Author Topic: Ham  (Read 24536 times)

Mr. Tummy Mustache

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Ham
« on: April 09, 2014, 11:25:25 AM »
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« Last Edit: February 04, 2016, 02:39:59 PM by Exit »

rtrnow

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #1 on: April 09, 2014, 11:33:45 AM »
Mine are not close to that and may never be. I plan to FIRE in a few months with less than 50% of $1M. I'm more inspired to leave on less and quit sooner.

rescuedog

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #2 on: April 09, 2014, 11:36:23 AM »
We (husband and I) on track to be a millionaires in <3 years after I turn 40.  Annually $73,500 is going away into retirement ($20k of that is from our work - 401a perk).  Husband had $200-300k in retirement when we joined finances, I had about $50k?  Just guessing.  The rest is a product of our joint finances of 3 years and interest.

I used the CNN calculator: http://cgi.money.cnn.com/tools/millionaire/millionaire.html

That is just in savings. 

We'll be millionaires in net worth before that due to the equity in the house though.

I don't know if that is useful at all since we're not millionaires YET!
« Last Edit: April 09, 2014, 12:37:49 PM by rescuedog »

payitoff

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #3 on: April 09, 2014, 11:37:00 AM »
Mine are not close to that and may never be. I plan to FIRE in a few months with less than 50% of $1M. I'm more inspired to leave on less and quit sooner.

how long did it get you? how much were you putting away per month/year?   im trying to figure this out too, so far the calculator i found online is telling me ill reach 500k in 8 years if i save $3500/month. is that realistic?

TreeTired

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #4 on: April 09, 2014, 01:10:41 PM »
Except for our first house, and starting with our second (we have only owned 4 including this one)  we put a lot of money down and had far too much equity in our home, so I don't think we reached $1mm in total financial assets excluding home until we sold our house.  We put $300k down and paid $780k in 1993 and sold it for $1.7mm in 2007 - instant millionaires at age 54!   (This last house, the one we live in now, we put 100% down)

HairyUpperLip

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #5 on: April 09, 2014, 03:11:04 PM »
good thread idea. :)

Workinghard

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #6 on: April 09, 2014, 05:26:34 PM »
Mine are not close to that and may never be. I plan to FIRE in a few months with less than 50% of $1M. I'm more inspired to leave on less and quit sooner.

how long did it get you? how much were you putting away per month/year?   im trying to figure this out too, so far the calculator i found online is telling me ill reach 500k in 8 years if i save $3500/month. is that realistic?

It depends on your assumptions. At 7% return and 3% inflation you would have approximately $447,000 in 8 years per the calculator I used.

2527

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #7 on: April 09, 2014, 06:26:02 PM »
I was 41 years old.  I graduated without debt and had above average income and below average expenses.  I lived in low cost areas, including 6 years overseas where I didn't pay taxes.  I invested nearly 100% in stocks using lower than average cost mutual funds.   Never bought a house because I moved every couple years for my job.

One night I added up my assets, and they came to about $999,900.  I checked what I had in my wallet, and then my wife's purse, and we were about $3 over.  She laughed at me. 

Workinghard

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #8 on: April 09, 2014, 06:44:14 PM »
I was 41 years old.  I graduated without debt and had above average income and below average expenses.  I lived in low cost areas, including 6 years overseas where I didn't pay taxes.  I invested nearly 100% in stocks using lower than average cost mutual funds.   Never bought a house because I moved every couple years for my job.

One night I added up my assets, and they came to about $999,900.  I checked what I had in my wallet, and then my wife's purse, and we were about $3 over.  She laughed at me.

Love the story and the image of you checking your wallet and wife's purse! Kudos to you. We won't make the 41 year old goal since that has long since come and gone. We will make it though. I'm actually more excited that our 21 year old son is getting it. After funding a 2013 and 2014 Roth IRA, with a small inheritance, he's been logging into Vanguard daily. Glad the market has been up to give him that encouraging boost.

oldtoyota

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #9 on: April 09, 2014, 06:44:24 PM »
Why $1MM the number so many of us aim to reach or talk about reaching?

totoro

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #10 on: April 09, 2014, 06:51:14 PM »
We made it in fifteen years from start to finish despite some very significant setbacks and four kids.

1. House appreciation.  Luck on that.
2. RRSP contributions and investments Did not do nearly as well as many here.
3. Purchase of rentals that are cash flow positive.
4. Starting two businesses that ended up growing.  This is kind of like the magic of compound interest.  Businesses take money and effort and don't make much to start (most of the time).  Keep at it and you can grow a niche skill or profitable business.  I was thinking of this again this morning when I saw how well a local firm that installs Ikea kitchens is doing:  http://www.ikaninstallations.com/

bigchrisb

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #11 on: April 09, 2014, 06:55:27 PM »
I was 31.

I put my response in http://www.mrmoneymustache.com/forum/share-your-badassity/the-first-million-is-the-hardest/ which has a number of other responses.

marty998

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #12 on: April 10, 2014, 05:49:04 AM »
Why $1MM the number so many of us aim to reach or talk about reaching?

Well, what goal would you otherwise set? Saying you reached $839,426.57 doesn't have the same ring to it.

Emilyngh

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #13 on: April 10, 2014, 06:25:58 AM »


Well, what goal would you otherwise set? Saying you reached $839,426.57 doesn't have the same ring to it.

How about "enough"?   That has a much better ring to it to me, and following mustachian principles, I would be surprised if most of us really require 1 million to have reached it.

KBecks

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #14 on: April 10, 2014, 06:30:00 AM »
I've heard that getting the first million is a bitch.  (pardon the language). 

Congrats to all who have achieved it! 

KBecks

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #15 on: April 10, 2014, 06:32:02 AM »
Why $1MM the number so many of us aim to reach or talk about reaching?

Just speaking for myself $1MM would throw off about $40,000 annually, which is likely to be a much more popular and comfortable number to live on vs. $20k - $25k. 

We are not there yet, but we should be there within the next 3 - 7 years.   I would need to look at a calculator to make a better forecast and we are working on our budget / savings rate.  Fun stuff.
« Last Edit: April 10, 2014, 06:33:38 AM by KBecks »

rtrnow

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #16 on: April 10, 2014, 07:11:16 AM »
Mine are not close to that and may never be. I plan to FIRE in a few months with less than 50% of $1M. I'm more inspired to leave on less and quit sooner.

how long did it get you? how much were you putting away per month/year?   im trying to figure this out too, so far the calculator i found online is telling me ill reach 500k in 8 years if i save $3500/month. is that realistic?

I've been saving for 10 years but only at really high levels the last two. I'm currently putting away about 4.5k per month but many years was way less than that. I actually have only about 350k invested. The rest of my income is from a rental property. I also have 1yr in cash since I plan to FIRE soon. The rental helps a lot. Based on the equity I have in the property I'm getting a 8% return after expenses.

EnergyConsultant

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #17 on: April 10, 2014, 07:44:22 AM »
At 34, if you count real estate in your calculation. Otherwise, 36.
7-8 years of 6-figure income helped, coupled with less-than-insane spend (still high, though, by MMM standard). Includes 3 kids.

arebelspy

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #18 on: April 10, 2014, 07:53:21 AM »
Will hit 1MM at age 30 in under 2 years (fairly confident in that projection, as I should it hit it regardless of any market gains or house appreciation; we should get there just from our current net worth plus our expected contributions/savings amounts over the next two years - though it was greatly bolstered by massive net worth jumps from things outside my control over the last year or two).

As with sol and OP, it skyrockets from there if we didn't FIRE.  We'd go from 1MM at 30 to 10MM at 45 (assuming expected returns, not 0% like above).

Not interested in that though, planning to FIRE right around the time we hit the two comma club.

Got there through high savings rate, hard work to earn extra side income, and real estate investing.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

DoubleDown

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #19 on: April 10, 2014, 09:05:49 AM »
Which time?!

I first hit $1M at about age 30, but it would have required my death for a large life insurance payment. So ignoring that one, I made it again (for real) around age 37. Then I lost half (plus half of future earnings) in a divorce, and started again. I hit it again somewhere around age 43-44. Hopefully this one will stick (I am confident it will).

libertarian4321

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #20 on: April 10, 2014, 09:49:57 AM »
The first time?  I was around 36 years old.  That was during the stock market bubble of the late '90s. 

As you may have guessed, I became a non-millionaire around 2000 with the market crash.

I did it the old fashioned way, I earned a decent salary, invested it, and waited, which is pretty much the way I became a millionaire the second time (though as we get older, we tend to invest a bit more conservatively).

One other thing.  I started early, really early.  I probably still have money left over from the pennies I earned delivering newspapers as a 12-year old.  I was actually paid 3 cents per paper delivered from my ratty second hand bicycle- yeah, I was living the dream. :)

I kept on saving through progressively better paying jobs- dishwasher, burger flipper....(leaving out a bunch of crap jobs from HS/college)...soldier, engineer, senior engineer. 

Oh yeah, and I never went into debt- no credit card debt, no college debt, no car debt (except when it was at "0%), and now no home debt (I briefly had a mortgage, but could have paid it off whenever I chose do do so).

Our rate of net worth increase been slowed quite a bit in recent years, because we give a lot more to charity now than we did before that first million.  We figure now that we have reached FI, and have more than we are likely spend in your lifetime, it seems a little strange to keep aggressively pursuing still more dollars- though I'm sure many would disagree with me on that.

Some people might think "rich" folks would want to start shopping at expensive stores and restaurants, or buy a fancy house/car- but we just feel weird and out of place in overpriced stores like Saks or stuffy restaurants.  We still look and feel middle class, even though we probably aren't.

This is not the most well thought out post I've ever made.  Just a jumble of thoughts.  Hopefully, there is something someone will find useful in here.

arebelspy

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #21 on: April 10, 2014, 11:06:58 AM »
I kept on saving through progressively better paying jobs- dishwasher, burger flipper....(leaving out a bunch of crap jobs from HS/college)...soldier, engineer, senior engineer. 

But not king of engineers.

Good insight libertarian.  Nice to hear what you've done with it afterward.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Exflyboy

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #22 on: April 10, 2014, 12:14:19 PM »
My story can be found here

http://www.mrmoneymustache.com/forum/share-your-badassity/i-retired-today!-%29/

Basically started with about minus $160k or so in 1996/97.. in my late thirties.. Just crossed $1.3M at 52 plus paid off house.. I think I crossed $1M (plus house) around Jan 2013.

Frank
« Last Edit: April 10, 2014, 07:55:21 PM by frankh »

soccerluvof4

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #23 on: April 10, 2014, 12:44:21 PM »
I have had alot of ups and downs. When i Was in my mid 20's was a workaholic in sales and while working got in early in a Franchise. Since i didnt need the money i took the profits and bought another store and another till i had 4. At 27 the company sold out to a Fortune 500 company I knew I could get top dollar because if I sold others would in panic  since i recently became president of the franchice association.  20 minute over the phone deal I was a millionaire after taxes.  But then the company i was actually working for tried to cut my income even though i had 70% of the business so i give them the finger and started a new business. BUT WAIT now I am getting a divorce and have a child.......say good buy to half! and then basically 18 years of child support payments of 3200$ a month after taxes. Well the new business boomed and am still in it and started building a house and moving every two years. Oh yeah living the dream one big mansion after another and having all the toys blah blah blah! STING! i loose 600k on home i built with cash! Had to sell only because I overbuilt and just wanted to put behind me. I have a vacation house I own outright now I am selling for a loss just to get my money back working for me.   So in  and out of the millionaire club all through my 30's and Got remarried at 32 and have 4 kids 15,13,10 and 8 and have been over since 34ish and been building/adding to it ever since.  Thats why so much of the advice on here is so true and priceless and I learn new stuff here everyday from those that have similar and different experiences in life. My big thing that saved me was no matter how high off the hog i lived I never spent what i didn't have and got into debt, but i sure spent what i had. But I also always gave to charity and back to the community anonymously...thats important!!  Once i settled down and figured it out Life became a whole lot better , less stressful and no one would know what  I don't have today other than I do live in a desirable home and area which I cant wait soon enough to move from.  To the younger folks , really anyone that has had ups and downs like anything the sooner you settle in the sooner you can build for ER steadily. Had I learned and done all the things I read and learn from sites like this...scary! But I am happy and love my life now and keep learning! Only look in the rearview mirror to learn!!

CommonCents

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #24 on: April 10, 2014, 01:20:25 PM »
Fairly rough calculations, may be off by as much as 20% except the bold, which are accurate

Date           Age  Net Worth
Sept 1997   18:  4K
Sept 2001   22:  -$55k
Sept 2004   25:  -$35k
Sept 2007   28:  -$200k
End  2009   30:  0!

May  2012   32:  $825k
End  2013   34:  $1M

My journey may not be quite what you're seeking, as I married into it (I'll give you one guess when above).

1997: I graduated from high school.  I had probably $2k in a checking account and $2k in a Roth IRA from babysitting, summer employments, and grad gifts.

2001: I graduated from college.  My parents paid for a chunk of college, I had scholarships, a gift from my grandfather, and worked, but the rest went on loans.  I don't have the figures in front of me, but my recollection is $12,500 in an interest free 5-year loan, about $50k to my parents and about $12,000 in other loans. 

2004: I accepted a $50k/year job in 2001, but with the economy, most of our offers were reneged.  (Apparently Harvard was able to force the company to still take their students or they'd never be permitted to recruit on campus again.)  Mine was canceled 10 days before I was to start my job - and the same day I had signed a lease.  Also days before 9/11 so jobs were harder to get.  I took a $29k/year job in 2002 (temp for a few month prior).  I paid off almost half of the MOAA loan and I had continued to contribute to my Roth IRA though, perhaps $10k and had a few thousand in my checking account.  I headed off to grad school, incurring more debt. 

2007: I graduated from law school, with 8.5% interest on my student loans and an offer from a big law firm - again into a bad economy.  During law school, I continued to contribute some to my Roth IRA, and rolled over about $2k from a 401k into it.  But, I paid for school mostly through loans and didn't have much in the way of scholarships (I was granted $9k the first year, but they had a big screw up and I had to argue to keep it, I was not given it the following year) because they counted my parent's money and didn't consider losses from my dad's new business, only income.

2009: During my 2.5 years at the law firm I tried not to go crazy with my $160k+ salary (and bonus) and poured a lot into my loans.  (Although I did live alone with no roommates for the first time...in a place that cost me $1600 per month.  At least it was near work so I could walk/take the T.)  I got my first car in June 2007, a gift from my parents - a 1989 Corolla they were going to give to me or to charity.  Giving it to me meant I'd visit them 2 hrs away more often.  Put about $1k to get it to pass inspection, got about $1k back 4 months later when someone ran into me and totalled the car.  6 of those weeks I was overseas and not even driving it, so I had it useable for about 10 weeks...and didn't bother to replace it.   At the end of 2009, I finally had a zero net worth again (and a law degree)!  I maxed out my IRA each year, and in 2008-9 saved about $25k in my 401k.  (Flaw - I should have saved more, but I stopped because the following was coming...)  But the writing was on the wall regarding the job unfortunately, and I was one of many that needed to find employment again in the beginning of 2010.  Unfortunately, I stuffed away about $50k under the mattress for my emergency fund due to fear over the job situation, rather than putting it towards loans (now under 3%) or in the market.

2012: I worked part-time poorly paid employment and was on unemployment for over 2 years.  At the end of 2010, I moved in with my now-husband.  He had a paid off condo, so my expenses were pretty low (I paid groceries, cable, my loans, etc), allowing me to continue to save a little despite the very low wages.  In March 2012, I started a full-time job again.  In May 2012, we got married, suddenly bringing me (us) to about $800-850k in net worth. 

2013: At the very end of 2013, I tallied up our accounts and one day realized we had just over $1 million.  In part this was due to increasing value of the condo.  We bought a house in December.

2014: In March we sold the condo for more than expected, locking in $425k after fees, and put half into the house.  (For those curious, "my" net worth alone today is about $125k, although we have somewhat blended finances.)

DH's story is that he graduated from college in 1997 and was paid a lowly stipend while getting his phd from Harvard through 2005, of about $16k initially.  He earned some money editing on the side that helped supplement his income through around 2010, when he took a different job which had some ethical issues with continuing, and his source for work dried up.  In 1998 he bought a very small condo mortgage free with help from his mom, which he sold in Dec 03, when he bought the above mentioned larger condo mortgage free.  Their records are really unclear on who put in what (his mom continues to insist it was a gift), but best guess is his mom paid in about $250k to the condo and he paid the rest with downpayment/renovations of about $100k, with increase of about $100K in value outside the renos (got $425k after costs of about $20k).  Living mortgage free and being frugal helped him amass quite a stash.  He also made some good investing choices.  He's always had cheap cars, the current one a 2002 Honda Civic he's owned for 10 years. 

We have a little over a million now, with approximately 29% liquid but not tax-favored, 14.5% in Roth IRAs, 20% in other retirement (including traditional 401ks, 403bs, a traditional IRA, and the present value of my pension I would be given if I walked away today of $13.5k), and 36% in our house.  The mortgage/value of the mortgaged part of the house is not included in the above figures.  I still have ~$90k in 0, 2.5% and 2.75% interest student loans.

My next goal: $1 million in liquid net worth.

(Oh, and DH still feels "poor" because he has too many I-banker/MBA friends, including his brother.  He has money concerns about having kids, although the clock is ticking away on that decision.)
« Last Edit: April 11, 2014, 07:34:15 AM by CommonCents »

marty998

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #25 on: April 10, 2014, 03:57:56 PM »
Well done people, some of these stories are quite eye opening!

All good motivation.

chasesfish

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #26 on: April 10, 2014, 07:43:12 PM »
Why $1MM the number so many of us aim to reach or talk about reaching?

It's a goal I've had for 12 years.  Hoping to hit it before 35

dragoncar

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #27 on: April 10, 2014, 08:02:34 PM »
Not there yet, but enjoying the show here.

Letj

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #28 on: April 10, 2014, 08:07:57 PM »
I am reading everywhere that a million is not what it used to be which I guess means it's no big deal.  Would you consider someone with a million investable assets rich or wealthy?

dragoncar

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #29 on: April 10, 2014, 08:15:50 PM »
I am reading everywhere that a million is not what it used to be which I guess means it's no big deal.  Would you consider someone with a million investable assets rich or wealthy?

A million isn't crazy wealth like it used to be, but it's enough to retire to a middle-class American life.

iris lily

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #30 on: April 10, 2014, 08:22:19 PM »
We were 50 before we reached $1M net worth and that included our house, so it's not all that much.

But we are now nearing $2M in our late 50's, but of course it's the bull market that's making that happen, nothing I can count on. As I look over each year's snapshot of our net worth, apparently we didn't have much in the market during dot com bust because we didn't lose anything.  Hooo boy we did lose in 2008, though. ack.

We are Midwesterner DINKS in a low COL city with income that is nice but not super high. We've paid cash for everything for the past 25 years.
« Last Edit: April 10, 2014, 09:27:46 PM by iris lily »

AlmstRtrd

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #31 on: April 10, 2014, 09:24:46 PM »
Quote
I was 41 years old.  I graduated without debt and had above average income and below average expenses.  I lived in low cost areas, including 6 years overseas where I didn't pay taxes.  I invested nearly 100% in stocks using lower than average cost mutual funds.   Never bought a house because I moved every couple years for my job.

One night I added up my assets, and they came to about $999,900.  I checked what I had in my wallet, and then my wife's purse, and we were about $3 over.  She laughed at me.

I love this story!

Here is mine. I found a passion for something when I was 15 and worked hard at it. I was able to make a living after high school but never really figured out how to monetize my skills properly until I was about 30. In the meantime, though, I had seen a lot of the world, so maybe I was doing a conventional retirement in reverse. Unlike most on this forum I never made much of anything in the stock market because I always tried to time it. I did OK with bonds and made one nice real estate purchase which was just damn lucky. By 44 I had 1M in assets mostly through saving a lot of what I made and never incurring any major losses. I always tried to have as few realized gains as possible (though I didn't know the term for what I was doing until recently).

A big contributing factor in being able to save much of what I made is that I was single until I was 48. My lifestyle was never really (consciously) too spartan but I was lucky in that I didn't want much in the way of gadgets, cars and clutter. As a single person it's easy to afford what you want when it's just a simple place to live, a few books, decent food and inexpensive travel destinations. Of course, I won "the ovarian lottery" by being born relatively healthy in the US and having the opportunity to work during a time of relative prosperity.


mjs111

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #32 on: April 10, 2014, 09:39:52 PM »
Would you consider someone with a million investable assets rich or wealthy?

I think that's up to each individual.  "Millionaire, multi-millionaire, billionaire, etc." are objective terms: either you are or you aren't.   "Rich/wealthy" are subjective terms, and I've heard different people define it as anywhere between having at least $1 million and $10 million, with the implicit assumption there that being that north of around $10 million on up is likely almost universally defined as rich these days.


Mike


travelbug

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #33 on: April 10, 2014, 09:47:24 PM »
We hit 1MM when I was 34 and DH 38.

We are now worth around 2.5MM at 38 and 41.


Interesting thread.

« Last Edit: April 10, 2014, 11:43:55 PM by travelbug »

Tyler

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #34 on: April 10, 2014, 10:18:06 PM »
Would you consider someone with a million investable assets rich or wealthy?

Filthy stinking rich.  :) Many people lose context because of their environment (like feeling "poor" with only a million dollars in New York), but in the grand scheme of things a million dollars qualifies you for the top 0.7% of wealth holders worldwide. 

« Last Edit: April 10, 2014, 10:20:09 PM by Tyler »

RapmasterD

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #35 on: April 10, 2014, 10:31:15 PM »
I'm thinking about 43. Nine years later we're about 200K away from $4 million liquid -- not including equity in house. No big scores, no huge option gains, etc. Just a two middle manager family with good incomes putting as much away as possible. Some stupid expenditures in the past year but still managed to sock away 46% in 2013 WITH a Roth IRA conversion that resulted in a significant tax bite. Portfolio allocation: 50% SPY ; 20% VIOV ; 25% BND ; 5% cash. We are mother fucking blessed. Thank you Lord! (not kidding)
« Last Edit: April 10, 2014, 10:34:06 PM by RapmasterD »

warfreak2

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #36 on: April 11, 2014, 04:22:17 AM »

A pyramid, eh? ;-)

Subtle anti-capitalist commentary from Credit Suisse?

oldtoyota

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #37 on: April 11, 2014, 07:08:19 AM »
Why $1MM the number so many of us aim to reach or talk about reaching?

Well, what goal would you otherwise set? Saying you reached $839,426.57 doesn't have the same ring to it.

True! And to clarify, I was not criticizing. I am genuinely curious where the idea of reaching $1MM came from--and has it changed over time due to inflation? In 1950, were people talking about reaching $500K or was it always $1MM?


CommonCents

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #38 on: April 11, 2014, 07:33:50 AM »

A pyramid, eh? ;-)

Subtle anti-capitalist commentary from Credit Suisse?

I'd add that it's somewhat irrelevant to make comparisons like this, because things like food in first world country cost a whole heck of a lot more than in those countries largely in the bottom of the pyramid.

Why $1MM the number so many of us aim to reach or talk about reaching?

Well, what goal would you otherwise set? Saying you reached $839,426.57 doesn't have the same ring to it.

True! And to clarify, I was not criticizing. I am genuinely curious where the idea of reaching $1MM came from--and has it changed over time due to inflation? In 1950, were people talking about reaching $500K or was it always $1MM?

$1M is a first goal.  For me, it's a progress step - I have goals after it. 

lhamo

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #39 on: April 11, 2014, 07:45:56 AM »
First time on the upside:  August 07.  About 8 years after we started working post- grad school.  Helped by a good property purchase that doubled our investment, nicely growing markets, and below average taxes/expenses due to living in cheap expat location

First time on the downside:  September 08.  Dropped to a low of under $965k on March 9, 2009.

Second time on the upside:  April 09 -- at least that is when we hit it and stayed.  Aided by some strategic buying while the market was dropping/low, including significant lump sums invested into kids college and Roths.  Also starting to be aided by rapidly appreciating value of property we were purchasing (signed contract at the bottom of a dip in the local market)

At this point we are way above the 1m mark, hopefully so far above it that we won't hit it on the downside again unless we are nearing the end of our lives/have given most everything away.


lexie2000

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #40 on: April 11, 2014, 08:19:12 AM »
We hit $1M in net worth in the fall of 2000; we were both 43.

A lot of it was in a 401k and an IRA, some was in taxable accounts, and the rest was home equity.  DH's gross income (working for mega corp) was less than $64K that year and we had been a single income household for over 13 years (I worked for 6 years at the same mega corp before becoming a SAHM/home-schooler). 

How did we do it?  We paid ourselves first and lived below our means. 

lexie2000

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #41 on: April 11, 2014, 08:31:00 AM »
Why $1MM the number so many of us aim to reach or talk about reaching?

Well, what goal would you otherwise set? Saying you reached $839,426.57 doesn't have the same ring to it.

True! And to clarify, I was not criticizing. I am genuinely curious where the idea of reaching $1MM came from--and has it changed over time due to inflation? In 1950, were people talking about reaching $500K or was it always $1MM?

I have no clue what people were thinking when we were not yet in kindergarten. LOL  Back in those days though, I imagine people were not as concerned about amassing wealth for retirement, relying more on pensions and SS in their "golden years" to see them through.

Spork

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #42 on: April 11, 2014, 08:41:36 AM »

For me around 2007 I was a mouse whisker away (but not quite there)... though I was semi-retired and the crash was coming.  I knew I was going to go back to work.  I re-crossed that in 2010.

How?  The normal way:  CashIn > CashOut.  We're a single income couple on a single middle class income.  We live very comfortably and spend way more than the "mustacian badasses", but spend way less than my peers around me.

rescuedog

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #43 on: April 11, 2014, 10:12:03 AM »
Do you guys max out tax deferred accounts like Roth IRAs?  My wife and I do, and as such roughly 100k of our net worth is tied up in accounts I won't access until I'm at a traditional retirement age.  I assume all of you here looking to retire in your 30s/40s have the largest chunk of your money in after tax investments, correct?

We are maxing out two Roth IRAs, two HSA, and two 457b.  Our work gifts us 14.2% of our salaries to a 401a as part of our benefits package.  The 457b (income taxed when withdrawn, no penalties, must have quit job) will carry us for our 14.5 years of pre-retirement age living in ER (aiming for 43/45 I think).  The HSA are there for health insurance if needed.  We could use that all up and still have plenty in Roth and 401a for when we hit 59.5.  If we did not have this 457b option, yes, we'd need a different strategy for those pre-retirement age years.
« Last Edit: April 11, 2014, 10:28:53 AM by rescuedog »

Mister Fancypants

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #44 on: April 11, 2014, 11:33:29 AM »
We hit it when I was 35, did by having two six figure jobs with 5 figure bonuses. We did get the benefit of living in a family owned apartment in NYC so it only cost us the maintenance, we were able to save 70% of our salaries prior to buying our house. Also had all of our education expenses covered by our parents, so we never had any debt obligations when we entered the workforce.

Our savings rate has dropped to about 40% since becoming home owners.

Our retirement accounts are invested in an ETF index based portfolio that I have automated to rebalance to market inefficient that beats standard passive investing year after year.

We have some active stock investments that have done very well, and our home equity has increased substantially, we bought after the housing bubble burst and pretty much stole our house and have refinanced it several times to reduce the interest expense tremendously. We have no other debt besides the mortgage.

We made the first $1mm prior to having children.

-Mister FancyPants

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #45 on: April 11, 2014, 12:00:35 PM »
If we hit 1million then we could retire but I can't see it happening for a while.

Grateful Stache

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #46 on: April 11, 2014, 06:00:24 PM »
Portfolio allocation: 50% SPY ; 20% VIOV ; 25% BND ; 5% cash.

Interesting AA. Is that recent or long-term? No international? Surprised (and jealous) it's so simple!

We are mother fucking blessed. Thank you Lord!

Hilarious!!

Thegoblinchief

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #47 on: April 11, 2014, 06:13:37 PM »
An interesting thread to read, but I doubt I'll ever get to the million mark. We can retire the way we want at about 2/3rds that.

libertarian4321

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #48 on: April 12, 2014, 03:44:28 AM »

A pyramid, eh? ;-)

Subtle anti-capitalist commentary from Credit Suisse?

Not really.

Because I suspect that almost all of the people in the top 2 categories live in capitalist countries (probably 99+%).

And the overwhelming majority of those in the bottom 2 categories live in non-capitalist countries.
« Last Edit: April 12, 2014, 03:46:04 AM by libertarian4321 »

Squirrel away

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Re: When Did You Reach A $Million And How Did You Do It?
« Reply #49 on: April 12, 2014, 03:58:14 AM »
An interesting thread to read, but I doubt I'll ever get to the million mark. We can retire the way we want at about 2/3rds that.

Oh yes, that too.:)