If your net worth is over $3 million, how did you do it?

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mak1277
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Re: If your net worth is over $3 million, how did you do it?

Post by mak1277 »

wrongfunds wrote: Wed Jan 29, 2020 2:11 pm Anybody here who has a string of ex-spouses and your net work is still over $3 million? Anybody with double digit number of kids and net worth over $3 million?

No? There is your answer to the question :-)
I could get a 2nd divorce and still be over $3 million.
ddurrett896
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Re: If your net worth is over $3 million, how did you do it?

Post by ddurrett896 »

Not advise on how to do it, but how to keep it....

https://www.youtube.com/watch?v=xdfeXqHFmPI
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TomatoTomahto
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Re: If your net worth is over $3 million, how did you do it?

Post by TomatoTomahto »

mak1277 wrote: Thu Nov 12, 2020 10:06 am
wrongfunds wrote: Wed Jan 29, 2020 2:11 pm Anybody here who has a string of ex-spouses and your net work is still over $3 million? Anybody with double digit number of kids and net worth over $3 million?
No? There is your answer to the question :-)
I could get a 2nd divorce and still be over $3 million.
Actually, getting divorced is probably the only way that I alone would have NW over $3M, but that wouldn’t be fun for me. So, I’ll continue being the very happy man behind the highly comped woman. 😁
I get the FI part but not the RE part of FIRE.
flaccidsteele
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Re: If your net worth is over $3 million, how did you do it?

Post by flaccidsteele »

HomerJ wrote: Thu Nov 12, 2020 9:04 am $3 million at ANY age puts you in the top 1%
I’m not sure this is true. It’ll put someone in the top 1% in certain age brackets (30s being one), but not any age

Image

Image

Any other sources appreciated
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
Broken Man 1999
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Re: If your net worth is over $3 million, how did you do it?

Post by Broken Man 1999 »

TomatoTomahto wrote: Thu Nov 12, 2020 10:11 am
mak1277 wrote: Thu Nov 12, 2020 10:06 am
wrongfunds wrote: Wed Jan 29, 2020 2:11 pm Anybody here who has a string of ex-spouses and your net work is still over $3 million? Anybody with double digit number of kids and net worth over $3 million?
No? There is your answer to the question :-)
I could get a 2nd divorce and still be over $3 million.
Actually, getting divorced is probably the only way that I alone would have NW over $3M, but that wouldn’t be fun for me. So, I’ll continue being the very happy man behind the highly comped woman. 😁
There are far worse gigs in life! SILs have no issue, either.

Broken Man 1999
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Wricha
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Re: If your net worth is over $3 million, how did you do it?

Post by Wricha »

HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.
JS-Elcano wrote: Wed Nov 11, 2020 9:40 pm
tryingtogetahead wrote: Wed Nov 11, 2020 9:17 pm I have made almost every personal finance mistake I can think of and I still hit $3mm in my mid 30s. Nothing about my story is remarkable. I read the "Millionaire Next Door" during my first semester in college and it changed my life. My wife and I both attended mediocre colleges, got jobs, and just kept our heads down and did what we needed to do to succeed at work. My wife and I have received no financial help from our parents, including college, and therefore focused on self-reliance. I am a professional with a decent income. My wife unfortunately earns quite a bit less than I do. We live well below our means and save everything we can but still enjoy our lives. We live in a normal 4 bedroom home (below avg for our town), drive 2 Japanese economy cars, shop at Marshall’s, buy used furniture, brown bag our lunches, eat home regularly, paid off all debt including our mortgage, and invest largely in low cost index funds. Consistency and time are key.
This sounds amazing! Based on your post, you have been out of college/working for about 10-12 years. So, every year you amassed 300k. That's a remarkable feat.
I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
Not Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.

What is the top 1% household net worth by in the US

To be top 1% in 2020, a household needed a net worth of $11,099,166. $10,374,030 was the 1% threshold in 2017.

Age Top 1% Net Worth
18-24 $435,076.59
25-29 $606,188.36
30-34 $956,944.74
35-39 $4,034,486.45
40-44 $7,909,636.79
45-49 $10,494,100.10
50-54 $13,524,093.87
55-59 $17,545,848.60
60-64 $14,629,637.13
65-69 $16,439,046.11
70-74 $12,625,305.04
75-79 $12,770,142.25
80+ $9,932,353.20

Source: https://dqydj.com/average-median-top-ne ... es-by-age/
Last edited by Wricha on Thu Nov 12, 2020 10:56 am, edited 2 times in total.
Freddobbs
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Re: If your net worth is over $3 million, how did you do it?

Post by Freddobbs »

two working spouses who always maxxed out 401k and ira's. Lived in housing well under our means for 15 years was the key. May not have "kept up with eh joneses" but certainly didnt suffer as we took/take vacations and eat out a lot.

:sharebeer
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White Coat Investor
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Re: If your net worth is over $3 million, how did you do it?

Post by White Coat Investor »

Interesting to see this 6 year old thread bumped and go back and read my response and reflect on how much my financial life has changed over that time period.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
yohac
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Re: If your net worth is over $3 million, how did you do it?

Post by yohac »

Never made 6 figures, but finally got there by saving like crazy. And by not having kids, the most expensive form of entertainment.
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Wricha
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Re: If your net worth is over $3 million, how did you do it?

Post by Wricha »

Wricha wrote: Thu Nov 12, 2020 10:48 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.
JS-Elcano wrote: Wed Nov 11, 2020 9:40 pm

This sounds amazing! Based on your post, you have been out of college/working for about 10-12 years. So, every year you amassed 300k. That's a remarkable feat.
I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
Not Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.

What is the top 1% household net worth by in the US

To be top 1% in 2020, a household needed a net worth of $11,099,166. $10,374,030 was the 1% threshold in 2017.

Age Top 1% Net Worth
18-24 $435,076.59
25-29 $606,188.36
30-34 $956,944.74
35-39 $4,034,486.45
40-44 $7,909,636.79
45-49 $10,494,100.10
50-54 $13,524,093.87
55-59 $17,545,848.60
60-64 $14,629,637.13
65-69 $16,439,046.11
70-74 $12,625,305.04
75-79 $12,770,142.25
80+ $9,932,353.20

Source: https://dqydj.com/average-median-top-ne ... es-by-age/
I think if the question how did you get in the top 1% net worth, there would be a lot less worked hard W-2, index funds, and lived low.
FoolMeOnce
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Re: If your net worth is over $3 million, how did you do it?

Post by FoolMeOnce »

tryingtogetahead wrote: Thu Nov 12, 2020 9:17 am
JS-Elcano wrote: Wed Nov 11, 2020 9:40 pm
tryingtogetahead wrote: Wed Nov 11, 2020 9:17 pm I have made almost every personal finance mistake I can think of and I still hit $3mm in my mid 30s. Nothing about my story is remarkable. I read the "Millionaire Next Door" during my first semester in college and it changed my life. My wife and I both attended mediocre colleges, got jobs, and just kept our heads down and did what we needed to do to succeed at work. My wife and I have received no financial help from our parents, including college, and therefore focused on self-reliance. I am a professional with a decent income. My wife unfortunately earns quite a bit less than I do. We live well below our means and save everything we can but still enjoy our lives. We live in a normal 4 bedroom home (below avg for our town), drive 2 Japanese economy cars, shop at Marshall’s, buy used furniture, brown bag our lunches, eat home regularly, paid off all debt including our mortgage, and invest largely in low cost index funds. Consistency and time are key.
This sounds amazing! Based on your post, you have been out of college/working for about 10-12 years. So, every year you amassed 300k. That's a remarkable feat.
I am late 30s now and well above 3mm but, yes, I was over 3mm by mid 30s. I started working at age 25 with over 200k of student loans. I am not sure that I saved 300k/yr, but that's certainly the average with investment gains, albeit the actual numbers were alot lumpier than that and skewed heavier on the later years as I made more money and got married and added a second income. My only mistake was buying a home in a less than hot area to save money while the hotter areas exploded and also paying off low interest debt instead of just investing. I guess live and learn but I have definitley corrected course since then.
Could you say what this decent income was, to give us some perspective?
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HomerJ
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Re: If your net worth is over $3 million, how did you do it?

Post by HomerJ »

Wricha wrote: Thu Nov 12, 2020 10:48 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.
JS-Elcano wrote: Wed Nov 11, 2020 9:40 pm

This sounds amazing! Based on your post, you have been out of college/working for about 10-12 years. So, every year you amassed 300k. That's a remarkable feat.
I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
Not Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.

What is the top 1% household net worth by in the US

To be top 1% in 2020, a household needed a net worth of $11,099,166. $10,374,030 was the 1% threshold in 2017.

Age Top 1% Net Worth
18-24 $435,076.59
25-29 $606,188.36
30-34 $956,944.74
35-39 $4,034,486.45
40-44 $7,909,636.79
45-49 $10,494,100.10
50-54 $13,524,093.87
55-59 $17,545,848.60
60-64 $14,629,637.13
65-69 $16,439,046.11
70-74 $12,625,305.04
75-79 $12,770,142.25
80+ $9,932,353.20

Source: https://dqydj.com/average-median-top-ne ... es-by-age/
Ah I stand corrected. Thank you. I did a quick search and must have made a mistake.
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lthenderson
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Re: If your net worth is over $3 million, how did you do it?

Post by lthenderson »

Where I live the annual per capita average income is just shy of $25,000. Earning enough to save $300K a year would pretty much mean I could own the entire town in the time it took to accumulate $3 million.
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Sandtrap
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Re: If your net worth is over $3 million, how did you do it?

Post by Sandtrap »

It's interesting to see this thread continuum over the years.
. . . . . pondering. . . . . .
I'm a huge fan of the "millionaire next door" examples from "real life".

Many earn and amass substantial wealth without having to go through the "hamburger helper without hamburger years" because of high incomes, pension packages, corporate packages, etc, etc.
OTOH: If we are addressing "wealth" vs FIRE or financially secure, there's the group of sole proprietor business people from those with a chain of muffler shops, General Contractors and Tradesman turned business people and other "blue collar entry points", that is not often brought up.

. . . end directionless pondering. . . .

Is a net worth over $3 million "financially secure", "wealthy", or "substantially wealthy"?

3 million in what context?
IE:
(one can have a 3 million home in Hawaii, live on SS and a guv't pension, and get by)

j :D
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Wanderingwheelz
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Re: If your net worth is over $3 million, how did you do it?

Post by Wanderingwheelz »

flaccidsteele wrote: Thu Nov 12, 2020 10:14 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am $3 million at ANY age puts you in the top 1%
I’m not sure this is true. It’ll put someone in the top 1% in certain age brackets (30s being one), but not any age

Image

Image

Any other sources appreciated
Much more likely if using median and not average. The average is much more skewed by billionaires.
Being wrong compounds forever.
Gretchen
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Re: If your net worth is over $3 million, how did you do it?

Post by Gretchen »

Stock in a closely-held company. Neither of us was very sophisticated about finance. By the time I learned I shouldn't have left so much of our net worth in a single company, it had sold as a twenty-bagger.

Bought a house in SoCal before the big run-up.

Bought Apple at 12 in my IRA.

Put the max into our tax-deferred accounts for over 30 years.

Bought mid-range cars new and kept them for over 200K miles. Tipping point was typically when the resale value was negative unless there was a full tank of gas.

After DH retired involuntarily at 60, I kept working for another seven years because I was in my peak earning years and enjoyed my work. Work provided extensive domestic travel for both of us, so DH was able to do his photography all over the country with no travel expenses.

In other words, some discipline (cars, retirement contributions) and a whole lot of lucky timing.
MathIsMyWayr
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Re: If your networth is over $3 million, how did you do it?

Post by MathIsMyWayr »

VictoriaF wrote: Tue Nov 11, 2014 10:02 am
Postmon wrote: 5. Marry someone who will go with the program or trusts you to steer the ship.
...
The advice was fine until I got to item #5. That's a type of an attitude to a spouse that is likely to turn her or him into an ex-spouse.
Problem resolved.
Freefun
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Re: If your net worth is over $3 million, how did you do it?

Post by Freefun »

The millionaire next door was a life changer for me as well. I was renting at a luxury condo in Miami and I thought I was the only person not worth many millions.
Remember when you wanted what you currently have?
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TomatoTomahto
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Re: If your net worth is over $3 million, how did you do it?

Post by TomatoTomahto »

Wanderingwheelz wrote: Thu Nov 12, 2020 11:24 am
flaccidsteele wrote: Thu Nov 12, 2020 10:14 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am $3 million at ANY age puts you in the top 1%
I’m not sure this is true. It’ll put someone in the top 1% in certain age brackets (30s being one), but not any age

Image

Image

Any other sources appreciated
Much more likely if using median and not average. The average is much more skewed by billionaires.
Yeah. Bill Gates walked into the diner and the average NW became a billion. Median barely budged.
I get the FI part but not the RE part of FIRE.
EddyB
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Re: If your net worth is over $3 million, how did you do it?

Post by EddyB »

mak1277 wrote: Thu Nov 12, 2020 10:06 am
wrongfunds wrote: Wed Jan 29, 2020 2:11 pm Anybody here who has a string of ex-spouses and your net work is still over $3 million? Anybody with double digit number of kids and net worth over $3 million?

No? There is your answer to the question :-)
I could get a 2nd divorce and still be over $3 million.
Idle boasting until you do it.
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Wricha
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Re: If your net worth is over $3 million, how did you do it?

Post by Wricha »

HomerJ wrote: Thu Nov 12, 2020 11:15 am
Wricha wrote: Thu Nov 12, 2020 10:48 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.

I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
Not Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.

What is the top 1% household net worth by in the US

To be top 1% in 2020, a household needed a net worth of $11,099,166. $10,374,030 was the 1% threshold in 2017.

Age Top 1% Net Worth
18-24 $435,076.59
25-29 $606,188.36
30-34 $956,944.74
35-39 $4,034,486.45
40-44 $7,909,636.79
45-49 $10,494,100.10
50-54 $13,524,093.87
55-59 $17,545,848.60
60-64 $14,629,637.13
65-69 $16,439,046.11
70-74 $12,625,305.04
75-79 $12,770,142.25
80+ $9,932,353.20

Source: https://dqydj.com/average-median-top-ne ... es-by-age/
Ah I stand corrected. Thank you. I did a quick search and must have made a mistake.
No, I was equally surprised. I even took out the net worth of billionaires in the US and the numbers are still very high. In retrospect the numbers should be high it’s 99th.
flaccidsteele
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Re: If your net worth is over $3 million, how did you do it?

Post by flaccidsteele »

Wanderingwheelz wrote: Thu Nov 12, 2020 11:24 am
flaccidsteele wrote: Thu Nov 12, 2020 10:14 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am $3 million at ANY age puts you in the top 1%
I’m not sure this is true. It’ll put someone in the top 1% in certain age brackets (30s being one), but not any age

Image

Image

Any other sources appreciated
Much more likely if using median and not average. The average is much more skewed by billionaires.
Point well taken. However the median net worth of the top 1% is still higher than $3m for all age brackets above the 30s

https://postimg.cc/PvQj06SS
Last edited by flaccidsteele on Thu Nov 12, 2020 2:53 pm, edited 1 time in total.
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BabaWawa
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Re: If your net worth is over $3 million, how did you do it?

Post by BabaWawa »

Did it with a decent income, diligent savings in the 30-40% range (live below your means), low cost index funds, dollar cost average into 100% equities until within 5-10 years of retirement, then start coming off the gas.

Don't pay someone 1% AUM to do something you can easily do.
Stay the course and rebalance of course, regardless of your chosen allocation. Ignore the noise, even when people on this forum try to talk you into bailing out on some of your chosen segments like international and SCV during periods of under-performance. Always liked buying more shares when they're on sale.
BalancedJCB19
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Re: If your net worth is over $3 million, how did you do it?

Post by BalancedJCB19 »

I was always a low wage earner and reached the millionaire status in my 401K. I did this on a very low salary, if I made 150K or over, I could have reached the $3 million net worth. Save 40 to 50% of your salary through your working years and you should do it. On the other hand I know a few folks who do make $150K and up and they don't even have a million.
yogesh
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Re: If your net worth is over $3 million, how did you do it?

Post by yogesh »

- Focussed on education, worked hard for grades with 16-18hrs slogging
- Paying off self and parents' debt (used for our education) aggressively
- Deduct at source (paycheck) so money deposited in bank is close to monthly expenses
- Moved from company stock to target retirement index
- Boglehead reading to further simplify and get spouse onboard
- Growth at job, subsequent increase in savings and compounding
Emergency: FDIC | Taxable: VTMFX | Retirement: TR2040
bargainhuntingking
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Re: If your net worth is over $3 million, how did you do it?

Post by bargainhuntingking »

White Coat Investor wrote: Thu Nov 12, 2020 10:58 am Interesting to see this 6 year old thread bumped and go back and read my response and reflect on how much my financial life has changed over that time period.

Whitecoat, it would be cool to have you briefly summarize the changes, and how accurate your predictions were. Like your blog/podcasts/lectures becoming more successful than anticipated etc. Thanks!
PhoebeCoco
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Re: If your net worth is over $3 million, how did you do it?

Post by PhoebeCoco »

I think of my net worth as a 3-legged stool:

- pension
- saved half my salary in tax deferred accounts for 25 years
- got lucky with home equity

The fourth leg is never having had children. As someone noted above, they are the most expensive form of entertainment!
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AerialWombat
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Re: If your net worth is over $3 million, how did you do it?

Post by AerialWombat »

.....
Last edited by AerialWombat on Fri Apr 02, 2021 1:04 am, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
GenawithanE
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Re: If your net worth is over $3 million, how did you do it?

Post by GenawithanE »

Like I suspect most Bogleheads, combination of good stable incomes, high savings, smart investing, and LBYM. Two income family and our son came later than we hoped so careers were well established. Good savings plans at work. Shared savings and investment goals. AA was mostly stocks until about five years before early retirement. Smart and lucky rebalancing at the end of the Great Recession. Didn’t give up on the market in 1987 or 2000. Been in the same home for 30 years, didn’t trade up like many of our friends. Drive our cars for ten years or better.

Nothing fancy, just an “eat your vegetables” approach to life. (wish we could do that for our diet)
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Re: If your net worth is over $3 million, how did you do it?

Post by goodenyou »

In 5 years (ages 45 to 50) the top 1% NW went up $7M ($6M+ to $13M+) in the "No Home" column. I knew I should have gotten rid of my home. :oops:
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sergeant
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Re: If your net worth is over $3 million, how did you do it?

Post by sergeant »

We did it the old fashioned way...we earned it! Two wage earners, always contributed to our 457b and IRA accounts. Same house 25 years, keep our new cars for 10 years or longer. Stayed out of debt. Only paid for 4 years of college per kid. They paid for graduate degrees. I worked a ton of OT during my career. The biggest part was marrying the right gal.

We always enjoyed great family vacations, kids were constantly involved in expensive activities, and we donate regularly to organizations we support so we weren't penny pinching misers.
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Wannaretireearly
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Re: If your net worth is over $3 million, how did you do it?

Post by Wannaretireearly »

I only qualify with home equity for a NW >$3M. How?
- two decent earners. Not crazy high
- bought starter home. Renovated extensively to ideal home e years ago --> only ever one mortgage. Will be paid off in <2 years.

- able to max 401k every year. Lived at parents house to enable this and deposit for first house.

- started (lump summed) 529's for both kiddos 9-11 years ago. Never contributed another cent. Grown to 2/3 years of tuition $ for each. Not thought/worried about this since.
- enjoyed plenty of vacations, but no luxury cars ever
Tradeoffs ;)
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Wannaretireearly
Posts: 4880
Joined: Wed Mar 31, 2010 4:39 pm

Re: If your net worth is over $3 million, how did you do it?

Post by Wannaretireearly »

Wannaretireearly wrote: Thu Nov 12, 2020 7:15 pm I only qualify with home equity for a NW >$3M. How?
- two decent earners. Not crazy high
- bought starter home. Renovated extensively to ideal home 2 years ago --> only ever one mortgage. Will be paid off in <2 years.

- able to max 401k every year. Lived at parents house to enable this and save deposit for first house.

- started (lump summed) 529's for both kiddos 9-11 years ago. Never contributed another cent. Grown to 2/3 years of tuition $ for each. Not thought/worried about this since.
- enjoyed plenty of vacations, but no luxury cars ever
Tradeoffs ;)

We're 42 & 44 with 2 kids 10 & 12.
:sharebeer
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
tryingtogetahead
Posts: 153
Joined: Tue Apr 07, 2020 11:45 am

Re: If your net worth is over $3 million, how did you do it?

Post by tryingtogetahead »

JS-Elcano wrote: Thu Nov 12, 2020 10:00 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.
JS-Elcano wrote: Wed Nov 11, 2020 9:40 pm

This sounds amazing! Based on your post, you have been out of college/working for about 10-12 years. So, every year you amassed 300k. That's a remarkable feat.
I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
I always forget that on this site 400-500k may be considered "decent income" (whereas in reality that would be considered super high). So, yes, with that kind of income in your 20s and early 30s, you can certainly amass 3 million in your mid30s.
I graduated school at age 25 with 210k of student loans and started making 160-170k and steadily climbed to over 300k by the time I hit 3mm in my mid 30s. I got married, and added a second income, in my early 30s. My wife was making around 70k when we got married and ramped up to mid 100s by the time we hit 3mm. MANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
visualguy
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Joined: Thu Jan 30, 2014 12:32 am

Re: If your net worth is over $3 million, how did you do it?

Post by visualguy »

tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pm I graduated school at age 25 with 210k of student loans and started making 160-170k and steadily climbed to over 300k by the time I hit 3mm in my mid 30s. I got married, and added a second income, in my early 30s. My wife was making around 70k when we got married and ramped up to mid 100s by the time we hit 3mm. MANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
True, but I think the most interesting aspect of this is that it's a fairly recent phenomenon of the last decade or so. I don't recall such incomes being so prevalent (other than in specialized medicine) in the 90s and 00s when I was already in the workforce. Even in tech, the pay wasn't great unless you got lucky with stock options, which wasn't all that common, particularly for run-of-the-mill employees who weren't founders or execs.
dcabler
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Joined: Wed Feb 19, 2014 10:30 am
Location: TX

Re: If your net worth is over $3 million, how did you do it?

Post by dcabler »

Saved as much as possible through my 20's. Got married to another engineer, bought a house and lived on one salary and saved the other. Had a kid after 10 years then DW quit working. ESPP, stock options, RSU's, bonuses all went to savings and always fully participated in 401k. Only debt has ever been our mortgage and we're still in our first house. That plus investing and time.
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HomerJ
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Re: If your net worth is over $3 million, how did you do it?

Post by HomerJ »

tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pmMANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
It doesn't really matter... I'm tilting at windmills here...

But friend... yes there are a million households making money like you or more than you.

And there's another 110 million households making far less.

But yes, 1 million households is a lot of people. A thousand of them probably live in the same neighborhood as you or work in cubicles/offices next to you. You see nothing but people making the same kind of money or even more.

But be aware that you ARE in a remarkable situation. Do not lose sight of the entire country in your tiny little bubble.

You are in the top 1%-2%... You are not part of the MANY.

I have no problem with people making a ton more money than me... I do get annoyed when they think they are just doing "okay".

You are way too smart to not see the real world. Look outside your bubble.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Small Savanna
Posts: 427
Joined: Sat Feb 09, 2019 1:27 am

Re: If your net worth is over $3 million, how did you do it?

Post by Small Savanna »

No magic. We kept working and saving during a time when the market was going steadily up. We were lucky in timing the real estate market. And we inherited a few hundred $K. We are 60 and 55, and net worth has tripled in the last 10 years.
JS-Elcano
Posts: 992
Joined: Wed Jun 10, 2020 7:29 pm

Re: If your net worth is over $3 million, how did you do it?

Post by JS-Elcano »

tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pm
JS-Elcano wrote: Thu Nov 12, 2020 10:00 am
HomerJ wrote: Thu Nov 12, 2020 9:04 am
JS-Elcano wrote: Thu Nov 12, 2020 8:20 am
Morford wrote: Wed Nov 11, 2020 10:40 pm Yeah wish this worked but this is b.s.

I agree. My reply was meant to be tongue-in-cheek as in "unbelievable".
All it takes is a "decent" income and it's not remarkable at all!

I'm not saying it's B.S., but his perspective on his place in the world is obviously skewed a bit.

$3 million at ANY age puts you in the top 1% - hitting it in your mid 30s is indeed "remarkable". I suppose it's possible one could be smart enough to achieve that but not wise enough to realize how remarkable it is.
I always forget that on this site 400-500k may be considered "decent income" (whereas in reality that would be considered super high). So, yes, with that kind of income in your 20s and early 30s, you can certainly amass 3 million in your mid30s.
I graduated school at age 25 with 210k of student loans and started making 160-170k and steadily climbed to over 300k by the time I hit 3mm in my mid 30s. I got married, and added a second income, in my early 30s. My wife was making around 70k when we got married and ramped up to mid 100s by the time we hit 3mm. MANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
You are right. I am at a public university and, looking at my salary and those of the people here, I feel like I am volunteering :mrgreen:
JS-Elcano
Posts: 992
Joined: Wed Jun 10, 2020 7:29 pm

Re: If your net worth is over $3 million, how did you do it?

Post by JS-Elcano »

HomerJ wrote: Thu Nov 12, 2020 8:21 pm
tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pmMANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
It doesn't really matter... I'm tilting at windmills here...

But friend... yes there are a million households making money like you or more than you.

And there's another 110 million households making far less.

But yes, 1 million households is a lot of people. A thousand of them probably live in the same neighborhood as you or work in cubicles/offices next to you. You see nothing but people making the same kind of money or even more.

But be aware that you ARE in a remarkable situation. Do not lose sight of the entire country in your tiny little bubble.

You are in the top 1%-2%... You are not part of the MANY.

I have no problem with people making a ton more money than me... I do get annoyed when they think they are just doing "okay".

You are way too smart to not see the real world. Look outside your bubble.
+1
psmoove
Posts: 30
Joined: Mon Feb 27, 2012 6:35 pm

Re: If your net worth is over $3 million, how did you do it?

Post by psmoove »

We are very close, about $100k away, and as I look back on how we got here, it came down to this:

* Finding a supportive partner with the same financial philosophy. in my opinion, this is the most important. Even before we were married, my wife was the more proficient saver. And sharing that same philosophy led us, from the very beginning of our relationship, to always live beneath our means and avoided lifestyle inflation.
* We invested very early in our careers, starting at age 21 right out of college and continued investing to this day. Thanks to this site, we have followed the 3-fund portfolio for years, and we maximize all tax deferred space and have put a healthy amount in our kids’ 529s since they were born that should enable them to attend the state university system without having to take on loans.
* Even while our respective incomes increased over the years, we have always avoided inflating our lifestyle. While we could be considered frugal, we don’t skimp out on experiences for us and our 3 children, including annual memorable vacations. We do splurge once in a while and two years ago bought a brand new Tesla Model 3, which was a fantastic and cost efficient upgrade from my 15 year old Japanese sedan.
* We also got very lucky with timing. We purchased our home in a desirable area here in Southern California in 2011, when housing prices were really depressed. Our home is perfect for us and allows the kids to attend a highly rated school district. While we still carry a mortgage, it will be paid off in 6 years.
* Stable jobs. We’ve both been working for the same employers for 15+ years, me in government and her for a nonprofit. We managed all of the above in our relatively modest salaries in a HCOL area.

Now, at age 44, we will reach the $3M very soon and if this path continues, could retire at 50. We’ve been very blessed throughout the years and take nothing for granted.
goldendad
Posts: 399
Joined: Tue Apr 10, 2012 10:29 pm

Re: If your net worth is over $3 million, how did you do it?

Post by goldendad »

Started saving and investing at age 21 and never stopped. Always lived below our means. Never got divorced. Never bought expensive cars. I am 65.
Steelcity
Posts: 3
Joined: Wed Oct 02, 2019 9:36 pm

Re: If your net worth is over $3 million, how did you do it?

Post by Steelcity »

- self funded BSME degree by roofing houses, progressed in technical field into leadership position, utilized company tuition assistance to earn MBA all resulting in above average salary and steady professional career.
- Live in relatively low cost of living area
- Maximize IRA/401K match from day one.
- Excellent defined benefit pension
- Automatic savings
- Modest lifestyle
- Good health
- Wonderful wife (also income contributor)
- Intelligent, good character, self-sufficient children
- Real Estate/rental properties

Plan to retire within the next few years with income generated from pension, 401K, SS and rental properties.
flaccidsteele
Posts: 1339
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Location: Canada

Re: If your net worth is over $3 million, how did you do it?

Post by flaccidsteele »

We should appreciate that $3m is a modestly exclusive cohort...

Yet be humble enough to recognize that there are a lot of people who are significantly wealthier
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
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Rowan Oak
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Re: If your net worth is over $3 million, how did you do it?

Post by Rowan Oak »

HomerJ wrote: Thu Nov 12, 2020 8:21 pm
tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pmMANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
It doesn't really matter... I'm tilting at windmills here...

But friend... yes there are a million households making money like you or more than you.

And there's another 110 million households making far less.

But yes, 1 million households is a lot of people. A thousand of them probably live in the same neighborhood as you or work in cubicles/offices next to you. You see nothing but people making the same kind of money or even more.

But be aware that you ARE in a remarkable situation. Do not lose sight of the entire country in your tiny little bubble.

You are in the top 1%-2%... You are not part of the MANY.

I have no problem with people making a ton more money than me... I do get annoyed when they think they are just doing "okay".

You are way too smart to not see the real world. Look outside your bubble.
+1
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
visualguy
Posts: 2988
Joined: Thu Jan 30, 2014 12:32 am

Re: If your net worth is over $3 million, how did you do it?

Post by visualguy »

HomerJ wrote: Thu Nov 12, 2020 8:21 pm But yes, 1 million households is a lot of people. A thousand of them probably live in the same neighborhood as you or work in cubicles/offices next to you. You see nothing but people making the same kind of money or even more.

But be aware that you ARE in a remarkable situation. Do not lose sight of the entire country in your tiny little bubble.

You are in the top 1%-2%... You are not part of the MANY.
He's part of many at his location, and that's what matters. Not sure how what happens in some other part of the country or the world is relevant - that's not his frame of reference. Maybe he's at the top couple of percent in the country, and top fraction of a percent in the world, but where he's located it's top 20% and nothing to write home about. The country is huge, and the world is even bigger. For example, when he buys a house, he's competing with people at his location, not people in some other state or country.
goos_news
Posts: 207
Joined: Mon Jun 10, 2019 7:14 pm
Location: Northern California/French Riviera

Re: If your net worth is over $3 million, how did you do it?

Post by goos_news »

Rowan Oak wrote: Thu Nov 12, 2020 10:40 pm
HomerJ wrote: Thu Nov 12, 2020 8:21 pm
tryingtogetahead wrote: Thu Nov 12, 2020 7:22 pmMANY people on this forum and in my circle are a 2 doctor, 2 lawyer, 2 MEGACORP, 2 IBANKING or 2 FAANG couple making MUCH MORE than we do. My wife's job is still considered more junior and not high paid. Many people on this forum bought a home in SoCal, NYC or Boston and benefitted from a huge runup in prices. Many more bought a bunch of Apple or Amazon stock and made money that way. Most of my friends' parents bought them a home or gave them 200k for a down payment and many had their parents pay for their college/grad school. Those people all have a huge leg up. Many of them were FAR LESS frugal than me and still way ahead. Every time I read this forum, I am reminded about how many rich people are out there. I'm now late 30s and well past 3mm NW and I don't have a big job at all at my company and work for a mid-sized company and make mid 400s and alot of people I talk to do not think that is alot. In fact, many of my friends encourage me to change jobs bc I am underpaid. Just a little perspective for the money that is out there.
It doesn't really matter... I'm tilting at windmills here...

But friend... yes there are a million households making money like you or more than you.

And there's another 110 million households making far less.

But yes, 1 million households is a lot of people. A thousand of them probably live in the same neighborhood as you or work in cubicles/offices next to you. You see nothing but people making the same kind of money or even more.

But be aware that you ARE in a remarkable situation. Do not lose sight of the entire country in your tiny little bubble.

You are in the top 1%-2%... You are not part of the MANY.

I have no problem with people making a ton more money than me... I do get annoyed when they think they are just doing "okay".

You are way too smart to not see the real world. Look outside your bubble.
+1
Yes, comparing yourself to others is ultimately a non-productive, and self-defeating task. (You should only see if you are fairly and equitably compensated for your role. It sounds like he is well paid for your position.) Comparisons to others in different positions is something best left in the rear view mirror. Are you happy, healthy and on your path? I have a lot of colleagues, in our little work bubble, that get caught up in that race. Many hate the attitude prevalent in their affluent neighborhood and social circles, where shows of wealth are the measure upon which people compete.
manatee2005
Posts: 2136
Joined: Wed Dec 18, 2019 8:17 pm

Re: If your net worth is over $3 million, how did you do it?

Post by manatee2005 »

Invest in stay at home stocks during a world wide pandemic. That is all.
2tall4economy
Posts: 739
Joined: Thu Jan 08, 2015 6:55 am
Location: Global

Re: If your net worth is over $3 million, how did you do it?

Post by 2tall4economy »

Sandtrap wrote: Thu Nov 12, 2020 11:21 am Is a net worth over $3 million "financially secure", "wealthy", or "substantially wealthy"?
If you’re actually curious, I did some medium level (as in more than a few google searches)!research on this because I was curious. I spoke with a bunch of wealth managers and private bankers and presented myself as having various levels of wealth to test them out. Also got some trade magazines and looked at advisor ranking sites and whatnot and they don’t clearly come out and say it but they apparently look at it like:

1. “Economy class wealth” / “401k investor”
2. “Business class wealth” / “wealth management”
3. “First class wealth” / “private wealth management”
4. “Private jet wealth” / “family office”


Forgot the other terms and they vary. I have them in spreadsheet somewhere but I’m too lazy to go look it up.

The cutoffs were hard to find but pretty consistent for major banks though:

1. Less than $2m
2. At least $2m, average mid single digits
3. At least $10m, average $25m or more
4. $100m or more

And finally, the nature of how they treated you, engagement
1. Untouchable/mass market/let me introduce you to the corner bank/no reply
2. Get assigned an advisor and variable team members that service a lot of people. Get cell phone number of your advisor. Get some very limited access to non traditional investments.
3. Get assigned an advisor and relatively fixed team that services a handful of people. Get cell phone numbers for all. Get access to any investment you want.
4. You essentially employ them directly and skys the limit. And you pay them for it. Some people with this sort of wealth will band together with other wealthy folks and create their own mini-bank called a family office.


It also reinforced my faith in most bankers and banks being scum of the earth.
You can do anything you want in life. The rub is that there are consequences.
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Ralph Furley
Posts: 175
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Re: If your net worth is over $3 million, how did you do it?

Post by Ralph Furley »

White Coat Investor wrote: Thu Nov 12, 2020 10:58 am Interesting to see this 6 year old thread bumped and go back and read my response and reflect on how much my financial life has changed over that time period.
Funny...I had just read your original reply and then skipped to the most recent page and read this. And, figured a decade was probably longer than needed for you. Just a guess.
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