@@tarawillis3995 Yet by income percentage, the middle to lower middle income people in the U.S. donate more than the super rich. A person who donates 10% of their $100,000 income is more common than a person who "earns" $10,000,000 and donates $1,000,000, and when that rich person donates, it is much more likely to be structured for maximum tax advantages and not just freely given.
Well yes to both but he is buying real-estate and a apartment if he has his way. I fell he is just taking advantage of others need for housing and making 300K makes him one of the top tier earners when companied to average incomes. The more I have made the more I can not do correctly and still be ok. It is safe to say on his income he to can do a lot wrong and still win.
He’s making well over 300k a year…. He 45, so in the 20 years since he finished school he’s been adding 500k to his net worth every single year…. He is making well over a million/year
@@JasonSpasoffused an investment calculator. Assuming 8% returns over inflation, he'd still have to be investing 11k per /month/ in 2024 dollars (ie about $6k in 2000 dollars) or 132k / year. And that's assuming an even investment rate over the years, most likely his salary increased over time, meaning less time in the market for the times he's saving more.
+300k? MAybe in California. The problem would be, how do you live cheap in California. More like half that pay anywhere else. My guess is this guy lived EXTREMELY frugal.
Came here hoping for a crazy hypercar, but a Parisian vacation home IS pretty nice. I think 10% of your net worth spent on a toy makes more sense with a higher net worth. Spending $10k on a toy with a $100k net worth feels more frivolous than spending $1MM when you’re worth $10MM
Agree. It really comes down to if your net worth is more than sufficient to cover living expenses. Oddly, Dave did not inquire about living expenses or what assets that majority of his wealth is held in.
@@zoeyredmond5501real estate is only an asset if you have paid all cash for the house. People who take out these giant loans on a home and pay way more in interest than what they will ever sell the house for and thinking their home is an asset are idiots.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Everyone’s all “It’s a $1 million apartment!”, and here I am admiring the guy’s business sense for taking advantage of a depressed valuation situation.
For a few weeks a year I think it makes more sense to rent a chateau or an apartment. Managing a place they own that's an international flight away is going to become a frustrating (and expensive) chore.
With that kind of net worth I wouldn't be surprised if he and his wife are already retired if not planning to retire soon. If they're retired they could easily spend months in the apartment at a time.
We had a vacation home in Florida. Very difficult to manage relying on an agency to care and rent out ( pre Airbnb). We lived in North East. It was not a great idea. Ended up selling after 4 years
If they wanted to, they could hire a company to oversee it as a vacation home 10 months out of the year and potentially make the money back over a few years.
or they could rent a very nice house. At $10000 per month, if they are there two months that is 20k. Even over 20 years that is a 400k loss. If the house appreciates with inflation, the upkeep and taxes would likely be similar.
Buy back time. I like that thought process. You only live once and why work the entire thing whereas if you save and invest you can retire early and enjoy your time.
Very true. The only thing to be weary of is only living for retirement. Once you're debt free and living below your means you should enjoy a little bit, like taking a reasonable vacation every year (pandemics not withstanding). There's too many stories of people dying before they reach retirement or only a couple years after retiring. Some of it is luck and some it it might be not resting enough during the working years. There's a balance between saying YOLO and not saving/investing for retirement and living a cheap life you hate and only focusing on retirement.
I bought a vacation house in the mountains in 2018 for 160k. Put 100k down and thanks to covid it's now worth 450k. I have a ton of fun visiting it and golfing/snowboarding multiple times a year. But it is definitely nice knowing it has appreciated in value almost 3x. I say this guy will be just fine.
Another available option in metropolitan France is to purchase a hotel suite. The hotel manages and rents it out when the owners are not using it, and when there the owners have all the amenities that the hotel provides: food, cleaning, etc.
@@Ken-zh2br Have you looked Paris up lately? Or Europe? A good buddy of mine just got back to the states after hitchhiking across Europe for a couple months, and he gave the report that Paris is as wrecked as usual. Not to mention the rest of Europe. The place is in shambles, even more so than here in America.
in this inflationary period, buying real estate is a good decision, it's hard for real estate to actually lose value (unless something dramatic happens)
I have listened to and followed Mr Ramsey for a long time, and I’ve watched some videos of his several times. His content gets very redundant, and I am grateful for that, because it keeps reinforcing that the same simple principals stand the test of time. I love and quote his repeated concept of ratios. Keep it coming! 👍🏻👍🏻
Ramsey's advice here for this high net worth gentleman is something that all financial mutants on the road to saving for a prosperous future need to hear. Go down this journey not just for your enjoyment - but for the generosity that's equivalent or even greater than your enjoyment. Well said Dave - one of my favorite clips.
Short version: Has $10 million in assets, wants to buy an 800 sq. ft, $1 million apartment in Paris as a vacation home. Dave is fine with this, since it's only 10% of his assets. Plus it's real estate, so it'll retain most of its value, or go up over time.
Dang I hope I can achieve something like this by 45, way to go man. I'd love to own something over seas and possibly retire there. I was thinking Belgium, no tax on capital gains.
Here I think it makes sense because it's something the whole family can enjoy and it sounds like his wife is on board. If he was buying something that was only or mostly for one member of the family it would be less reasonable.
@@uberboiz yes you’re correct regarding tax purposes but 99.9% of the time and home you buy can be sold for more than you originally paid 10, 20, 30 years later. If he spent that same $1,000,000 on things with motors he would be less likely to sell those items later and recoup that money.
@@williamlackey123 I get what you are saying, and I'm simply highlighting that what's increasing is the property 'price', not 'value' - they are not the same thing. I agree things with motors will depreciate, but if his net worth is really $10m and he is willing to exchange $1m for 'toys', I bet he can afford the depreciation. In any case, I wasn't suggesting spending the $1m on things with motors is a better option than spending it on properties.
We bought a 430 k place in mexico on the beach in 2021 . It went unp to 830 k this year . We use it 9 weeks a year and air bnb it 95 percent of the time we arent there. Great investment it brings in 45 k per year. 2nd homes are great investments usually if the location is good.
Always count your own house as a liability, not an asset. Although it's very true that the value can IN MOST CASES go up on average, you may (not always but it's a possibility) end up spending more than that on repairs if something like the roof leaks or AC breaks, or some combination of things. The ONLY time a house becomes an asset is if it is rented out or if it's a fixer upper where you IMMEDIATELY turn around and sell it for a profit after fixing it up.
@@Spladoinkal Yep, exactly. Sure, it'll probably keep its value if you ever sell it, but if you don't sell it, it's just cost after cost after cost, making it a toy.
I bought an airplane 3 years ago for 80,000 but today I could sell it for 100,000 just because of inflation it wouldn’t cover all I’ve spent on it but I’d say I at least would break even for all the fun I’ve had with it
I ran the numbers and this caller can retire at age 65 with nearly one hundred million dollars if he simply invests the money and does not contribute a cent more. Didn't invent anything, didn't build a great business, doesn't play sports, didn't win the lottery... just an average guy who saved most of his money and will retire with one hundred million. Amazing!
How you figure he is ". just an average guy who saved most of his money. " He is a person who go a specialist job and made lifetime money using the specialist income. Almost 1/2 of all working adults make 50K or less so someone who makes 100K as a single income earner is already not average!!!
Definitely not an average guy, and probably not even an employee, unless he received stock options. I'm confused about why he's asking Ramsey, and not his high net worth financial advisor.
@@DaveM-FFBI would bet he doesn't have a "high net Worth financial advisor" and more likely manages his own money. Hence...part of the reason he has $10 million at age 45.
Why not rent a place in Paris instead? Seems like less of a financial commitment, way less responsibility, less money out of pocket and if you decide to vacation in a different area you don't have to go through the trouble of selling?
I still think it's kind of crazy that he expects you to donate as much as you would spend on wants when it's your money and you earned it now that's not to say that I'm not for donating the charity but a million dollars is a whole lot of money...
It's cheaper to air bnb it when you go to Paris. That's crazy. 1 million to be in it for 8 weeks a year. Think about the maintenance and upkeep. Sheesh I wouldn't buy it. I would put the 1 million In dividend stocks and put a down payment on it and pay it monthly with dividend money.
Because u are stupid. U think dividends matter but they don't. He has enough money in the stock market so there is no reason to take a mortgage on the second home. He should just pay cash for it and enjoy
@@andersonandrew112 An international rental would just be a hassle. Maybe it's just me but he'd be better off renting a different vacation spot every year and not worry about the upkeep. Everything doesn't have to be an investment
Dang, ten million. Wow, this conversation is too rich for my blood. I'm putting off going to chiropractic school because it's twelve thousand every trimester. Geez, coming from an upbringing where we didn't have a dollar in the bank, I can't imagine paying for school or earning ten million in two life times. I shouldn't have clicked on this video 🙄
Engineers aren’t#1 on the millionaire list based on income, they make good livings but a doctor can way out earn an engineer. He earned this wealth by saving early and often and letting compound interest work it’s magic. Diligence and planning is required in both engineering and personal finance😜
@@imjustaguy476 He likely got a little lucky though because without the good income how can he accumulate large sums and still survive? The only people I see doing ok over time has specialist jobs first and save and invest second maybe your experience is different.
I'll admit 10 million at 45 years old is impressive and garners respect. But no way he earned that just working in an corporate structure as an engineer.
Thats what I was thinking! He probably did save a lot and beginning an engineer was probably into tech and invested large sums in the Amazon's, Apple and Teslas of the stock markets.
yeah, even if he invested 100k a year for 20 years from age 25-45 i doubt that 2m would have grown to 10m by now unless he went heavy in some single stocks or crypto and it went to the moon. he didnt mention his wifes career either though, so who knows, maybe she has a high income also and was able to invest a decent amount
One of my farmer partner’s was going to spend $100k on a SUV, and I mentioned how proud I am of my old Toyotas. They are clean, I comb them over consistently and keep them like new. I explained that a $100k vehicle is really a $1 million dollar vehicle, because over 10-11 years, historically over the past 30 years, every $100k I’ve ever had has turned in to a million. He and his wife settled on a well cared for used Suburban. I do believe in flexing the enjoy it muscle. If I can buy an airplane at a lower point in that market, I will. But the value of that asset will meet or exceed what I paid for it from time to time. Here is the thing with property. As a simple farmer and airline pilot, I can buy a $5 million dollar house. Pay cash for it. But I’m always going to be renting it from the government to the tune of $125k/yr. I can’t justify it. We live in a stealth home. Gorgeous, meticulously rebuilt 1860’s Victorian that has the perfect blend of charm and modernity. The tax man knowith nada.
Asking for what the people want is very important. Goals are amazing since it is the start of you having some kind of restraint from getting something very expensive right away. It might be smart to get it now or maybe next year. Sometimes we have tax implications with where we pull the money from. Our advisors have to figure out which direction would be best before getting these great toys. Good stuff.
There’s more to the equation. Annual costs of upkeep, property taxes, travel expenses, etc. You might be spending $50k on this. So assuming a 4% withdrawal rate, this could be eating up 12% of your annual spend on this, which isn’t crazy for a retirement vacation budget. But it’s something else to consider.
I would add that a real leader not only takes risks but also does their best to mitigate that risk. A fake Alpha doesn't try to mitigate or prevent problems. They won't or can't think far enough ahead to soften the blow of future problems so they don't take steps to prevent them.
Difference is you and I can't afford that $1M apartment. He has a net worth of $10M it isn't much to him. If you had $100k and bought a $10k toy it wouldn't be any different just different numbers, but same concept.
@@andersonandrew112 no, he became worth $10m by not spending money on things he doesn't need. He probably makes a great salary, but he almost definitely has colleagues who have made just as much money as him for just as long who are in credit card debt because if you are addicted to consumerism, no salary is enough to afford everything you want. If you think the reason your net worth is 0 is that you don't make enough money, you would be one of them.
An apartment is an actual asset which will appreciate over time. He can Air BnB it and generate cash flow. He’s not buying a million dollar boat. That’s a toy.
The ratio is fine, but this is not just a toy - it's a great way to diversify as property holds value and you have an asset you can use and rent out as and when you wish.
No he has an income generating that outcome. Saving can not make up for lack of income. Income is almost always required for saving and investing otherwise where does the money come from to invest.
Its stupid lol I think he saids that so people that cant afford it dont go buying vacaition homes they cant afford, its a great investment to rent or airbnb. And its also great as a vacation home for people that can afford it. Its defnetly not a toy, if i buy a 100k car 20 years later its not worth anything, 20 years later a condo in paris will be worth a lot more then what he paid for.
Because you dont need it. Also, depends where you buy.. if it's a resort area, and the economy goes bust, you are in for a world of hurt. Paris doesnt have that issue. They aren't buying it as an investment, however.. it's a toy, but a toy that probably wont go down in value.
Here is a question: My family and i live in a large-ish town in Canada. I just got a new permanent and secure job in a rural area, thirty minutes away from our current home . Because of the isolation, the real estate is cheaper near my new job than in our large-ish town. We owe about 200 grand on mortgage and make about 170 grand a year (we only clear 8 grand a month, due to mandatory pension contributions and higher taxes in Canada ). We plan to payoff our mortgage in about 6 -8 years (maybe sooner) BUT: We could realistically be mortgage free by selling our current home and buying a suitable home in the rural area (near my new job). Does it make sense to accelerate into baby step 7 by buying a cheaper house than the one we're currently in? Or should we stay the course, stay in debt for 5-10 more years, and live in our current home? Also what do you think Dave Ramsey would say?
The better purchase would’ve been like a $80000 in Namibia (like Elton John and Brad Pitt did) because it is probably a bigger house than the $1 million in Paris and it also would have a better view
Agreed. I could see him having a networth of 2 to 3 million working a 9 to 5. But to get to 10 million (even over the course of a 30 year working career) you have to incorporate real estate and or a business into your assets.
It's safe to say that he's a successful real estate investor and/or a business owner, or hedge fund manager. Or, a decent chunk was inherited. You don't get to $10M net worth at age 45, with income from being an employee.
Dave mentions "renting an air bnb 8 weeks a year" but, fails to see if Robert buys the property in Paris, stays in it 8 week's a year and rents the property out for the other 44 weeks of the year, it's no longer a "toy" but an investment 👌 2 birds, one stone 💪
Hmm, unless you speak French and have some local knowledge,better to just invest the million and stay in someone else’s ABnB whenever I feel like going to Paris. Going into the ABnB business in a foreign country sounds like a job
No don’t do it! Paris laws are very weird and a squatter doesn’t have to stay there long until it becomes difficult to kick them out on the legal side of things. My husband has a rich aunt that lives there and can’t even take trips with her husband for fear that a squatter will move into their million dollar condo. It might even be only a month before it can become a squatters permanent residency and you cannot kick them out unless they leave voluntarily
I don’t often disagree but in this case the “toy” won’t lose value. So it’s not really a toy. It is a decent investment that will probably appreciate over the years, save them the cost of hotels and might be rentable when the buyer isn’t staying thus creating another income stream. Not to mention, there are probably some tax advantages.
I thought he was like 60 plus. When he said 45 i was shocked. Go and enjoy life brother, buy your apartment and then find way to give a million to something that would benefit as many people as possible
@@Run4Ever77 going full necro on my year old comment lol. I say I’m Tom Brady - doesn’t make it true. Maybe he got lucky on stock buyout. Idk or care. I watched the video a year ago
$10M at 45, would require $162K per year at 10%, $80K per year at 15%, or $42K per year at a 20% ROI if he invested from 25-45 (20 years). It's doable, especially if his wife's salary is going directly to investment portfolio, but to be clicking off 15-20% every year for 20 years is PDG. If he's that great of an investor, he should quit the engineering gig.
"How did you make it to ten million?" "Well my father was in Aviation with lots of ups and downs." What was the company? BlueStar Airline..................... "Blue Horseshoe loves BlueStar Airlines."
If he can afford it, why not. They can rent it when they are in the US. A 1M$ appartement, it can be in a very touristic place. Put it on Airbnb when you are not around.
Just rent in Paris for 8 weeks per year. Cheaper and this family is not at the whim of governments which will curtail or tax to death foreign owners. It happens.... just rent and be free to go anywhere. This family may change their mind and want to go somewhere else. Ongoing operational costs of this luxury item will continue to eat at this family's 10 million dollars. They will not continue to have the 10 million in a few years if they buy this. During the 2 year pandemic, airplane travel was curtailed or stopped. Are foreign owners double taxed? Would you owe France taxes? Could squatters have rights over foreign owners? The caller would note even be a voter.....would the government care about his property? Just rent.
€1 million for a remote home to visit just a few weeks each year? What taxes, insurance, and repair costs? How much work to operate as an airbnb? Probably wiser to rent a different vacation home each summer. After all, that is when the locals leave the city and short term vacancies peak.
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"spiritual" even your spiritual has to do with money. its easy to give money when you're rich
@@tarawillis3995 Yet by income percentage, the middle to lower middle income people in the U.S. donate more than the super rich. A person who donates 10% of their $100,000 income is more common than a person who "earns" $10,000,000 and donates $1,000,000, and when that rich person donates, it is much more likely to be structured for maximum tax advantages and not just freely given.
Did she
10 Mil on a engineer salary, even a +300k a year, my guy was living frugal and investing, good for him!
Well yes to both but he is buying real-estate and a apartment if he has his way. I fell he is just taking advantage of others need for housing and making 300K makes him one of the top tier earners when companied to average incomes. The more I have made the more I can not do correctly and still be ok. It is safe to say on his income he to can do a lot wrong and still win.
He’s making well over 300k a year…. He 45, so in the 20 years since he finished school he’s been adding 500k to his net worth every single year…. He is making well over a million/year
@@tdub25 You're thinking linear and not exponentially. He hasn't been adding 500k a year.
@@JasonSpasoffused an investment calculator. Assuming 8% returns over inflation, he'd still have to be investing 11k per /month/ in 2024 dollars (ie about $6k in 2000 dollars) or 132k / year. And that's assuming an even investment rate over the years, most likely his salary increased over time, meaning less time in the market for the times he's saving more.
+300k? MAybe in California. The problem would be, how do you live cheap in California. More like half that pay anywhere else. My guess is this guy lived EXTREMELY frugal.
Dave is a better host than the other personalities because he connects the calls to his own personal experiences
He makes everything about him.
He mentioned 5 times that he bought a vacation home.
@@saulgoodman2018 It’s called context. It’s called drawing from a personal story to relate to the caller. This is basic comprehension
Life experience
@@ClaxtonBay123 Not when you keep saying the same thing over and over. That's called bragging.
Lol no it's because he's arrogant and can't go 1 minute without talkn about himself
Came here hoping for a crazy hypercar, but a Parisian vacation home IS pretty nice.
I think 10% of your net worth spent on a toy makes more sense with a higher net worth. Spending $10k on a toy with a $100k net worth feels more frivolous than spending $1MM when you’re worth $10MM
Nice…. I hope so. Some picture of France shows that they got a homeless problem like LA
I would have more fun with the hyper car than a Paris vacation home. Vacation is nice in small doses
It's true. Because if all you have us 90k left, that ain't gonna get it done. If you have 9 million after, you are gonna be ok no matter what happens.
Correct. That ratio applies only when you are millions above what you need to cover basic needs.
Agree. It really comes down to if your net worth is more than sufficient to cover living expenses. Oddly, Dave did not inquire about living expenses or what assets that majority of his wealth is held in.
This is not a toy, it is real estate that can be rented and will go up in value! Perfect "toy" to buy!
It’s an asset lol not a toy
@BenjaminButton6573 it's dangerous to think of personal real estate as an asset
@@huru9178but it is….
@@huru9178 it is
@@zoeyredmond5501real estate is only an asset if you have paid all cash for the house. People who take out these giant loans on a home and pay way more in interest than what they will ever sell the house for and thinking their home is an asset are idiots.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
Everyone’s all “It’s a $1 million apartment!”, and here I am admiring the guy’s business sense for taking advantage of a depressed valuation situation.
It is also a "toy" that will almost never plummet un value like other expensive toys people usually get, like luxury cars
For a few weeks a year I think it makes more sense to rent a chateau or an apartment. Managing a place they own that's an international flight away is going to become a frustrating (and expensive) chore.
Oh you mean all you say plus a language barrier? LOL
With that kind of net worth I wouldn't be surprised if he and his wife are already retired if not planning to retire soon. If they're retired they could easily spend months in the apartment at a time.
We had a vacation home in Florida. Very difficult to manage relying on an agency to care and rent out ( pre Airbnb). We lived in North East. It was not a great idea. Ended up selling after 4 years
Hey Dave, I have a net worth of twenty dollars, can I afford a Popeye's biscuit?
Rice and beans, beans and rice!
Only if its at most $2. RATIOS!
You paying cash for that?
Only if you put it on a credit card
And what’s your household income?
The nice thing with this decision is that the "toy" will likely go up in value vs blowing say $1 million on a super car or a nice boat or a plane.
Exactly, paris prices are probably never going down 🤔 I don't understand why it's a toy. There are costs to upkeeping it but it's strange.
You do realize a lot of supercars go up in value...
@@davidpeterson9111 lol
If they wanted to, they could hire a company to oversee it as a vacation home 10 months out of the year and potentially make the money back over a few years.
or they could rent a very nice house. At $10000 per month, if they are there two months that is 20k. Even over 20 years that is a 400k loss. If the house appreciates with inflation, the upkeep and taxes would likely be similar.
I truly love how quickly Dave flips the switch on his advice when somebody is in a great situation wtih their net worth.
He knows if you are successful you should enjoy the fruits of your labor if you can easily afford it.
It also should retain its value. Hopefully.
It’s a big toy that holds its value. Not everything needs to be an investment once you’ve made it. At the same time, Airbnb is a good alternative.
managing an airbnb from another country would be really difficult, but it's a good idea
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Casey the Spammer
You need to get a real job, dude.
You need to get a real job, dude.
Incredible!!! Saving and giving are underrated factors to building wealth.
Buy back time. I like that thought process. You only live once and why work the entire thing whereas if you save and invest you can retire early and enjoy your time.
Very true. The only thing to be weary of is only living for retirement. Once you're debt free and living below your means you should enjoy a little bit, like taking a reasonable vacation every year (pandemics not withstanding). There's too many stories of people dying before they reach retirement or only a couple years after retiring. Some of it is luck and some it it might be not resting enough during the working years. There's a balance between saying YOLO and not saving/investing for retirement and living a cheap life you hate and only focusing on retirement.
I bought a vacation house in the mountains in 2018 for 160k. Put 100k down and thanks to covid it's now worth 450k. I have a ton of fun visiting it and golfing/snowboarding multiple times a year. But it is definitely nice knowing it has appreciated in value almost 3x. I say this guy will be just fine.
Another available option in metropolitan France is to purchase a hotel suite. The hotel manages and rents it out when the owners are not using it, and when there the owners have all the amenities that the hotel provides: food, cleaning, etc.
Never heard of this in europe. You own the whole hotel, not a room or a suite.
In Europe it’s measured in square meters, 1 square meter is almost exactly 10 square feet just to keep it easy to compare
Guy is worth 10 million and he doesn't sound like he even enjoys his life.
Seriously tho. Wild
Anyone who would want an apartment in Paris doesn’t enjoy life.
@@scappelhow does that make sense
Yep, happiness doesn’t come from our status or career or success. It comes from experiencing and putting out goodness
@@Ken-zh2br
Have you looked Paris up lately? Or Europe?
A good buddy of mine just got back to the states after hitchhiking across Europe for a couple months, and he gave the report that Paris is as wrecked as usual. Not to mention the rest of Europe.
The place is in shambles, even more so than here in America.
in this inflationary period, buying real estate is a good decision, it's hard for real estate to actually lose value (unless something dramatic happens)
I have listened to and followed Mr Ramsey for a long time, and I’ve watched some videos of his several times. His content gets very redundant, and I am grateful for that, because it keeps reinforcing that the same simple principals stand the test of time. I love and quote his repeated concept of ratios. Keep it coming! 👍🏻👍🏻
This guy is literaly the Dave Ramsey poster boy! Engineer: CHECK. No inheritance: CHECK. Self-made Miwionaire: CHECK
Ramsey's advice here for this high net worth gentleman is something that all financial mutants on the road to saving for a prosperous future need to hear. Go down this journey not just for your enjoyment - but for the generosity that's equivalent or even greater than your enjoyment. Well said Dave - one of my favorite clips.
Short version: Has $10 million in assets, wants to buy an 800 sq. ft, $1 million apartment in Paris as a vacation home. Dave is fine with this, since it's only 10% of his assets. Plus it's real estate, so it'll retain most of its value, or go up over time.
I'm still dumbfounded that an 800sq ft apartment costs 1.1million...
@@b7Hn4eX8yv4m It's Paris, not bumfuck somewhere in Idaho.
Thanks, I didn`t want to see the video.
Thank you so much bro. I’m blind so this helped me out a ton. You’re a real one brother. Appreciate you.
@@b7Hn4eX8yv4m thats the norm here in Vancouver, BC sadly
Dang I hope I can achieve something like this by 45, way to go man. I'd love to own something over seas and possibly retire there. I was thinking Belgium, no tax on capital gains.
Amen.
Or Switzerland, very low taxes there and beautiful mountain views.
@@jculver1674 true very beautiful, housing and everything else tho can be expensive.
No capital gains tax in NZ either 😊
No guarantees but the $1m house will probably not become worthless over the next 10 years.
Here I think it makes sense because it's something the whole family can enjoy and it sounds like his wife is on board. If he was buying something that was only or mostly for one member of the family it would be less reasonable.
At least it’s being spent on real estate instead of something that will depreciate!
Technically real estate is subject to depreciation, that's why landlords can claim depreciation expenses on their rental properties as deductions.
@@uberboiz yes you’re correct regarding tax purposes but 99.9% of the time and home you buy can be sold for more than you originally paid 10, 20, 30 years later. If he spent that same $1,000,000 on things with motors he would be less likely to sell those items later and recoup that money.
@@williamlackey123 I get what you are saying, and I'm simply highlighting that what's increasing is the property 'price', not 'value' - they are not the same thing.
I agree things with motors will depreciate, but if his net worth is really $10m and he is willing to exchange $1m for 'toys', I bet he can afford the depreciation. In any case, I wasn't suggesting spending the $1m on things with motors is a better option than spending it on properties.
I lost a $20 bill other day at Walmart.. I've been sleeping in the parking lot hoping somebody comes around and ask if anybody has lost some money.🤣
Same here but a $5.00 bill, I am hoping somebody finds it and returns it.
I feel for u.. sorry
@@moneymanfernando1594yea sure they will lol
We bought a 430 k place in mexico on the beach in 2021 . It went unp to 830 k this year . We use it 9 weeks a year and air bnb it 95 percent of the time we arent there. Great investment it brings in 45 k per year. 2nd homes are great investments usually if the location is good.
How can you say that an apartment is a toy. I bet the “toy” goes up like 5-10% in value every year
It's a toy because it's a luxury, not a place he needs to live. And he's buying it for fun, not as an investment.
Nope. Most homes only keep up with inflation. Unless you live in an area that the population is booming and not enough houses that the demand needs.
Always count your own house as a liability, not an asset. Although it's very true that the value can IN MOST CASES go up on average, you may (not always but it's a possibility) end up spending more than that on repairs if something like the roof leaks or AC breaks, or some combination of things. The ONLY time a house becomes an asset is if it is rented out or if it's a fixer upper where you IMMEDIATELY turn around and sell it for a profit after fixing it up.
@@Spladoinkal Yep, exactly. Sure, it'll probably keep its value if you ever sell it, but if you don't sell it, it's just cost after cost after cost, making it a toy.
I bought an airplane 3 years ago for 80,000 but today I could sell it for 100,000 just because of inflation it wouldn’t cover all I’ve spent on it but I’d say I at least would break even for all the fun I’ve had with it
I ran the numbers and this caller can retire at age 65 with nearly one hundred million dollars if he simply invests the money and does not contribute a cent more. Didn't invent anything, didn't build a great business, doesn't play sports, didn't win the lottery... just an average guy who saved most of his money and will retire with one hundred million. Amazing!
How you figure he is ". just an average guy who saved most of his money. " He is a person who go a specialist job and made lifetime money using the specialist income. Almost 1/2 of all working adults make 50K or less so someone who makes 100K as a single income earner is already not average!!!
Definitely not an average guy, and probably not even an employee, unless he received stock options. I'm confused about why he's asking Ramsey, and not his high net worth financial advisor.
@@DaveM-FFBI would bet he doesn't have a "high net Worth financial advisor" and more likely manages his own money. Hence...part of the reason he has $10 million at age 45.
Why not rent a place in Paris instead? Seems like less of a financial commitment, way less responsibility, less money out of pocket and if you decide to vacation in a different area you don't have to go through the trouble of selling?
Much smarter and if you got sick of it, you could switch to renting in Italy or literally anywhere else while that 1 mil is invested productively
obviously doesent make sense, especially if they are not going to AirBnB it during the off season..
But YOLO!!
I still think it's kind of crazy that he expects you to donate as much as you would spend on wants when it's your money and you earned it now that's not to say that I'm not for donating the charity but a million dollars is a whole lot of money...
Thanks for the great content and perspective!! God bless George and Dave!!!
It's cheaper to air bnb it when you go to Paris. That's crazy. 1 million to be in it for 8 weeks a year. Think about the maintenance and upkeep. Sheesh
I wouldn't buy it. I would put the 1 million In dividend stocks and put a down payment on it and pay it monthly with dividend money.
Because u are stupid. U think dividends matter but they don't. He has enough money in the stock market so there is no reason to take a mortgage on the second home. He should just pay cash for it and enjoy
Better yet he should finance it. Put down $200k, rent it out full time to cover the mortgage and expenses. Now he has 800k still in his pocket.
@@andersonandrew112 An international rental would just be a hassle. Maybe it's just me but he'd be better off renting a different vacation spot every year and not worry about the upkeep. Everything doesn't have to be an investment
Wow he's done very well. My goal isn't 10 million, it's 3 or 4 at the rate we're going. And I'm on my way! Can't wait!
Dang, ten million. Wow, this conversation is too rich for my blood. I'm putting off going to chiropractic school because it's twelve thousand every trimester. Geez, coming from an upbringing where we didn't have a dollar in the bank, I can't imagine paying for school or earning ten million in two life times. I shouldn't have clicked on this video 🙄
Engineers aren’t#1 on the millionaire list based on income, they make good livings but a doctor can way out earn an engineer. He earned this wealth by saving early and often and letting compound interest work it’s magic. Diligence and planning is required in both engineering and personal finance😜
@@imjustaguy476 He likely got a little lucky though because without the good income how can he accumulate large sums and still survive? The only people I see doing ok over time has specialist jobs first and save and invest second maybe your experience is different.
@@donaldlyons17Teachers and cops make up a sizeable chunk of millionaires. Income is only part of the equation
I'll admit 10 million at 45 years old is impressive and garners respect. But no way he earned that just working in an corporate structure as an engineer.
Thats what I was thinking! He probably did save a lot and beginning an engineer was probably into tech and invested large sums in the Amazon's, Apple and Teslas of the stock markets.
Agree. There must be more to the story.
That is because he did his homework and invested and saved with unstoppable discipline. 😊 ❤
yeah, even if he invested 100k a year for 20 years from age 25-45 i doubt that 2m would have grown to 10m by now unless he went heavy in some single stocks or crypto and it went to the moon. he didnt mention his wifes career either though, so who knows, maybe she has a high income also and was able to invest a decent amount
He never said what his wife did. 25 years of working X2 salaries...an average career income would make you a multimillionaire
A millionaire worth 10 million bucks asking advice from someone worth thing hundreds of millions!! no ego no attitude but still learning great call!
This guy was real value on how here made that money. He dodged the question.
Excellent as always, I need to exercise my enjoyment muscles without guilt.
Your the best
Thanks Craig
One of my farmer partner’s was going to spend $100k on a SUV, and I mentioned how proud I am of my old Toyotas. They are clean, I comb them over consistently and keep them like new. I explained that a $100k vehicle is really a $1 million dollar vehicle, because over 10-11 years, historically over the past 30 years, every $100k I’ve ever had has turned in to a million. He and his wife settled on a well cared for used Suburban.
I do believe in flexing the enjoy it muscle. If I can buy an airplane at a lower point in that market, I will. But the value of that asset will meet or exceed what I paid for it from time to time.
Here is the thing with property. As a simple farmer and airline pilot, I can buy a $5 million dollar house. Pay cash for it. But I’m always going to be renting it from the government to the tune of $125k/yr. I can’t justify it. We live in a stealth home. Gorgeous, meticulously rebuilt 1860’s Victorian that has the perfect blend of charm and modernity. The tax man knowith nada.
Those kids are going to be tired of Paris in a few years .
Asking for what the people want is very important. Goals are amazing since it is the start of you having some kind of restraint from getting something very expensive right away. It might be smart to get it now or maybe next year. Sometimes we have tax implications with where we pull the money from. Our advisors have to figure out which direction would be best before getting these great toys. Good stuff.
France is a bureaucratic nightmare. There are easier cities in Europe. 10% sounds fine though for a non maximized asset.
There’s more to the equation. Annual costs of upkeep, property taxes, travel expenses, etc. You might be spending $50k on this. So assuming a 4% withdrawal rate, this could be eating up 12% of your annual spend on this, which isn’t crazy for a retirement vacation budget. But it’s something else to consider.
Exactly why the lakehouse i plan on buying in the future will be 80% an airbnb
Engineering with a net worth of 10 million at 45. Sheesh I would be happy if I got 1/3 of it by 45 lol
I would add that a real leader not only takes risks but also does their best to mitigate that risk.
A fake Alpha doesn't try to mitigate or prevent problems. They won't or can't think far enough ahead to soften the blow of future problems so they don't take steps to prevent them.
Robert is an absolute STUD! Tryna be like robert when i grow up
Was thinking the exact same thing as “well, it’s not a Lambo.”
Bad idea, he said he’ll use it at most 2 months, better to rent
Yes, but the point is he can afford to do so and it won’t effect him financially. He’s saved and worked hard, time to enjoy it.
Its real estate, if it goes up 5-10% a yr he will still come out ahead. Its both a toy and a investment.
Difference is you and I can't afford that $1M apartment. He has a net worth of $10M it isn't much to him. If you had $100k and bought a $10k toy it wouldn't be any different just different numbers, but same concept.
Money flows in and out! Enjoy it!!!! Don’t be a stickler
GT2RS will hold It's value
10 million net worth and asking Dave for advice. 😂
Because he got out of negative net worth listening to Dave s advice
@@andersonandrew112 no, he became worth $10m by not spending money on things he doesn't need. He probably makes a great salary, but he almost definitely has colleagues who have made just as much money as him for just as long who are in credit card debt because if you are addicted to consumerism, no salary is enough to afford everything you want. If you think the reason your net worth is 0 is that you don't make enough money, you would be one of them.
Does this apply for individuals with high net worth but low income compared to net worth?
An apartment is an actual asset which will appreciate over time. He can Air BnB it and generate cash flow. He’s not buying a million dollar boat. That’s a toy.
The ratio is fine, but this is not just a toy - it's a great way to diversify as property holds value and you have an asset you can use and rent out as and when you wish.
It is an appreciating toy and not a car
If you don't listen to the end of this video you miss the big point. 10 Million net worth. Saved hard. ONLY 45 years old!!!
No he has an income generating that outcome. Saving can not make up for lack of income. Income is almost always required for saving and investing otherwise where does the money come from to invest.
I don’t get characterizing a vacation home as a “toy”.
Its stupid lol
I think he saids that so people that cant afford it dont go buying vacaition homes they cant afford, its a great investment to rent or airbnb. And its also great as a vacation home for people that can afford it.
Its defnetly not a toy, if i buy a 100k car 20 years later its not worth anything, 20 years later a condo in paris will be worth a lot more then what he paid for.
Because you dont need it.
Also, depends where you buy.. if it's a resort area, and the economy goes bust, you are in for a world of hurt.
Paris doesnt have that issue.
They aren't buying it as an investment, however.. it's a toy, but a toy that probably wont go down in value.
He also needs to keep in mind maintenance costs. How cool!
Good for you!!! Enjoy Paris 🥳!!!
Plus, it's real estate in Paris, its not like it's a million dollar RV that'll be worth 150 grand in 10 years.
Here is a question:
My family and i live in a large-ish town in Canada.
I just got a new permanent and secure job in a rural area, thirty minutes away from our current home . Because of the isolation, the real estate is cheaper near my new job than in our large-ish town.
We owe about 200 grand on mortgage and make about 170 grand a year (we only clear 8 grand a month, due to mandatory pension contributions and higher taxes in Canada ). We plan to payoff our mortgage in about 6 -8 years (maybe sooner) BUT:
We could realistically be mortgage free by selling our current home and buying a suitable home in the rural area (near my new job).
Does it make sense to accelerate into baby step 7 by buying a cheaper house than the one we're currently in? Or should we stay the course, stay in debt for 5-10 more years, and live in our current home?
Also what do you think Dave Ramsey would say?
I couldn't read any more after I considered there are only about 4 big towns in Canada. 😂
downsize to pay off your mortgage. ;÷)
the good thing is that it's an asset that shouldn't depreciate so you lose nothing.
At this point in history, mortgage rates were at historic lows. Telling someone to pay 1.1m cash in that environment is ridiculously bad advice.
You can rent it for 8 weeks a year and that money is gone, but if you buy it it's an asset and the money doesn't go away
Eight weeks out of country while working fulltime I want this mans job even without his paycheck
The better purchase would’ve been like a $80000 in Namibia (like Elton John and Brad Pitt did) because it is probably a bigger house than the $1 million in Paris and it also would have a better view
10.76 square feet to 1 square metre. Almost a similar unit with a 10x offset.
This isn’t a toy. It’s equity in property that is likely to appreciate in value. If you’re buying a car that’s a toy. Very different.
What was his average income for him to accumulate a $10 mil networth at the age of 45? This question should have been asked
Agreed. I could see him having a networth of 2 to 3 million working a 9 to 5. But to get to 10 million (even over the course of a 30 year working career) you have to incorporate real estate and or a business into your assets.
It's safe to say that he's a successful real estate investor and/or a business owner, or hedge fund manager. Or, a decent chunk was inherited. You don't get to $10M net worth at age 45, with income from being an employee.
@@DaveM-FFB I agree
@@MaxwellMax rich parents the end…
@@ladyraddxjbs5893uh..no
Today i bought a $0.99 cup of noodles.. actually i bought two. The 2nd one is the one i was questioning
Heck, if it stressed you, you could always sell it. A Paris apartment is not going down in value. Don't sweat it.
It doesn't make sense but you could rent the property when you're not there. Also, it appreciates in value over the years.
Dave mentions "renting an air bnb 8 weeks a year" but, fails to see if Robert buys the property in Paris, stays in it 8 week's a year and rents the property out for the other 44 weeks of the year, it's no longer a "toy" but an investment 👌 2 birds, one stone 💪
Why not buy it? And AIR BNB the property.
Or just rent on AIR BNB for 8 weeks they are there.
Hmm, unless you speak French and have some local knowledge,better to just invest the million and stay in someone else’s ABnB whenever I feel like going to Paris. Going into the ABnB business in a foreign country sounds like a job
No don’t do it! Paris laws are very weird and a squatter doesn’t have to stay there long until it becomes difficult to kick them out on the legal side of things. My husband has a rich aunt that lives there and can’t even take trips with her husband for fear that a squatter will move into their million dollar condo. It might even be only a month before it can become a squatters permanent residency and you cannot kick them out unless they leave voluntarily
I don’t often disagree but in this case the “toy” won’t lose value. So it’s not really a toy. It is a decent investment that will probably appreciate over the years, save them the cost of hotels and might be rentable when the buyer isn’t staying thus creating another income stream. Not to mention, there are probably some tax advantages.
I thought he was like 60 plus. When he said 45 i was shocked. Go and enjoy life brother, buy your apartment and then find way to give a million to something that would benefit as many people as possible
It isn’t a toy. Real estate tends to be an asset that appreciates, a toy I.e. car, boat, rv, etc depreciates.
Even if this guy was frugal, there has to be more to the story to have $10mm as a 45yo engineer.
He put $1,000 into Bitcoin at 2 bucks lol ...
While true, that’s not the point of his call. The story is irrelevant to the question and I’m glad he didn’t waste listeners time
Inheritance
@@Arc1517Said he hadn't inherited any of it.
@@Run4Ever77 going full necro on my year old comment lol. I say I’m Tom Brady - doesn’t make it true. Maybe he got lucky on stock buyout. Idk or care. I watched the video a year ago
$10M at 45, would require $162K per year at 10%, $80K per year at 15%, or $42K per year at a 20% ROI if he invested from 25-45 (20 years). It's doable, especially if his wife's salary is going directly to investment portfolio, but to be clicking off 15-20% every year for 20 years is PDG. If he's that great of an investor, he should quit the engineering gig.
Don't forget that the stock market has had a streak of yielding unprecedented returns during the past 11 or so years
Exactly, his story doesn't add up. Those returns constantly over 20 years makes him as good a Buffett. It's possible, but unlikely...
"How did you make it to ten million?" "Well my father was in Aviation with lots of ups and downs." What was the company? BlueStar Airline..................... "Blue Horseshoe loves BlueStar Airlines."
Well done! Why didn’t I know about this 20 years ago!!!! 😿
Net worth can be tied up in assets not easily available
Unlike most "toys" it's not going to go down in value. No-brainer to me if I had $10 million (assuming I was at least $5 million liquid).
Why not buy an apartment complex, make cash flow. Use the cash flow to rent a lake house ANYWHERE!
This dude is a hero.
Or buy a timeshare!!! LOL
For all us regular folk. If you put a $20 bill on table and burn it would your life change? 😂
A dollar you mean.
You only have a $200 networth?
Always a good educational video to listen to is always good.
If he can afford it, why not. They can rent it when they are in the US. A 1M$ appartement, it can be in a very touristic place. Put it on Airbnb when you are not around.
He beat around the bush when they asked how he made the 10m
Just rent in Paris for 8 weeks per year. Cheaper and this family is not at the whim of governments which will curtail or tax to death foreign owners. It happens.... just rent and be free to go anywhere. This family may change their mind and want to go somewhere else. Ongoing operational costs of this luxury item will continue to eat at this family's 10 million dollars. They will not continue to have the 10 million in a few years if they buy this.
During the 2 year pandemic, airplane travel was curtailed or stopped. Are foreign owners double taxed? Would you owe France taxes? Could squatters have rights over foreign owners? The caller would note even be a voter.....would the government care about his property? Just rent.
€1 million for a remote home to visit just a few weeks each year? What taxes, insurance, and repair costs? How much work to operate as an airbnb? Probably wiser to rent a different vacation home each summer. After all, that is when the locals leave the city and short term vacancies peak.
Why the only question asked was Nett Worth not cashflow as well?