$2MM Net Worth!

[FrontRanger]

Maybe we should develop a definition for Mustachian-ism?  If we were to I don't believe that FIRE should be a given.  maybe working towards FI, but the RE maybe not.

BTW-just kidding about a definition, because for those of us pre-FIRE it is a journey not a place.

I would prefer an exhaustive checklist of all things mustachian and a robust calculation model to determine the degrees of mustachianism. Then we would have a clearer picture of who to tar and feather.

[CommonCents]

Maybe we should develop a definition for Mustachian-ism?  If we were to I don't believe that FIRE should be a given.  maybe working towards FI, but the RE maybe not.

BTW-just kidding about a definition, because for those of us pre-FIRE it is a journey not a place.

I would prefer an exhaustive checklist of all things mustachian and a robust calculation model to determine the degrees of mustachianism. Then we would have a clearer picture of who to tar and feather.

As with most things raised on this board - it's already done.  Yes, mustachians can't help themselves. http://forum.mrmoneymustache.com/welcome-to-the-forum/honest-answer-on-a-scale-of-1-10-how-mustachian-are-you/msg483653/#msg483653

[Wanna-Be-FI-Bri]

IowaGuy-  What do you do for a living?  What industry?  Job title?  Approx. annual salary?

[mr_orange]

Great thread....glad someone drug it back up.  Congratulations on your success IowaGuy.  I'm 36 and am about to pass $1.1M; so you have me beat by a long stretch!  I see you made a lot of money in the market and with real estate.  Investing well and a tinge of luck are better than saving IMO, but they all contribute to the overall number. 

[ysette9]

Out of curiosity, do you know how long it took you to go from $1M to $2M? I am really hoping the second million is faster and easier than the first!

[FrontRanger]

I'm in the finance sector as an SVP, but don't care to share my salary, job title, etc on the boards. I would say that it took about 5 years to go from $1MM to $2MM. Much of that was significant gains in the market while still averaging a 55-58% savings rate each year.

[fattest_foot]

Out of curiosity, do you know how long it took you to go from $1M to $2M? I am really hoping the second million is faster and easier than the first!

It should absolutely go faster.

The first million should be working to make you money. Starting from $0, you have no money working for you.

[Gumbo1978]

Nice job!

I can see both sides of including a house in net worth. 

On one hand, it is an asset.  On the other hand, unless you have a free place to live you will have that asset tied up until you pass away.

My house is worth around $250k.  I owe $130k on it.  As housing costs rise, I'd estimate my next home (retirement home) will probably cost more than $250k.  So even though I have $120k in equity, that $ will be forever tied up in a house (in my situation, until I'm old and gray and moving into a nursing home...which will likely deplete that equity fast).

[boarder42]

I'm in the finance sector as an SVP, but don't care to share my salary, job title, etc on the boards. I would say that it took about 5 years to go from $1MM to $2MM. Much of that was significant gains in the market while still averaging a 55-58% savings rate each year.

those asking time from 1-2MM is pretty irrelevant in this case as he had the biggest market jumps in a long time right after he hit 1MM assuming 5 years is correct.  it probably takes between 5-10 years depending on market returns and slightly on savings rates.  if he had hit 1MM in 2006 it may have taken 10 years to get there. 

[Guesl982374]

Maybe we should develop a definition for Mustachian-ism?  If we were to I don't believe that FIRE should be a given.  maybe working towards FI, but the RE maybe not.

BTW-just kidding about a definition, because for those of us pre-FIRE it is a journey not a place.

I would prefer an exhaustive checklist of all things mustachian and a robust calculation model to determine the degrees of mustachianism. Then we would have a clearer picture of who to tar and feather.

Haha, I love it.

[forgerator]

that is a great achievement. from your $1.8M do you get a steady stream of dividend income or is it just price appreciation? The former would be what you would need for that early retirement

[forummm]

that is a great achievement. from your $1.8M do you get a steady stream of dividend income or is it just price appreciation? The former would be what you would need for that early retirement

No. There is no difference to your returns between spending dividends and selling appreciated stock. I could easily retire with 100% BRK.B if I had enough of it. And BRK doesn't pay a dividend, and won't as long as Buffett is alive.

[EricL]

That's the best of both worlds - to be ready to be FIRE'd but not willing to because the job is something to look forward to.  Congrats!

[patrickza]

Very inspirational. You have no idea how much I wish I discovered a site like this as soon as I started working. You are total proof that living below your means and investing the difference really does pay off.

[FrontRanger]

I'm in the finance sector as an SVP, but don't care to share my salary, job title, etc on the boards. I would say that it took about 5 years to go from $1MM to $2MM. Much of that was significant gains in the market while still averaging a 55-58% savings rate each year.

those asking time from 1-2MM is pretty irrelevant in this case as he had the biggest market jumps in a long time right after he hit 1MM assuming 5 years is correct.  it probably takes between 5-10 years depending on market returns and slightly on savings rates.  if he had hit 1MM in 2006 it may have taken 10 years to get there.

I definitely benefited by some great market returns and can't expect anything like that again in the future. I think I've seen some recent market research that says based on projected returns it will most likely take 8-10 years to double your value simply based upon returns. My advice to anyone is to focus on what you can control: Savings rate and asset allocation.

[Wurfel]

Congrats, Iowa. Can you shed some light on how your investment allocation has changed over the years as your stash grew, and where you are now?

While I'm still pretty young (37) I have stuck to about 10% bonds and the rest 90% equities consisting of low cost index funds (Vanguard Admiral Funds). I'd say I'm roughly 70% US and 30% international. I'll shift to 60% equities and 40% bonds soon.

Congrats!  Amazing result!  I would retire at 600.000 dollar ;-)