Author Topic: Hit 1 million net worth (Read 14823 times)

thriftyc · « **on:** April 01, 2015, 08:38:06 PM »

Hi all,

About me:

I moved out on my own at age 16 for reasons beyond my control. So I have fully supported myself since then. I am 41 now and just hit $1 million net worth.

Here is how I did it:
At age 16 I dropped out of high school and started working at a gas bar. I realized school was important and went back a year later to get my HS Diploma while working nights at a meat packing plant to support myself. My living arrangements at the time included living at the YMCA and some nasty rooming houses. At the age of 20 I landed a job selling Home Improvements on straight commission. During this time I developed a love for investing, read all I could, started living below my means and saving the rest (about 50% of my income). I did this job for 15 years. I realized that I was a natural at sales and made a 6 figure income for 11 of those years.
Since then I have been in sales management with another company. For the last 5 years I also went to College part time and got an associates degree in business administration with an A average. I am proof that early financial independence can be achieved by anyone living in the West - no matter what cards you were dealt with.

Here is a breakdown of assets:
House 300k
Vanguard Investment accounts 680k
Cash 20k
no debt, no mortgage
= $1 Million

Currently with a wife and 3 kids our expenses are about 30k year. My income is 97K. So we are close to FI!!
I could see myself packing it in no later than age 45. I probably will earn some fun part time income after that, but I expect it to be completely optional by then.

Cheers!

Exflyboy · « **Reply #1 on:** April 01, 2015, 08:41:35 PM »

Great job and definitely badass..:)

Welcome aboard.

fartface · « **Reply #2 on:** April 01, 2015, 09:10:02 PM »

Wow - wonderful story. Thanks for sharing!

I'll be 41 in May -- also married w/three kids. I think you'll beat me by a couple years as I'm only around ~$800K.

And wow, annual spending @ 30K -- impressive! No wonder you're beating me. Inspiring!

TheThirstyStag · « **Reply #3 on:** April 02, 2015, 08:03:54 AM »

That's a really healthy annual spending number. I agree - it's impressive.

ysette9 · « **Reply #4 on:** April 02, 2015, 02:18:33 PM »

Awesome story - good for you and congratulations on the hard work.

trailrated · « **Reply #5 on:** April 02, 2015, 02:33:51 PM »

Cheers to you and your family!

Gone Fishing · « **Reply #6 on:** April 02, 2015, 02:50:46 PM »

Good work! Don't let anyone tell you your house does not count!

brooklynmoney · « **Reply #7 on:** April 02, 2015, 09:21:33 PM »

Inspiring story congrats on your success!

SMCx3 · « **Reply #8 on:** April 02, 2015, 09:38:40 PM »

Great news, congrats on a mill.

thriftyc · « **Reply #9 on:** April 03, 2015, 05:02:21 AM »

Thanks for the encouraging words everyone.
One thing that I am going to keep an eye on is that "one more year syndrome" I like my job, but lets be honest, freedom to do as we please with our time is far sweeter and is the reason we do this..... So once I am FI, have some safety margin, including a little extra for my kids - I will walk away from my job.
1MM invested plus my house should do the trick.

Retire-Canada · « **Reply #10 on:** April 03, 2015, 07:29:04 AM »

Quote from: thriftycanadian on April 01, 2015, 08:38:06 PM

Hi all,

About me:

I moved out on my own at age 16 for reasons beyond my control. So I have fully supported myself since then. I am 41 now and just hit $1 million net worth.

Congrats! I lived alone from 15 and was in the army at 17.

I'm a little ways behind you because I didn't get focused when I should have.

Glad to see other folks rocking and rolling as inspiration to get 'er done!.

-- Vik

FIRE Artist · « **Reply #11 on:** April 03, 2015, 09:07:56 AM »

30k annual spending in Canada for a family of 5 is hugely impressive. I would love to hear tips on how you are doing this, and also what city you live in if you care to share.

I am SINK in Edmonton, and find everything here incredibly expensive.

thriftyc · « **Reply #12 on:** April 04, 2015, 06:04:05 AM »

Hi Diverging Artist.

We live in South Western Ontario - not far from where MMM grew up. We keep our cost down the following ways:

My wife is a SAHM. This is the biggest factor in keeping costs down as a family. We have one car (a nice 2008 Mazda5). She also makes most of our food from scratch, grows an extensive vegetable garden, hangs laundry, watches for prices at the store and stocks up when a big sale is on. If she was working in a career there is no way our expenses would be only 30k.

Other factors are low property taxes (2k year), a fairly small house, live close to work etc. No cable, pay as you go cell plans (Fido for $99/year!)

We do have our kids in activities - all fairly low cost ones through the Y or local community center. Also 2 are in soccer and one in baseball. Each costing only $150 for the whole season.

Here in Ontario there are no individual health insurance costs - but taxes are a little higher than I like. However, with the new income splitting measures for families the fed implemented - it will make it that much easier.

In terms of investing, we max our every tax leverage account possible (our RRSP's, TFSA's and RESP's are maxed out)

Hope that helps and is bad-ass enough!

Meggslynn · « **Reply #13 on:** April 06, 2015, 09:20:06 AM »

Quote from: Diverging Artist on April 03, 2015, 09:07:56 AM

30k annual spending in Canada for a family of 5 is hugely impressive. I would love to hear tips on how you are doing this, and also what city you live in if you care to share.

I am SINK in Edmonton, and find everything here incredibly expensive.

This. Except DI1K (double income, one kid) in Edmonton, and find everything here is incredibly expensive.

And congrats fellow Canadian, that is awesome!!

Workinghard · « **Reply #14 on:** April 06, 2015, 02:29:27 PM »

WTG! We recently hit the same number, so I know how you feel! Our expenses are quite a bit higher though. You totally rock.

PharmaStache · « **Reply #15 on:** April 06, 2015, 02:48:25 PM »

Congratulations, awesome job!

Davids · « **Reply #16 on:** April 06, 2015, 07:17:08 PM »

Is this $1M CAD or $1M USD?

fiveoh · « **Reply #17 on:** April 06, 2015, 07:23:34 PM »

Congrats!! Awesome accomplishment.

thriftyc · « **Reply #18 on:** April 06, 2015, 08:02:55 PM »

Quote from: Davids on April 06, 2015, 07:17:08 PM

Is this $1M CAD or $1M USD?

$1MM CAD - However once energy prices recover I suspect we will be close to parity with the USD again. Which at that point I will re-balance my portfolio and buy more US stock ETF's. That's the beauty of being diversified. :)

SunshineGirl · « **Reply #19 on:** April 11, 2015, 08:17:12 AM »

People like you impress the hell out of me. Congratulations and here's to your continued WELL-DESERVED success!

okits · « **Reply #20 on:** April 11, 2015, 10:12:41 PM »

You are absolutely badass. :) Congratulations!

dividendman · « **Reply #21 on:** April 12, 2015, 12:05:08 AM »

Quote from: Vikb on April 03, 2015, 07:29:04 AM

Quote from: thriftycanadian on April 01, 2015, 08:38:06 PM
Hi all,

About me:

I moved out on my own at age 16 for reasons beyond my control. So I have fully supported myself since then. I am 41 now and just hit $1 million net worth.

Congrats! I lived alone from 15 and was in the army at 17.

I'm a little ways behind you because I didn't get focused when I should have.

Glad to see other folks rocking and rolling as inspiration to get 'er done!.

-- Vik

Nice work dude. I've noticed quite a few mustachians who were "on their own" (by this I mean supporting themselves) at an earlier than normal age. I have been on my own since 17 as well... I wonder if there is any causation there instead of just a slight correlation. I guess we learn to save our cash since we can't depend on anyone to bail us out!

4tify · « **Reply #22 on:** April 16, 2015, 10:21:39 AM »

congrats!! out of curiosity what's your investment allocation and plan moving forward?

Ftao93 · « **Reply #23 on:** April 16, 2015, 11:06:05 AM »

Great!

Now, could you please invent a time machine and go back and tell my 22 year old self this? :P

Retire-Canada · « **Reply #24 on:** April 16, 2015, 12:35:31 PM »

Quote from: dividendman on April 12, 2015, 12:05:08 AM

Nice work dude. I've noticed quite a few mustachians who were "on their own" (by this I mean supporting themselves) at an earlier than normal age. I have been on my own since 17 as well... I wonder if there is any causation there instead of just a slight correlation. I guess we learn to save our cash since we can't depend on anyone to bail us out!

Not sure about that, but it would make some sense. When there are no bailout options you make it work on your own.

I notice when other people I know are working on stuff together I'm planning on what I'll do if I have to go it alone. My FIRE plans are totally separate from my GF despite the fact we live together.

I'm not saying any of this like it's a good thing. It's just how I see the world.

bb11 · « **Reply #25 on:** April 16, 2015, 01:29:10 PM »

Congrats! Very inspiring.

purple monkey · « **Reply #26 on:** April 17, 2015, 11:42:13 AM »

Quote from: thriftycanadian on April 01, 2015, 08:38:06 PM

Hi all,

About me:

I moved out on my own at age 16 for reasons beyond my control. So I have fully supported myself since then. I am 41 now and just hit $1 million net worth.

Here is how I did it:
At age 16 I dropped out of high school and started working at a gas bar. I realized school was important and went back a year later to get my HS Diploma while working nights at a meat packing plant to support myself. My living arrangements at the time included living at the YMCA and some nasty rooming houses. At the age of 20 I landed a job selling Home Improvements on straight commission. During this time I developed a love for investing, read all I could, started living below my means and saving the rest (about 50% of my income). I did this job for 15 years. I realized that I was a natural at sales and made a 6 figure income for 11 of those years.
Since then I have been in sales management with another company. For the last 5 years I also went to College part time and got an associates degree in business administration with an A average. I am proof that early financial independence can be achieved by anyone living in the West - no matter what cards you were dealt with.

Here is a breakdown of assets:
House 300k
Vanguard Investment accounts 680k
Cash 20k
no debt, no mortgage
= $1 Million

Currently with a wife and 3 kids our expenses are about 30k year. My income is 97K. So we are close to FI!!
I could see myself packing it in no later than age 45. I probably will earn some fun part time income after that, but I expect it to be completely optional by then.

Cheers!

So, so impressive!!!

thriftyc · « **Reply #27 on:** April 20, 2015, 06:46:57 PM »

Quote from: tmitchell on April 16, 2015, 10:21:39 AM

congrats!! out of curiosity what's your investment allocation and plan moving forward?

40% Aggregate Bond ETF
20% CAN INDEX ETF
20% US INDEX ETF
20% International Index ETF

Re-balance every 6 months or after a correction of more than 5%. I feel good about this allocation for the long term now.
My allocation from 2008 to mid 2014 was 50% US, 50% CND, no bonds.

Dee · « **Reply #28 on:** April 20, 2015, 06:50:51 PM »

Thanks for sharing -- you are an inspiration!

4tify · « **Reply #29 on:** April 20, 2015, 08:58:00 PM »

thanks for sharing! it's interesting that you have a relatively conservative allocation. so many here seem to go the more aggressive route for the long term.

thriftyc · « **Reply #30 on:** April 21, 2015, 06:09:13 PM »

Quote from: tmitchell on April 20, 2015, 08:58:00 PM

thanks for sharing! it's interesting that you have a relatively conservative allocation. so many here seem to go the more aggressive route for the long term.

In terms of a more aggressive portfolio: If you look at historical returns of my allocation setup vs. a more "aggressive" portfolio there is only a small difference in returns IF you include the benefit of re-balancing. For example: In 2008 during the crash, bonds held their own. It would have been a great time to re-balance selling bonds, and buying stocks while on sale! By re-balancing, you are essentially selling high and buying low automatically without emotion. I just stick to the % allocations. I get the benefit of returns that are "close enough" to a much more aggressive portfolio-while being able to sleep at night.

You have to ask yourself the question: Am I able to take a 50% hit on my investments during a crash, and potentially wait 5-10 years to get back to par? If the answer is NO, then you need to add some protection such as bonds in there.

4tify · « **Reply #31 on:** April 22, 2015, 10:39:45 PM »

that's a great point. in fact i've run a bunch of different allocations in the Vanguard nest egg calculator and over 40 years 60/40 actually wins. same as 70/30 in fact with less volatility. i've been sort of thinking of splitting the difference with 65/35 since everyone is worried about bonds with QE....

but i guess the most important thing in the long run is to stay invested!

dude · « **Reply #32 on:** April 23, 2015, 05:29:17 AM »

That's bona fide badassity right there! Congrats, thriftycanuck!

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Author Topic: Hit 1 million net worth (Read 14823 times)