Author Topic: How long has it taken you to double your net worth?  (Read 1755 times)

Omy

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How long has it taken you to double your net worth?
« on: June 07, 2019, 12:07:32 PM »
As we are nearing our FIRE date, I've been analyzing our net worth numbers over the years and noticed that our net worth has doubled every 5 years since we started tracking in 2004. I thought that was pretty cool, but I'm wondering if that's good or if that is longer than it should be taking to double net worth...thoughts?

BDWW

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Re: How long has it taken you to double your net worth?
« Reply #1 on: June 07, 2019, 12:22:18 PM »
It depends on the absolute value, and the ratio of investment returns to contributions

If we assume an investment return of 7%, a portfolio will double ~ every 10 years (Rule of 72) on investment returns alone.

Contributions play the majority role early on, but less so as the value increases.

e.g.
 $1K -> 2K   I would assume be virtually entirely contributions and take an extremely short amount of time.

$10M -> 20M  Would likely be almost entirely investment return and for most should be close to the aforementioned 10 years.

So if things follow historical trends your net worth should double at around a max of 10 years. Depending on where you are between the examples given above, you should be generally less than that.

5 years is likely pretty decent for someone in the mid 6 figure range. (e.g. 300K -> 600k)

wageslave23

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Re: How long has it taken you to double your net worth?
« Reply #2 on: June 07, 2019, 12:25:37 PM »
It all depends on your networth.  At the beginning when you only have $10k to your name, it better take a lot less than 5 years to double your networth if you want to fire.  When you have a $1M then 5 years is pretty good.

v8rx7guy

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Re: How long has it taken you to double your net worth?
« Reply #3 on: June 07, 2019, 12:48:55 PM »
How much of your doubling was Real Estate?  That's a big factor...


use2betrix

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Re: How long has it taken you to double your net worth?
« Reply #5 on: June 07, 2019, 02:47:36 PM »
I only include my savings and investments in my net worth.

From April 2016 to January 2018 I went from $100k to $200k. Not considered in that is also paying off around $40k in vehicles (own my 2017 4Runner outright) also in that period I took 8 months sabbaticals.

January 2018 to May 2019 I went from $200k to $400k. Nothing magical there other than a lot of hard work, lot of hours, and lot of savings.

Omy

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Re: How long has it taken you to double your net worth?
« Reply #6 on: June 08, 2019, 07:48:33 AM »
In 2004 we had 500k, in 2009 we crossed over the million mark, in 2014 2 million, in 2019 flirting with 4 million. We have 3 houses (two are rentals) that are paid off that account for 1.25 million of the total.

Now that we are FIREing and turning off the income hose, I suspect it will take MUCH longer to double again...just hoping to stay even for awhile!

clarkfan1979

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Re: How long has it taken you to double your net worth?
« Reply #7 on: June 08, 2019, 09:35:16 AM »
2014: 162K
2016: 324K
2019: 648K

Our net worth doubled twice in 5 years since MMM. I think our true growth curve is 80K to 100K/year, not really "doubling"

I think our net worth could double again in in 5-7 years. 

pdxvandal

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Re: How long has it taken you to double your net worth?
« Reply #8 on: June 08, 2019, 11:00:50 AM »
Similar situation here. In July 2013 when I was first getting my 'stache on, I had about $330k in investments. Now I'm at $685k and this includes a full year without working much. As long as the stock market doesn't tank, hope to reach $750k a year from now. If I can keep my job another two years after that, maybe $1M. Not sure if I can withstand the 9-5 that long. Relying on compound interest!

fattest_foot

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Re: How long has it taken you to double your net worth?
« Reply #9 on: June 08, 2019, 01:25:33 PM »
Looks like about every 2 years. Don't have data from 2005-2014, but we weren't investing regularly then.

2014: 97k
2016: 206k
2018: 400k

It'll probably be 3 years between 400k and 800k, however.

use2betrix

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Re: How long has it taken you to double your net worth?
« Reply #10 on: June 08, 2019, 01:35:34 PM »
In 2004 we had 500k, in 2009 we crossed over the million mark, in 2014 2 million, in 2019 flirting with 4 million. We have 3 houses (two are rentals) that are paid off that account for 1.25 million of the total.

Now that we are FIREing and turning off the income hose, I suspect it will take MUCH longer to double again...just hoping to stay even for awhile!

Well - if you had your 1 million in the market as of 2009 (in accordance with the DJIA), then it would be worth approximately $3,500,000 as of today.

So to answer your original question, the amount of time it has taken you to double your net worth is entirely average based off the general philosophy I find from MMM and this forum.
« Last Edit: June 08, 2019, 01:37:34 PM by use2betrix »

Murse

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Re: How long has it taken you to double your net worth?
« Reply #11 on: June 08, 2019, 06:39:54 PM »
1/1/18 122k
Currently about 240kish so almost doubled.

I expect the rate of doubling to slow with time as my contributions make less impact because they become smaller relative to the portfolio size.

Bloop Bloop

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Re: How long has it taken you to double your net worth?
« Reply #12 on: June 08, 2019, 07:21:36 PM »
My net worth is currently at $1.1m and I think it will take at least 7 years to get to $2.2m.

I'm Australia though and our share market is still far below its 2007 peak and our housing market has just gone down 12% in the last 18 months (in nominal terms, thus 16% in real terms). So I am assuming 2% return on investment over the next 10-20 years. I wish I could have gotten in on the 10%+ growth that a lot of you benefited from, but I don't see it happening.