How much is enough?

Question

As our portfolios grow and we gain more properties, wealth and skills, at what point is enough? How much do we really need, or really want? How much complexity do we want in our lives and how much work do we want to do? I'm slowing down, but not stopping but not sure I need or want more.

I could argue that, for the most of us 10 to 20mm is a good stopping point unless you want super yachts, jets, huge mansions or many personal homes in different locations, etc, etc. which most of us will never get to., or need. And all of those comes with another set of complexities.

If you stop at the 10 to 20mm range (or less) you can rent/hire most of the luxury items you ever want, with no commitment, travel the world (if that's your thing). You can easily hire a maid and a butler that will do all your daily ******** stuff, shopping, etc. Why would you want more?

What say you?

Dan H. · Answer

I enjoy the challenges of earning money.  Wealth is the scorecard, but somehow gifts have to be accounted for.  The last 3 years I gave away more than half my taxable income and last year I gave away 4 to 5 times my taxable income which perturbs the scorecard.

So for me, I plan to stop when it is no longer fun.  I am torn because I also like to travel, fish, backpack and making money takes some time.  What do you do?  You combine the two.  A trip to look for a good investment or to make some contacts that can potentially be lucrative.  Business travel to interesting places or that includes experiencing interesting events.

You can try have your cake and eat it too.

Best of luck with your investments

Steve Smith · Answer

Dan,

Nothing wrong with giving dollars away. I've done it at times, sometimes 6 figures, but always do it so that there's no tax burden on my recipient.

Also, I like mentoring a few people interested at times, but find it very frustrating. I find that less than 1 in 10 really do much about it, but it's very rewarding when one hits that million dollar mark.

I only give to charities that really have value, and are not skimming most of the money for admin.

Time is still the most valuable thing most of us have, so spend it wisely.

Jules Aton · Answer

@Steve Smith I remember when I realized I was lean financially independent and all the sudden time became more valuable than money. It doesn't mean I don't still like making money but the urgency is gone which is kind of nice.

Steve Smith · Answer

Jules, Well put. I hope the heck I've got more than a decade to go, but just have too many play things to do that are more important than buying another house. Some not so expensive, like a bike ride or a walk in the park. Yes, I'll certainly keep my hand in the real estate arena owning and renting property until the day I croak, but perhaps not so aggressively that it's a burden. As we progress thru the real estate game, the most valuable asset we have is time. Everything else is controllable and changeable. Easy to dump a lousy rental, but impossible to get back the time we wasted in managing it.

Steve Smith · Answer

Jacob,

Good points, and I support your ideas about giving back. I've been a fan of TtoT and St. Jude for years, much longer for St Jude. Volunteering is very worthy and satisfying.

Living off the grid is very appealing, but certainly challenging. Not going to happen in my life, as it would be a major change, which I'm not willing to go thru. Have friends that did that, especially with a second home and worked out well.... but a LOT of work!

I like your idea of an auto shop or auto body shop. They will be around forever, and could be a good cash flow source, if you can manage it well. But for now, not looking for a job.

As for concern for bank accounts vs tangible and pragmatic things, you make a good point. However, I'd bet that the goal for most folks on this forum is to be financially independent, and never have to worry about where the money is coming from ever again. It's freedom, and that is measured by assets and income. We work at real estate to create the assets and income we want and need to become financially free. Once we have that, then we can spend more time on living and philanthropic things.

So, the question is, how much is enough? We would certainly want to have our basic needs covered, and the occasional emergency, and be inflation proof. What else?

Jules Aton · Answer

Quitting when you have won the game is a beautiful thing especially if someone is in the last decades of life. There is liability that comes with continuing to acquire more that is often not adequately considered. Also there is value in accepting tomorrow isn’t guaranteed and working later in life when not a necessity seems to be highly tied to ego.

Dan H. · Answer

I have a much better mentor succuss than you seem to be experiencing.  My first one for a while was indicating he was going to catch me in RE value and his projectory was that he would, but his last transaction was not a hold.  The transaction netted near $1m but he had a 50% partner (not me, his sister) so he netted half (land transaction on large scale ADU development -

https://www.cbs8.com/article/news/local/working-for-you/new-...).  He is by far my most successful protege, but my second most successful is doing quite well and then I have a few who are making process to doing well.  I only have one that seemed to fail to launch.

What I do get more is I offer to run a newbie through a transaction and/or show them the work in progress and I get either no show or barely show.  My last transaction is up ~$1M above costs.  In early Dec I offered to a few (4 or 5) newbies to provide financials and show them the last of the work.  The financials would show what is possible.  I provided them a day to be there (any time that day before 4 PM).  Only one sort of showed up.  She came after 4 but I was there until 6:30.  if she had contacted me, I would have shown her what was planned to finish and discussed the financials.  If someone has a deal that they are up over $1m (including the small cash flow) and I was starting out, I would be all over the financials and the plan.  I would try to make a lasting impression so that I get an opportunity to see the next "deal".  Nope!  This was not the first time.  When I came back from BPCon 2024 I was feeling a little generous.  I offered to show multiple people the numbers on my current RE holdings and to discuss what had been done.  At that time I had just finished an effort and was about to start a unit rehab and had the one from early dec in the pipeline.  I had a fair amount of people (between 5 and 10) express some interest.  They were told when to contact me, NOTHING. I think some people want it to just happen through osmosis or something.

>Time is still the most valuable thing most of us have, so spend it wisely.

No truer statement.  It hits home especially today as I am putting down a family dog that we have had 14.5 years.  HIs time is up and he has given up (stopped eating and moving).  We all have limited time on this earth, with loved ones, to experience all the world's wonders, to help others, to try to leave the world better, etc.

Best wishes

Caleb Brown · Answer

I am a huge fan of Alex Hormozi. He is a business savy guy. Often he mentions his enjoyment is the journey to the goal. A goal is nice to set but the path too it is where I find the fun. Your goals might change. If you love REI you might extend the goal over and over or you might try something else. Personally I like the work part and building up to something. Money/wealth is just a way to show that you are progressing and a tool

Nick Rutkowski · Answer

@Steve Smith I think enough is enough when you look in the mirror too many times saying "I need to do something different." The one nice thing about achieving financial freedom through real estate is we have the luxury to say this and change our lives.

Jacob Thorpe · Answer

I have been investing for about 3 years now and have worked into the 100k range. For myself I am less concerned with a number in my bank account and more concerned with pragmatic and tangible things. For example I recently have moved to this farm. Now I will have no issues in obtaining food, and no issues with housing. I can also produce here, which will bring more value. As I have worked my way up from nothing, this was not always the case for me.  I would like to at some point invest in an auto body shop so I have no issues with automotive repairs. I can also make money from the farm, and eventually the autobody shop. That will only leave healthcare to be something I will not have direct ownership or control over as I cannot feasibly own a hospital, nor an insurance company. I may at somepoint consider utilities like energy and water, and how I can become more self sustaining, purchasing stocks is one way I can make my money back, or obtain ownership in what I am spending on in terms of utilities.

I would like to keep investing,  I like to build and I also like to make people money because it feels good and it feels like the right thing to do.  There is a certain shared happiness in the success of an investment and watching it grow, if done the right way.

I have met someone recently who operates a private charity and gives back to the poor and downtrodden. As I have 'bought back my time' for the most part, I can start volunteering. I think when you make 20 million dollars, you can start giving back and investing to your local community.

I believe it comes down to values and individuality, and what you want to achieve from life. At the point of reaching an immense wealth like 20 million dollars you have the opportunity to make your will manifest in your local area.

How much is enough?

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