I could get a 2nd divorce and still be over $3 million.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
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?
-
- Posts: 1712
- Joined: Wed Nov 05, 2014 2:23 pm
- TomatoTomahto
- Posts: 17158
- Joined: Mon Apr 11, 2011 1:48 pm
Re: If your net worth is over $3 million, how did you do it?
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.mak1277 wrote: ↑Thu Nov 12, 2020 10:06 amI could get a 2nd divorce and still be over $3 million.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 get the FI part but not the RE part of FIRE.
-
- Posts: 1339
- Joined: Sun Jul 28, 2019 9:42 pm
- Location: Canada
Re: If your net worth is over $3 million, how did you do it?
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
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
-
- Posts: 8626
- Joined: Wed Apr 08, 2015 11:31 am
- Location: West coast of Florida, near Champa Bay !
Re: If your net worth is over $3 million, how did you do it?
There are far worse gigs in life! SILs have no issue, either.TomatoTomahto wrote: ↑Thu Nov 12, 2020 10:11 amActually, 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.mak1277 wrote: ↑Thu Nov 12, 2020 10:06 amI could get a 2nd divorce and still be over $3 million.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
Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
Re: If your net worth is over $3 million, how did you do it?
Not Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll it takes is a "decent" income and it's not remarkable at all!JS-Elcano wrote: ↑Thu Nov 12, 2020 8:20 amI agree. My reply was meant to be tongue-in-cheek as in "unbelievable".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 pmThis 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.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.
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.
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.
Re: If your net worth is over $3 million, how did you do it?
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.
- White Coat Investor
- Posts: 17413
- Joined: Fri Mar 02, 2007 8:11 pm
- Location: Greatest Snow On Earth
Re: If your net worth is over $3 million, how did you do it?
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
Re: If your net worth is over $3 million, how did you do it?
Never made 6 figures, but finally got there by saving like crazy. And by not having kids, the most expensive form of entertainment.
Re: If your net worth is over $3 million, how did you do it?
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.Wricha wrote: ↑Thu Nov 12, 2020 10:48 amNot Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll 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.
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/
-
- Posts: 1397
- Joined: Mon Apr 24, 2017 11:16 am
Re: If your net worth is over $3 million, how did you do it?
Could you say what this decent income was, to give us some perspective?tryingtogetahead wrote: ↑Thu Nov 12, 2020 9:17 amI 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.JS-Elcano wrote: ↑Wed Nov 11, 2020 9:40 pmThis 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.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.
Re: If your net worth is over $3 million, how did you do it?
Ah I stand corrected. Thank you. I did a quick search and must have made a mistake.Wricha wrote: ↑Thu Nov 12, 2020 10:48 amNot Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll 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.
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/
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
- lthenderson
- Posts: 8525
- Joined: Tue Feb 21, 2012 11:43 am
- Location: Iowa
Re: If your net worth is over $3 million, how did you do it?
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.
- Sandtrap
- Posts: 19591
- Joined: Sat Nov 26, 2016 5:32 pm
- Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.
Re: If your net worth is over $3 million, how did you do it?
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
. . . . . 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
-
- Posts: 3145
- Joined: Mon Mar 04, 2019 8:52 am
Re: If your net worth is over $3 million, how did you do it?
Much more likely if using median and not average. The average is much more skewed by billionaires.flaccidsteele wrote: ↑Thu Nov 12, 2020 10:14 amI’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
Any other sources appreciated
Being wrong compounds forever.
Re: If your net worth is over $3 million, how did you do it?
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.
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.
-
- Posts: 2775
- Joined: Mon Mar 27, 2017 10:47 pm
- Location: CA
Re: If your net worth is over $3 million, how did you do it?
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?
- TomatoTomahto
- Posts: 17158
- Joined: Mon Apr 11, 2011 1:48 pm
Re: If your net worth is over $3 million, how did you do it?
Yeah. Bill Gates walked into the diner and the average NW became a billion. Median barely budged.Wanderingwheelz wrote: ↑Thu Nov 12, 2020 11:24 amMuch more likely if using median and not average. The average is much more skewed by billionaires.flaccidsteele wrote: ↑Thu Nov 12, 2020 10:14 amI’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
Any other sources appreciated
I get the FI part but not the RE part of FIRE.
Re: If your net worth is over $3 million, how did you do it?
Idle boasting until you do it.mak1277 wrote: ↑Thu Nov 12, 2020 10:06 amI could get a 2nd divorce and still be over $3 million.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
Re: If your net worth is over $3 million, how did you do it?
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.HomerJ wrote: ↑Thu Nov 12, 2020 11:15 amAh I stand corrected. Thank you. I did a quick search and must have made a mistake.Wricha wrote: ↑Thu Nov 12, 2020 10:48 amNot Really, there is a lot more money out there than one thinks. If he is 35 he is short about 1M.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll 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.
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/
-
- Posts: 1339
- Joined: Sun Jul 28, 2019 9:42 pm
- Location: Canada
Re: If your net worth is over $3 million, how did you do it?
Point well taken. However the median net worth of the top 1% is still higher than $3m for all age brackets above the 30sWanderingwheelz wrote: ↑Thu Nov 12, 2020 11:24 amMuch more likely if using median and not average. The average is much more skewed by billionaires.flaccidsteele wrote: ↑Thu Nov 12, 2020 10:14 amI’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
Any other sources appreciated
https://postimg.cc/PvQj06SS
Last edited by flaccidsteele on Thu Nov 12, 2020 2:53 pm, edited 1 time in total.
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
Re: If your net worth is over $3 million, how did you do it?
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.
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.
-
- Posts: 405
- Joined: Sat Jul 13, 2019 11:30 am
Re: If your net worth is over $3 million, how did you do it?
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.
Re: If your net worth is over $3 million, how did you do it?
- 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
- 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
-
- Posts: 232
- Joined: Wed May 14, 2008 3:48 am
Re: If your net worth is over $3 million, how did you do it?
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!
-
- Posts: 209
- Joined: Tue Mar 26, 2019 6:33 pm
Re: If your net worth is over $3 million, how did you do it?
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!
- 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!
- AerialWombat
- Posts: 3106
- Joined: Tue May 29, 2018 1:07 pm
- Location: Cashtown, Cashylvania
Re: If your net worth is over $3 million, how did you do it?
.....
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.
-
- Posts: 181
- Joined: Mon Aug 26, 2019 11:14 pm
Re: If your net worth is over $3 million, how did you do it?
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)
Nothing fancy, just an “eat your vegetables” approach to life. (wish we could do that for our diet)
- goodenyou
- Posts: 3602
- Joined: Sun Jan 31, 2010 10:57 pm
- Location: Skating to Where the Puck is Going to Be..or on the golf course
Re: If your net worth is over $3 million, how did you do it?
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.
"Ignorance more frequently begets confidence than does knowledge" |
“At 50, everyone has the face he deserves”
Re: If your net worth is over $3 million, how did you do it?
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.
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.
For the ashes of his fathers, And the temples of his gods. |
Pensions= 2X yearly expenses. Portfolio= 40X yearly expenses.
-
- Posts: 4880
- Joined: Wed Mar 31, 2010 4:39 pm
Re: If your net worth is over $3 million, how did you do it?
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
- 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
“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?“
-
- Posts: 4880
- Joined: Wed Mar 31, 2010 4:39 pm
Re: If your net worth is over $3 million, how did you do it?
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.
“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?“
-
- Posts: 153
- Joined: Tue Apr 07, 2020 11:45 am
Re: If your net worth is over $3 million, how did you do it?
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.JS-Elcano wrote: ↑Thu Nov 12, 2020 10:00 amI 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.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll 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.
Re: If your net worth is over $3 million, how did you do it?
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.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.
Re: If your net worth is over $3 million, how did you do it?
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.
Re: If your net worth is over $3 million, how did you do it?
It doesn't really matter... I'm tilting at windmills here...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.
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
-
- Posts: 427
- Joined: Sat Feb 09, 2019 1:27 am
Re: If your net worth is over $3 million, how did you do it?
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.
Re: If your net worth is over $3 million, how did you do it?
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 volunteeringtryingtogetahead wrote: ↑Thu Nov 12, 2020 7:22 pmI 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.JS-Elcano wrote: ↑Thu Nov 12, 2020 10:00 amI 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.HomerJ wrote: ↑Thu Nov 12, 2020 9:04 amAll 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.
Re: If your net worth is over $3 million, how did you do it?
+1HomerJ wrote: ↑Thu Nov 12, 2020 8:21 pmIt doesn't really matter... I'm tilting at windmills here...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.
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.
Re: If your net worth is over $3 million, how did you do it?
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.
* 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.
Re: If your net worth is over $3 million, how did you do it?
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.
Re: If your net worth is over $3 million, how did you do it?
- 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.
- 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.
-
- Posts: 1339
- Joined: Sun Jul 28, 2019 9:42 pm
- Location: Canada
Re: If your net worth is over $3 million, how did you do it?
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
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
Re: If your net worth is over $3 million, how did you do it?
+1HomerJ wrote: ↑Thu Nov 12, 2020 8:21 pmIt doesn't really matter... I'm tilting at windmills here...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.
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.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
Re: If your net worth is over $3 million, how did you do it?
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.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.
Re: If your net worth is over $3 million, how did you do it?
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.Rowan Oak wrote: ↑Thu Nov 12, 2020 10:40 pm+1HomerJ wrote: ↑Thu Nov 12, 2020 8:21 pmIt doesn't really matter... I'm tilting at windmills here...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.
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.
-
- Posts: 2136
- Joined: Wed Dec 18, 2019 8:17 pm
Re: If your net worth is over $3 million, how did you do it?
Invest in stay at home stocks during a world wide pandemic. That is all.
-
- 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?
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.
- Ralph Furley
- Posts: 175
- Joined: Fri Nov 29, 2019 9:42 am
Re: If your net worth is over $3 million, how did you do it?
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.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.