If your net worth is over $3 million, how did you do it?
Re: If your net worth is over $3 million, how did you do it?
The trick is to have TWO people making $80k each, and live on one salary.
Not everyone can do that, but it's not a 1%-5% kind of thing either.
Top 20%-30% can make that kind of money in their 30s and 40s and 50s, and saving $40k a year adds up. After 25 years, you'd saved $1 million, which has probably grown to $2 million.
Which is plenty really... $3 million may come for the couple above, but they don't need it.
Not everyone can do that, but it's not a 1%-5% kind of thing either.
Top 20%-30% can make that kind of money in their 30s and 40s and 50s, and saving $40k a year adds up. After 25 years, you'd saved $1 million, which has probably grown to $2 million.
Which is plenty really... $3 million may come for the couple above, but they don't need it.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Re: If your net worth is over $3 million, how did you do it?
I've thought of this often.... and in many cases it can make sense. But most typically when younger and earlier in career. Most moves for "better" jobs require going to HCOL areas. Which may or may not be best for raising a family, nor be helpful in actually raising your standard of living.mrspock wrote: ↑Mon May 10, 2021 7:30 pm I'll throw this one out there: by moving.
I know people should optimize for happiness, and things are deeply personal, but it's been my observation than many people overweight the impact of moving for a job on their relationships and/or happiness they derive from family & friends.
In some cases -- when none of their family even lives where they grew up/live anymore!
IMO, it's difficult to make step function like gains in your prosperity unless you physically move yourself to a place where your talent and skills are maximally rewarded. I can't tell you how many friends I have who simply refuse to move anywhere beyond the city of their birth, even though quite obviously they'd make a lot more money, and retire far far sooner.
For the young people out there: I got news for you, once your friends start having families & kids, you will not see them nearly as much.... maybe not ever. As for family, many of them too might elect to move when an opportunity presents itself, so don't forgo the opportunities which come your way, only to be shocked when you are "abandoned" by your family when the same choice is presented to them.
In summary: don't be so tied down to where you grew up. Even Frodo Baggins went on an extended adventure or two.
Re: If your net worth is over $3 million, how did you do it?
That's the (three) million dollar question! I'm sure all of the FAANGs (and similar companies) have teams where the WLB is great, and others where it's horrible, and the average is somewhere in between. For two out of my four years it was pretty bad, and the other two, pretty good. But even on the best day, there was still some level of stress. And the WLB can shift from good (comfortable 40 hour weeks, partly from home) to bad (7 day/week death marches and months-long "war room" working conditions) rather quickly. Glad to be free from all that, even though it hasn't fully sunk in to my subconscious yet, two weeks after I pulled the plug.Wannaretireearly wrote: ↑Thu May 13, 2021 5:36 pmLet us know if there is a Nirvana FAANG job/role/group which has great WLB. That would be a unicorn to chase! Maybe just the G in certain groups? LolBungo wrote: ↑Tue May 11, 2021 1:19 amYep, this was by far the biggest factor for me. I thought I was pretty well paid at my previous employer (a non-FAANG Silicon Valley tech company), but my total compensation made a huge leap when I joined a FAANG four years ago. Negotiating a big initial RSU package helps a lot, if you can make it happen by engineering a bidding war. Last year my gross income was nearly 4x what it was at my previous job, mostly due to employer stock. This supercharged my early retirement plan, and in fact I was able to retire ten days ago at age 52! Admittedly this will require cashing out of the Bay Area in the not too distant future, but that was always part of the plan.
The FAANG job was high-stress and not much fun, though. I wouldn't have wanted to do it any longer than I did.
Last edited by Bungo on Thu May 13, 2021 9:31 pm, edited 2 times in total.
Re: If your net worth is over $3 million, how did you do it?
Good observation. I think there's a lot of truth in this.mrspock wrote: ↑Thu May 13, 2021 6:29 pmReaching FI reduces the stress IMO, as the stakes of losing your job greatly diminish. If anything, you make MORE money when you are FI because the value of your time begins to climb higher and higher with your portfolio, so you demand more and get more.Wannaretireearly wrote: ↑Thu May 13, 2021 5:36 pmLet us know if there is a Nirvana FAANG job/role/group which has great WLB. That would be a unicorn to chase! Maybe just the G in certain groups? LolBungo wrote: ↑Tue May 11, 2021 1:19 amYep, this was by far the biggest factor for me. I thought I was pretty well paid at my previous employer (a non-FAANG Silicon Valley tech company), but my total compensation made a huge leap when I joined a FAANG four years ago. Negotiating a big initial RSU package helps a lot, if you can make it happen by engineering a bidding war. Last year my gross income was nearly 4x what it was at my previous job, mostly due to employer stock. This supercharged my early retirement plan, and in fact I was able to retire ten days ago at age 52! Admittedly this will require cashing out of the Bay Area in the not too distant future, but that was always part of the plan.
The FAANG job was high-stress and not much fun, though. I wouldn't have wanted to do it any longer than I did.
This was almost an epiphany for me. People that are paid a ton of money are paid not just because they are better at a given job — their time is worth way more because they are wealthy (which raises the “market rate” for a given level). This creates almost a feedback loop which creates perversely high comps at the upper tiers of my field. Partly based on value, but partly based on the fact these folks are inherently wealthy, so their time is worth a lot.
Re: If your net worth is over $3 million, how did you do it?
One million dollars in 1971 (50 years ago) inflated to today would be almost $30 million, not $3 million. But the term millionaire is much older and would be equivalent to billionaire today. This is a person who can buy and sell medium to large companies.
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Umbrella? $1 million. |
Goods? Costco.
Re: If your net worth is over $3 million, how did you do it?
What the heck? How hard is it to Google “inflation calculator” plug in $1M for 1971 and see the result is $6.6M?
https://data.bls.gov/cgi-bin/cpicalc.pl ... ar2=202101
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Re: If your net worth is over $3 million, how did you do it?
I think 3 Million will soon be 'poor.' I'm aiming for at least 4M and if inflation continues it will likely need to be 10M. Trouble is, wages are not increasing...
Re: If your net worth is over $3 million, how did you do it?
Right. No way is it $30M. But actual calculation aside, $6.6M sounds about right for that span of time. As someone who was a kid in the 80's days of Miami Vice, etc., hearing of "$1M" then feels like about $3-5M in today's dollars.nigel_ht wrote: ↑Fri May 14, 2021 7:23 amWhat the heck? How hard is it to Google “inflation calculator” plug in $1M for 1971 and see the result is $6.6M?
https://data.bls.gov/cgi-bin/cpicalc.pl ... ar2=202101
Last edited by Miguelito on Fri May 14, 2021 7:40 am, edited 3 times in total.
Re: If your net worth is over $3 million, how did you do it?
I don’t think he made fun of anybody…the reality is that living in a HCOL with only a moderately above average salary will make portfolio growth slower because even if you LBYM it won’t be as much below as it might be in a MCOL or LCOL area.stoptothink wrote: ↑Thu May 13, 2021 8:00 pmYou chose a specific field knowing it didn't pay particularly well, got an advanced degree that delayed your entrance into the workforce, and live in one of the highest COL areas in the country; your financial situation was largely a personal choice. I'm probably of similar age (late 30's), from LA (but got out after undergrad, thank heavens), with a STEM PhD, and don't make that much more than you do, but will likely hit $3M before the age of 50 and the LBYM principles you are making fun of (buy less house and car than peers, brown bag it, etc.) are a big part of that. You alone make more than the national median HHI just starting out in a profession with stability almost like no other, if you stay the course and LBYM it is possible that in due time you will be one of the individuals you are making fun of.cipriano wrote: ↑Thu May 13, 2021 6:41 pm ITT: Get a job with a high salary and don't blow all your money.
This forum is a wonderful, informative place—I've been lurking here for a while now as my financial situation has stabilized and I can save more easily—but whew, it's amazing to me that many people on this forum seem to think that a $400k salary is modest and that the key to building wealth is buying an affordable house. I have exactly one friend who makes that much, and they're a critical care/research MD at one of the country's top medical institutions.
I got a late start saving for retirement, because I pursued a PhD in a humanities-related field. (I never did it for the money, obviously.) Now, in a tenure-track position at a good school in Los Angeles—the kind of job most academics would consider a dream, given that less than half of humanities PhDs land tenure-track positions and most are in rural America—I make $80k/year. Barring some kind of academic superstardom, I'll probably never make much more than low-mid six figures. Advice like "buy a $200,000 house when your friends are buying $400,000 houses" is laughable here, where 2BR houses that are literally falling apart push $700k.
This is all fine, but my point is that the demographics here skew older and wealthy, and sometimes it seems like not everyone is aware of it. I have to deal with this all the time at my institution, where older faculty don't understand why younger faculty complain about housing costs/cost of living, not realizing that home prices nearly doubled in the past decade (and more than doubled in my neighborhood)—which also means that they're paying pennies in property tax because of Prop 13.
When GME/AMC/NOK/DOGE blew up, I was riveted, and could totally understand it (though fortunately mostly stayed away after an afternoon of indulging a few hundred bucks). Some of it was stupidity, and some was greed. But much of it came from a real sense of futility among people who are getting crushed and are angry about rising inequality + talking heads telling them to bag their lunch.
Given that many private higher ed institutions are under financial stress being tenured provides less security than in the past. It’s only as stable as your institution and how much they value your department.
https://www.insidehighered.com/advice/2 ... ng-faculty
https://www.forbes.com/sites/michaeltni ... a019f474d5
Re: If your net worth is over $3 million, how did you do it?
We had 1 source of original income: 18 yrs of salary. No inheritance/gifts. My current net worth is greater than the cumulative salary. The average annual savings rate was 53% (ranging between 29% - 70%). If you do the math, you can see that my total investment income is greater than the contribution. Thank you, VTSAX.
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Re: If your net worth is over $3 million, how did you do it?
Time in the stock market. Been retired 20 years. Which is more than the time I contributed to my retirement plan during my working years. During my working years I was 100% in stocks. I contributed the maximum allowed by my 401K plan (and had a taxable account as well).
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Re: If your net worth is over $3 million, how did you do it?
Credit card points!
Re: If your net worth is over $3 million, how did you do it?
Getting incredibly lucky by avoiding unemployment and finding Bogleheads just as the great financial crisis started. I saved and stayed the course during what turned out to be an incredibly good time to do so.
I saw some earlier posts about the cliche high earners who overspend. I think it's dangerous to assume everyone is like that. "Stealth wealth" is so often just reverse snobbery. If you find yourself feeling good/superior based on the assumption that everyone else must be stretched financially, something's gone wrong.
I saw some earlier posts about the cliche high earners who overspend. I think it's dangerous to assume everyone is like that. "Stealth wealth" is so often just reverse snobbery. If you find yourself feeling good/superior based on the assumption that everyone else must be stretched financially, something's gone wrong.
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Re: If your net worth is over $3 million, how did you do it?
Work in an intense, no work-life balance field for a decade at the start of your career, and save a lot / live below your means. Because making and saving a lot of money at 25 makes a lot more difference than at 55.
Re: If your net worth is over $3 million, how did you do it?
ESOP with 30 years of employment.
Re: If your net worth is over $3 million, how did you do it?
Agree in principle, but for most people, their earnings and therefore the amount available for saving is a lot higher later in their career than at age 25. At age 52, at least 75% of my investment portfolio (excluding real estate) can be attributed to money I added after age 40. I've worked my entire career in an intense, no WLB field (software engineering) but the compensation in this field over the past decade has been absolutely insane compared with what it was when I started my career (salary + stock just nudged into seven figures last year, versus $70k/year in the mid '90s!)Hannibal Barca wrote: ↑Fri May 14, 2021 6:44 pm Work in an intense, no work-life balance field for a decade at the start of your career, and save a lot / live below your means. Because making and saving a lot of money at 25 makes a lot more difference than at 55.
Accounting for real estate makes things more complicated because the hefty downpayment came from pre-age-40 savings but most of the appreciation was in the past decade. An argument could be made that buying a house early should be prioritized over maximizing retirement savings before owning a house, but that depends on a lot of variables.
Last edited by Bungo on Fri May 14, 2021 9:03 pm, edited 1 time in total.
Re: If your net worth is over $3 million, how did you do it?
this would work ...Hannibal Barca wrote: ↑Fri May 14, 2021 6:44 pm Work in an intense, no work-life balance field for a decade at the start of your career, and save a lot / live below your means. Because making and saving a lot of money at 25 makes a lot more difference than at 55.
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Re: If your net worth is over $3 million, how did you do it?
I have finally earned the right to comment in this thread
While ability and choice of career are important, one factor that I'm starting to appreciate more now is purpose. We can achieve remarkable results if we have a compelling reason to do so.
I had some unique, personal factors that drove me to pursue a high net worth. Now that I have achieved a high net worth, I feel a profound loss of purpose, and am observing the consequences across many aspects of my professional life.
I suspect this dynamic is common among high-achieving professionals in mid-life. We have been playing a game that we start to find purposeless as our future material desires are now met, however our identities are tied to this game. Do we continue playing the game, running up the score to $10M or $20M, or listen to our inner self that craves purpose but is likely to lead us to an unfamiliar place without a well-formed identity?
While ability and choice of career are important, one factor that I'm starting to appreciate more now is purpose. We can achieve remarkable results if we have a compelling reason to do so.
I had some unique, personal factors that drove me to pursue a high net worth. Now that I have achieved a high net worth, I feel a profound loss of purpose, and am observing the consequences across many aspects of my professional life.
I suspect this dynamic is common among high-achieving professionals in mid-life. We have been playing a game that we start to find purposeless as our future material desires are now met, however our identities are tied to this game. Do we continue playing the game, running up the score to $10M or $20M, or listen to our inner self that craves purpose but is likely to lead us to an unfamiliar place without a well-formed identity?
Re: If your net worth is over $3 million, how did you do it?
I hope you’re wrong. I’m trying to hit 3.5 and then FIRE. Stop scaring me!sunny_socal wrote: ↑Fri May 14, 2021 7:36 am I think 3 Million will soon be 'poor.' I'm aiming for at least 4M and if inflation continues it will likely need to be 10M. Trouble is, wages are not increasing...
Re: If your net worth is over $3 million, how did you do it?
$3.2M portfolio almost $4M Net worth. I'm at the top of my game now and making good money (not bay area money) but I built this during more reasonable times with a stay at home spouse and 2 kids that I put through college. No scholarships, no loans just on my dime leaving them with no debt.
DW had years where she would make $1K-5K a year while home with kids but now she makes 60K .
I spent the first 6 years after college in the army before there were no savings vehicles like 401Ks available there. When I got out at 28 , I had nothing saved for retirement. Joined Megacorp at the lowest rung making $10K less per year than when I left the Army. Worked my butt off. delivered for it and was rewarded for what I did. No RSUs just and promotions and raises. Stock options once or twice but none that were life changing. started getting annual bonuses after about 12 years into the company .
I moved a couple times in the beginning to gain experience and have been in the same location/home for the last 21 years.
recipe was the same and simple.
1. It wasn't what i made but what I spent (and saved)
2. Married a frugal woman. Sometimes I would call her cheap. We both grew up poor and never lost our bearings. We bought nice things but as an example, I have never spent more than $29K on a new car (off the showroom new). and am still driving it.
3. We stayed married and are still best friends. Divorce will kill any portfolio. I am blessed this worked out
4. We had 2 kids but I wanted 3. My wife won that one and we stopped at 2. I believe having one less child than you think you can afford plays in as well. Kids are much more expensive than you realize when you are having them.
5. Every year that I got a promotion or raise, I would ask myself "Did i need this money last year?" The answer was almost always no. I then maxed out 401Ks, IRAs and started contributing in taxables. I discovered back door Roths way too late but did get 6-7 years of max contributions in one.
Although I knew saving 100% of my raises was helping the savings, it didn't dawn on me until I got close to retirement that it helped me another way.
Since we were living on 40% of our income (she joined the workforce when the kids were in High school) I only needed to replace this amount. All those stories about needing 80% of your income were wrong. The answer was based on expenses.
I found Bogleheads late but realize I am one... I was investing in index funds before it was popular (not a surprise to this group why)
DW had years where she would make $1K-5K a year while home with kids but now she makes 60K .
I spent the first 6 years after college in the army before there were no savings vehicles like 401Ks available there. When I got out at 28 , I had nothing saved for retirement. Joined Megacorp at the lowest rung making $10K less per year than when I left the Army. Worked my butt off. delivered for it and was rewarded for what I did. No RSUs just and promotions and raises. Stock options once or twice but none that were life changing. started getting annual bonuses after about 12 years into the company .
I moved a couple times in the beginning to gain experience and have been in the same location/home for the last 21 years.
recipe was the same and simple.
1. It wasn't what i made but what I spent (and saved)
2. Married a frugal woman. Sometimes I would call her cheap. We both grew up poor and never lost our bearings. We bought nice things but as an example, I have never spent more than $29K on a new car (off the showroom new). and am still driving it.
3. We stayed married and are still best friends. Divorce will kill any portfolio. I am blessed this worked out
4. We had 2 kids but I wanted 3. My wife won that one and we stopped at 2. I believe having one less child than you think you can afford plays in as well. Kids are much more expensive than you realize when you are having them.
5. Every year that I got a promotion or raise, I would ask myself "Did i need this money last year?" The answer was almost always no. I then maxed out 401Ks, IRAs and started contributing in taxables. I discovered back door Roths way too late but did get 6-7 years of max contributions in one.
Although I knew saving 100% of my raises was helping the savings, it didn't dawn on me until I got close to retirement that it helped me another way.
Since we were living on 40% of our income (she joined the workforce when the kids were in High school) I only needed to replace this amount. All those stories about needing 80% of your income were wrong. The answer was based on expenses.
I found Bogleheads late but realize I am one... I was investing in index funds before it was popular (not a surprise to this group why)
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Re: If your net worth is over $3 million, how did you do it?
$1M in April 1971 would be $6,659,700.75 in April 2021, according to this calculator: https://www.bls.gov/data/inflation_calculator.htm
Re: If your net worth is over $3 million, how did you do it?
Exactly - a millionaire in 1971 meant something.TheNightsToCome wrote: ↑Sat May 15, 2021 6:46 am$1M in April 1971 would be $6,659,700.75 in April 2021, according to this calculator: https://www.bls.gov/data/inflation_calculator.htm
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Re: If your net worth is over $3 million, how did you do it?
As in much of life, luck plays a substantial role.
Re: If your net worth is over $3 million, how did you do it?
A person can do some of these things:stoptothink wrote: ↑Thu May 13, 2021 8:00 pmYou chose a specific field knowing it didn't pay particularly well, got an advanced degree that delayed your entrance into the workforce, and live in one of the highest COL areas in the country; your financial situation was largely a personal choice. I'm probably of similar age (late 30's), from LA (but got out after undergrad, thank heavens), with a STEM PhD, and don't make that much more than you do, but will likely hit $3M before the age of 50 and the LBYM principles you are making fun of (buy less house and car than peers, brown bag it, etc.) are a big part of that. You alone make more than the national median HHI just starting out in a profession with stability almost like no other, if you stay the course and LBYM it is possible that in due time you will be one of the individuals you are making fun of.cipriano wrote: ↑Thu May 13, 2021 6:41 pm ITT: Get a job with a high salary and don't blow all your money.
This forum is a wonderful, informative place—I've been lurking here for a while now as my financial situation has stabilized and I can save more easily—but whew, it's amazing to me that many people on this forum seem to think that a $400k salary is modest and that the key to building wealth is buying an affordable house. I have exactly one friend who makes that much, and they're a critical care/research MD at one of the country's top medical institutions.
I got a late start saving for retirement, because I pursued a PhD in a humanities-related field. (I never did it for the money, obviously.) Now, in a tenure-track position at a good school in Los Angeles—the kind of job most academics would consider a dream, given that less than half of humanities PhDs land tenure-track positions and most are in rural America—I make $80k/year. Barring some kind of academic superstardom, I'll probably never make much more than low-mid six figures. Advice like "buy a $200,000 house when your friends are buying $400,000 houses" is laughable here, where 2BR houses that are literally falling apart push $700k.
This is all fine, but my point is that the demographics here skew older and wealthy, and sometimes it seems like not everyone is aware of it. I have to deal with this all the time at my institution, where older faculty don't understand why younger faculty complain about housing costs/cost of living, not realizing that home prices nearly doubled in the past decade (and more than doubled in my neighborhood)—which also means that they're paying pennies in property tax because of Prop 13.
When GME/AMC/NOK/DOGE blew up, I was riveted, and could totally understand it (though fortunately mostly stayed away after an afternoon of indulging a few hundred bucks). Some of it was stupidity, and some was greed. But much of it came from a real sense of futility among people who are getting crushed and are angry about rising inequality + talking heads telling them to bag their lunch.
Work for love not money
Buy a decent house in a HCOL area
Travel a lot
Have kids without going in debt
Invest enough to get to seven figures in 20 years
Consume nice things regularly
But most people cannot do them all. A few get lucky or are special situations, but mostly you have to choose.
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Re: If your net worth is over $3 million, how did you do it?
Yes, but it didn't mean $30M.smitcat wrote: ↑Sat May 15, 2021 7:23 amExactly - a millionaire in 1971 meant something.TheNightsToCome wrote: ↑Sat May 15, 2021 6:46 am$1M in April 1971 would be $6,659,700.75 in April 2021, according to this calculator: https://www.bls.gov/data/inflation_calculator.htm
Re: If your net worth is over $3 million, how did you do it?
Nobody here has said "slinging rocks", so I guess that is good.
No kids does seem to be a recurring theme here.
No kids does seem to be a recurring theme here.
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Re: If your net worth is over $3 million, how did you do it?
market timer wrote: ↑Fri May 14, 2021 11:03 pm I have finally earned the right to comment in this thread
While ability and choice of career are important, one factor that I'm starting to appreciate more now is purpose. We can achieve remarkable results if we have a compelling reason to do so.
I had some unique, personal factors that drove me to pursue a high net worth. Now that I have achieved a high net worth, I feel a profound loss of purpose, and am observing the consequences across many aspects of my professional life.
I suspect this dynamic is common among high-achieving professionals in mid-life. We have been playing a game that we start to find purposeless as our future material desires are now met, however our identities are tied to this game. Do we continue playing the game, running up the score to $10M or $20M, or listen to our inner self that craves purpose but is likely to lead us to an unfamiliar place without a well-formed identity?
You’re not going to be happier at 10MM or even 20MM. Happiness comes from purpose, like you said above. You already know this. Don’t pursue incremental wealth as a means to greater happiness. Find your new purpose.
Re: If your net worth is over $3 million, how did you do it?
Maybe.market timer wrote: ↑Fri May 14, 2021 11:03 pm I have finally earned the right to comment in this thread
While ability and choice of career are important, one factor that I'm starting to appreciate more now is purpose. We can achieve remarkable results if we have a compelling reason to do so.
I had some unique, personal factors that drove me to pursue a high net worth. Now that I have achieved a high net worth, I feel a profound loss of purpose, and am observing the consequences across many aspects of my professional life.
I suspect this dynamic is common among high-achieving professionals in mid-life. We have been playing a game that we start to find purposeless as our future material desires are now met, however our identities are tied to this game. Do we continue playing the game, running up the score to $10M or $20M, or listen to our inner self that craves purpose but is likely to lead us to an unfamiliar place without a well-formed identity?
A lot of friends and family thought I would have this very problem in retirement. There were bets on how long before I un-retire and "do something." Luckily I found that my identity was not tied to my professional title, income level, achievements, goals ect. There was no reason for me to run up the score. But there are a couple friends who are still killing themselves trying to reach a number that even they admit is stupid.
To the OP: business/professional job income and then investment growth, with boring index funds.
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Re: If your net worth is over $3 million, how did you do it?
I agree, most fields don't enable this strategy because you have to work your way up the ladder, which usually starts pretty low. Going down the big law, high finance, or big-tech software engineer paths could. I'm sure there are a few other options I'm missing.Bungo wrote: ↑Fri May 14, 2021 8:55 pmAgree in principle, but for most people, their earnings and therefore the amount available for saving is a lot higher later in their career than at age 25. At age 52, at least 75% of my investment portfolio (excluding real estate) can be attributed to money I added after age 40. I've worked my entire career in an intense, no WLB field (software engineering) but the compensation in this field over the past decade has been absolutely insane compared with what it was when I started my career (salary + stock just nudged into seven figures last year, versus $70k/year in the mid '90s!)Hannibal Barca wrote: ↑Fri May 14, 2021 6:44 pm Work in an intense, no work-life balance field for a decade at the start of your career, and save a lot / live below your means. Because making and saving a lot of money at 25 makes a lot more difference than at 55.
Accounting for real estate makes things more complicated because the hefty downpayment came from pre-age-40 savings but most of the appreciation was in the past decade. An argument could be made that buying a house early should be prioritized over maximizing retirement savings before owning a house, but that depends on a lot of variables.
Personally, I had no work life balance and wasn't married, so a studio apartment suited my needs just fine. What's the point of renting or owning something nice when one only uses it to crash late at night? Plus I was pretty mercenary about my compensation; I jumped around firms a few times. But assuming you have the stability and family needs (i.e., kids on the horizon), then prioritizing buying real estate may make more sense.
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Re: If your net worth is over $3 million, how did you do it?
I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
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Re: If your net worth is over $3 million, how did you do it?
You can marry more money in a minute than you can make in a lifetime.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Unfortunately i always dated, and subsequently married, a poor girl.
Re: If your net worth is over $3 million, how did you do it?
If you are going to marry a poor girl, at least make sure she's a frugal one!!!ronocnikral wrote: ↑Sun May 16, 2021 12:12 amYou can marry more money in a minute than you can make in a lifetime.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Unfortunately i always dated, and subsequently married, a poor girl.
you will still get to the $3M
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Re: If your net worth is over $3 million, how did you do it?
One of my many mistakes on this journey. She was addicted to living in the moment, credit cards, hidden bank accounts and loans, living beyond our means, keeping up and surpassing the Joneses, etc. Ended up starting over at 40 with a net worth of $0 or less. An expensive learning experience.
- sunny_socal
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Re: If your net worth is over $3 million, how did you do it?
Or not. My wife and her sister are the logical heirs, yet her niece has found a way to get them both written out of the will. Said niece has convinced Grandma that she's "poor" and needs the money. (In reality, she makes 80k/year and she's merely broke due to unfettered credit card spending and trips to Vegas.)Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
I'm raising my kids to never, ever count on a handout from anyone, especially relatives.
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Re: If your net worth is over $3 million, how did you do it?
We got past this figure by using two of the most valuable resources known to Man.........compound interest, and time.
"Dream, Dare, Do."
Re: If your net worth is over $3 million, how did you do it?
I am reminded of the sage adage, "No one works harder for his/her money than the one who marries it".
Re: If your net worth is over $3 million, how did you do it?
My wife and I joined this club thanks to a gift from her parents last year, although we would have hit this figure on our own within the next 5 years or so.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Re: If your net worth is over $3 million, how did you do it?
This is the way. Just be patient and go live your life. Go out and enjoy your life while your money pile starts to snowball in the background.eldinerocheapo wrote: ↑Sun May 16, 2021 7:42 am We got past this figure by using two of the most valuable resources known to Man.........compound interest, and time.
It seems the forum is seeing a lot more posts from people looking to get there over night. If you want it bad, you’ll get it bad....
And if you’ve got $3M, and stay patient, you’ll get to $5M fast.....
For me, I think it took 17 years to get to 1M. Then 5-6 to get to 2. Another 2-3 years to get to 3M.
This is all from W2 earnings. No crazy RSU millions or anything like that. Wife didn’t earn a lot. Had a kid and a nice house, 2 cars, went in vacations. I make good money now, but the money that is growing great for me is the “old money”.
Time is money. If you’re young, you have lots of time to let investing and compounding make you rich.
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Re: If your net worth is over $3 million, how did you do it?
When I met my wife, her net worth was negative, and her parents will never be as wealthy as she was then. Without a doubt the biggest marriage stressor we've had is her parents' finances, and the fact that they have off-and-on had to live and be financially dependent on us. To be fair, my parents have essentially nothing outside some home equity, but they are self-sufficient. I guess we both screwed this one up, but we'll still hit this mark before I hit 50 (her, 45).ronocnikral wrote: ↑Sun May 16, 2021 12:12 amYou can marry more money in a minute than you can make in a lifetime.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Unfortunately i always dated, and subsequently married, a poor girl.
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Re: If your net worth is over $3 million, how did you do it?
my wife would have done well in the great depression. One her more admirable/annoying qualities.1moreyr wrote: ↑Sun May 16, 2021 5:55 amIf you are going to marry a poor girl, at least make sure she's a frugal one!!!ronocnikral wrote: ↑Sun May 16, 2021 12:12 amYou can marry more money in a minute than you can make in a lifetime.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Unfortunately i always dated, and subsequently married, a poor girl.
you will still get to the $3M
Re: If your net worth is over $3 million, how did you do it?
Agree. I’m pretty sure most people (not all) can afford what they buy. There is a lot of wealth out there.vfinx wrote: ↑Fri May 14, 2021 5:21 pm
I saw some earlier posts about the cliche high earners who overspend. I think it's dangerous to assume everyone is like that. "Stealth wealth" is so often just reverse snobbery. If you find yourself feeling good/superior based on the assumption that everyone else must be stretched financially, something's gone wrong.
Re: If your net worth is over $3 million, how did you do it?
She might have been poor because she wasted all her money. Same for other gender. It is very very hard to save and invest for years to make to even $1 million on W2 paycheck. It is very very easy to spend it all in a few years.1moreyr wrote: ↑Sun May 16, 2021 5:55 amIf you are going to marry a poor girl, at least make sure she's a frugal one!!!ronocnikral wrote: ↑Sun May 16, 2021 12:12 amYou can marry more money in a minute than you can make in a lifetime.Hannibal Barca wrote: ↑Sat May 15, 2021 7:24 pm I didn't do this, but it's a legit option: Marry a wealthy spouse, or a spouse with wealthy parents. Chances are that money is going to make its way to you some day...
Unfortunately i always dated, and subsequently married, a poor girl.
you will still get to the $3M
“Every deduction is allowed as a matter of legislative grace.” US Federal Court
Re: If your net worth is over $3 million, how did you do it?
When I met my current wife almost 30 years ago, I was going through a financially disastrous divorce. For the first few years of our relationship she helped support me financially. Within a fairly short time my career took off and our combined net worth increased exponentially.
She currently has well in excess of $3million and expecting a few more from an inheritance. She was quite a catch in every way. I am so lucky.
She currently has well in excess of $3million and expecting a few more from an inheritance. She was quite a catch in every way. I am so lucky.
Re: If your net worth is over $3 million, how did you do it?
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Last edited by Zeno on Sun May 16, 2021 4:08 pm, edited 2 times in total.
Re: If your net worth is over $3 million, how did you do it?
What alternate reality do you live in?sunny_socal wrote: ↑Fri May 14, 2021 7:36 am I think 3 Million will soon be 'poor.' I'm aiming for at least 4M and if inflation continues it will likely need to be 10M. Trouble is, wages are not increasing...
Stocks-80% || Bonds-20% || Taxable-VTI/VXUS || IRA-VT/BNDW
Re: If your net worth is over $3 million, how did you do it?
If you've reached financial independence, and no longer feel purpose at your job, why keep doing it? Pursue other purpose-driven interests.market timer wrote: ↑Fri May 14, 2021 11:03 pm I have finally earned the right to comment in this thread
While ability and choice of career are important, one factor that I'm starting to appreciate more now is purpose. We can achieve remarkable results if we have a compelling reason to do so.
I had some unique, personal factors that drove me to pursue a high net worth. Now that I have achieved a high net worth, I feel a profound loss of purpose, and am observing the consequences across many aspects of my professional life.
I suspect this dynamic is common among high-achieving professionals in mid-life. We have been playing a game that we start to find purposeless as our future material desires are now met, however our identities are tied to this game. Do we continue playing the game, running up the score to $10M or $20M, or listen to our inner self that craves purpose but is likely to lead us to an unfamiliar place without a well-formed identity?
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
Re: If your net worth is over $3 million, how did you do it?
If you have to worry about expenses beyond some minor tweaks (like fewer vacations) during a downturn or temporary job loss then yeah, you’ve been overspending because you’re under saving.*vfinx wrote: ↑Fri May 14, 2021 5:21 pm Getting incredibly lucky by avoiding unemployment and finding Bogleheads just as the great financial crisis started. I saved and stayed the course during what turned out to be an incredibly good time to do so.
I saw some earlier posts about the cliche high earners who overspend. I think it's dangerous to assume everyone is like that. "Stealth wealth" is so often just reverse snobbery. If you find yourself feeling good/superior based on the assumption that everyone else must be stretched financially, something's gone wrong.
Doesn’t matter income or wealth level. You can’t just plan for the nominal case and assume that you aren’t actually financially stretched.
* this is untrue for early accumulators…they simply haven’t had the time to build a decent amount of financial security.
Re: If your net worth is over $3 million, how did you do it?
Bay Area? (Yes, joking)lostdog wrote: ↑Sun May 16, 2021 10:10 amWhat alternate reality do you live in?sunny_socal wrote: ↑Fri May 14, 2021 7:36 am I think 3 Million will soon be 'poor.' I'm aiming for at least 4M and if inflation continues it will likely need to be 10M. Trouble is, wages are not increasing...
Re: If your net worth is over $3 million, how did you do it?
Sure but I'm not going to assume everyone who has a luxury car/watch/ house is like that. There's a lot of real wealth out there too, held by thoughtful people that have financial resiliency. And they're not all on Bogleheads.nigel_ht wrote: ↑Sun May 16, 2021 10:48 amIf you have to worry about expenses beyond some minor tweaks (like fewer vacations) during a downturn or temporary job loss then yeah, you’ve been overspending because you’re under saving.*vfinx wrote: ↑Fri May 14, 2021 5:21 pm Getting incredibly lucky by avoiding unemployment and finding Bogleheads just as the great financial crisis started. I saved and stayed the course during what turned out to be an incredibly good time to do so.
I saw some earlier posts about the cliche high earners who overspend. I think it's dangerous to assume everyone is like that. "Stealth wealth" is so often just reverse snobbery. If you find yourself feeling good/superior based on the assumption that everyone else must be stretched financially, something's gone wrong.
Doesn’t matter income or wealth level. You can’t just plan for the nominal case and assume that you aren’t actually financially stretched.
* this is untrue for early accumulators…they simply haven’t had the time to build a decent amount of financial security.