My investment success

[sschullo]

Congrats. What a great story.

I don't recall getting to the half million mark because it took 30 years to get there, but it was a big deal only 3 years later when our portfolio went over a million and then over 1.5 million 4 MONTHS later! It was very exciting until reality hit and the tech bubble 2000-2002 collapsed and we lost all of the gains.

But I don't think you will suffer the same consequences. You are much too smart at such a young age. Some of us takes decades to learn to invest smartly, but we learned.

[woof755]

I was thinking earlier today that hitting 6 figures in a single fund would be a fun accomplishment. Gonna be a while.

[ResNullius]

Congratulations! I remember hitting six figures being a big deal.

It was a big deal for me also.

Gosh, my first job after grad school paid $15.5K per year, and that was considered a whole lot of money at that time.

[andrew2011]

Passed the $500,000 benchmark for the first time today. Of course, I can't really celebrate with my friends about it. I'm turning 24 next week, and I started with far less.

:lol: :lol 8) :lol:
congratulations!
:lol: :lol 8) :lol:

[bogle_graham]

Congrats!

[bearcub]

,,,,

[HardKnocker]

Czilla9000,

Congrats on your common sense so far in wisely handling your inheritance.

You have had good fortune come your way and you have been smart. Don't feel guilty about the money. Someone left it to you because they trusted you to be responsible with it.

Most people your age (or any age) would have foolishly spent it.

Don't get antsy about seeking excessively high returns and taking too much risk.

You might want to consult an estate law attorney and discuss ways to protect that money in case you go through a divorce in the future (hopefully not). It's worth spending a few hundred to find out.

[SpringMan]

If you are single keep that portfolio close to the vest. I remember the old song, "First I look at the purse". It was from the male point of view but I am sure it works both ways. :lol:

Some fellows look at the eyes
Some fellows look at the nose
Some fellows look at the size
Some fellows look at the clothes
I don't care if her eyes are red
I don't care if her nose is long
I don't care if shes underfeed
I don't care if her clothes are wrong
First I look at the purse.

Some fellows like the smiles they wear
Some fellows like the legs that talk
Some fellows like the style of their hair,
they want the waist line to be small.
I don't care if their legs all vein
I don't care if their teeth are big
I don't care if she wears a ring
Why waste time looking at the waist line
Cause first I look at the purse....Yeah!

A woman can be as fine as can be
Kisses sweeter than honey
That don't mean a thing to me,
if you ain't got no money, baby.
Cause if the purse is fat, thats where it's at. yeahaa...

Some fellows like the way they walk,
the way they swing and sway.
Some fellows like the way they talk,
if they can talk talk all day.
I don't care if she waddles like a duck or talks with a lisp
I still think I'm in good luck if the dollar bills are crisp
Cause first I look at the purse....yeah yeah

Keep an eye on the money
Womans got to have some fine greenbacks hah
I ain't greedy guys,
Oh I don't wanna work no more

[jmbkb4]

Proud to say that I'm at the 80+% mark relative to the OP with my own hard work behind the $$$$.

My inheritance is a different matter, but won't be bragged about on this forum.

[HomerJ]

You have had good fortune come your way and you have been smart. Don't feel guilty about the money. Someone left it to you because they trusted you to be responsible with it.

Most people your age (or any age) would have foolishly spent it.

This is a good point...

You definitely should be proud of yourself... The 24-year old me would have blown most of that money...

[HardKnocker]

If you get a break use it.

Good luck and bad luck both happen in life and frequently the same life so when you get some good luck make the most of it.

And I think Czilla is smart to keep knowledge of his good fortune to himself. Don't tell nobody (or anybody either) except an attorney who you seek for advice.

[PaddyMac]

congrats are in order, but hmmm....

http://www.upsidetrader.com/2011/04/28/ ... nt-topped/

[RobertAlanK]

Congratulations! I remember hitting six figures being a big deal.

It was a big deal for me also.

Gosh, my first job after grad school paid $15.5K per year, and that was considered a whole lot of money at that time.

My social security annual earnings history tells me that I earned $11K in my 25th year. But with their index factor applied that equals about $49K in today's income. Now I don't feel that I had it quite so bad.

But I doubt the couple thousand I'd probably saved at that point would come anywhere near $500K in today's dollars.

So, congrats to the OP. Keep it up while remembering that our personal wealth is also measured by the priceless experiences we accumulate.

[catdude]

I retired a few months ago at age 55 and my entire portfolio is $500K (i.e., equal to Czilla's). But I have a small pension that covers my monthly expenses (I live frugally) and health insurance provided by my ex-employer.

So I would say to Czilla: Congrats! Hang around here for awhile and soak in the investment wisdom. And if early retirement is (or may be) your goal, you're off to a good start!

[HardKnocker]

Oops! Hit the wrong button.

[HardKnocker]

congrats are in order, but hmmm....

http://www.upsidetrader.com/2011/04/28/ ... nt-topped/

That hits the target. Good article.

[Hector]

Congratulations!

[dekecarver]

Good for you.

Good learning experience.

Be humble.

Stay educated.

Next milestone 7 figures.

Always lend a helping hand no matter the situation.

[og15F1]

Congratulations, enjoy in good health, and protect/grow it

[bertie wooster]

No big deal - I've passed it 4 or 5 times already.

Ha! Very funny!

[fuermcs]

Congrats!

Though remember: when people succeed, they like to chalk that up to wise decisions; when they fail, they chalk it up to bad luck. In other words, don't let good results fool you into thinking you're some genius.

Anyone might inherit money, but not everyone can manage it well.

If you like speculation, keep it to a tiny portion of your holdings. I picked a few stocks years ago. I saw that over a year they did great! But hah, they didn't beat VTSMX. It was less gain for more risk. Dumb!

[sadie wess]

you mean "passed"


excellent, by the way

also curious how you managed?

I'm surprised by all the interest in the specifics, but I'll bite -

I've always loved stocks since the fourth grade. I spent a considerable amount of time reading about them growing up, specifically Warren Buffett's annual reports and value investor material. As I grew older I started to read about index investing and Fama French kind of stuff as well.

Then, out of left-field, I inherited $300,000 from a relative in late 2007. At such a young age I was apprehensive to invest so much at first, which kept me out of the market from 2007 and most of 2008. It retrospect I look like a genius, but it was really just luck that kept me out.

I saw the market plummet from 14,000 to 8,000, and all the while I had cash sitting there doing nothing. On November 14, 2008, I decided I could no longer stay-on-sidelines. What got me into the market was the following personal reflection:

If I invested and the market continued to fall, I would at least know I did the best I could. I behaved rationally under the circumstances. I could still look at myself in the mirror, knowing that I did "the right thing" given the circumstances.

I knew Jack Bogle and Warren Buffett would be proud of me, regardless of whether the market subsequently went up or down.

But, if I did not invest, and the market went up, I would never forgive myself. I would have forsaken everything I ever knew about investing, against my better judgment. I would be a coward: Their was no rational reason for someone my age, with my capital, to be out of the market.

So, in the end, I swallowed hard and invested my money (domestic, international, and emerging). I remembered what Buffett told CNBC that September: "Cash combined with courage in a crisis is priceless."

Within the first hour, I was down $10,000. Ouch.

The market continued to fall till March 2009, and I had large paper losses. But I stayed the course, knowing that in the end "buy and hold" (+rebalance) wins the race. And the rest is history.

Congratulations on your inheritance and great start at a young age. However, this post sounds like pride, and what really happened is you inherited a bunch of money, due to luck invested it close to the bottom, and ended up profiting from it. Good for you, but what's the point of sharing this on a help forum? Did you have questions?

He was asked to share. Nothing wrong with posting your milestones along the way - especially since you can't with most friends and family. Keeps people motivated.

To the OP congrats and stay the course...

DD

+1

[staythecourse]

you mean "passed"


excellent, by the way

also curious how you managed?

I'm surprised by all the interest in the specifics, but I'll bite -

I've always loved stocks since the fourth grade. I spent a considerable amount of time reading about them growing up, specifically Warren Buffett's annual reports and value investor material. As I grew older I started to read about index investing and Fama French kind of stuff as well.

Then, out of left-field, I inherited $300,000 from a relative in late 2007. At such a young age I was apprehensive to invest so much at first, which kept me out of the market from 2007 and most of 2008. It retrospect I look like a genius, but it was really just luck that kept me out.

I saw the market plummet from 14,000 to 8,000, and all the while I had cash sitting there doing nothing. On November 14, 2008, I decided I could no longer stay-on-sidelines. What got me into the market was the following personal reflection:

If I invested and the market continued to fall, I would at least know I did the best I could. I behaved rationally under the circumstances. I could still look at myself in the mirror, knowing that I did "the right thing" given the circumstances.

I knew Jack Bogle and Warren Buffett would be proud of me, regardless of whether the market subsequently went up or down.

But, if I did not invest, and the market went up, I would never forgive myself. I would have forsaken everything I ever knew about investing, against my better judgment. I would be a coward: Their was no rational reason for someone my age, with my capital, to be out of the market.

So, in the end, I swallowed hard and invested my money (domestic, international, and emerging). I remembered what Buffett told CNBC that September: "Cash combined with courage in a crisis is priceless."

Within the first hour, I was down $10,000. Ouch.

The market continued to fall till March 2009, and I had large paper losses. But I stayed the course, knowing that in the end "buy and hold" (+rebalance) wins the race. And the rest is history.

Congratulations on your inheritance and great start at a young age. However, this post sounds like pride, and what really happened is you inherited a bunch of money, due to luck invested it close to the bottom, and ended up profiting from it. Good for you, but what's the point of sharing this on a help forum? Did you have questions?

I agree completely. I have noticed a lot of folks on here stating there net worths ridiculously high for their ages and the answer comes out being secondary to inheritances and not on their own merits.

This is not meant for the OP, but I think we should have a disclaimer when folks state their net worth when it is not because of them or their investing knowledge otherwise other folks reading these threads start to feel their must be some "free lunch" they are missing and start to shift to risky allocations thinking they are falling behind their cohorts.

Good luck.

[empb]

I agree completely. I have noticed a lot of folks on here stating there net worths ridiculously high for their ages and the answer comes out being secondary to inheritances and not on their own merits.

This is not meant for the OP, but I think we should have a disclaimer when folks state their net worth when it is not because of them or their investing knowledge otherwise other folks reading these threads start to feel their must be some "free lunch" they are missing and start to shift to risky allocations thinking they are falling behind their cohorts.

Good luck.

Yeah. It started promising with "I've always loved stocks since the fourth grade." I thought the OP had been saving up since 8 years old. Then, I stopped reading at "then, out of left-field, I inherited $300,000 from a relative." The record skipped, the lights came on, everyone stops, leans in and says "um, what?". Move along. There's nothing to see here.

I can halfway understand the sharing-a-milestone impetus but surely only when it's a result of hard work, years of saving and one's own diligence. That kind of story can be inspirational to people for whom a seven-figure portfolio seems almost impossible. Outside of a pat on the back for having the restraint to resist spending the windfall (not sure how I'd have handled it), I'm not sure what anyone can glean from this thread.

Congrats to the OP, it's a very fortunate position to be in and I hope you can take advantage of it.

[wts]

When I was 24 I'd been to jail, had no job, all my money was in the left front pocket and two guys were trying to kill me for it in an alley...

Life's Been Good! 8)

[Call_Me_Op]

But the OP needs to realize that this was luck, and the market could just as easily have continued its slide and not recovered for many years.

[touchdowntodd]

wow.. at 24?

CONGRATS!

thats amazing.. im far behind and 10 years older.. obviously we have different income levels LOL

[letsgobobby]

congratulations to the OP. Regardless of how it was achieved, he (?) has every opportunity now.

40/40/20 TSM/TISM/TBM or some such will probably get you 3-4% real over the next 100 years.

That takes you to $1,000,000 by age 44, $2,000,000 by age 64. That's $60,000 in real income indefinitely beginning age 64, minus taxes. In other words, the heavy lifting of your (non-early) retirement savings is done. That's great! Now don't get cocky. Keep it simple. Keep it inexpensive. Keep working, and keep saving at least modestly (it's good for the soul). Be generous. Do what you love. Have a family. Find a hobby. Keep saving. Keep investing. Don't panic. Don't be arrogant. Keep saving.

Good luck!

[RobG]

I remember when my balance first passed $500,000. Alas, it was a typo.

sigh,
rg

[WhizKid]

When I was 24 I'd been to jail, had no job, all my money was in the left front pocket and two guys were trying to kill me for it in an alley...

Life's Been Good! 8)

Sounds like my life......except I thankfully had a job 8)

[Babakhani]

you mean "passed"


excellent, by the way

also curious how you managed?

I'm surprised by all the interest in the specifics, but I'll bite -

I've always loved stocks since the fourth grade. I spent a considerable amount of time reading about them growing up, specifically Warren Buffett's annual reports and value investor material. As I grew older I started to read about index investing and Fama French kind of stuff as well.

Then, out of left-field, I inherited $300,000 from a relative in late 2007. At such a young age I was apprehensive to invest so much at first, which kept me out of the market from 2007 and most of 2008. It retrospect I look like a genius, but it was really just luck that kept me out.

I saw the market plummet from 14,000 to 8,000, and all the while I had cash sitting there doing nothing. On November 14, 2008, I decided I could no longer stay-on-sidelines. What got me into the market was the following personal reflection:

If I invested and the market continued to fall, I would at least know I did the best I could. I behaved rationally under the circumstances. I could still look at myself in the mirror, knowing that I did "the right thing" given the circumstances.

I knew Jack Bogle and Warren Buffett would be proud of me, regardless of whether the market subsequently went up or down.

But, if I did not invest, and the market went up, I would never forgive myself. I would have forsaken everything I ever knew about investing, against my better judgment. I would be a coward: Their was no rational reason for someone my age, with my capital, to be out of the market.

So, in the end, I swallowed hard and invested my money (domestic, international, and emerging). I remembered what Buffett told CNBC that September: "Cash combined with courage in a crisis is priceless."

Within the first hour, I was down $10,000. Ouch.

The market continued to fall till March 2009, and I had large paper losses. But I stayed the course, knowing that in the end "buy and hold" (+rebalance) wins the race. And the rest is history.

Congratulations on your inheritance and great start at a young age. However, this post sounds like pride, and what really happened is you inherited a bunch of money, due to luck invested it close to the bottom, and ended up profiting from it. Good for you, but what's the point of sharing this on a help forum? Did you have questions?

Retrospect is 20/20. Even though the OP had some luck, he was disciplined in the first place to not go spend it right away at 22, and was brave and thoughtful enough to take advantage of is luck. No reason to hate. I think he did a great job and should be proud of his accomplishment. Keep it up.

[Babakhani]

I agree completely. I have noticed a lot of folks on here stating there net worths ridiculously high for their ages and the answer comes out being secondary to inheritances and not on their own merits.

This is not meant for the OP, but I think we should have a disclaimer when folks state their net worth when it is not because of them or their investing knowledge otherwise other folks reading these threads start to feel their must be some "free lunch" they are missing and start to shift to risky allocations thinking they are falling behind their cohorts.

Good luck.

Yeah. It started promising with "I've always loved stocks since the fourth grade." I thought the OP had been saving up since 8 years old. Then, I stopped reading at "then, out of left-field, I inherited $300,000 from a relative." The record skipped, the lights came on, everyone stops, leans in and says "um, what?". Move along. There's nothing to see here.

I can halfway understand the sharing-a-milestone impetus but surely only when it's a result of hard work, years of saving and one's own diligence. That kind of story can be inspirational to people for whom a seven-figure portfolio seems almost impossible. Outside of a pat on the back for having the restraint to resist spending the windfall (not sure how I'd have handled it), I'm not sure what anyone can glean from this thread.

Congrats to the OP, it's a very fortunate position to be in and I hope you can take advantage of it.

Come on! He increased his windfall by 66% in 2.5 years. Buffett would be proud.

[rai]

you sure were smart to stay the course, that was such a long time to be invested, buy and hold is not dead it's proven itself over 3 long years.

congrats on inheriting a lot of money

[supersharpie]

you sure were smart to stay the course, that was such a long time to be invested, buy and hold is not dead it's proven itself over 3 long years.

congrats on inheriting a lot of money

Geez. I can't tell whether the tenor of your post is bitter, sarcastic, or both.

[letsgobobby]

I'm so superior to the OP. I accumulated my big fat portfolio of $x with nary a penny from anyone. Sniff, sniff. Look at me, I did it all myself.*

*well, if you exclude the paid for Ivy League education, the partially paid-for graduate school, the 3 used cars given me since age 16, the small but not tiny inheritance from my grandfather, the gifts to my children's college education funds from my parents, the innumerable opportunities granted and sacrifices made by my family for my sister and I to achieve success, the 30+ years of values and morals my parents have taught me, the men and women who fought and died for my freedom, my wife who takes care of home and family, my coworkers and staff who support my productive pursuits, my employer for their generous benefits program, and my local law enforcement department for ensuring a safe and secure home and work environment in which I accomplish my dreams.

Other than that, I did it all myself! Yay me! I'm so great!

[HardKnocker]

I'm so superior to the OP. I accumulated my big fat portfolio of $x with nary a penny from anyone. Sniff, sniff. Look at me, I did it all myself.*

*well, if you exclude the paid for Ivy League education, the partially paid-for graduate school, the 3 used cars given me since age 16, the small but not tiny inheritance from my grandfather, the gifts to my children's college education funds from my parents, the innumerable opportunities granted and sacrifices made by my family for my sister and I to achieve success, the 30+ years of values and morals my parents have taught me, the men and women who fought and died for my freedom, my wife who takes care of home and family, my coworkers and staff who support my productive pursuits, my employer for their generous benefits program, and my local law enforcement department for ensuring a safe and secure home and work environment in which I accomplish my dreams.

Other than that, I did it all myself! Yay me! I'm so great!

Great post. Nobody does it alone.

[mtbouchard]

Congratulations to OP. While owing to some good forture, seems to have learned how to manage money and put it to good work while looking at the long run.

I'm 38 and am just approaching that amount - at 24 I started with $40k in debt, but was still able to realise my dream of working in the film business and travelling the world knowing I had the rest of my life to make money if that's what I wanted.

Money is opportunity - it will give you the potential to realise your dreams - so I'd suggest you go out and do that! No excuses!

[greg24]

It helps to be both good and lucky.

[WhiskeyJ]

I had a similar experience at 25, inheriteed $300K 13 years ago. I have't touched it because I hope to pass it on to kids/grandkids. The bad part of inheriting money is you usually inherit your family member's over-priced advisor who insists in investing in actively managed funds or "taking advantage of all the tax benefits of separately managed accounts." You face the tough decision of sucking it up and paying unnecessary fees or offending your family and/or a family friend by moving your money to a more efficient place like Vanguard.

13 years later, if I exclude the inheritance, "we" just passed $900K (even including the minus 100K of student loans from my wife). I think I was able to be more agressive in my investments by not worrying about bonds or needing life insurance (and not panicking when I saw it all cut in half at the end of 2008).

Continue to save agressively and invest wisely. The inheritance should help you remove any emotion from your investing plan which will increase your long term success.