Author Topic: 300K Milestone  (Read 9695 times)

hoosier

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300K Milestone
« on: April 16, 2015, 11:04:00 AM »
With tomorrow's paycheck I will officially have $300K in the stache.  Feeling pretty pumped about it but can't tell anyone except for my wife for obvious reasons. 

Ftao93

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Re: 300K Milestone
« Reply #1 on: April 16, 2015, 11:10:44 AM »
Mr. Burns like...

"Excellent....!"

anon-e-mouse

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Re: 300K Milestone
« Reply #2 on: April 16, 2015, 11:26:59 AM »
Congrats!

Just hit $300k total net worth and was expecting confetti to fall from the heavens...
Instead it made me hyper-focused on reaching $500k as soon as possible.


FIreDrill

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Re: 300K Milestone
« Reply #3 on: April 16, 2015, 11:57:51 AM »
Congrats!  We hit 100k about 5 months ago and already have 200k in our sights.... Hopefully we can keep up this momentum for a while.

hoosier

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Re: 300K Milestone
« Reply #4 on: April 16, 2015, 12:06:16 PM »

Instead it made me hyper-focused on reaching $500k as soon as possible.

Same here.

EAL

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Re: 300K Milestone
« Reply #5 on: April 16, 2015, 03:36:49 PM »
Good for you! This is a fantastic milestone.

Faraday

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Re: 300K Milestone
« Reply #6 on: April 16, 2015, 03:42:12 PM »
Congrats!

Just hit $300k total net worth and was expecting confetti to fall from the heavens...
Instead it made me hyper-focused on reaching $500k as soon as possible.

Is a stache = "net worth" or "total cash value in all investment and savings accounts"?
 

hoosier

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Re: 300K Milestone
« Reply #7 on: April 16, 2015, 06:28:06 PM »
Congrats!

Just hit $300k total net worth and was expecting confetti to fall from the heavens...
Instead it made me hyper-focused on reaching $500k as soon as possible.

Is a stache = "net worth" or "total cash value in all investment and savings accounts"?

Total investments.  I don't have any debt.  If you factor in my home and a few other assets (debatable, I know) net worth is probably $500K.  Not bad for a 33 year old with a single income (large) family.

Ricky

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Re: 300K Milestone
« Reply #8 on: April 16, 2015, 06:32:44 PM »
Not bad at all. Congrats. Be happy with what you have - the rest will fall into place shortly!

Doulos

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Re: 300K Milestone
« Reply #9 on: April 16, 2015, 06:46:54 PM »
FIRE!


Just kidding, but I thought it was exciting enough for this.

trailrated

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Re: 300K Milestone
« Reply #10 on: April 16, 2015, 07:03:56 PM »

Mr. Burns like...

"Excellent....!"

Whilst twiddling the fingers ;)


Sent from my iPhone using Tapatalk

dude

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Re: 300K Milestone
« Reply #11 on: April 17, 2015, 08:28:05 AM »
You should go around yelling "Hoosier daddy?!!"  ;-)

Faraday

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Re: 300K Milestone
« Reply #12 on: April 18, 2015, 08:52:18 PM »
Congrats!

Just hit $300k total net worth and was expecting confetti to fall from the heavens...
Instead it made me hyper-focused on reaching $500k as soon as possible.

Is a stache = "net worth" or "total cash value in all investment and savings accounts"?

Total investments.  I don't have any debt.  If you factor in my home and a few other assets (debatable, I know) net worth is probably $500K.  Not bad for a 33 year old with a single income (large) family.

Holy crap. You are kicking ass and taking names. If I'd known what I know now, when I was 33....Most men say things like that to mean "I would have had much better luck with women..." I say it to mean I would have achieved FIRE by 40.

I have never missed or regretted when my youth was gone, things just seemed to get better. But learning the true meaning of frugality and Mustachianism, now THAT made me pine for my youth! Oh, the lost compounding! :-)

SweetLife

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Re: 300K Milestone
« Reply #13 on: April 19, 2015, 08:40:02 AM »
Mefla! Absolutely with you on that ... had I only known then!!! But that is ok ... I am 45 with a gorgeous baby and wonderful husband ... working on FI. I wouldn't want to change a thing up to now in case I wouldn't end up where I am today lol...!

Congrats on the 300k ... we are still struggling but there is light at the end of the tunnel.
Love to hear the breakthroughs!

SweetLife

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Re: 300K Milestone
« Reply #14 on: April 19, 2015, 08:40:16 AM »
Mefla! Absolutely with you on that ... had I only known then!!! But that is ok ... I am 45 with a gorgeous baby and wonderful husband ... working on FI. I wouldn't want to change a thing up to now in case I wouldn't end up where I am today lol...!

Congrats on the 300k ... we are still struggling but there is light at the end of the tunnel.
Love to hear the breakthroughs!

clarkfan1979

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Re: 300K Milestone
« Reply #15 on: April 21, 2015, 07:52:54 PM »
Congrats! My wife and I will probably hit this in about 2 months. We are currently at 288K net worth, including our primary house. It's crazy that 200K wasn't that long ago. Once you get some momentum, it's difficult to slow down.

SenoritaStache

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Re: 300K Milestone
« Reply #16 on: April 22, 2015, 09:55:02 PM »
Off to the 500K milestone! Well done 👍👊

BBub

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Re: 300K Milestone
« Reply #17 on: April 23, 2015, 06:56:48 AM »
Nice work!  $300 is a cool milestone because you are now passively "making" $1,000 per month before even getting out of bed.  Congrats!

Random Internet Stranger

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Re: 300K Milestone
« Reply #18 on: April 23, 2015, 10:29:00 AM »
Awesome!!! Great job :)

We just hit $175k NW.... cannot WAIT to see $200k :) And $300k where you guys are...I think I would hit the moon!

Faraday

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Re: 300K Milestone
« Reply #19 on: April 24, 2015, 11:22:06 AM »
Nice work!  $300 is a cool milestone because you are now passively "making" $1,000 per month before even getting out of bed.  Congrats!

Wow...this is an interesting number. What's the monthly take at each $100k milestone? ie:
$100k = $X/month?
$200k = $Y/month?
$300k = $Z/month?
etc?

I've been using the "4% SWR" number to figure out how much I can draw on what I have now, but I don't really know monthly ACCUMULATION that happens at each $100k amount....

TheAnonOne

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Re: 300K Milestone
« Reply #20 on: April 24, 2015, 11:48:38 AM »
Nice work!  $300 is a cool milestone because you are now passively "making" $1,000 per month before even getting out of bed.  Congrats!

Wow...this is an interesting number. What's the monthly take at each $100k milestone? ie:
$100k = $X/month?
$200k = $Y/month?
$300k = $Z/month?
etc?

I've been using the "4% SWR" number to figure out how much I can draw on what I have now, but I don't really know monthly ACCUMULATION that happens at each $100k amount....

Well, it's 4k per year per 100k

100k = $4,000/Y   OR $333.33   /MO
200k = $8,000/Y   OR $666.66   /MO
300k = $12,000/Y OR $1,000.00/MO
400k = $16,000/Y OR $1,333.33/MO
500k = $20,000/Y OR $1,666.66/MO
600k = $24,000/Y OR $2,000.00/MO
700k = $28,000/Y OR $2,333.33/MO
800k = $32,000/Y OR $2,666.66/MO
900k = $36,000/Y OR $3,000.00/MO
1M =    $40,000/Y OR $3,333.33/MO
1.1m = $44,000/Y OR $3,666.66/MO


I should note that is what you can WITHDRAW, the actually accrued amount is larger by about 3-4% on average.

Faraday

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Re: 300K Milestone
« Reply #21 on: April 24, 2015, 12:10:41 PM »
....stuff here...
I should note that is what you can WITHDRAW, the actually accrued amount is larger by about 3-4% on average.

I was asking about accrual. :-(

Mississippi Mudstache

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Re: 300K Milestone
« Reply #22 on: April 24, 2015, 02:58:32 PM »
....stuff here...
I should note that is what you can WITHDRAW, the actually accrued amount is larger by about 3-4% on average.

I was asking about accrual. :-(

Well, that depends on your assumed compound annual growth rate. Which, of course, will never be equal to your actual CAGR. So it's not really as useful a number as your withdrawal rate, which can be pegged with much more certainty (since you are the one who determines what it is). FWIW, I assume 6% annual returns, but frankly, that may be too optimistic for the next 10 years. Hopefully it's pretty close for the next 30-50 years.

Faraday

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Re: 300K Milestone
« Reply #23 on: April 28, 2015, 12:41:49 PM »
I'm trying to understand the comment:

Nice work!  $300 is a cool milestone because you are now passively "making" $1,000 per month before even getting out of bed. 

So is that "$1000 per $300,000" simply a general rule of thumb? BBub, can you comment on how you got that? (and it doesn't have to be anything fancy, I'm just trying to understand, not challenge).

Full Beard

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Re: 300K Milestone
« Reply #24 on: April 28, 2015, 01:09:14 PM »
Mefla, the $1,000 a month is assuming your money earns 4% a year (300,000x.04=12,000).  It all depends on what your funds are invested in, but if it is well diversified the 4% is a pretty safe assumption.  It could be more or it could be less, but it is cool to know at that point your money is working pretty hard for you.

BBub

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Re: 300K Milestone
« Reply #25 on: April 29, 2015, 10:40:50 AM »
That's right.  4% withdrawal rate is sort of a consensus view on a sustainable withdrawal rate (although it's often the subject of debate).  So, your 300k will likely make you more than that.  But, theoretically, if you just wanted to hang up your workboots - that $300 could reliably send $1k into your bank account forever.

Faraday

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Re: 300K Milestone
« Reply #26 on: April 29, 2015, 11:26:24 AM »
Mefla, the $1,000 a month is assuming your money earns 4% a year (300,000x.04=12,000).  It all depends on what your funds are invested in, but if it is well diversified the 4% is a pretty safe assumption.  It could be more or it could be less, but it is cool to know at that point your money is working pretty hard for you.

Thanks guys (to all of you)...so, I get it now. I thought there was some variability and was trying to understand it. So if one expects to make-or-exceed the 4% SWR in accrual, then you can reliably withdraw .04 x 300,000/year, or 12,000/year = $1000/month. With the expectation you'll likely do better, but that you will see times when you do better or do worse....but that you'll generally be able to fund 4% with your accrual, regardless of what it be. Arrrr mateys!

So if I'm at, say, $200k and I had to, I could earn-and-pull $667/month sustainably. If I'm at $400k, $1333/month, and at $500k, $1667/month.

And, if one adheres to mustachian principles, then whichever one of these SWR's they can live within, signals when they've got enough money to FIRE, right?

BBub

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Re: 300K Milestone
« Reply #27 on: April 29, 2015, 12:34:18 PM »
You got it

Faraday

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Re: 300K Milestone
« Reply #28 on: April 29, 2015, 08:58:30 PM »
....stuff here...
I should note that is what you can WITHDRAW, the actually accrued amount is larger by about 3-4% on average.

I was asking about accrual. :-(

Thanks anonone, I wasn't getting what you meant....thanks for answering!