Author Topic: Hit a Milestone...  (Read 6708 times)

grettman

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Hit a Milestone...
« on: November 23, 2014, 04:22:43 AM »
Well like many have done so before on this forum, I thought I would share that I hit a million in investable assets.  I can't/won't share that with anyone except for those here.  Heck my wife couldn't care less (she is bored by the money talk but very supportive).  I am 43 years old, wish it had happened sooner but here I am and I need to be thankful I hit this milestone.   I put this milestone in perspective however, since today's 3M is really the old 1M.  I also take into account that I got here because of the overly priced stock market/bubble that I firmly believe is going go down significantly (yes I have a crystal ball :)  Jokes) so this milestone will most likely be reversed at some point.  But -- I will do what I did during dot com and what I did 9/11 and what I did during the fiasco in 08/09 --- I will stay the course.

Unfortunately, I have not achieved the saving rates that folks here have.   I am certainly not MMM worthy but I work on the things I can.  I might have a 30% savings rate but I haven't run the numbers in a while to check (it is probably not even 30%).  I applaud many of you who are hitting 50% or 60%!  Unfortunately I made a bad choice on taking on a large home (I am single income, 2 kids).  But I have done what I can to minimize other mistakes (for instance, I don't have a car payment, cut cable/satellite, and I don't have any debt).  One day I will reverse the mistake of buying the home but until then "it is what it is".

I enjoy coming to this forum because there are so many smart people who have cracked a code or two on how to do better and for those who post how you do it --- I thank you.  I swear I think I have cut out 200 bucks per month based on things I have read here and that has certainly helped. 

BlueHouse

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Re: Hit a Milestone...
« Reply #1 on: November 23, 2014, 04:34:18 AM »
Great job grettman!  Your story sounds like mine. I also have a too-big house but I've made the easy changes. I'm on track to get to $1m in investable assets within the next 1-2 years, if the market doesn't tank. I'm 47, so I'm a bit behind you, and I also realize that if I implement more of the advice I've received here, I can get there much much faster.
My house is a drain on my finances and it drives my decisions and my fears. Yet it's also given me back more than I care to give up for now. 
Congratulations and save a spot for me in that club! 

GoldenStache

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Re: Hit a Milestone...
« Reply #2 on: November 25, 2014, 09:04:42 AM »
Congrats Grettman...

Do you / will you hedge your bets at all (because you think it is a bubble) with more bonds? More international? REITs?


Sid Hoffman

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Re: Hit a Milestone...
« Reply #3 on: November 25, 2014, 04:03:03 PM »
That's awesome!  I'm still in my 30's and have been saving a while but doubt I'll hit 1M by the time I'm 43.  On the other hand, since I am divorced and not planning to remarry, my expenses are a lot lower.  I like the ratio way of looking at it, such as saying you are able to FIRE when you can live on 4% of assets, or 3% if you want to be safer.  Or its inverse, to say that when your cash is 25 to 33 times your expenses, you're basically free to work or not work as you choose.

You made mention of the $200/month in savings you managed to get from your current budget.  Looking at your situation in terms of assets over expenses can be a big help there.  For example, this year I will probably finish the year at something like 11x total spending, but my spending should be so much lower next year that even with my assets likely to only increase by a modest amount (assuming flat to low stock appreciation) I might be at more like 17x spending!  That can be a great motivator, since it's almost always a lot easier to manage expenses down than it is to suddenly increase your assets by 60% in one year.

G-dog

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Re: Hit a Milestone...
« Reply #4 on: November 25, 2014, 07:18:39 PM »
Me too! But I am 54.666, so you are way ahead of my game!  Congratulations. Like you, I now realize many things I could have done better.  But there are also so many things each of us could have done worse!

Davids

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Re: Hit a Milestone...
« Reply #5 on: November 27, 2014, 07:36:18 AM »
Congrats, a great achievement. Do not worry about the mistake you made in the past with the large home purchase, be proud of the fact you have learned from it and are doing well.

tracylayton

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Re: Hit a Milestone...
« Reply #6 on: November 27, 2014, 12:32:24 PM »
Awesome job for someone so young!

Westoftown

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Re: Hit a Milestone...
« Reply #7 on: November 27, 2014, 10:51:34 PM »
Congrats!  Thats a great milestone at 43.   I think the site and forum are great for the same reasons.  We don't achieve total badassity, far from it.  But if I can pick up a few tips here and there - it helps.  Surrounding myself with like minded folks in this forum also drives me to do better.

EricL

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Re: Hit a Milestone...
« Reply #8 on: November 28, 2014, 12:22:55 AM »
Congratulations!

grettman

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Re: Hit a Milestone...
« Reply #9 on: November 28, 2014, 08:51:56 AM »
Congrats Grettman...

Do you / will you hedge your bets at all (because you think it is a bubble) with more bonds? More international? REITs?



I really don't understand bonds all that much.  I plan to learn more about them since I know they are an important part of a portfolio.  I have roughly 9% of my NW in CDs.  I also hold about 10% split between PRWCX and VWINX (the admiral version actually but I forget the ticker).  Those two funds have some bond elements.  Other than that... no other bond exposure.

Like you, I now realize many things I could have done better.  But there are also so many things each of us could have done worse!

So true!

Murse

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Re: Hit a Milestone...
« Reply #10 on: November 28, 2014, 09:46:36 AM »
Congrats, it is unclear to me, did you hit 1m or 3m on a 30ish% savings rate? At what age did you begin investing, and I hate to be nosy but what is your income. I'm just a 20sumthing year old wanting to know how you got where you got so I can project where I may be.

grettman

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Re: Hit a Milestone...
« Reply #11 on: November 28, 2014, 10:11:27 AM »
Congrats, it is unclear to me, did you hit 1m or 3m on a 30ish% savings rate? At what age did you begin investing, and I hate to be nosy but what is your income. I'm just a 20sumthing year old wanting to know how you got where you got so I can project where I may be.

I hit $1M.  I mention $3M because it is such a kick in the nuts that $1M isn't what it used to be!  My salary is in the mid 100s.


G-dog

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Re: Hit a Milestone...
« Reply #12 on: November 28, 2014, 10:16:07 AM »
Congrats Grettman...

Do you / will you hedge your bets at all (because you think it is a bubble) with more bonds? More international? REITs?



I really don't understand bonds all that much.  I plan to learn more about them since I know they are an important part of a portfolio.  I have roughly 9% of my NW in CDs.  I also hold about 10% split between PRWCX and VWINX (the admiral version actually but I forget the ticker).  Those two funds have some bond elements.  Other than that... no other bond exposure.

Like you, I now realize many things I could have done better.  But there are also so many things each of us could have done worse!

So true!

This also points out that you don't have to do things perfectly to make good/great headway. Start later, lower saving rate, imperfect portfolio - you can still succeed at getting yourself into a better financial position!

Exflyboy

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Re: Hit a Milestone...
« Reply #13 on: November 28, 2014, 12:26:30 PM »
Interesting to read a number of opinions in the last few days that suggests we are 6 years into a 20 year secular bull market.

Maybe its time to sell everything then...;)

Frank

grettman

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Re: Hit a Milestone...
« Reply #14 on: November 28, 2014, 05:04:33 PM »
Interesting to read a number of opinions in the last few days that suggests we are 6 years into a 20 year secular bull market.

Maybe its time to sell everything then...;)

Frank

Nah I never flinch in a down turn.  I didn't in any of the crashes I have experienced since the 90s. I know of several who jumped out... sad.
STAY THE COURSE is what I do but it isn't because I am "smart" I am just smart enough to know that I am too dumb to out think the market and that Jack Bogle is smarter than me so I will follow his lead.

Exflyboy

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Re: Hit a Milestone...
« Reply #15 on: November 28, 2014, 05:11:21 PM »
Amen Bother... Thats why I put the smiley face.. I never sell in a down turn either..:)

Frank