Assets over $1.1MM

[Thedudeabides]

I hadn't realized this until today but my assets just crossed the $1.1MM mark. This was excited for me to realize.

The only liability (other than myself of course) is a mortgage of around $330k in the mid 3's, the rest is liquid.

It's incredible how quickly assets start to accumulate after a certain point.

I have not yet figured out if I would consider myself FI yet, but I suspect I am getting pretty close. Probably 2-3 years away.

[workathomedad]

Will you pay off the mortgage?

[Thedudeabides]

Will you pay off the mortgage?

Most likely not. The interest rate is really low to the extent that it's below the historical rate of inflation, so in essence I view it as free money assuming of course that housing prices keep pace with inflation as they have done in the past.

Perhaps my thoughts may change as I get closer to RE.

[Exflyboy]

Are we talking liquid assets, i.e not including the value in the house?

Either way, well done..:)

Frank

[Thedudeabides]

Are we talking liquid assets, i.e not including the value in the house?

Either way, well done..:)

Frank

Thanks Frank!

Err...I misspoke in the earlier post. I said the rest was liquid. That is not true. It does contain the value of the house.

[SingleMomDebt]

Simply amazing to me. The thought seems insurmountable. Congratulations.

[Thedudeabides]

Simply amazing to me. The thought seems insurmountable. Congratulations.

Thanks!

It seems amazing to me too and it felt insurmountable not too long ago. It's incredible how things compound over time.

[Exflyboy]

Yes this really is the magic. I felt the same when I was basically broke ish back in '97 and my projections told me I'd cross the $1M mark about 2 years ago.

Well gosh darn it happened almost right on schedule, in looking at my projections in '97.

When I started this there was no way I could believe this would happen.. Insurmountable indeed.

I think this is a lot of the reason people don't bother saving.. FI is so far off in their minds its meaningless.

Well I walked out the office and THEY are still there...:)

Frank

[Thedudeabides]

Yes this really is the magic. I felt the same when I was basically broke ish back in '97 and my projections told me I'd cross the $1M mark about 2 years ago.

Well gosh darn it happened almost right on schedule, in looking at my projections in '97.

When I started this there was no way I could believe this would happen.. Insurmountable indeed.

I think this is a lot of the reason people don't bother saving.. FI is so far off in their minds its meaningless.

Well I walked out the office and THEY are still there...:)

Frank

Congrats Frank! That is just awesome.

I have been doing projections for about four and a half years and so far, they've been right on track. I'm hoping they continue to be on track.

I agree with your reasoning on saving. Growth curves can look very flat at the beginning which likely discourages many people.

[Jon_Snow]

Or, as in my case, your projections made in your mid 30's can be quite wrong... I had always figured that my FIRE point would be reached at age 45. I was three years off - I am about to FIRE at 42!

Talk about a happy miscalculation. :)

[happy]

I must be conservative: in the2.5 years I've been tracking/projecting I've exceeded my projections. Indeed Jon_Snow, a happy situation.

[Zamboni]

Congrats!  And double congrats on a good username.

Speaking of projections, I have been graphing monthly income, spending, and theoretical stash income for a few years and have determined through using good old y=mx+b that I will be FI based upon liquid assets in somewhere between 5 to 9 years (because my monthly spending has error bars.)  It's hard to believe, but I'll take it.  Even the longer projection puts me FI while my tots are still in college.  If the market does a nose dive soon, I suspect it will actually help me in the long run since I'll continue to contribute, so no worries.

I love this website :-)

[dude]

I have been doing projections for about four and a half years and so far, they've been right on track. I'm hoping they continue to be on track.

Awesome accomplishment, but I'd temper this a wee bit given the historic market returns during this period, especially given where they started 4 1/2 years ago.

[Thedudeabides]

Or, as in my case, your projections made in your mid 30's can be quite wrong... I had always figured that my FIRE point would be reached at age 45. I was three years off - I am about to FIRE at 42!

Talk about a happy miscalculation. :)

A happy miscalculation indeed!

[Thedudeabides]

@zamboni: nice!

@dude: agreed, although I was mostly in cash the last 4.5 years (unfortunately). So all projections were based mostly on my savings rate. But yes, every time I look at those projections I'm always skeptical.

[Cheddar Stacker]

That great and all dude, but would you roll on Shomer Shabbos?

[Thedudeabides]

That great and all dude, but would you roll on Shomer Shabbos?

:D of course I would! Walter on the other hand...

[The Bearded Bank Builder]

Or, as in my case, your projections made in your mid 30's can be quite wrong... I had always figured that my FIRE point would be reached at age 45. I was three years off - I am about to FIRE at 42!

Talk about a happy miscalculation. :)

I like to imagine that if you could travel in time you would go back and tell your past self "You know nothing John Snow!" Sorry, couldn't resist :)

[livingthedream]

Congrats! Keep on keeping on.

[Thedudeabides]

Congrats! Keep on keeping on.

Thanks!

[Exflyboy]

and the markets popped up today so in theory your doing even better..:)

Frank

[happyfeet]

Congrats!  Great job!

[oldtoyota]

Yes this really is the magic. I felt the same when I was basically broke ish back in '97 and my projections told me I'd cross the $1M mark about 2 years ago.

Well gosh darn it happened almost right on schedule, in looking at my projections in '97.

When I started this there was no way I could believe this would happen.. Insurmountable indeed.

I think this is a lot of the reason people don't bother saving.. FI is so far off in their minds its meaningless.

Well I walked out the office and THEY are still there...:)

Frank

I am glad people like you and the OP come to this board to share that it CAN be done. Thanks. I have my projections and it's nice to think that I'll look back on them and think, "Damn, I did it!"

[Suit]

Awesome! How long did it take you to get there dude?

[Thedudeabides]

I didn't keep very good records of how assets grew, but net worth went like this (the $1MM mentioned was in assets not net):

6/2010: $173k
6/2011: $257k
6/2012: $330k
6/2013: $521k
6/2014: $770k

I feel as though I didn't really get serious about saving until 2010. I then started making some life changes to make saving/investing a priority. I would set monthly savings goals and then would track spending to see if I hit the goals. I would keep the same goal until I mastered it. For example, I wanted to stop commuting via car. I started taking the bus a couple times a week and slowly adjusted until I was taking the bus every day. Then I would set a new goal of no more eating out...so on and so forth.

Next goal is $1MM net which I'm hoping to achieve by November of next year.

[Suit]

Wow! That's fantastic!

[Exflyboy]

The power of compound interest right there in the table above folks..

Great achievement.. Hopefully others will see this is possible, not just some kind of pipe dream as more and more of us "make it".

Frank