearly income of Villagers. That fact tells you nothing about what people own, if they have assets in other states or overseas, if they own their own business, or if they are carrying a large debt, etc. Rich people tend to know several means of hiding their worth and their tax returns are filled with write-offs. If I can't find proof that 39% of Villagers are millionaires, how did the OP find it?

Originally Posted by retiredguy123 (Post 2254078)

I wish someone would tell me what these write-offs are. I have none.

Originally Posted by margaretmattson (Post 2254076)

I am going to side with those who believe 39% is high. I spent some time trying to research this. I could only find the average yearly income of Villagers. That fact tells you nothing about what people own, if they have assets in other states or overseas, if they own their own business, or if they are carrying a large debt, etc. Rich people tend to know several means of hiding their worth and their tax returns are filled with write-offs. If I can't find proof that 39% of Villagers are millionaires, how did the OP find it?

Originally Posted by margaretmattson (Post 2254076)

I am going to side with those who believe 39% is high. I spent some time trying to research this. I could only find the average yearly income of Villagers. That fact tells you nothing about what people own, if they have assets in other states or overseas, if they own their own business, or if they are carrying a large debt, etc. Rich people tend to know several means of hiding their worth and their tax returns are filled with write-offs. If I can't find proof that 39% of Villagers are millionaires, how did the OP find it?

Originally Posted by Two Bills (Post 2254104)

Not being snarky, but why should you have access to peoples private affairs and income?
I am glad and reassured that you could not get this information.

Originally Posted by Stu from NYC (Post 2253691)

We have met a few who insists on how much they spend on all kinds of things in order to impress us with their wealth.

Originally Posted by MandoMan (Post 2253555)

I have great respect for you and your posts, Toymeister, but Investor Times is a quasi- click bait site that seems to provide less than excellent analytics. I don’t know where it got its 39% millionaires statistic, but its comments about that seem to have been generated without much thought.

I suspect that you, like me, remember (barely, in my case) the TV show The Millionaire, 1955-1960, in which someone received a check for a million dollars at the beginning of the show, and often by the show’s end the person had made decisions that ruined his or her life. A million dollars was a lot back then, when my dad was earning $1,500 a month.

However, many financial planners say that if one has money invested for retirement, one can pretty reliably take out 4% a year and die with that same amount available. Some years more, some years less, and it all depends on where you put that money. (Mutual funds, well-chosen, and not a savings account.) Thus, someone here who has $1 million in mutual funds could, if things work out right, take out $40,000 a year and still end up with a million at death to leave to the kids. That sounds like $3,333 a month. But wait! If those retirement savings were made pre- tax, the mutual fund is required to deduct 20% off the top and send it to the IRS. That means the millionaire would get $2,666 a month from that million dollars. There are plenty of people living here on $1,000 a month from Social Security, but it requires constant frugality. Others are getting $2,500 a month from Social Security. That’s better, but still requires frugality. Adding $2,666 a month to that is a big help, but then they also have to pay income tax on their Social Security payments. I’m not sure how much that is. However, I would estimate that the people here with $1 million in mutual funds to live on and Social Security, using 4% of their mutual fund, with $2,500 a month from Social Security, after taxes have about $4,000 a month to use on living expenses and all purchases.

Maybe they have a mortgage and a larger home and are paying $2,500 a month on all those home-related costs. Maybe they are millionaires, yes, but the remaining $1,500 a month makes it difficult to squeeze in payments for a new Corvette, or cover the summer house on a lake in Minnesota, or pay for some cruise up a river in Europe or to Alaska.

Now, if a couple has $2 million, or $3 million, or $4 million in investments, a higher standard of living is possible, and those cruises and toys become possible. But I don’t see having $1 million as being wealthy. (And many in that 39% may only have $1 million.) It’s just the result of a lifetime of prudent saving and investment and postponing middle-aged pleasures. It means that if you are fortunate enough to live in a courtyard villa, free and clear, with a paid-for car and good health insurance, you can live without worrying if you are careful, go to a nice restaurant once a week, play golf on executive courses, give the kids nice Christmas presents. It’s a good life. It’s not a wealthy life.

As for those here (61%) who are not millionaires, they aren’t wealthy, either. (Lots of people have pensions from their work days, whether as teachers, or with good union factory jobs, or from others sorts of work with pension benefits. I don’t know if that is somehow factored into their wealth or not. If you have a pension of $2,666 a month plus Social Security, would that be counted as the equivalent of being a millionaire?)