Bogleheads' "Rags to Riches" Stories

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EternalOptimist
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Bogleheads' "Rags to Riches" Stories

Post by EternalOptimist »

I'm sure many of us would love to hear some personal stories about how you overcame adversity/obstacles/poverty etc to achieve your success. This would serve to inspire and motivate us to achieve as well. Thanks :!:
"When nothing goes right....go left"
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dratkinson
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Re: Bogleheads' "Rags to Riches" Stories

Post by dratkinson »

Could also read some of the books by Thomas J. Stanley. He spent several years researching millionaires. If memory serves:
The Millionaire Next Door
The Millionaire Mind
Stop Acting Rich and Start Living Like a Real Millionaire.
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
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sperry8
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Re: Bogleheads' "Rags to Riches" Stories

Post by sperry8 »

My quick story...

Grew up in an upper middle class neighborhood spoiled by a well to do father who gave me more than I needed. He went bankrupt when I was in an expensive University he was paying for, that I chose. I was 18 and didn't understand. I stayed in that same University using my credit cards to pay for it and all my expenses. Ran up almost $35,000 in debt (yes, they actually gave a college kid with no history a plethora of credit). Finally at $35k, they wouldn't give me any more. So I moved home to a local city college. Got 2 night jobs, bartending and valet parking cars for the local Jewish center, where I was embarrassed to park the cars of all my friends and families and accept $1 tips that I sorely needed. On weekends I would go to baseball card shows and sell my collection for whatever I could get. I also moved back in with the parents, where I paid 1/2 the rent to help them out. And I swore I'd never depend on anyone for money again.

I finished school. Paid the minimums on my credit cards while I did (about $600 per mo if memory serves) and took a job after work that paid $20,000 per year. Kept working my way up the ladder... promoted to $24k, then to $40k, then to $54k (couldn't believe it!), then to $75k... where I finally realized that even at these "high" salaries, I'd never become financially free. The only way to do that was to own something. So I moved West to San Francisco and got a job at a dot com in the early days. The days when Netscape was the #1 browser. It was owned by a large publicly traded firm. I had some shares, but they ended up worthless. However, I was recruited to a 2nd dot com. It was already up and running and had investors and revenue but was private. It sold for $35 million. I owned some stock and got $35,000. I bought a much needed new car. I then went to my 3rd dot com. But this time I went to one that was just starting. It was me and 3 others when it started. Eventually we sold it sold for 9 figures. I got 7 figures. I was 36. I retired at 38.

My advice to your children? Finish University. It doesn't matter what degree you get. But finish. Then get some work experience and network. Meet as many people as you can - and gain valuable experience while doing it. But quickly - and I mean before 30, go work for yourself. It doesn't have to be a dot com. I don't care if you fail. I don't care if you fail again. But keep taking chances. Sell everything. Get night jobs. But do it. Because unless you have amazing financial skills where you can work at a PE firm or similar, or you're a doctor, dentist or tradesman with serious skills, you won't make enough to get riches in the short term working for others. Plus, you'll have more fun doing it for yourself. Do not work for a corporation. Do not settle for less than you're worth. Do not buy frivolous things until you've met your financial goals. Write down your #. Do not change it. When you hit your #, get out. Life is short. Enjoy it. I have riches now. They provide me freedom but not happiness. They provide me choices but not love. Don't chase an ever rising #. Don't hide from life. Don't hide from yourself. Walk your path. Don't be afraid where it leads. Just go. If you knew where it lead, you'd be bored and wouldn't walk it.

Guess what everyone else who got 7 or even some who got 8 figures from the sale are doing now? Every single one of them is still working. And not short days either. Working long hours. They are all married with children. Life is passing them by because they don't know what else to do. And they are unwilling to sit with themselves til they figure it out. Don't let life pass you by. Money is the tool, not you. Live, love, laugh, be kind, be patient, be compassionate, and be generous with your time. You won't regret any of those things when your time is up. Promise. You will regret working away your life. Promise. So be quick about your own rags to riches story if that is what you seek.
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Quickfoot
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Re: Bogleheads' "Rags to Riches" Stories

Post by Quickfoot »

I grew up very poor, single mom with 4 kids. We had to float checks for food, all my clothes came from second hand stores and we lived in a double wide. My dad died when I was 8, mom was killed when I was 16, moved in with grandparents, and grandfather died 2 years later, a year after that my 16 year old best friend died of brain cancer.

I moved 3,500 miles from home (Alaska) to the lower 48 for a girl, got hired as a tester by one of the leading minds in quality assurance and was fortunate enough to be trained for 3 months by someone who charges $1000 a day per student to train (and has 35 - 40 people in the classroom). A Fortune 100 company hired me at $15 an hour at 19. By 27 I had been promoted 7 times was making $95,000 a year and had gone from entry level to the highest level software engineer.

27 I had a daughter, 28 got divorced, got laid off twice, and spent the next four years recovering. Now I make more than I ever have, am re-married, have 3 amazing kids (1 biological, two step), gorgeous wife, and contribute 30K a year to retirement and have a 7% (soon 5%) debt to income ratio.

I lead a very effective QA team for a great company, have ~ 10 direct reports (soon 15), live in a very low cost of living area and would have to make 262K a year in NY to have the same living experience and yet I have no college degree.

We are very blessed and are working to insure our financial success as well as teach our kids how to be financially responsible, and to spend, save and invest their incomes.

I should have died at least 3 times (that I know of) but am still here and try every day to make sure my daughter knows I love her.
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morbster
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Re: Bogleheads' "Rags to Riches" Stories

Post by morbster »

sperry8 wrote:Money is the tool, not you.
Thanks for sharing your story, sperry8. I especially enjoyed that line. It sounds like a could be a common ciche', but I've never heard it before. It's a good way to view money.
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Re: Bogleheads' "Rags to Riches" Stories

Post by EternalOptimist »

Grew up in a lower middle class family, had little money but lots of family and love. Went to college and worked hard to put my daughter through private college. Went into my own business at 40 and it didn't work out and went back into the corporate world for a bunch more years. Now retired and my wife is about to soon. Lots of up and downs like most people but I never gave up. Been blessed with a good family. Keep trying things, never give up, and appreciate every thing and every day!!
"When nothing goes right....go left"
travellight
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Re: Bogleheads' "Rags to Riches" Stories

Post by travellight »

amazing story, sperry8.... and great philosophical points.
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lostInFinance
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Re: Bogleheads' "Rags to Riches" Stories

Post by lostInFinance »

sperry8 wrote: I then went to my 3rd dot com. But this time I went to one that was just starting. It was me and 3 others when it started. Eventually we sold it sold for 9 figures. I got 7 figures. I was 36. I retired at 38.
What percent equity did you have when you first joined the company and what percent equity did you have after dilution when the company was finally sold?
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Re: Bogleheads' "Rags to Riches" Stories

Post by Valuethinker »

dratkinson wrote:Could also read some of the books by Thomas J. Stanley. He spent several years researching millionaires. If memory serves:
The Millionaire Next Door
The Millionaire Mind
Stop Acting Rich and Start Living Like a Real Millionaire.
Taleb in his first book takes you through the gaping methodological flaw. The books are really not much use other than as anecdotal.

It's not a tracking study. They did not take a population (with a control group that did *not* do what they suggest) that adopted their methodology in say the early 20s, and follow them through until their 60s.

So what we might have here is a group of millionaires who became rich due to other factors: inheritance, high income, businesses they invested in did well, etc. but there might be OTHER 20-somethings, just as virtuous in adhering to the ways of the book who did not become millionaires.

Other than trivial points like save more than you earn (the books make no mention of low cost mutual funds) the books are basically just pop sociology junk.

Looking at my relations who are millionaires:

- buy your house at a good time (ie when it was cheap) and buy it in a neighbourhood that goes uphill, not down. Don't pick Buffalo or Detroit over San Francisco or Boston or Toronto (or rather the future SF and Bostons of this world)
- have a good professional job - that's the key one
- the fewer children you have, the richer you will be at 60 - children are very expensive
- live within your salary, and make investments in equities in a time when equities are going up
- inheritance, even of relatively small amounts, helps a lot-- jump starts paying down mortgage/ building investment portfolio
- if you buy a vacation property, picking one that has become the Canadian habitue of movie stars and hedge fund managers is a good idea-- ie weekend driving distance of Toronto
- live a *long* time: that small investment portfolio in the 1970s? Worth millions now to his widow
- remember not to care too much about what the neighbours think when you buy a car or a watch (same point as living within your salary)

I think I have pretty much summarized what's valuable in the books.
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Re: Bogleheads' "Rags to Riches" Stories

Post by richard »

One important lesson is not to live in the south east.
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Mike Scott
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Re: Bogleheads' "Rags to Riches" Stories

Post by Mike Scott »

I grew up on a small subsistence dirt farm in the south but with parents who valued work ethic and education; four kids with a total of 7 college degrees among us. None of us will ever be rich or likely to retire early but if we are wearing rags it is by choice.
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Re: Bogleheads' "Rags to Riches" Stories

Post by 4nursebee »

Ok, I'll bite.

I was a smart kid that never had to apply myself. Went to college and "graduated early" with a degree in substance abuse during my fourth semester. I wandered like Cain with no skills, waited tables and lived check to check for many years. Got clean thru rehab. Lived with an alternative religion (cult) for 6 months, then decided to grow the F up. Had to take food stamps for a month. Lived with no furniture for years. I set high goals after Tony Robbins Personal Power.

Staright As in college for BA in a science field. Phi Beta Kappa. Borrowed heavily and spent heavily. I got into grad school in an expected well paying healthcare field, was not mature enough to step up my studying and decreasing my social life.

Waited tables as I went to nursing school, met the girl of my dreams. She had what I though was a lot of money at the time, I had debt. I paid off credit cards before marrying her about age 30.

We both worked and saved like crazy. Within a few years of having a 401k I had the same lot of money she had when we met and she then had 3 times as much. We built our dream home and started maxing out 401Ks and Roths (living on half our income basically).

My father and some other role models are into rental real estate in the local market, I saw them doing well. Over the past two years I cut back on 401K's used the money to buy and fix up 3 rental homes, do carry a mortgage on them. I hope to pay them off within 7 years. I expect monthly income in the range of 2k, could have 1k now if needed.

I dabbled in the market with a 30% return on my first Roth IRA stock, got hooked. I read Motley Fool, IBD, about 100 books, paid for services. I made good money and had pipe dreams of being ultra rich with a NYC condo. Lost nearly all of it in 2008. I got a lot more conservative in many ways and got a lot more picky with what I buy. I do not adhere to a 5-10% of assets rule of thumb espoused around here but respectfully don't flaunt it too much...

We hit the 2 comma club within the past two years. We hope to have double that soon (in sight). I am 45 yo. None of this was a gift or inherited. I did well limiting losses in 401K during the worst year to 12% and bought in after the bottom.

I expect that normal pensions could nearly fund our retirements if taken at normal age. I expect that withdrawing money from retirement funds could fund our retirement NOW. I expect that rental income of current holdings will make this easier and hope to buy more cash or when first house is paid off. I figure I have 3 ways to fund retirement! The only thing holding us back from doing in now is the unknown of healthcare and the desire to pay off real estate debts first.

We have modest cars, nice energy efficient house. No kids. Few adult toys. We open our house up as a bed n breakfast on Airbnb, enjoy sharing with others. 14 acres. Life is good.

Keys for me:
Marry well
Work hard
Live on less than you make.
Save as much as possible.
Start figuring at the end point and work backwards (I figured I needed 3 million at 3% to retire and not change gross income).
Low cost indexing without too much fancy stuff. My mind gets bogled by the discussions around here sometimes.
BASM investing ala Kobrick book
Marry well.
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3CT_Paddler
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Re: Bogleheads' "Rags to Riches" Stories

Post by 3CT_Paddler »

richard wrote:One important lesson is not to live in the south east.
Image
http://www.dailymail.co.uk/news/article ... world.html
There are lies, damned lies and statistics.
:)

To the contrary, my biased opinion is the southeast and Atlanta may be one of the better places to live for entrepreneurs. Relative to other major metro areas, there is a low cost of living. Lots of large corporate customers and some great universities in the area (GTech and UGA - as well as plenty of grads from highly regarded institutions outside the region).

Yes, if you are choosing to educate your child in the projects, they probably will have poor upward mobility.
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Re: Bogleheads' "Rags to Riches" Stories

Post by EternalOptimist »

Thanks, good stuff
"When nothing goes right....go left"
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Re: Bogleheads' "Rags to Riches" Stories

Post by richard »

3CT_Paddler wrote:
There are lies, damned lies and statistics.
:)

To the contrary, my biased opinion is the southeast and Atlanta may be one of the better places to live for entrepreneurs. Relative to other major metro areas, there is a low cost of living. Lots of large corporate customers and some great universities in the area (GTech and UGA - as well as plenty of grads from highly regarded institutions outside the region).

Yes, if you are choosing to educate your child in the projects, they probably will have poor upward mobility.
I'm a much bigger fan of aggregate data rather than someone's selective impressions (as they say, data is not the plural of anecdote). I'll give you credit for realizing the opinion is biased. Objectively, fewer people in the area move from rags to riches.
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Re: Bogleheads' "Rags to Riches" Stories

Post by stoptothink »

I grew up very poor, single mom with 5 children. Was fortunate to get an athletic scholarship to pay for my undergrad and nearly half of my MS. I worked full-time while completing my MS, and began doing some real estate development with a few friends at the height of the boom. By '05 the RE development was going so well that I honestly thought I'd be able to retire by 35 or so and even told my mother that in a few years she'd never have to work again. I was very conservative, continued to work full-time and funded all of my projects with cash so when the crash came (and most of my projects went belly-up) I had no debt but had lost most of my life's savings. I had just enough stashed away to put my wife through dental school. We moved to Houston so she could finish school and I also began a PhD program. After paying for the entirety of her dental school out of pocket, we separated during her final quarter and then went through a year-long disaster of a divorce. By the end of '10, I was 28, in the middle of a PhD program and had recently watched all of my life's savings be lost to the RE crash and into my ex-wife's education. Luckily I had no debt. Started really buckling down with the budget and getting serious about saving, finished my doctorate and got a good job. 3yrs ago I felt like a complete failure and had no idea where my life was headed; since then I've managed to accumulate ~$125K in retirement accounts, met a great girl who has similar financial views (the primary cause of my divorce) and will be getting remarried in January, and have a decent paying job that I love and good career prospects.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Sheepdog »

Many of the earlier Diehard and Boglehead members have read my story, personal and savings history (or lack thereof), but most of you probably have not.
How fortunate am I?
I was born in the Great Depression. My father lost his job and we lost our nice brick home in Atlanta. (I remember it vividly even though we lost it at the age of 4 or 5.) My father needed something to support us (he was desperate) so he stole a small amount of money from someone's mail. (I was told it was less than $10.) He was caught taking it. For that offense, his first and only offense, he was sent to the Atlanta Federal Prison for a year. Back then, there were no second chances, no first time offenders, you were sent to prison and for stealing from the U.S. Mail it was Federal Prison. My mother took care of my older sister and me by finding employment wherever she could while we moved from living in a garage to someone's basement. After my father returned he worked wherever he could as a general laborer and carpenter. My uncle in Florida told us to go there in 1941 as he could help them get employment in the expanding military construction prior to WWII. He worked building Liberty Ships and after the war worked for the railroad. She worked selling in stores. My Mom and Dad never earned much money. At the time my father died in 1957, my parent's bank account had less than $1000. My Mom paid off my father's medical bills for years at $5 a week. Yet, I was fortunate.
I wanted to be different. No one had gone to college in my family. My father went thru the 11th grade and my mother the 8th. My sister had no interest in furthering her education. I paid my way to a junior college from 1951 to 1953 while working part time jobs, plus having a $500 scholarship. Following that, I couldn't afford to go to a university so I joined the Marines. Upon discharge, I went to the Univ. of Florida under the GI Bill and graduated in 1960. I was fortunate.
I met my future wife while attending the University and married her 6 months after graduating. I did not see her in those 6 months as I had employment in N.J. I was fortunate.
We had 2 great children. They wouldn't have to pay their way to Purdue U. because we could afford to send them. The kids were more important to us than our retirement. We actually saved and invested relatively little until after they graduated. When we crammed our savings, we were very lucky. How lucky? At my age of 59 (1992) 6 years from retirement, we had a total of $132,000, with a modest pension coming.. By retirement in 1998, after crash savings plus a good bull market, that was up to $460,000. Added to that was a $230,000 pension lump sum. We were fortunate.
There have been bull markets and bear markets since 1998. We have traveled to foreign lands several times. We have a nice house in a wonderful college town where we enjoy culture and sports. Our children are happy and successful. We are healthy. Those savings have provided good retirement income for over 15 years. Our net worth is now over $1 million. We are fortunate.
God bless this wonderful country.
Jim
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
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White Coat Investor
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Re: Bogleheads' "Rags to Riches" Stories

Post by White Coat Investor »

richard wrote:One important lesson is not to live in the south east.
Image
http://www.dailymail.co.uk/news/article ... world.html
Looks to me like the lesson is to live in my neighborhood. 35%!

Edit: Actually, looks like my neighborhood is yellow. What the heck is going on in Eastern Utah? An oil boom?
Last edited by White Coat Investor on Fri Oct 25, 2013 10:43 am, edited 1 time in total.
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Re: Bogleheads' "Rags to Riches" Stories

Post by technovelist »

Valuethinker wrote:
dratkinson wrote:Could also read some of the books by Thomas J. Stanley. He spent several years researching millionaires. If memory serves:
The Millionaire Next Door
The Millionaire Mind
Stop Acting Rich and Start Living Like a Real Millionaire.
Taleb in his first book takes you through the gaping methodological flaw. The books are really not much use other than as anecdotal.

It's not a tracking study. They did not take a population (with a control group that did *not* do what they suggest) that adopted their methodology in say the early 20s, and follow them through until their 60s.

So what we might have here is a group of millionaires who became rich due to other factors: inheritance, high income, businesses they invested in did well, etc. but there might be OTHER 20-somethings, just as virtuous in adhering to the ways of the book who did not become millionaires.

Other than trivial points like save more than you earn (the books make no mention of low cost mutual funds) the books are basically just pop sociology junk.

Looking at my relations who are millionaires:

- buy your house at a good time (ie when it was cheap) and buy it in a neighbourhood that goes uphill, not down. Don't pick Buffalo or Detroit over San Francisco or Boston or Toronto (or rather the future SF and Bostons of this world)
- have a good professional job - that's the key one
- the fewer children you have, the richer you will be at 60 - children are very expensive
- live within your salary, and make investments in equities in a time when equities are going up
- inheritance, even of relatively small amounts, helps a lot-- jump starts paying down mortgage/ building investment portfolio
- if you buy a vacation property, picking one that has become the Canadian habitue of movie stars and hedge fund managers is a good idea-- ie weekend driving distance of Toronto
- live a *long* time: that small investment portfolio in the 1970s? Worth millions now to his widow
- remember not to care too much about what the neighbours think when you buy a car or a watch (same point as living within your salary)

I think I have pretty much summarized what's valuable in the books.
Two points:
Very few of the millionaires discussed in those books had inherited anything.
How do you save more than you earn? :oops:
In theory, theory and practice are identical. In practice, they often differ.
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Re: Bogleheads' "Rags to Riches" Stories

Post by RenoJay »

Grew up middle class. Graduated college at 22 and bounced around something like four commission sales job. I don't recall what I was earning, but I think it was maybe $18k/year or so on average. (I do recall that I qualified for the "universal lifeline" subsidy so I could have a home phone.) Ten years later, after four attempts at starting businesses (the first three of which crashed and burned) I was earning multi millions per year. My biggest lesson:

1. Perseverance pays, but only if you learn from every mistake
2. Keep some dry powder in the keg. (I couldn't have kept starting companies if I was broke.)
3. Spending less often yields more. (One company had $10 million in VC funding and crashed. The best one has $300 in funding and made millions.)
4. Learn, learn, learn. Be brutally honest about what caused the failures and analyze whether that problem can be avoided next time.

It was a rough road, but now I sleep well at night.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Grt2bOutdoors »

One of my relatives came to the US with $15, zero English speakings skills and a very strong desire to make it. His work ethic is superb, worked 6 days a week doing dirty work that most people would cringe at, swept,scrubbed and mopped greasy floors, worked as a mechanic - put in 14 hour days, if there was no room in the shop would work in the heat,humidity and extreme cold. Believes in the golden rule and treated customers similarly, most business folks would not extend credit on a handshake, my relative did and in a manner befitting a mensch. Never played the social class game that others do - that paid off in spades, got more repeat business and referrals than any other local mechanic. Treated his employees well. Some of these public corporations fail miserably when in comes to customer and employee relations - common sense 101. A business person, yes, but first and foremost, a gentleman and an astute investor. Invested in himself,the business and the capital markets. You can spend some of the dividends, the remainder is to be invested for future growth and don't dip into your capital base. This relative is easily worth 8 digits from $15 over a period of 50 years - you do the math. You don't need to be an venture capital guru, a private equity person, a lottery winner to make it. All you need is hard work, live beneath your means and time.
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stemikger
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Re: Bogleheads' "Rags to Riches" Stories

Post by stemikger »

This is not exactly a rags to riches story, but I'm still proud of my accomplishments considering where I came from. I'll try to give you the Readers Digest Version here.

Mom and Dad were clueless when it came to money and debt. My dad died at the age of 52 when I was 22, my Mom was left with life insurance that she went through in a year and shortly thereafter she filed bankruptcy and the house was foreclosed on. They used their house as a piggy bank and borrowed against it frequently.

My sister and I got married in our 20s. Mom went to live with my sister. My sister and husband were just as bad with money and filed bankruptcy twice and are upside down on their home and Truck.
After I got married, my credit was not the greatest and I was declined a mortgage on my first try. The amount was a whooping $115,000. It was then that I became obsessed on not going down the same path that my family had gone down. I never went to college but went to trade school to learn about computers and after that I got my first low paying job in that field. I became obsessed with the book The Automatic Millionaire and really took to heart where he talks about how you don't have to make a lot of money to retire rich. For some reason that is the part that really lit my fire.

I started putting as much into my 401K as possible and if I used credit cards I paid them off in full.

Where I stand today at 49.
My house is fully paid off.
My 401K is where it should be to retire in ten years.
My daughter is a sophomore in college and she is going to graduate without any student loans.
I have no car, credit or any other debt in my name.

So as you can see it is not a rags to riches story, but it is a far cry from where I came from and I am proud of what I have accomplished and did not make the same mistakes my family made.
Last edited by stemikger on Fri Oct 25, 2013 12:21 pm, edited 1 time in total.
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stemikger
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Re: Bogleheads' "Rags to Riches" Stories

Post by stemikger »

sperry8 wrote:My quick story...

Grew up in an upper middle class neighborhood spoiled by a well to do father who gave me more than I needed. He went bankrupt when I was in an expensive University he was paying for, that I chose. I was 18 and didn't understand. I stayed in that same University using my credit cards to pay for it and all my expenses. Ran up almost $35,000 in debt (yes, they actually gave a college kid with no history a plethora of credit). Finally at $35k, they wouldn't give me any more. So I moved home to a local city college. Got 2 night jobs, bartending and valet parking cars for the local Jewish center, where I was embarrassed to park the cars of all my friends and families and accept $1 tips that I sorely needed. On weekends I would go to baseball card shows and sell my collection for whatever I could get. I also moved back in with the parents, where I paid 1/2 the rent to help them out. And I swore I'd never depend on anyone for money again.

I finished school. Paid the minimums on my credit cards while I did (about $600 per mo if memory serves) and took a job after work that paid $20,000 per year. Kept working my way up the ladder... promoted to $24k, then to $40k, then to $54k (couldn't believe it!), then to $75k... where I finally realized that even at these "high" salaries, I'd never become financially free. The only way to do that was to own something. So I moved West to San Francisco and got a job at a dot com in the early days. The days when Netscape was the #1 browser. It was owned by a large publicly traded firm. I had some shares, but they ended up worthless. However, I was recruited to a 2nd dot com. It was already up and running and had investors and revenue but was private. It sold for $35 million. I owned some stock and got $35,000. I bought a much needed new car. I then went to my 3rd dot com. But this time I went to one that was just starting. It was me and 3 others when it started. Eventually we sold it sold for 9 figures. I got 7 figures. I was 36. I retired at 38.

My advice to your children? Finish University. It doesn't matter what degree you get. But finish. Then get some work experience and network. Meet as many people as you can - and gain valuable experience while doing it. But quickly - and I mean before 30, go work for yourself. It doesn't have to be a dot com. I don't care if you fail. I don't care if you fail again. But keep taking chances. Sell everything. Get night jobs. But do it. Because unless you have amazing financial skills where you can work at a PE firm or similar, or you're a doctor, dentist or tradesman with serious skills, you won't make enough to get riches in the short term working for others. Plus, you'll have more fun doing it for yourself. Do not work for a corporation. Do not settle for less than you're worth. Do not buy frivolous things until you've met your financial goals. Write down your #. Do not change it. When you hit your #, get out. Life is short. Enjoy it. I have riches now. They provide me freedom but not happiness. They provide me choices but not love. Don't chase an ever rising #. Don't hide from life. Don't hide from yourself. Walk your path. Don't be afraid where it leads. Just go. If you knew where it lead, you'd be bored and wouldn't walk it.

Guess what everyone else who got 7 or even some who got 8 figures from the sale are doing now? Every single one of them is still working. And not short days either. Working long hours. They are all married with children. Life is passing them by because they don't know what else to do. And they are unwilling to sit with themselves til they figure it out. Don't let life pass you by. Money is the tool, not you. Live, love, laugh, be kind, be patient, be compassionate, and be generous with your time. You won't regret any of those things when your time is up. Promise. You will regret working away your life. Promise. So be quick about your own rags to riches story if that is what you seek.
+1
It's not applicable to me because I'm 49, but I am showing this to my daughter who is a sophomore in college. This is great advice.
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Re: Bogleheads' "Rags to Riches" Stories

Post by stoptothink »

Grt2bOutdoors wrote:One of my relatives came to the US with $15, zero English speakings skills and a very strong desire to make it. His work ethic is superb, worked 6 days a week doing dirty work that most people would cringe at, swept,scrubbed and mopped greasy floors, worked as a mechanic - put in 14 hour days, if there was no room in the shop would work in the heat,humidity and extreme cold. Believes in the golden rule and treated customers similarly, most business folks would not extend credit on a handshake, my relative did and in a manner befitting a mensch. Never played the social class game that others do - that paid off in spades, got more repeat business and referrals than any other local mechanic. Treated his employees well. Some of these public corporations fail miserably when in comes to customer and employee relations - common sense 101. A business person, yes, but first and foremost, a gentleman and an astute investor. Invested in himself,the business and the capital markets. You can spend some of the dividends, the remainder is to be invested for future growth and don't dip into your capital base. This relative is easily worth 8 digits from $15 over a period of 50 years - you do the math. You don't need to be an venture capital guru, a private equity person, a lottery winner to make it. All you need is hard work, live beneath your means and time.
The parents of one of my friends have a similar story. They immigrated to the U.S. from Brazil with nothing and did not speak the language, but the father did have auto repair and auto body skills. He started a small auto body shop and prioritized customer service. About 20yrs later and it is the largest auto body shop in the state, they have won Better Business Bureau Torch awards and local newspaper best customer service awards going on over a decade straight, and the parents of my friend are worth well into 8-figures. Although I know the owners well (and you would never guess they are very well off), I had no experience with the business itself until last week when my fiancee was hit and needed to have her rear bumper replaced; without a doubt the best customer service of any business I have ever dealt with. The front office staff was so polite (bordering on obnoxious), we didn't wait a second despite the office being full of customers, they had everything done in 5 mins (including contacting insurance and setting up her rental car), an entire snack bar for customers, they called the day before to remind her of her appointment, etc. Just amazing service.
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Re: Bogleheads' "Rags to Riches" Stories

Post by gtg970g »

richard wrote:One important lesson is not to live in the south east.
I believe you misinterpreted the title of this map. The correct lesson from this map is not to be born into poverty in the southeastern US. If you find a way to control where and to whom you are born please let me know ASAP so I can capitalize on the groundbreaking discovery.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Macmungo »

Some of you might be interested in comparing the upwardly-mobile map of the US with a map of the distribution of black people in the US. Just google "map black population US".
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Re: Bogleheads' "Rags to Riches" Stories

Post by 3CT_Paddler »

Macmungo wrote:Some of you might be interested in comparing the upwardly-mobile map of the US with a map of the distribution of black people in the US. Just google "map black population US".
Image
http://www.censusscope.org/us/map_nhblack.html

The authors of the study point that out, but say that the numbers were similarly bad for poor people of other races.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Rexindex »

sperry8 wrote:My quick story...

Grew up in an upper middle class neighborhood spoiled by a well to do father who gave me more than I needed. He went bankrupt when I was in an expensive University he was paying for, that I chose. I was 18 and didn't understand. I stayed in that same University using my credit cards to pay for it and all my expenses. Ran up almost $35,000 in debt (yes, they actually gave a college kid with no history a plethora of credit). Finally at $35k, they wouldn't give me any more. So I moved home to a local city college. Got 2 night jobs, bartending and valet parking cars for the local Jewish center, where I was embarrassed to park the cars of all my friends and families and accept $1 tips that I sorely needed. On weekends I would go to baseball card shows and sell my collection for whatever I could get. I also moved back in with the parents, where I paid 1/2 the rent to help them out. And I swore I'd never depend on anyone for money again.

I finished school. Paid the minimums on my credit cards while I did (about $600 per mo if memory serves) and took a job after work that paid $20,000 per year. Kept working my way up the ladder... promoted to $24k, then to $40k, then to $54k (couldn't believe it!), then to $75k... where I finally realized that even at these "high" salaries, I'd never become financially free. The only way to do that was to own something. So I moved West to San Francisco and got a job at a dot com in the early days. The days when Netscape was the #1 browser. It was owned by a large publicly traded firm. I had some shares, but they ended up worthless. However, I was recruited to a 2nd dot com. It was already up and running and had investors and revenue but was private. It sold for $35 million. I owned some stock and got $35,000. I bought a much needed new car. I then went to my 3rd dot com. But this time I went to one that was just starting. It was me and 3 others when it started. Eventually we sold it sold for 9 figures. I got 7 figures. I was 36. I retired at 38.

My advice to your children? Finish University. It doesn't matter what degree you get. But finish. Then get some work experience and network. Meet as many people as you can - and gain valuable experience while doing it. But quickly - and I mean before 30, go work for yourself. It doesn't have to be a dot com. I don't care if you fail. I don't care if you fail again. But keep taking chances. Sell everything. Get night jobs. But do it. Because unless you have amazing financial skills where you can work at a PE firm or similar, or you're a doctor, dentist or tradesman with serious skills, you won't make enough to get riches in the short term working for others. Plus, you'll have more fun doing it for yourself. Do not work for a corporation. Do not settle for less than you're worth. Do not buy frivolous things until you've met your financial goals. Write down your #. Do not change it. When you hit your #, get out. Life is short. Enjoy it. I have riches now. They provide me freedom but not happiness. They provide me choices but not love. Don't chase an ever rising #. Don't hide from life. Don't hide from yourself. Walk your path. Don't be afraid where it leads. Just go. If you knew where it lead, you'd be bored and wouldn't walk it.

Guess what everyone else who got 7 or even some who got 8 figures from the sale are doing now? Every single one of them is still working. And not short days either. Working long hours. They are all married with children. Life is passing them by because they don't know what else to do. And they are unwilling to sit with themselves til they figure it out. Don't let life pass you by. Money is the tool, not you. Live, love, laugh, be kind, be patient, be compassionate, and be generous with your time. You won't regret any of those things when your time is up. Promise. You will regret working away your life. Promise. So be quick about your own rags to riches story if that is what you seek.

Great stuff! Thanks for contributing.
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Re: Bogleheads' "Rags to Riches" Stories

Post by sperry8 »

morbster wrote:
sperry8 wrote:Money is the tool, not you.
Thanks for sharing your story, sperry8. I especially enjoyed that line. It sounds like a could be a common ciche', but I've never heard it before. It's a good way to view money.
travellight wrote:amazing story, sperry8.... and great philosophical points.
stemikger wrote: +1
It's not applicable to me because I'm 49, but I am showing this to my daughter who is a sophomore in college. This is great advice.
Rexindex wrote: Great stuff! Thanks for contributing.
Thanks all. Happy to share.

Stemikger, I hope it helps your daughter - although I find sometimes people who have yet to work just don't yet understand this stuff. Only after working at a job that doesn't fulfill them - or that doesn't pay enough (or both), do they start to learn what they want. Even in my instance, I didn't understand money til my Father couldn't provide it anymore and I had to go earn it on my own. But certainly no harm in trying - you never know when someone is ready to heed a lesson :idea:
lostInFinance wrote:
sperry8 wrote: I then went to my 3rd dot com. But this time I went to one that was just starting. It was me and 3 others when it started. Eventually we sold it sold for 9 figures. I got 7 figures. I was 36. I retired at 38.
What percent equity did you have when you first joined the company and what percent equity did you have after dilution when the company was finally sold?
I can share this information - but I wonder why you ask? So many variables go into this answer. What level is the person when they join? Are they "C", VP, mid or entry level? What area are they in, tech, marketing, finance, sales? Also, was the company funded when they joined or not? Further, the % can be misconstrued if not applied properly. For example, if someone got .1% and worked at Instagram (which sold for $1 Billion), they'd earn $1 million. If someone else got 5% and worked at a company that sold for $20 million they'd get $1 million. Usually when I'm asked this #, it's from people who want to know how much to ask for. My advice is twofold; (i) ask for as much as you can get based on your experience. Do not settle for less than you're worth. Walk if they offer you less, and (ii) keeping your # in mind (and for this example let's assume it's $3 million), estimate what you think the company can sell for in a reasonable period of time (i.e., ~5 years). Ask them to help you if you can't find this info (or search for recent sales in that industry to see what multiples are being given to companies at that time). If you look at their projected 5 year plan and don't agree that they'll sell for $100 million when you have 3% of the company (i.e., their estimates don't agree with current sales), then, in this example, if you think they can only likely sell for $60 million then you need to ask for 5% of the company to hit your #. And of course as you correctly note, you should expect dilution along the way (so you may need to ask for even more).

With the above example, you can see how providing you with just my personal % may not offer enough information to make an informed decision. With all that said, I remain willing to share but want to be sure why you're asking so I can provide the appropriate info you seek.
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Re: Bogleheads' "Rags to Riches" Stories

Post by stemikger »

Posted by Sperry8
Stemikger, I hope it helps your daughter - although I find sometimes people who have yet to work just don't yet understand this stuff. Only after working at a job that doesn't fulfill them - or that doesn't pay enough (or both), do they start to learn what they want. Even in my instance, I didn't understand money til my Father couldn't provide it anymore and I had to go earn it on my own. But certainly no harm in trying - you never know when someone is ready to heed a lesson :idea:
Nevertheless, I already printed it out and have it ready for when the time comes. I know everyone has their own journey, but I love the idea of getting out while you are young and still are not fully jaded. Most of us have it all wrong, but just don't know any other way or are too scared.
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Re: Bogleheads' "Rags to Riches" Stories

Post by john94549 »

My Mom was born in 1915, came of age in the Great Depression, one of six children in a quite modest household. Made their own clothes, grew much of their food in the backyard garden, kept chickens, etc. Mom and Dad married in 1940. Dad landed a job as a hardware salesman in 1946, I was born in 1947, and we moved to his new "territory", centered in Kansas City. Mom was very frugal. She is now 98 (Dad died some years ago) and just hit the "two comma club" last year.

Only this year will she begin to invade principal.
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Re: Bogleheads' "Rags to Riches" Stories

Post by sperry8 »

stemikger wrote:
Posted by Sperry8
Stemikger, I hope it helps your daughter - although I find sometimes people who have yet to work just don't yet understand this stuff. Only after working at a job that doesn't fulfill them - or that doesn't pay enough (or both), do they start to learn what they want. Even in my instance, I didn't understand money til my Father couldn't provide it anymore and I had to go earn it on my own. But certainly no harm in trying - you never know when someone is ready to heed a lesson :idea:
Nevertheless, I already printed it out and have it ready for when the time comes. I know everyone has their own journey, but I love the idea of getting out while you are young and still are not fully jaded. Most of us have it all wrong, but just don't know any other way or are too scared.
I think it's a great idea to provide it early. And again later. And even again when you think you've got it. I re-read my lessons all the time. I'm always amazed what I re-learn from lessons I thought I fully incorporated years ago. The mind is quite interesting in this regard.
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Re: Bogleheads' "Rags to Riches" Stories

Post by lostInFinance »

Valuethinker wrote:
dratkinson wrote:Could also read some of the books by Thomas J. Stanley. He spent several years researching millionaires. If memory serves:
The Millionaire Next Door
The Millionaire Mind
Stop Acting Rich and Start Living Like a Real Millionaire.
Taleb in his first book takes you through the gaping methodological flaw. The books are really not much use other than as anecdotal.

It's not a tracking study. They did not take a population (with a control group that did *not* do what they suggest) that adopted their methodology in say the early 20s, and follow them through until their 60s.

So what we might have here is a group of millionaires who became rich due to other factors: inheritance, high income, businesses they invested in did well, etc. but there might be OTHER 20-somethings, just as virtuous in adhering to the ways of the book who did not become millionaires.

Other than trivial points like save more than you earn (the books make no mention of low cost mutual funds) the books are basically just pop sociology junk.
Imagine he did a scientific study: he started with two statistically large and random groups of US 25-year-olds. Half were randomly assigned to a control group and the other half were randomly assigned to a test group. The control group did nothing different but report their net worth on a regular basis, while the test group had to live a very frugal, very high savings rate lifestyle for the next thirty years. Assuming 100% compliance is there anyone who thinks the test group wouldn't have a higher average net-worth than the control group or wouldn't have a higher percentage of millionaires?
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Re: Bogleheads' "Rags to Riches" Stories

Post by steve88 »

In 94 our networth was negative. Now we have 1.2 million but I dont feel any different. The problem with my situation is one of our family member is in the forbes 400 and I feel like a pauper. The family member used to rent from us a long time ago rent free now they are billionaires.
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Re: Bogleheads' "Rags to Riches" Stories

Post by sperry8 »

steve88 wrote:In 94 our networth was negative. Now we have 1.2 million but I dont feel any different. The problem with my situation is one of our family member is in the forbes 400 and I feel like a pauper. The family member used to rent from us a long time ago rent free now they are billionaires.
If you're going to compare yourself to others, you're going to be dissatisfied in everything you do. There is always someone richer. Always someone taller. Always someone with more hair. So what? Imagine your family member doing this. He looks at Warren Buffet and feels like a pauper. Now wouldn't you consider that silly? Ever seen an interview by a model and she thinks she's fat? Silly eh? All people comparing themselves to others. If you must compare. Compare yourself now to your past self. Your "now" self has $1.2 million and no debt. Your "past" self was struggling more financially. Make that your focal point and not someone else.
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Re: Bogleheads' "Rags to Riches" Stories

Post by dratkinson »

sperry8 wrote:... If you must compare. Compare yourself now to your past self. ...
Hear this recently. "You must be yourself because everyone else is already taken."
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
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Re: Bogleheads' "Rags to Riches" Stories

Post by jon-nyc »

stemikger wrote:My sister and I got married in our 20s.
Sorry, man, but that's just plain creepy.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Grt2bOutdoors »

jon-nyc wrote:
stemikger wrote:My sister and I got married in our 20s.
Sorry, man, but that's just plain creepy.
+1 LOL! :D
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Re: Bogleheads' "Rags to Riches" Stories

Post by zagyzebra »

In what I thought at the time was a tragic twist of fate, I was forced to drop out of college. An automobile accident in the summer between graduate and undergraduate school left my writing hand immobilized in a cast from the fingertips to above the elbow. It was all the energy I could muster just to get back and forth to my classes. When it became unbearable, I faced facts and dropped my courses before it became too late to get financial credit. I had every intention of undergoing three subsequent surgeries and re-entering grad school a year later. As luck would have it, my former boss at a company I worked at on a part-time basis as an undergrad called to see what I was up to and offered me a full-time job. I took the job and never did go back to graduate school. Instead, my career was off and running well ahead of schedule, and in a completely different area than I had anticipated. Had I stayed in grad school I doubt I would have made as much money or been as creatively rewarded. Out of adversity comes opportunity.
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Re: Bogleheads' "Rags to Riches" Stories

Post by sperry8 »

zagyzebra wrote:In what I thought at the time was a tragic twist of fate, I was forced to drop out of college. An automobile accident in the summer between graduate and undergraduate school left my writing hand immobilized in a cast from the fingertips to above the elbow. It was all the energy I could muster just to get back and forth to my classes. When it became unbearable, I faced facts and dropped my courses before it became too late to get financial credit. I had every intention of undergoing three subsequent surgeries and re-entering grad school a year later. As luck would have it, my former boss at a company I worked at on a part-time basis as an undergrad called to see what I was up to and offered me a full-time job. I took the job and never did go back to graduate school. Instead, my career was off and running well ahead of schedule, and in a completely different area than I had anticipated. Had I stayed in grad school I doubt I would have made as much money or been as creatively rewarded. Out of adversity comes opportunity.
Such a wonderful lesson here. So many people have a plan. They spend a lot of time worrying about what will happen if that plan doesn't come to fruition. And then, for some, when that plan goes awry they get very upset. And yet, I find that things often times (not always) work out just the way they were supposed to. Better than the plan you had. And in such a way that you never could have planned for. It's a wonderful lesson that teaches us to plan ahead - but remember - life delivers us what we need, not what we plan. When I was 18, I would've strongly preferred my Dad didn't go bankrupt and leave me with significant debt. Yet, had he remained employed, I also might have remained employed. Instead I retired at 38. Don't sweat the plans you make. Make them, but give a chance to allow your life to unfold as it will. And only after you see the outcome, decide whether to get upset, or not. In my experience if you can live life this way, you'll find yourself less agitated and perhaps more happy.
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Re: Bogleheads' "Rags to Riches" Stories

Post by Barefootgirl »

sperry8, I could read anything you write…your writing style and content are so zenful, wow, I enjoy your insight so much.

My story, at the risk of sounding like a made for TV movie.

Born in a rural community in the 1960s as the first child in a large, low income family, heavily subsidized by the paternal grandparents. Female maternal family members were extremely dependent and seemingly without options, female paternal family members had their own incomes, enjoyed joint as well as separate lives, were more confident. They struck a chord in me. I wanted independence and adventure and besides, the pop culture was now telling us that women could do anything, be anything. I was able to attend university through merit and need based scholarships, grants, part time work and loans. I graduated and the next day, headed to Manhattan wearing a suit and pumps and carrying a briefcase. I knocked on many doors, cold calling. I aimed high, walked into the United Nations and inquired about a job, only to be turned away due to a lack of a graduate degree - even for entry level positions. Most headhunters advised me to pick up typing skills - what??? I have a degree! LOL…on several occasions, I overheard them giving different advice to freshly minted male graduates, offering them interviews on Wall Street, no typing skills required. Eventually, a Japanese conglomerate on Park Avenue offered to let me take an entrance exam. Turns out that I was the only one who passed and the next day I found myself surrounded by a group of Japanese businessmen on the 44th story of the Pan Am building. My job was to prepare international shipping documentation and provide translation services. I enjoyed that job, it was almost glamorous. Around 1PM every day, they would roll sushi carts around or offer the employees flower arranging or exercise classes. It was another world. Ultimately, I wanted to earn more money, so I talked my way into a job in the aerospace business, working directly for a former Apollo astronaut (transferred to work for him after one of his colleagues refused to hire me, stating "we'll only end up training you, then losing you after you get pregnant and don't come back to work".) I did so well in that position, that I later snagged a higher paying job in the IT industry as it was taking off in the 1990s. Eventually, we all stopped working and spent our days on the white boards, tallying our burgeoning personal net worth as the stock prices soared. The greedy fool that I was, I kept waiting for the stock to hit the higher number and it never did and I rode it down, but thankfully had been selling smaller lots on the way down. After the dot com bust, I stayed with the company disgruntled to be only working for salary and not for big stock proceeds, but it was good while it lasted and then they froze salaries and pensions and I bailed. I am now working in a secure position elsewhere, counting the months to retirement.
I have a low 7 figure net worth….and little of it came from luck or riding high. I never rose above mid level management - by my own choice. The vast majority of my portfolio was earned the old fashioned and unsexy way - compound interest, dollar cost averaging, maxing out pretax vehicles and always living well beneath my means, low cost mutual funds. I worked part time jobs through college, always one full time and part time job simultaneously after that. The only time I worked one job was while attending graduate school at night. My MBA program took five years to complete at night.
Interestingly enough, when married, we achieved a 7 figure net worth around 2000, which I ended up having to divide during the divorce in 2007 and now only 6 years later, all by myself, I am back to where I was when I was with the vice president, spendthrift ex-husband. This is truly a testament to self determination over status and income.
Looking back, the only thing I would have done differently, knowing what I know now, is I should have gone into business for myself before allowing myself to get locked in by the golden handcuffs of pension benefits. Sadly, although it's worked out reasonably well enough, I have never been a good fit for corporate life. It would have been better to know that sooner rather than later.

BFG
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Re: Bogleheads' "Rags to Riches" Stories

Post by abuss368 »

This is a great post.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Bogleheads' "Rags to Riches" Stories

Post by lostInFinance »

sperry8 wrote:
lostInFinance wrote: What percent equity did you have when you first joined the company and what percent equity did you have after dilution when the company was finally sold?
I can share this information - but I wonder why you ask? So many variables go into this answer. What level is the person when they join? Are they "C", VP, mid or entry level? What area are they in, tech, marketing, finance, sales? Also, was the company funded when they joined or not? Further, the % can be misconstrued if not applied properly. For example, if someone got .1% and worked at Instagram (which sold for $1 Billion), they'd earn $1 million. If someone else got 5% and worked at a company that sold for $20 million they'd get $1 million.

With the above example, you can see how providing you with just my personal % may not offer enough information to make an informed decision. With all that said, I remain willing to share but want to be sure why you're asking so I can provide the appropriate info you seek.
Mostly just curiosity and I'm bored. I have no intention of ever taking a job at another startup or small business. However, estimating the company's future sale value a prior raises another interesting question. Isn't trying to determine whether a company is going to be a Facebook instead of a Myspace or worse a Friendster ahead of time like trying to predict which individual stocks will outperform the market and which will under perform?
travellight
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Re: Bogleheads' "Rags to Riches" Stories

Post by travellight »

This thread reminds me of the time I was in Paris and discovered an underground salsa club. I was on my trip solo and returning to the hotel one evening, I saw these stairs leading to an underground club and went to explore. I was told it was a dance club and I love to dance so I went in.

I am a darn good dancer and am not shy about it. I settled into a comfy chair and was then mesmerized by the music and the world of dance around me. Every single person in that place appeared to have trained for dance contests for months. They glided and pirouetted in amazing synchrony and for once, I was happy and content to just watch. The beauty of their performances far exceeded what I felt I had to offer.

That is a long way to say I am really enjoying the stories and mine pales in comparison. I am happy and content to just watch.
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stemikger
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Re: Bogleheads' "Rags to Riches" Stories

Post by stemikger »

travellight wrote:This thread reminds me of the time I was in Paris and discovered an underground salsa club. I was on my trip solo and returning to the hotel one evening, I saw these stairs leading to an underground club and went to explore. I was told it was a dance club and I love to dance so I went in.

I am a darn good dancer and am not shy about it. I settled into a comfy chair and was then mesmerized by the music and the world of dance around me. Every single person in that place appeared to have trained for dance contests for months. They glided and pirouetted in amazing synchrony and for once, I was happy and content to just watch. The beauty of their performances far exceeded what I felt I had to offer.

That is a long way to say I am really enjoying the stories and mine pales in comparison. I am happy and content to just watch.
+1
I enjoyed yours. So you paid it forward. LOL.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
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stemikger
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Re: Bogleheads' "Rags to Riches" Stories

Post by stemikger »

jon-nyc wrote:
stemikger wrote:My sister and I got married in our 20s.
Sorry, man, but that's just plain creepy.
+1000. :D

I just spit out my coffee when I read this and laughed so hard it came out of my mouth. Yeah, this is creepy, but if you knew my sister you would really think it's super creepy. LOL. Thanks for the laugh.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
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Re: Bogleheads' "Rags to Riches" Stories

Post by reggiesimpson »

Threads like this are one of the primary reasons why I enjoy this Forum so much.
The unadultered and honest discussions that take place here are truly enlightening and I feel very fortunate to be able to participate in some way.
My success story is really a story of my father. When he was 80 I did a video of his life story. I asked him what was the happiest day of his life? Assuming he would say it was getting married or my birth I was quite surprised when he said that the happiest day of his life was when he crossed the border into the United States. I had no idea it meant so much to him. He wanted a better life for his family and it took him 10 years to get here. I was 12 and clueless of course. He was never rich but he and my mother worked very hard and saved their pennies. And they loved me and I loved them.
Over the course of my life I can therefore connect my success ( just passed the 8 figure mark) in life not just to my hard work and sacrifice but to the love of my father and mother. Parental love gives children a sense of strength by decreasing their "fears" in life. That creates a greater sense of hope for a better future.
I recently told my children that they should not eulogize me on my death. They have a great life because of their Grandma and Grandpa. Eulogize them.
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nedsaid
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Re: Bogleheads' "Rags to Riches" Stories

Post by nedsaid »

I am not a "rags to riches" story as such.

I have used a combination of workplace savings plans and traditional IRA plans to build a retirement nest egg. In recent years, I started a Roth IRA but don't have a lot in there. It has grown over the years and though I am pleased with the progress, I think I need about 10 more years of working, saving, and investment to have the retirement I want.

I am grateful for living in this country and having the tools necessary to both save and invest effectively. I am also grateful for people who helped me along the way and explained financial concepts to me.

At age 54, so far so good.
A fool and his money are good for business.
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LowER
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Re: Bogleheads' "Rags to Riches" Stories

Post by LowER »

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Last edited by LowER on Sat Nov 01, 2014 11:36 am, edited 3 times in total.
birdy
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Re: Bogleheads' "Rags to Riches" Stories

Post by birdy »

My story probably not uncommon here in Bogleheads land:

Father worked for the railroad and was hardly home. Stay at home mom for quite a while growing up. Can still remember in grade school watching mom pull out a shoe box of bills every month and trying to decide which bills had to be paid and which could slide for awhile. As soon as I was able, I started working in the summer picking berries and babysitting before and after school to pay for school clothes. My Dad took me to open up a saving account at a bank when I was in junior high. I can remember when my parents were trying to buy their first house (me in grade school) and they couldn't quailfy unless they had a co-signer. All these things in my early life made a BIG impression on me. In high school I took all the business classes I could so I could get a job right after high school (college was never even talked about in the family).

Once I married, I took over the job of being the "saver". I always put $10.00 per month in savings (pay yourself first -not sure how I picked that up), this was when our MONTHLY income was $350.00!! As my husband started working (put him through college) we started to put my paychecks into savings and lived on his. Always lived below our means, when we took vacations it was going on car trips where we tent camped and cooked our own meals for probably the first 15 years of our marriage. We began to invest in several mutual funds and when we had 401K's we both tryed to max them out. I discovered Suze Orman and really started to pick up speed in knowing how to start growing savings. Now the bogleheads are my "go to" information source and we have continued to go great guns toward a comfortable retirement.

Now at 58 yrs old we have met and surpassed our $1M goal and are working for a $2M goal. Our combined incomes have never been over $100,00/year. We are and have been completely debt free for the last 10 years (including our house). Starting to save at a young age and getting my husband to share my love of savings and bargin shopping have really paid off! Having the help of the Bogleheads has prevented many a money mistake over the years also. We have lived a great life, being able to travel and feel financially secure. My early childhood years where we always had "what we needed" but not always "what we wanted" along with some how learning to value hard work and the importance of saving for "a rainy day" helped mold me into what I am today. I get as much satisfaction from saving as I do spending. I try to tell my friends we have done so well because we have had good savings habits from early on and that if you start to save early almost anyone can be a millionaire at retirement!

birdy
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