Careers

Your road to the RFD unicorn $1 million annual income!!!

  • Last Updated:
  • Feb 6th, 2018 2:53 pm
[OP]
Sr. Member
Mar 6, 2014
885 posts
185 upvotes
Toronto

Your road to the RFD unicorn $1 million annual income!!!

I doubt there will be many comments, I personally am not quite there yet but from looking at a few rich uncles, I have the following observations:

1) Working for someone will almost never get you to $1 million dollar annual income, unless you are either a C-level executive in a major corporation, or in sales
2) They are not even your smartest scientists or computer programmers - most people who bring in this kind of money are known for their soft skills - sales, networking, negotiating deals etc.
3) Involves a lot of risk and zero job security
4) Have to be at the right place at the right time - like being a real estate agent in a housing boom or computer programmer turned businessman right at the dawn of the dotcom boom.

If anyone here is fortunate enough to be there, tell us your story.
25 replies
Sr. Member
Nov 6, 2015
955 posts
557 upvotes
Guelph, ON
I doubt that anybody who makes that type of money wastes time in public forums like this.

I agree with your first 3 points, but the last one is off. Self-made people make their luck, they don't hope for it to happen.

There's an old book (from the 80's I think) - The Millionaire Next Door - which studied many millionaires and came to conclusions along the lines of your first 3 points, that they achieved success from owning their own businesses or being high-paid professionals (doctors, lawyers, etc.). They also lived well below their means, often living in nice but not what would be considered "rich" neighborhoods - hence the name of the book since you could be middle-class and have a millionaire living next door and not realize it.
Penalty Box
Aug 10, 2010
781 posts
198 upvotes
Mars.
JoeBlack23 wrote: I doubt that anybody who makes that type of money wastes time in public forums like this.
You'd be surprised. How do you think the rich get there? I'm focused on growing my top line and minimizing my bottom line. No, I don't make a million $/year, but I can see someone who does being on RFD.
Don't be a cooch.
Deal Guru
Dec 11, 2008
10086 posts
1516 upvotes
Not too interested in getting there to be honest given how most get there lol.

Having that much money would be nice but I don't think it would make a huge difference. I'm married and no plans for kids, no need for all this money anyways.
Penalty Box
Aug 10, 2010
781 posts
198 upvotes
Mars.
speedyforme wrote: Not too interested in getting there to be honest given how most get there lol.

Having that much money would be nice but I don't think it would make a huge difference. I'm married and no plans for kids, no need for all this money anyways.
Early retirement?
Don't be a cooch.
Deal Guru
Dec 11, 2008
10086 posts
1516 upvotes
superangrypenguin wrote: Early retirement?
I guess so lol. I'd have to make sure I am involved in many hobbies since even when I take time off without travel, it's not always fun and games.

Traveling is a big thing we like to do but even then, it does get tiring after a while and you miss "home". But we are not always "luxury" travellers anyways so that may be the reason why we can't go on forever traveling.

I do think that sometimes living the life we have now still provides us with the perspective of the "real world". I think if I were rich I'd be a bit numb or so separated from that I may feel a bit lonely in a way tube able to connect to many people.
[OP]
Sr. Member
Mar 6, 2014
885 posts
185 upvotes
Toronto
speedyforme wrote: Not too interested in getting there to be honest given how most get there lol.

Having that much money would be nice but I don't think it would make a huge difference. I'm married and no plans for kids, no need for all this money anyways.
Making a lot of money isn't always about yourself. In the process, you are also adding value to your employer, clients and the community.

For example, if you created a machine that cures deadly diseases and marketed it successfully to the world, sure you are making a lot of money - but in the process you are also helping a lot of people.
Penalty Box
Aug 10, 2010
781 posts
198 upvotes
Mars.
speedyforme wrote: I guess so lol. I'd have to make sure I am involved in many hobbies since even when I take time off without travel, it's not always fun and games.

Traveling is a big thing we like to do but even then, it does get tiring after a while and you miss "home". But we are not always "luxury" travellers anyways so that may be the reason why we can't go on forever traveling.

I do think that sometimes living the life we have now still provides us with the perspective of the "real world". I think if I were rich I'd be a bit numb or so separated from that I may feel a bit lonely in a way tube able to connect to many people.
For my personal vacations, I only do luxurious vacations and I still miss home after 2 weeks. LOL!
Don't be a cooch.
Deal Guru
Dec 11, 2008
10086 posts
1516 upvotes
Statistics101 wrote: Making a lot of money isn't always about yourself. In the process, you are also adding value to your employer, clients and the community.

For example, if you created a machine that cures deadly diseases and marketed it successfully to the world, sure you are making a lot of money - but in the process you are also helping a lot of people.
Sure but most people who created value that helps people usually do it to help people and not always to strike it rich. I'd say more people strike it rich by just doing stuff to get rich though.
Deal Guru
User avatar
Dec 7, 2009
13841 posts
1337 upvotes
Statistics101 wrote: Making a lot of money isn't always about yourself. In the process, you are also adding value to your employer, clients and the community.

For example, if you created a machine that cures deadly diseases and marketed it successfully to the world, sure you are making a lot of money - but in the process you are also helping a lot of people.
This is a good point. I think most people who are rich, become so incidentally, not because they slogged through x number of hours. My most lucrative moves came from doing stuff I was obsessed about.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

Check out caRpetbomBer's picks in this thread.
Deal Fanatic
User avatar
Nov 2, 2013
5529 posts
1416 upvotes
Edmonton, AB
"If you want to make $1,000,000/year sitting at home with your thumb up your ass, in theory you could be there by your late 30s, if you collect $5M and invest it aggressively for a 20% return.

If you bank and invest $3000/month aggressively for 18 years for 20% compounded yearly, then you should hit roughly this number.

In theory, if you lived in the Mom's basement for the first 4 years, were frugal, and worked a trades job from day 1 - and also worked a second part-time job, then 3K loose cash per month to invest is possible.

But to achieve 20% you must be creative and have the balls to take risks... and most people do not like to be creative, or take risks. You also are keeping your lifestyle relatively consistent over the years... and most people only like one type of consistency - the comfort of not having to take risks, or get creative and diverge from the typical social and financial fabric."
Consultant, Operator/Trucker
  • Oilfield & Industrial Services, Road Construction
  • Tax & Finance
  • In the Western Canadian Oilfield since 2013
[OP]
Sr. Member
Mar 6, 2014
885 posts
185 upvotes
Toronto
FirstGear wrote: "If you want to make $1,000,000/year sitting at home with your thumb up your ass, in theory you could be there by your late 30s, if you collect $5M and invest it aggressively for a 20% return.

If you bank and invest $3000/month aggressively for 18 years for 20% compounded yearly, then you should hit roughly this number.

In theory, if you lived in the Mom's basement for the first 4 years, were frugal, and worked a trades job from day 1 - and also worked a second part-time job, then 3K loose cash per month to invest is possible.

But to achieve 20% you must be creative and have the balls to take risks... and most people do not like to be creative, or take risks. You also are keeping your lifestyle relatively consistent over the years... and most people only like one type of consistency - the comfort of not having to take risks, or get creative and diverge from the typical social and financial fabric."
Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and research reports, doing DCF valuations, listening to earnings calls.. chances are Joe the plumber is not doing that.
Last edited by Statistics101 on Jan 28th, 2018 2:26 pm, edited 1 time in total.
Jr. Member
Aug 5, 2017
179 posts
75 upvotes
Statistics101 wrote: Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and reports, doing DCF valuations, listening to earning calls.. chances are Joe the plumber is not doing that.
lol if you can achieve 20% return, it's time to drop that trades job and open your own hedge fund.
[OP]
Sr. Member
Mar 6, 2014
885 posts
185 upvotes
Toronto
Syne wrote: This is a good point. I think most people who are rich, become so incidentally, not because they slogged through x number of hours. My most lucrative moves came from doing stuff I was obsessed about.
I think most people who got very wealthy probably did it by doing something that they were obsessed about. Warren Buffet love to dissect companies, Bill Gates spent every summer of his high school days at the computer lab, Steve Jobs was obsessed about user experience. It was never really about the money, these people would have done it for free. The ones who got a lucky break here or there, flipping real estate or owning bitcoin, probably can't repeat their success because they were not doing what they love.

dante01 wrote: lol if you can achieve 20% return, it's time to drop that trades job and open your own hedge fund.
Exactly.
Deal Fanatic
User avatar
Nov 2, 2013
5529 posts
1416 upvotes
Edmonton, AB
Statistics101 wrote: Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and research reports, doing DCF valuations, listening to earnings calls.. chances are Joe the plumber is not doing that.
Of course it's easier said than done, otherwise everyone would be doing it, and such routes to such returns and this $1M/year income we speak of, wouldn't exist.

With leverage it's a lot easier - and leverage has made many in the trades millionaires - whether it be construction, trucks, HVAC equipment, other trades equipment, real estate, stocks, etc... though certainly not many relative to how many ambition-less hands there are out there.

e.g. A vacuum truck or a semi truck can make $150,000 - 200,000/year; can find a decent used example for about $80,000. Take off $24,000 running costs (which can be a lot lower if well maintained and with luck), a operator's wage of $76,000 - and you're still $50,000 - 100,000 in the green - for forking out $80,000 to start (or if you budget ahead of time for running cost and wages, make it $180K). Taking the halfway point of the green, $75,000 profit with forking out $180K is still decent. Though it is a very high risk play; work can be inconsistent and finding a good operator is extremely difficult.

e.g. #2 - 20% down ($80,000) on a $400K property appreciating only 5% YoY, rental income of $20,000/year, mortgage interest approx. $9,000, property tax and insurance $3,000, amortized RE agent commission and legal fees (consider we sell in 3 years) of $2,500 => $25,500 profit for putting down $80,000. Though the catch is you're exposed to $400K of real estate market risk.

e.g. #3 - buying well-performing dividend stocks on margin, and using part of the dividends to pay the interest - though may be a bit short of 20% depending on what you choose.

If you want to stereotype, many trades people are not very financially literate and mindlessly dive into high-risk financial operations... a lot get wiped out, but a lot have coincidently gotten very wealthy as a reward for taking the risk.
dante01 wrote: lol if you can achieve 20% return, it's time to drop that trades job and open your own hedge fund.
The problem with that is you're victim to the public's fears, so you won't be able to take the same risks or have the same amount of patience.

I have, though not always with perfect consistency. Some small caps and high leverage real estate (in terms of ROI, not cash-on-cash return for the latter).
Last edited by FirstGear on Jan 28th, 2018 3:50 pm, edited 3 times in total.
Consultant, Operator/Trucker
  • Oilfield & Industrial Services, Road Construction
  • Tax & Finance
  • In the Western Canadian Oilfield since 2013
Deal Addict
Oct 16, 2013
2328 posts
702 upvotes
New Brunswick
You can clear a million a year as a director in the financial sector if you can hit all your bonus incentives like the short term, long term, grants and restrictive funds multiples are crazy.
Sr. Member
Feb 19, 2017
605 posts
347 upvotes
Statistics101 wrote: Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and research reports, doing DCF valuations, listening to earnings calls.. chances are Joe the plumber is not doing that.
Don't worry. The Oracle of Omaha is not achieving a 20% annual return either, not anymore. Fact is, people are so much more educated about the stock market these days, a consistent 20% return is almost impossible, except through algo-trading.
Sr. Member
Feb 19, 2017
605 posts
347 upvotes
FirstGear wrote: Of course it's easier said than done, otherwise everyone would be doing it, and such routes to such returns and this $1M/year income we speak of, wouldn't exist.

With leverage it's a lot easier - and leverage has made many in the trades millionaires - whether it be construction, trucks, HVAC equipment, other trades equipment, real estate, stocks, etc... though certainly not many relative to how many ambition-less hands there are out there.

e.g. A vacuum truck or a semi truck can make $150,000 - 200,000/year; can find a decent used example for about $80,000. Take off $24,000 running costs (which can be a lot lower if well maintained and with luck), a operator's wage of $76,000 - and you're still $50,000 - 100,000 in the green - for forking out $80,000 to start (or if you budget ahead of time for running cost and wages, make it $180K). Taking the halfway point of the green, $75,000 profit with forking out $180K is still decent. Though it is a very high risk play; work can be inconsistent and finding a good operator is extremely difficult.

e.g. #2 - 20% down ($80,000) on a $400K property appreciating only 5% YoY, rental income of $20,000/year, mortgage interest approx. $9,000, property tax and insurance $3,000, amortized RE agent commission and legal fees (consider we sell in 3 years) of $2,500 => $25,500 profit for putting down $80,000. Though the catch is you're exposed to $400K of real estate market risk.

e.g. #3 - buying well-performing dividend stocks on margin, and using part of the dividends to pay the interest - though may be a bit short of 20% depending on what you choose.

If you want to stereotype, many trades people are not very financially literate and mindlessly dive into high-risk financial operations... a lot get wiped out, but a lot have coincidently gotten very wealthy as a reward for taking the risk.



The problem with that is you're victim to the public's fears, so you won't be able to take the same risks or have the same amount of patience.

I have, though not always with perfect consistency. Some small caps and high leverage real estate (in terms of ROI, not cash-on-cash return for the latter).
You're averaging 20% in a bull market. So is everyone else.
Also, averaging 20% is a lot different from compounding at a consistent 20% rate.
Deal Fanatic
User avatar
Dec 27, 2009
7258 posts
4491 upvotes
Victoria, BC
I have no ambitions to earn $1 million a year (luckily for me, since it wouldn't be possible in my field lol). I think most of us find the place we are "comfortable" and live in that space if that makes any sense. I was born and raised firmly middle class, and I guess that's the life I am used to - and it is a good enough one for me.
Deal Fanatic
User avatar
Nov 2, 2013
5529 posts
1416 upvotes
Edmonton, AB
Walch1102 wrote: You're averaging 20% in a bull market. So is everyone else.
Also, averaging 20% is a lot different from compounding at a consistent 20% rate.
I'm well over that, though obviously involving small caps or debt.

Hard with traditional equities alone, yes. Hard with getting creative? Not as much, but obviously not easy. But it's incorrect to assume that it's impossible. There is a world out there aside from cash real estate buys, funds, and traditional blue chip stocks where people are happy with the high single digit to low 10s percentage gains.

That being said neither you or I will know what will happen in the future... so let's find out. For all we know Trump could do something stupid and send the market into chaos.
Consultant, Operator/Trucker
  • Oilfield & Industrial Services, Road Construction
  • Tax & Finance
  • In the Western Canadian Oilfield since 2013

Top