Advice to become wealthy

[OldSport]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible. Financial independence for the lifestyle I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account. 100% of the 401k and Roth IRA are in stocks. Taxable is 95% stock and 5% bonds. The 5% bonds are for a 2nd line of defence emergency fund just in case. All are in low cost index funds 70% US/30% international with small tilts to small cap, value, and emerging markets.

I seem to be on track for a decent retirement, but I'm not so sure what I'm doing will make me wealthy. Every time I get a raise or bonus, I try to save at least 50% after tax, so the after tax savings % should grow with time.

[Watty]

I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account.

That would be saving $24,000 (Plus an employer 401k match?) in retirements. I don't know what your income is but that might bring it up to a total of $40,000 a year or more.

You might even be paying a mortgage that would be paid off by the time you retire and having a paid off house would increase your net worth.

Depending on your age and when you want to retire that will pretty much do it.

https://research.scottrade.com/Knowledg ... Retirement?

[FiveK]

In round numbers, and neglecting taxes, $3000/mo invested for 30 years and earning 7%/yr gets you to $3.6MM. Close enough?

[staythecourse]

Honestly, some will never attain that extreme wealth. The best way to do it is to invest in your human capital. Get a higher education in a career that you like and that makes a lot of money. Then just marry someone who is in the same boat. It is much easier to be "wealthy" when you are SAVING 200+k per year then if you are saving 50k per year. Then just pick any random asset allocation and stay the course. Continue to LBYM during all of that. Avoid major catastrophes, such as: Marrying a spendthrift spouse, divorce, buying a house that cost more then you really can afford, spending money on expensive private schools (elementary, high school, and colleges), etc...

That's it.

Good luck.

p.s. If you don't/ can't do the above then you will have to take more risk, i.e. leverage. Real estate is a great way for those who don't have a great salary to get rich. Buy a multifamily with mortgage. Living in one and rent the other to pay off mortgage early. Then buy another and do the same with the last multifamily 2 units speeding up paying off the current. Rinse and repeat.

[rocket354]

The top 1% by net worth is now about $10 million.

That said, maxing your retirement accounts, investing properly, and patience should get you to your $3-4 million goal as long as you have enough time ahead of you for your current assets.

[Nicolas]

In 30 years what will $3-4 million be worth in terms of buying power? If inflation occurs as it has in the last 30 years, less than half. You need to shoot for $7-8 million.

[OldSport]

I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account.

That would be saving $24,000 (Plus an employer 401k match?) in retirements. I don't know what your income is but that might bring it up to a total of $40,000 a year or more.

You might even be paying a mortgage that would be paid off by the time you retire and having a paid off house would increase your net worth.

Depending on your age and when you want to retire that will pretty much do it.

https://research.scottrade.com/Knowledg ... Retirement?

Thanks. After tax is ~$15k/year, so it works out to $39,000/year, excluding 7% employer match, which I do max out. It is definitely a nice savings rate, but I don't feel wealthy, at least not now.

The $3-4 Million is in todays dollars for the lifestyle I want, assuming a 3.5% withdrawal rate. I figure a 3.5% withdrawal rate for FI to prevent drawing down capital plus inflation.

[OldSport]

In 30 years what will $3-4 million be worth in terms of buying power? If inflation occurs as it has in the last 30 years, less than half. You need to shoot for $7-8 million.

Yes - agreed. $3-4 Million would be financial independence in todays dollars, assuming 3.5% withdrawal rate.

[Sandtrap]

Real estate is a great way for those who dor or don't have a great salary to get rich. Buy a multifamily with mortgage. Living in one and rent the other to pay off mortgage early. Then buy another and do the same with the last multifamily 2 units speeding up paying off the current. Rinse and repeat.

It takes great sacrifice to buy a fourplex, eightplex, etc, and live in one unit while renting the rest instead of buying a wonderful home as most are inclined to do. But, it is a path to accumulation of assets if done properly and managed wisely.

[J295]

Own your business.

[OldSport]

Real estate is a great way for those who dor or don't have a great salary to get rich. Buy a multifamily with mortgage. Living in one and rent the other to pay off mortgage early. Then buy another and do the same with the last multifamily 2 units speeding up paying off the current. Rinse and repeat.

It takes great sacrifice to buy a fourplex, eightplex, etc, and live in one unit while renting the rest instead of buying a wonderful home as most are inclined to do. But, it is a path to accumulation of assets if done properly and managed wisely.

This is great advice and would have helped when I was younger and just starting out. I am married with young children, so we now have a house good enough to be a "forever home" in a nice area with a good school district. I don't feel strained at all with housing costs.

[TravelGeek]

How old are you and by what age would you want to reach your goal?

[msk]

1. Save and invest 30% of after tax income. Payment of principal on a home mortgage counts, but not interest.
2. Never buy a house worth more than 3x annual income, or 2.5x joint income. You may afford the monthly payments but expensive homes carry expensive maintenance commitments, be it landscaping or air conditioning.
3. Never acquire a car (or cars if multiple), by purchase or lease, worth more than 6 months income.

If you are still in your 30s, 'awake' at your job (so that you have a decent career), follow all the above then you are all set to get to the top 1%, and have a decent standard of living throughout your mid-life years. Worked for me... Nevertheless you need to work at your investments. While the BH way is ETFs, you may be young enough to be quite a bit more aggressive. In my pauper years I went into rental RE. I happened to be living at a location with a drastic shortfall of housing, and ended up with 30 rental units by the time I got rid of them, simultaneously with retiring from my normal job. Then I had much more time available for the stock market and made much more $ at that, after retirement. Nobody can give you a blueprint since history does not repeat. But, as for your daytime job, you need to be awake and use opportunities as they are offered.

[OldSport]

1. Save and invest 30% of after tax income. Payment of principal on a home mortgage counts, but not interest.
2. Never buy a house worth more than 3x annual income, or 2.5x joint income. You may afford the monthly payments but expensive homes carry expensive maintenance commitments, be it landscaping or air conditioning.
3. Never acquire a car (or cars if multiple), by purchase or lease, worth more than 6 months income.

If you are still in your 30s, 'awake' at your job (so that you have a decent career), follow all the above then you are all set to get to the top 1%, and have a decent standard of living throughout your mid-life years. Worked for me... Nevertheless you need to work at your investments. While the BH way is ETFs, you may be young enough to be quite a bit more aggressive. In my pauper years I went into rental RE. I happened to be living at a location with a drastic shortfall of housing, and ended up with 30 rental units by the time I got rid of them, simultaneously with retiring from my normal job. Then I had much more time available for the stock market and made much more $ at that, after retirement. Nobody can give you a blueprint since history does not repeat. But, as for your daytime job, you need to be awake and use opportunities as they are offered.

Thanks. I already follow #2 and #3. #1 is tough. 30% after tax in addition to maxing out 401k and Roth IRA is tough. I am currently at 15%, excluding mortgage principal, but I could eventually get there.

I am 35. Want to retire by 65 but open to semi-retiring earlier.

[msk]

Why do you consider the 401k and Roth as not 'saving and investing' ? Perhaps you are already fulfilling the 30% rule. In which case just stick to it and things will work out fine

[JoMoney]

How to become wealthy?
Save more than you spend. Earn more.
How you earn your money is another matter, but it's not likely to be coming from excess gains in shrewd day-trading or other securities trading. I would suggest focusing on your career and income there.
Maybe some other ideas here:
https://books.google.com.au/books?id=so ... edir_esc=y

[Watty]

I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account.

That would be saving $24,000 (Plus an employer 401k match?) in retirements. I don't know what your income is but that might bring it up to a total of $40,000 a year or more.

You might even be paying a mortgage that would be paid off by the time you retire and having a paid off house would increase your net worth.

Depending on your age and when you want to retire that will pretty much do it.

https://research.scottrade.com/Knowledg ... Retirement?

Thanks. After tax is ~$15k/year, so it works out to $39,000/year, excluding 7% employer match, which I do max out. It is definitely a nice savings rate, but I don't feel wealthy, at least not now.

The $3-4 Million is in todays dollars for the lifestyle I want, assuming a 3.5% withdrawal rate. I figure a 3.5% withdrawal rate for FI to prevent drawing down capital plus inflation.

It has been a long time since I read it and don't recall being overly impressed with it but you might read the book, "The Millionaire Next Door." that talks about wealth accumulation. As I recall one of the big points was that most millionaires don't live a "TV wealthy" lifestyle. Instead of a fancy car they often drive a pickup truck, and instead of living in a mansion they often live in a fairly typical home.

You should also consider what your income needs will be at different ages in retirement. I have seen older relatives naturally slow down by the time they got into their mid 70s even though they were in relatively good health. At that point their spending went way down since they didn't do things like travel much and and they were more interested in getting rid of 50 years accumulation of "stuff" than getting new "stuff". They lived in a paid off house and while their health was good there were often months when they didn't even spend their entire Social Security checks.

One thing I have done for years is to update a very simple spreadsheet where I calculate my net worth each year on January 1st so that I can see my progress over the years.

Compared to many posters here I am pretty middle class and not wealthy but one of the things that made me feel pretty "well off" was when I got my house paid off since that was a major milestone for my financial situation. There are all sorts of arguments for and against paying off your mortgage but you might consider if that would be a good goal for you to feel more financially secure.

[Jack FFR1846]

Make sure both spouses are always in a job. Don't have kids. Take on side gigs that could expand to a business. We see stories all the time where someone has a side business that's now throwing off $500k in income and they're wondering if they should quit their day job. Of course, live below your means and own a small house.

[bottlecap]

I bet people whose goal is to become wealthy are the least likely to achieve it.

The best plan is to find a way to earn a living doing something you truly like to do and aren’t bad at. Then apply tremendous amounts of work and study excelling in the field. The wealth follows, not the other way around. Even in some of the lower paying fields, there are avenues to far greater advancement.

Good luck,

JT

[chevca]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible. Financial independence for the lifestyle I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account. 100% of the 401k and Roth IRA are in stocks. Taxable is 95% stock and 5% bonds. The 5% bonds are for a 2nd line of defence emergency fund just in case. All are in low cost index funds 70% US/30% international with small tilts to small cap, value, and emerging markets.

I seem to be on track for a decent retirement, but I'm not so sure what I'm doing will make me wealthy. Every time I get a raise or bonus, I try to save at least 50% after tax, so the after tax savings % should grow with time.

What advice are you looking for? What are you willing to do to become wealthy?

Start your own business... invest in real estate... take risk/pennystocks...

Sounds like you're doing great and about all you can do without sacrificing lifestyle. You probably have to venture out into more than you're doing now if becoming wealthy, by your definition, is that important to you.

[livesoft]

For many people, simply growing old makes them wealthy in their minds and often in their pocketbooks as well.
"Time isn't holding us; time isn't after us." -- Talking Heads

https://www.youtube.com/watch?v=98AJUj-qxHI

"Same as it ever was."

[denovo]

Marry into a wealthy family.

[Da5id]

Grey Poupon?

[BV3273]

I love quotes like “It’s not what you make, it’s what you save”. While this holds true to having a great retirement there is more to it than that when it comes to building the kind of wealth I think you are after. Those who I know that are wealthy have made it from family businesses, investments in realestate (then leverage these assets to buy more assets, etc.), and finally some made it through luck - right place, right time - startups, etc...

Obviously if you don’t have a family business and you are not involved in the startup thing then you have very little chance there. The only doable option that I would think of is realestate, but that comes with its own risks and headaches.

Personally, I have tried and have found sidehustles to fill the gaps, but even that can burn you out after a while. I recently started a new career with greater earning potential and that is going to be my main focus going forward.

Best of luck to you!

[Symphonyman]

It sounds to me like you are doing all you can do, so congratulations. Just concentrate on what you can control: your savings rate, taxes, and expenses. Never ever try to time the market. Basically invest and forget about it. You can play around with a financial calculator and get an idea of where you might be in the future..BUT Don’t forget to be happy, that’s worth more than all the money in the world! Life is short, make sure you live it!

[TRC]

Get a high paying job and live below your means. If you can't get a high paying job, look for alternative ways of making money. They are out there if you're willing to put the time & energy into figuring it out.

For me, I stumbled into my career of Software Sales back in 2000. It's been good to me, but I've been good to it. We live comfortably and anytime I get a large commission check, we have fun with some of it and invest most of it. Without these periodic windfalls, we would not be in the financial situation we're in.

[Rupert]

Get a high paying job and live below your means.

That's the answer. You have to do both of those things to get into the 1%. You can work yourself to death at a low-paying job and become wealthy eventually by saving a ton and limiting your spending, but you'll still never get into the 1%. To make it into the 1%, you have to make a lot of money (or inherit it).

Personally, I think shooting for the top 1% is a psychologically unhealthy goal because you're unlikely to ever get there and can drive yourself crazy (or work yourself to death) trying. Look at how many people in the 1% today were born into the 1%. Our society is just not as upwardly mobile as our mythology would have you believe. Not that it's impossible -- it's just like being struck by lightening.

[KlangFool]

, but I'm not so sure what I'm doing will make me wealthy.

OldSport,

You only need one word to be wealthy: "enough". It is not a number. I would recommend you to read the following book.

https://www.amazon.com/Enough-True-Meas ... 0470524235
<< Enough: True Measures of Money, Business, and Life Paperback – June 1, 2010
by John C. Bogle>>

KlangFool

[Grt2bOutdoors]

1. Save and invest 30% of after tax income. Payment of principal on a home mortgage counts, but not interest.
2. Never buy a house worth more than 3x annual income, or 2.5x joint income. You may afford the monthly payments but expensive homes carry expensive maintenance commitments, be it landscaping or air conditioning.
3. Never acquire a car (or cars if multiple), by purchase or lease, worth more than 6 months income.

Thanks. I already follow #2 and #3. #1 is tough. 30% after tax in addition to maxing out 401k and Roth IRA is tough. I am currently at 15%, excluding mortgage principal, but I could eventually get there.

I am 35. Want to retire by 65 but open to semi-retiring earlier.

A quote I found on this forum - "Comparison is the thief of joy". You have by your own admission 30 years until you want to retire. There are things within your control, and things that are not. Do not be so focused on accumulating wealth that you ignore the things most important to you - your spouse and your family. Time can go by quickly, you can always make more money, you can not recapture the time that could have been wisely spent nurturing that which should be the most important. You are saving 15% after tax in addition to a 401k and Roth? You are in the top 10% of Americans, what will get you over the accumulation hurdle? - the eight wonder of the world, compound interest. You have the time, just keep doing what you are doing and be patient. In about 10-15 years, you should see the benefits appear, almost as if by magic. There is no magic though, it's slow, steady, consistent investments made with a steady hand, staying the course, up and down like the waves on an ocean until you see your destination in sight.
Of course, if you do manage to win the lottery tomorrow, I'm sure you'll be happy to retire shortly there after. There are many roads to Dublin.

[westrichj312]

best chance for most is to marry someone with a rich family!

[Grt2bOutdoors]

best chance for most is to marry someone with a rich family!

Sometimes keeping one's sanity is more important than marrying into a rich family. Long ago, I wisely passed up on such an opportunity. (The father tipped me off! , bless his soul!)

[H-Town]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible. Financial independence for the lifestyle I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account. 100% of the 401k and Roth IRA are in stocks. Taxable is 95% stock and 5% bonds. The 5% bonds are for a 2nd line of defence emergency fund just in case. All are in low cost index funds 70% US/30% international with small tilts to small cap, value, and emerging markets.

I seem to be on track for a decent retirement, but I'm not so sure what I'm doing will make me wealthy. Every time I get a raise or bonus, I try to save at least 50% after tax, so the after tax savings % should grow with time.

There's no easy and quick way to get rich if you aren't born in a rich family. That being said, sell everything you have and buy bitcoin now, you'll have 1% to get rich like you want. The other 99%, you'll have to start over again. Hope you catch that sarcasm.

Work harder, spend less and be happy.

[RadAudit]

best chance for most is to marry someone with a rich family!

Sometimes that is a very expensive way to become rich.

[snowox]

Do what your doing now for the next 30 years and you will be fine. If and when able add to it. Chance are you will end up in the 1% but maybe not. But my bet is you will be well off enough.

[climber2020]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible.

Don't get married and don't have kids.

[chevca]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible.

Don't get married and don't have kids.

Too late, as OP said they're married with kids and house.

Second to that advice though, and speaking from experience, don't get divorced!

[investing1012]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible. Financial independence for the lifestyle I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account. 100% of the 401k and Roth IRA are in stocks. Taxable is 95% stock and 5% bonds. The 5% bonds are for a 2nd line of defence emergency fund just in case. All are in low cost index funds 70% US/30% international with small tilts to small cap, value, and emerging markets.

I seem to be on track for a decent retirement, but I'm not so sure what I'm doing will make me wealthy. Every time I get a raise or bonus, I try to save at least 50% after tax, so the after tax savings % should grow with time.

Once you get to the top 1% you'll want to be in the top 0.1% then 0.01%. Money itself shouldn't be the goal you're looking for. Financial security in retirement, loving family, and rich memories will make you feel more rich than if you were in the top 0.01%.

[GCD]

xxxxxxxxxxxxx

[annielouise]

Think globally.

You can be in the top 1% in the world now if you have a net worth of $700,000.

[GCD]

xxxxxxxxxx

[Slacker]

I am looking for advice to become wealthy, not billionaire wealthy, but seriously wealthy, like as close to top 1% as possible. Financial independence for the lifestyle I would eventually like to have would come somewhere between $3 and 4 Million.

I am currently maxing out my 401k, maxing out Roth IRA, and investing at least an additional 15% after tax income in taxable account. 100% of the 401k and Roth IRA are in stocks. Taxable is 95% stock and 5% bonds. The 5% bonds are for a 2nd line of defence emergency fund just in case. All are in low cost index funds 70% US/30% international with small tilts to small cap, value, and emerging markets.

I seem to be on track for a decent retirement, but I'm not so sure what I'm doing will make me wealthy. Every time I get a raise or bonus, I try to save at least 50% after tax, so the after tax savings % should grow with time.

Once you get to the top 1% you'll want to be in the top 0.1% then 0.01%. Money itself shouldn't be the goal you're looking for. Financial security in retirement, loving family, and rich memories will make you feel more rich than if you were in the top 0.01%.

I just started reading a book titled "Isn't That Rich? Life Among the 1%" by Richard Kirshenbaum. The first chapter discusses a person with a 9 figure networth who feels they just can't compete with the billionaires and feel the constant rat race and judgement for silly things like only flying first class instead of flying by private jet. So far an entertaining book...

[TD2626]

The literal (but too literal) answer to having the maximum possible net worth is this:

Maximize earnings by working in a highly compensated field, while minimizing expenses by living in a tiny, shabby apartment with the maximum possible number of roommates and eating ramen noodles. Don't have any frills whatsoever - cable isn't needed, take the bus and don't own a car, etc. Pay as little as possible for things, buying only the cheapest bare necessities. Making $150k/year after tax and spend 15k/year. Putting that 90% savings rate into a equity dominated low cost buy-and-hold total market index portfolio. Never retire or having a family, because that wouldn't make sense from a purely financial perspective. By working 80 hour weeks, and never taking time off from age 25 to 95, you'd have 70 years of a 90% savings rate. That would very likely lead to the maximal net worth.

This is what a computer would tell you if you ask it how to reasonably safely maximize net worth. Options involving trying to start a business or become a celebrity are such long shots that they are not reasonable - but investing for decades in balanced index funds, mostly equities, is.

The question is why? Is money a means to an end, or an end in and of itself. Yes, this world may have art for art's sake ---- but does this justify hoarding money for its own sake. Shouldn't money instead be a tool to buy things that make life more meaningful - instead of something intrinsically meaningful in and of itself? I think the reductio ad absurdum above (I wouldn't recommend that course) shows that there are more things to life than simply maximizing portfolio size and efficiency.

[deltaneutral83]

I just started reading a book titled "Isn't That Rich? Life Among the 1%" by Richard Kirshenbaum. The first chapter discusses a person with a 9 figure networth who feels they just can't compete with the billionaires and feel the constant rat race and judgement for silly things like only flying first class instead of flying by private jet. So far an entertaining book...

Yep, unless you're homeless or Jeff Bezoz, someone will have less than you, and someone will have more, plan contentment around your own situations and the factors you can control and try to minimize the unknown "life" costs as best you can.

[Slacker]

The literal (but too literal) answer to having the maximum possible net worth is this:

Maximize earnings by working in a highly compensated field, while minimizing expenses by living in a tiny, shabby apartment with the maximum possible number of roommates and eating ramen noodles...

I would posit that eating ramen noodles as your primary source of nutrition would not result in much savings due to the rapid decline in health, high healthcare costs, increased time off due to health issues, and potential for early death preventing you from having as many earning years.

[staythecourse]

Real estate is a great way for those who dor or don't have a great salary to get rich. Buy a multifamily with mortgage. Living in one and rent the other to pay off mortgage early. Then buy another and do the same with the last multifamily 2 units speeding up paying off the current. Rinse and repeat.

It takes great sacrifice to buy a fourplex, eightplex, etc, and live in one unit while renting the rest instead of buying a wonderful home as most are inclined to do. But, it is a path to accumulation of assets if done properly and managed wisely.

Completely agree. But thought the most reasonable approach to becoming "wealthy", i.e. "3-4 million" in today's dollars if one does not produce a large family income is via leverage (using someone else's money). The approach I talked about seems better then other leverage schemes, such as: margin trading. Either way I agree that doing what I propose is not easy and requires other talents, such as: DIY handyman ability, flexibility in current job to go in middle of night if called/ working on weekends, etc... Personally, the easiest way to be wealthy (outside of inheritance and marrying rich) and the most repeatable with the highest probability of success is getting a high paying job and marrying another who does the same thing. Then just SAVE a ton. It has a HIGH chance of great wealth (3-4 million).

Good luck.

[greg24]

To become wealthy, I suggest making a LOT of money.

[TD2626]

The literal (but too literal) answer to having the maximum possible net worth is this:

Maximize earnings by working in a highly compensated field, while minimizing expenses by living in a tiny, shabby apartment with the maximum possible number of roommates and eating ramen noodles...

I would posit that eating ramen noodles as your primary source of nutrition would not result in much savings due to the rapid decline in health, high healthcare costs, increased time off due to health issues, and potential for early death preventing you from having as many earning years.

Good point.

Build a data-driven model that uses variables like "cents per calorie" and models the impact of potential health changes on the net present value of human capital.

You'd probably end up buying a lot of plain, whole grain store-brand oatmeal or bread in bulk, supplemented by low-cost vegetable and fruit options. Still fairly cheap compared to eating out - and probably healthier.

(Again, my point of this reductio ad absurdum is that while wealth is important, calculating all food costs in terms of cents per calorie when one is well off is likely not living life to the fullest in other areas.)

[H-Town]

To become wealthy, I suggest making a LOT of money.

Or marry into a rich family

Just kidding. It's that simple. Make a LOT of money and save a lot. Somehow many people find it hard to understand this simple mechanism.

[Sandtrap]

Real estate is a great way for those who dor or don't have a great salary to get rich. Buy a multifamily with mortgage. Living in one and rent the other to pay off mortgage early. Then buy another and do the same with the last multifamily 2 units speeding up paying off the current. Rinse and repeat.

It takes great sacrifice to buy a fourplex, eightplex, etc, and live in one unit while renting the rest instead of buying a wonderful home as most are inclined to do. But, it is a path to accumulation of assets if done properly and managed wisely.

Completely agree. But thought the most reasonable approach to becoming "wealthy", i.e. "3-4 million" in today's dollars if one does not produce a large family income is via leverage (using someone else's money). The approach I talked about seems better then other leverage schemes, such as: margin trading. Either way I agree that doing what I propose is not easy and requires other talents, such as: DIY handyman ability, flexibility in current job to go in middle of night if called/ working on weekends, etc... Personally, the easiest way to be wealthy (outside of inheritance and marrying rich) and the most repeatable with the highest probability of success is getting a high paying job and marrying another who does the same thing. Then just SAVE a ton. It has a HIGH chance of great wealth (3-4 million).

Good luck.

Absolutely true.
Wealth via small business, which is what R/E rentals are, requires motivation and ambition and sacrifice and grit down to one's toenails. This it is a path with a high failure rate, let alone the great percentage who opt out of trying in the lst place, albeit halfheartedly.
A high salary, or even mid high salary, wage-earner professional couple following the "Boglehead" path has a higher probability of wealth accumulation with relatively less stress than many other routes. As is often seen in "Bogleheadville", education, steady paycheck, retirement contributions, frugality, stay the course, is a proven path.
j

[Earl Lemongrab]

Own your business.

That's one of the best ways to lose money. The failure rate of start-ups is substantial.