Author Topic: Race from 10 to 100k!!  (Read 1226401 times)

tyler1215

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Re: Race from 10 too 100k!!
« Reply #150 on: September 10, 2014, 03:57:02 PM »
I'm a 26 year old Electrical Engineer working for an electric utility in the great state of Texas.  I found MMM after completing a Dave Ramsey course that my office offered up, and I was looking for people that claimed Dave ruined their lives.  What I found was a bunch of cry babies that hated the guy cause they had to sell their guitar or motorcycle to pay down the debt; I believe we would call that a "hair on fire" situation. 

Prior to all of this, I worked for an engineering firm in a large city that paid me below market but claimed to make up for it with "crazy bonuses".  I worked 60-80 hours a week with no life and deteriorating health.  I lived less than 4 miles from work and I drove and it always took me at least 30 minutes to get to the office.  I left the company in the big city to live in the hill country.  I drastically reduced my expenses and got a raise to go with the new job. 

Now I'm debt-free, saving 50% of my income, and growing my career at a pace that makes my old coworkers jealous.  Their "crazy bonuses" don't even keep up with my base salary.  I invest my savings in myself first at 40% (education), 10% to cash savings accounts, 30% to stock mutual funds, and the remaining 20% to Vanguard ETF Index funds.  I'm working on a side hustle as a fee-only investment adviser by preparing for the Series 65 Exam.  If that can take off and I finish an MBA by the time I'm 30, then I may try to pursue the world of investment banking, but that's my stretch goal for the moment.

givemesunshine

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Re: Race from 10 too 100k!!
« Reply #151 on: September 13, 2014, 10:49:56 PM »
I'd like to join - my total net worth including Superannuation (pension) is already over 100K but as I am unable to access my pension until I am 65 I'd like to focus more on my 'accessible' net worth.

My Super is 12.75% from my employer + 5% from me plus I also contribute a further 2.15% on top (all pre-tax) - I am happy with this current level of contribution and keep a fairly close eye on the investment path. I am just going to leave this as is for a while why I try to save and invest from my take home pay.

So, in June 2013 I had;

Savings: $0.00
Student Loan: -$2100.00

I paid my car off in June 2013 too (and will be keeping said car for the rest of it's life!).

Today;

Savings: $17,390

No liabilities.

NET WORTH: $17,390

I have a surgery in October (about $2750 out of pocket) but every other dollar is being saved. I aim to save at least $1700 per month - my stretch goal is $2000.

Best of luck to all!

NB - I have added myself to the spreadsheet with my NW from 08/31/14 to fit in with the monthly system.
« Last Edit: September 13, 2014, 10:54:24 PM by zinny1 »

SpareChange

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Re: Race from 10 too 100k!!
« Reply #152 on: September 14, 2014, 11:49:38 PM »
Looks like we have a few engineers! Anybody else work in healthcare?


I'd like to join - my total net worth including Superannuation (pension) is already over 100K but as I am unable to access my pension until I am 65 I'd like to focus more on my 'accessible' net worth.

My Super is 12.75% from my employer + 5% from me plus I also contribute a further 2.15% on top (all pre-tax) - I am happy with this current level of contribution and keep a fairly close eye on the investment path. I am just going to leave this as is for a while why I try to save and invest from my take home pay.

So, in June 2013 I had;

Savings: $0.00
Student Loan: -$2100.00

I paid my car off in June 2013 too (and will be keeping said car for the rest of it's life!).

Today;

Savings: $17,390

No liabilities.

NET WORTH: $17,390

I have a surgery in October (about $2750 out of pocket) but every other dollar is being saved. I aim to save at least $1700 per month - my stretch goal is $2000.

Best of luck to all!

NB - I have added myself to the spreadsheet with my NW from 08/31/14 to fit in with the monthly system.

Happy to have you Zinny! Hope to join you with no liabilities sometime next year.

MoneyRx

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Re: Race from 10 too 100k!!
« Reply #153 on: September 18, 2014, 03:22:36 PM »
Looks like we have a few engineers! Anybody else work in healthcare?

Pharmacist here. Currently on a resident salary, but trying to save up ~30k between me and my wife for a down payment after I finish next June. Its tough to calculate my net worth as my wife and I currently have separate finances so I created some rules in how I calculate it.
Will be a lot more clear when I go to full salary, and my wife quits working. I want her to quit now, but she won't do it. Weird huh?
« Last Edit: September 18, 2014, 03:36:07 PM by MoneyRx »

RyeWhiskey

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Re: Race from 10 too 100k!!
« Reply #154 on: September 20, 2014, 09:23:34 PM »
I'll join. 28 years old, make ~$24,000/year after taxes.

Current assets: $43,715
Current liabilities: $20,500 (all student loans)
Current net worth: $23,215

My personal goal is to have the loans paid off before the grace period ends (approx. March 2016).

SpareChange

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Re: Race from 10 too 100k!!
« Reply #155 on: September 21, 2014, 02:07:15 PM »
Looks like we have a few engineers! Anybody else work in healthcare?

Pharmacist here. Currently on a resident salary, but trying to save up ~30k between me and my wife for a down payment after I finish next June. Its tough to calculate my net worth as my wife and I currently have separate finances so I created some rules in how I calculate it.
Will be a lot more clear when I go to full salary, and my wife quits working. I want her to quit now, but she won't do it. Weird huh?

Haha, sounds like a keeper! Pharmacy is a long track. Congrats on being so close to the finish line! Good luck with your goals.

SpareChange

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Re: Race from 10 too 100k!!
« Reply #156 on: September 21, 2014, 02:48:19 PM »
I'll join. 28 years old, make ~$24,000/year after taxes.

Current assets: $43,715
Current liabilities: $20,500 (all student loans)
Current net worth: $23,215

My personal goal is to have the loans paid off before the grace period ends (approx. March 2016).

Let me be the first to welcome anyone with whiskey in their username :).

Wiggle

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Re: Race from 10 too 100k!!
« Reply #157 on: September 23, 2014, 03:30:07 PM »
No more contributions for rest of month so here is my end of August update:


Debts: $0
Savings: $7,250
Retirement Accts: $31, 248

NW:  $38, 498 (increase of $1,372).

No more contributions this month and had some unexpected expenses.  Either way I still made some gains:

Debts: $0
Savings: $7,750
Retirement Accts: $31, 637

NW: $39, 387 (increase of $889)

For those who wanted to know, I am a 29 y/o Electrical Engineer.  Only started taking money a bit more seriously in last two years.
« Last Edit: September 23, 2014, 03:43:13 PM by Wiggle »

coffeefueled

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Re: Race from 10 too 100k!!
« Reply #158 on: September 26, 2014, 11:01:05 AM »
I'll join. I hit a positive net worth this year for the first time since grad school, which feels insanely awesome and insanely awful. I can't believe I waited this long to start killing the student loans. I found MMM this year and have made some pretty good progress so far, but I think $100k will be a long time in coming.

TSP: $41,0740
VTSMX: $4,368

Student loan: -$43,403
Car: -$8,292 <----my pre-MMM face punch

NW:$1,500

 
« Last Edit: September 26, 2014, 11:04:02 AM by coffeefueled »

givemesunshine

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Re: Race from 10 too 100k!!
« Reply #159 on: September 26, 2014, 11:27:53 PM »
Hi all,

I've updated my September numbers (as I've already been paid 'til end of month and I'm away with work for 2 weeks). Happy to be up $2.5K due in no small part to this and the ideas/support of the members.

I'm a 37 year old scientist for those interested.

Paulie

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Re: Race from 10 too 100k!!
« Reply #160 on: September 30, 2014, 03:08:39 AM »
I've also updated my NW!

carozy

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Re: Race from 10 too 100k!!
« Reply #161 on: September 30, 2014, 10:42:45 AM »
I made it to 10K!  I'm so happy about that.  I haven't been here in a long time.  Onward and upward!

Frugal Father

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Re: Race from 10 too 100k!!
« Reply #162 on: September 30, 2014, 12:50:26 PM »
September was a slightly embarrassing month. Our first child was born in late August, so this was my wife's first full month staying at home. In addition, we had several other unusual expenses, like our semi-annual car insurance payment. As a result, we didn't even gain $100, but at least we didn't go down. Next month, I expect our NW to drop as we pay for hospital bills, because even though my wife gave birth naturally, with no complications, and we left as soon as they would let us (just over 24 hours), apparently it will still end up costing us thousands. Thank goodness for our HSA.

tyler1215

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Re: Race from 10 too 100k!!
« Reply #163 on: September 30, 2014, 04:15:00 PM »
Updated my numbers.  Saw a modest $700 growth.  Waiting on some reimbursement from my company for last minute travelling I did.  My investment portfolio is down 5.8% for the month.  A certain electric auto-maker is playing games with my portfolio.

Congratulations on the new baby Frugal Father!

Apples

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Re: Race from 10 too 100k!!
« Reply #164 on: September 30, 2014, 04:27:06 PM »
We use last month's income for this month's expenses/savings/investing, so we saw the benefit of a 5 paycheck month in August this month woohoo!  The markets going down were no help.  Our non-invested assets are about equal to our student loans, so our net worth changes by the amount of student loan we pay off (a lot this month) plus the bit we invest, and then I like to see how much we get helped along by the stock market.  No help this month there.  We are in our 20's for anyone curious.

Also:  Frugal Father, I wouldn't consider a full month of your wife not working, and a special time with a new child bad! Congrats!  That's the complete opposite of embarrassing!

Bart1ma3u5

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Re: Race from 10 too 100k!!
« Reply #165 on: September 30, 2014, 05:14:18 PM »
Finally made it into positive territory at a whopping $27! Too bad it will be negative again tomorrow upon rent payment but after my next paycheck should hopefully stay positive from here on out.  I had a fairly disappointing month with many more expenses than I planned on with travel for my cousins wedding and a week at the cabin, but I was pleasantly surprised to still have an increase of over $1000!

For anyone interested in the bios I am a mechanic engineer and will turn 25 at the end of October, my original goal when joining this post was to be positive NW before then, and it looks like that will be the case :).
« Last Edit: September 30, 2014, 05:17:06 PM by Bart1ma3u5 »

seanc0x0

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Re: Race from 10 too 100k!!
« Reply #166 on: September 30, 2014, 06:30:11 PM »
Not a good month, with markets down in Canada where most of my money is stashed, I saw a $200 loss in my main brokerage account. This counteracted the money I put in, so I still went up 10% month over month. I'll take it, since with the market down a bit I can get more for the same price. I'm in it for the long haul, though it still doesn't feel particularly good to to see that (fictional) value drop so much, and the drop actually helps me over the long run. Psychology is funny.

Anyway, numbers:
Net Worth $6678.72, up 10.9% from $6066.70 last month.

And now, since we're doing brief bios:

I'm a 36yr old father of 1 (soon to be 2) beautiful daughters. I work in IT support at a major Canadian university. Just got the fire for FIRE last winter after starting to use YNAB realizing how much I was wasting, then finding MMM. Started with a NW of about -$15000 last January, so progress is being made! 

frogger

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Re: Race from 10 too 100k!!
« Reply #167 on: September 30, 2014, 07:31:57 PM »
As of close of business today:

Liabilities reduced by $600
Assets increased by $1200

NW for the end of September: -$7900

Finally movement in the right direction! Next month is a three paycheck month, so I'm already looking forward to a big increase.

Bio: 31, single, teaching college part time as my first official gig out of graduate school (and salary pretty variable). Finally starting to pay down my undergrad loans (and the car) and save everything else, while I look for future work.

tarheeldan

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Re: Race from 10 too 100k!!
« Reply #168 on: September 30, 2014, 07:49:26 PM »
Frugal Father, congratulations!

I love seeing all this stashing we are doing!

NW didn't go up as much this month with stocks going on sale, but I'm still happy with the 6.2% increase.

I turned 30 a month ago - so old! hahaha - and work as an OTC commodity options trader for a small shop. 
« Last Edit: September 30, 2014, 07:58:11 PM by tarheeldan »

Middlesbrough

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Re: Race from 10 too 100k!!
« Reply #169 on: September 30, 2014, 09:14:15 PM »
I splurged on a couple of football games and all-time favorite comedian coming to town. Nothing crazy, but it was those two things and the market finally dipped that I saw my first negative month since I started tracking my expenses. It only took a year and a half for that to happen. I think of it as a positive because my money stashed away could potentially create more money than I can currently tuck away!

Two sides to a coin...

LearningFromMistakes

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Re: Race from 10 too 100k!!
« Reply #170 on: September 30, 2014, 11:21:41 PM »
Since thread start:
June 9th 2014: (-$34,619)
July 1st 2014: (-$35,437)
August 1st 2014: (-$24,516)
Today (August 25th 2014): $7,548

October 1st 2014: $24,413

SpareChange

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Re: Race from 10 too 100k!!
« Reply #171 on: October 01, 2014, 12:20:06 AM »
As others have noted, investments were a headwind for NW this month. It's all good though...managed to knock $2400 off my student loan! Happy enough with that. Congrats Frugal Father! And to everyone else as well!

ohyonghao

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Re: Race from 10 too 100k!!
« Reply #172 on: October 01, 2014, 05:58:04 PM »
Well, it's interesting having the feeling of stocks on sale.  Here are my new stats:
Current NW $65268.23
Old NW $63372.03
Difference: +$1896.2

That was basically all the house.  We spent $1200+ on finally installing the French Door.  Added another $1000 to stocks when they were on sale at the beginning of last month which now appear to be an closeout bargain bin sale this month.

SpareChange

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Re: Race from 10 too 100k!!
« Reply #173 on: October 01, 2014, 11:44:28 PM »
Yikes. Sort of painful month. I was super excited to pass my 2014 NW goal last month, and now I still have a ways to go. This month is all about fluctuation in Zillow estimates for my house. I went from -$37 to -$42 in one month. Thanks Zillow. I know it's all fake anyway, but still.

I even hit a 55% savings rate this month, and if you don't include the house, my networth actually increased. But I started out including the house, so I need to stick with it. Hopefully it will rebound and I will still make my 2014 NW goal (a modest -$37K).

As far as bio: 36, single, attorney, paying off student loans like it's going out of style, while simultaneously trying to save for retirement.

Good grief. Apparently, Zillow is more volatile than microcap stocks. 

Mazzinator

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Re: Race from 10 too 100k!!
« Reply #174 on: October 02, 2014, 01:38:39 AM »
Oct 2014

Savings $89,520
SL -$67,477

NW $22,043

Congrats on the baby!! I'm due in 4 weeks, with my third. I'm a sahm, my hubby is an army lawyer (JAG) and we live on Oahu.

Also, could someone please please please update my numbers every month??? Please :-) I have no clue how to update from my ipad. Thanks!!! And thanks to Runge for doing this last time!!!

MoneyRx

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Re: Race from 10 too 100k!!
« Reply #175 on: October 03, 2014, 11:03:31 AM »
It is really amazing how many people are starting out this journey with a negative net worth. Just want to encourage those people that paying off the debt is the best way to build NW. It frees up cash flows and provides guaranteed returns.

Well, there is still the debate of whether or not to pay off low interest debt first (student loans/mortgage) or invest in the market.

Personally, this year I am saving for a down payment on a house rather than maxing paying off student loans/investing. My loans range from 2.08%-6.8%. I want to own a house next year rather than throwing my money away on rent.

peppermint

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Re: Race from 10 too 100k!!
« Reply #176 on: October 03, 2014, 11:05:48 AM »
Down a little bit this month, due to animal medical bills (my cat got diagnosed with cancer :(((( )

carozy

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Re: Race from 10 too 100k!!
« Reply #177 on: October 03, 2014, 11:17:42 AM »
Down a little bit this month, due to animal medical bills (my cat got diagnosed with cancer :(((( )

Sorry to hear about your cat.

Runge

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Re: Race from 10 too 100k!!
« Reply #178 on: October 04, 2014, 09:52:15 AM »
Finally able to post my official numbers. My brokerage company for my IRA is slow getting the statements out.

Like everyone else, my investments were on sale, but the good thing is that I was able to buy another $2k worth of VTSAX, so that's cool. A certain electric auto-maker is also screwing with my numbers, but ya know, that's cool too I suppose. Right now I'm just trying to get my asset allocation set up properly.

quick bio: 25 y/o Mechanical Engineer. Just bought a house 6 months ago, so I've got plenty of money being spent on fixing it up and such, but such is life. This month has been EXTREMELY busy at work, and it's not looking like it'll let up any time soon...maybe I can negotiate a pay increase for the extra stress/time?

Here's the official quarterly numbers:
Total NW
2014Q2: $12600.37
2014Q3: $14534.10 (+15.3%)

Tieke

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Re: Race from 10 too 100k!!
« Reply #179 on: October 09, 2014, 01:57:08 AM »
Just got a chance to do my update: my progress is steady at the moment, but I just finished paying off my student loan last week so that's a huge landmark for me.  Onwards and upwards from here, I hope! 

My bio: single 40 year old university teacher.  Low salary at the moment (in proportion to a lot of other university teaching jobs) but this is somewhat balanced by having no kids.  I'm unlikely to see a significant pay rise in the next 5 years owing to the scarcity of jobs in my field, so the moustache is all important...

Apples

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Re: Race from 10 too 100k!!
« Reply #180 on: October 09, 2014, 06:38:27 AM »
KatyNZ congrats on paying off your student loan!  That's a great accomplishment!  I can't wait until we can do that next year :)

Primm

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Re: Race from 10 too 100k!!
« Reply #181 on: October 09, 2014, 04:18:41 PM »
Just added my details to the spreadsheet. I haven't included retirement accounts (untouchable until I'm 65), or house value / mortgage. Just personal bank accounts and credit cards. Unfortunately right now I'm in the red by a considerable amount still, but since my starting amount was considerably worse than today when I first started reading MMM (only 7 months ago? That's gone quick!) I figure it will only take me a little while to at least get back to zero. Then I can start building! 

Tieke

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Re: Race from 10 too 100k!!
« Reply #182 on: October 09, 2014, 08:52:54 PM »
KatyNZ congrats on paying off your student loan!  That's a great accomplishment!  I can't wait until we can do that next year :)

Thanks Apples! :)  Sounds like you're nearly there if yours is lined up for 2015.  Hope you enjoy watching the finish line coming into view - it's a great feeling when you get there!

tyler1215

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Re: Race from 10 too 100k!!
« Reply #183 on: October 14, 2014, 05:09:49 PM »
I would hate to be "that guy" but this just occurred to me while I was researching 401(k) Roth options.

I am assuming that everyone includes their 401(k) in the NW calc, I do. In doing my research into The Roth 401(k), I realized that the Roth 401(k) would have a smaller value than a traditional 401(k) because the traditional has not had the taxes withheld yet. So now I'm thinking that some of us my have some apples (traditional) and others have oranges (Roths), so to speak.

I don't think it's really a big deal in the grand scheme, but I thought it was interesting that you could be a millionaire with a traditional 401(k) then no longer be a millionaire once the taxes hit.

VirginiaBob

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Re: Race from 10 too 100k!!
« Reply #184 on: October 14, 2014, 05:20:31 PM »
Ok I'm starting at 2,245 dollars on 14-October, 7:20 pm eastern. 

VirginiaBob

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Re: Race from 10 too 100k!!
« Reply #185 on: October 14, 2014, 05:22:03 PM »
Wow, I just won the lucky lotto for 250k at 7:22 pm on 14-October.  I guess I win.

SpareChange

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Re: Race from 10 too 100k!!
« Reply #186 on: October 14, 2014, 11:25:15 PM »
KatyNZ congrats on paying off your student loan!  That's a great accomplishment!  I can't wait until we can do that next year :)

You and I both! Congrats KatyNZ/RovingKiwi!

SpareChange

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Re: Race from 10 too 100k!!
« Reply #187 on: October 14, 2014, 11:34:08 PM »
Just added my details to the spreadsheet. I haven't included retirement accounts (untouchable until I'm 65), or house value / mortgage. Just personal bank accounts and credit cards. Unfortunately right now I'm in the red by a considerable amount still, but since my starting amount was considerably worse than today when I first started reading MMM (only 7 months ago? That's gone quick!) I figure it will only take me a little while to at least get back to zero. Then I can start building!

Welcome to the thread, Primm!

SpareChange

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Re: Race from 10 too 100k!!
« Reply #188 on: October 14, 2014, 11:42:32 PM »
Wow, I just won the lucky lotto for 250k at 7:22 pm on 14-October.  I guess I win.

A 2 minute mustache? I'm...jealous, Bob. Congratulations!
« Last Edit: October 15, 2014, 09:15:25 AM by SpareChange »

Tieke

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Re: Race from 10 too 100k!!
« Reply #189 on: October 15, 2014, 01:02:01 AM »
KatyNZ congrats on paying off your student loan!  That's a great accomplishment!  I can't wait until we can do that next year :)

You and I both! Congrats KatyNZ/RovingKiwi!

Thanks, SpareChange -  hope your own loan disappears at rapid pace!  And good spotting on the name change - just thought I'd move  to something slightly more anonymous.  NZ is a very small place...

Paulie

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Re: Race from 10 too 100k!!
« Reply #190 on: October 15, 2014, 07:15:26 AM »
Wow, I just won the lucky lotto for 250k at 7:22 pm on 14-October.  I guess I win.

What were you doing buying lotto tickets?

No I'm just kidding, that's amazing! Congratulations!!

SpareChange

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Re: Race from 10 too 100k!!
« Reply #191 on: October 16, 2014, 01:08:05 AM »
KatyNZ congrats on paying off your student loan!  That's a great accomplishment!  I can't wait until we can do that next year :)

You and I both! Congrats KatyNZ/RovingKiwi!

Thanks, SpareChange -  hope your own loan disappears at rapid pace!  And good spotting on the name change - just thought I'd move  to something slightly more anonymous.  NZ is a very small place...

...as is the world, I'm afraid. I have an old friend who married an expat Kiwi :).


Bio update. Several people have posted their ages, family status, etc. I suppose I should own up to being about 3 weeks from turning 40. Single, no kids. Should earn about $70k next year. Hoping to save about $41.5k of that.

MoneyRx

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Re: Race from 10 too 100k!!
« Reply #192 on: October 16, 2014, 09:05:12 AM »
I would hate to be "that guy" but this just occurred to me while I was researching 401(k) Roth options.

I am assuming that everyone includes their 401(k) in the NW calc, I do. In doing my research into The Roth 401(k), I realized that the Roth 401(k) would have a smaller value than a traditional 401(k) because the traditional has not had the taxes withheld yet. So now I'm thinking that some of us my have some apples (traditional) and others have oranges (Roths), so to speak.

I don't think it's really a big deal in the grand scheme, but I thought it was interesting that you could be a millionaire with a traditional 401(k) then no longer be a millionaire once the taxes hit.

This is a good point and I am sure there are other things as well that wouldn't exactly allow us to compare apples to apples. (Some have mentioned counting/not counting assets such as car, boat, etc., counting a spouses 401k, and others) 

I would point out though, that a lot of people planning on early retirement will be attempting to successfully remove funds from 401k tax free through roth conversion, so although it isn't immediately available at the current value, it may still actually be worth what is in the account.

SpareChange

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Re: Race from 10 too 100k!!
« Reply #193 on: October 16, 2014, 10:36:56 AM »
I would hate to be "that guy" but this just occurred to me while I was researching 401(k) Roth options.

I am assuming that everyone includes their 401(k) in the NW calc, I do. In doing my research into The Roth 401(k), I realized that the Roth 401(k) would have a smaller value than a traditional 401(k) because the traditional has not had the taxes withheld yet. So now I'm thinking that some of us my have some apples (traditional) and others have oranges (Roths), so to speak.

I don't think it's really a big deal in the grand scheme, but I thought it was interesting that you could be a millionaire with a traditional 401(k) then no longer be a millionaire once the taxes hit.

I agree with what Money said. It is a good point. It's just a little too hard to predict future tax rates, when you will withdraw the money, will you do Roth conversions, etc for us to know which is the apple and which is the orange. My own 401k and IRA are the pretax versions. I'm confident I'll end up paying a lower tax rate on the money than I would have in the present. 

ash7962

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Re: Race from 10 too 100k!!
« Reply #194 on: October 16, 2014, 01:33:40 PM »
I'd like to join too!! I already added myself to the spreadsheet (I love spreadsheets and I was excited).  Also, compliments to the people who built and have been managing the spreadsheet, looks wonderful!  Got some ideas to add to my own personal spreadsheet :). 

Anwyay, my NW at the beginning of July was 30,284$.  I found MMM in June, read all the posts like an woman obsessed, then started my slow way towards reducing my expenses and moving more towards investing.  So, I'm a 25 yr old software developer (degree in Comp Sci), and I work in the financial industry.  I was lucky enough to start out life with no loans (thank you parents), so I have given myself a goal of retiring by the time I am 35!  I'm not sure that I'll make it but I think its good to have something to push for.  Mid last month I updated my 401k contributions to 729$/pay period so that I will max out the 401k next year.  I expect to be contributing about 1458-1900 every month.  Stupid crazy Chicago rent is killing my budget, but I plan on moving in with my SO after next year so hoping that will go down!  If that doesn't pan out I will probably move myself further out of the city since Chicago has pretty great public transit options.  Anyway, love the thread and good luck to everyone!

trailrated

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Re: Race from 10 too 100k!!
« Reply #195 on: October 16, 2014, 02:12:26 PM »
This thread is F-ing awesome!!! Can't believe it took me this long to actually look at it. I have a bit of a head start but just added myself to the spreadsheet anyways. Thanks for putting this together :)

ChickenMonster7

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Re: Race from 10 too 100k!!
« Reply #196 on: October 16, 2014, 04:03:05 PM »
Hello all! New to the forums here. I found MMM in Spring 2014. Currently at 33k ish, but I have about 9 months until I have a job so you guys better take advantage of the head start because once Summer 2015 comes around imma be ramping up my savings.

VirginiaBob

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Re: Race from 10 too 100k!!
« Reply #197 on: October 16, 2014, 08:35:15 PM »
I would hate to be "that guy" but this just occurred to me while I was researching 401(k) Roth options.

I am assuming that everyone includes their 401(k) in the NW calc, I do. In doing my research into The Roth 401(k), I realized that the Roth 401(k) would have a smaller value than a traditional 401(k) because the traditional has not had the taxes withheld yet. So now I'm thinking that some of us my have some apples (traditional) and others have oranges (Roths), so to speak.

I don't think it's really a big deal in the grand scheme, but I thought it was interesting that you could be a millionaire with a traditional 401(k) then no longer be a millionaire once the taxes hit.

I'm starting to wonder if a Roth has any benefit at all over a traditional.  As long as your deductions/exemptions equals your withdrawals, your taxes on the traditional will be $0.  So enjoy the tax benefits of the traditional now in your high earning years and don't pay any taxes later. Win win.

Pooperman

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Re: Race from 10 too 100k!!
« Reply #198 on: October 17, 2014, 08:27:27 AM »
Adding myself to this. Started with an investment account and a car (approx $8k). Latest has me at $16,982.66 (as of the end of last month).

ohyonghao

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Re: Race from 10 too 100k!!
« Reply #199 on: October 20, 2014, 01:22:05 PM »
I would hate to be "that guy" but this just occurred to me while I was researching 401(k) Roth options.

I am assuming that everyone includes their 401(k) in the NW calc, I do. In doing my research into The Roth 401(k), I realized that the Roth 401(k) would have a smaller value than a traditional 401(k) because the traditional has not had the taxes withheld yet. So now I'm thinking that some of us my have some apples (traditional) and others have oranges (Roths), so to speak.

I don't think it's really a big deal in the grand scheme, but I thought it was interesting that you could be a millionaire with a traditional 401(k) then no longer be a millionaire once the taxes hit.

I'm starting to wonder if a Roth has any benefit at all over a traditional.  As long as your deductions/exemptions equals your withdrawals, your taxes on the traditional will be $0.  So enjoy the tax benefits of the traditional now in your high earning years and don't pay any taxes later. Win win.

This assumes that all your income in retirement is under deductions/exemptions. Standard deduction for married plus 2 exemptions is  12,400 + 3,950 + 3,950 = $20,300 for 2014. When you consider regular 401k has minimum withdraw plus maybe some income from hobbies plus maybe some rental income plus SSI it would be easy to be over $20,300 in income in retirement. Also don't forget the taxes on growth! Look at scenario below

Regular 401k:  contribute $17,500; taxes -$4,375
- wait 40 years at 11%
- Balance $1,397,104
- Potential taxes @ 15% = $209,566

Roth 401K: contribute $17,500; taxes $0
- wait 40 years at 11%
- Balance $1,397,104
- Potential taxes @ 15% = $0

Your numbers there again are assuming that you withdrawl the entire 401k at once, rather than over a period of time, and doesn't include the current tax savings which then gets invested into non-tax advantaged accounts.  Since the $4,375 in savings would then go towards other investments here is how the example should work out:

Regular 401k:  contribute $17,500; taxes -$4,375
- wait 40 years at 11%
- Balance of 401k $1,397,104
- Balance from investing the tax savings $349,276
- Potential taxes @ 15% = $258912 *note long terms capital gains currently around 10%, but just keeping the example simple, also you forgot to exclude the $20,300 deduction from your original calculations
- Total Balance after $1,487,468

Roth 401K: contribute $17,500; taxes $0
- wait 40 years at 11%
- Balance $1,397,104
- No investment of tax savings
- Potential taxes @ 15% = $0
- Total Balance $1,397,104

Difference $90,364

That is without any optimizations in withdrawal, such as doing roth conversions during low earning years, and taking advantage of long term capital gains taxes being lower.  This is a per year example, so bring this over a 10 year working period and suddenly we are looking at possibly an extra million dollars or more.