2nd million is easier!

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

2nd million is easier!

Post by bubbadog » Fri Dec 15, 2017 7:44 pm

I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer

hicabob
Posts: 2722
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: 2nd million is easier!

Post by hicabob » Fri Dec 15, 2017 7:49 pm

Each additional million is easier yet adds less. Averaged of course.

mmcmonster
Posts: 271
Joined: Sun Jan 12, 2014 1:18 pm

Re: 2nd million is easier!

Post by mmcmonster » Fri Dec 15, 2017 7:50 pm

May your third million be even easier! :beer

User avatar
samsoes
Posts: 897
Joined: Tue Mar 05, 2013 9:12 am
Location: Northeast Rat Race

Re: 2nd million is easier!

Post by samsoes » Fri Dec 15, 2017 8:07 pm

As a former colleague used to say:

"I'm working on my second million. The first million was too hard, so I gave up on it and went right to work on the second."
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

BlackHat
Posts: 85
Joined: Tue Feb 14, 2017 1:47 pm

Re: 2nd million is easier!

Post by BlackHat » Fri Dec 15, 2017 8:24 pm

Charlie Munger has said to focus on getting your first 100,000 grand and then everything else will come easier.
“Life is really simple, but we insist on making it complicated.” -- Confucius

User avatar
LittleGreenSoldiers
Posts: 52
Joined: Fri Nov 14, 2014 6:59 pm

Re: 2nd million is easier!

Post by LittleGreenSoldiers » Fri Dec 15, 2017 8:25 pm

Congratulations Bubbadog!
Inspirational and a testament to the BH way.

Happy Friday.
Cheer!

tibbitts
Posts: 8120
Joined: Tue Feb 27, 2007 6:50 pm

Re: 2nd million is easier!

Post by tibbitts » Fri Dec 15, 2017 8:29 pm

bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
While greater amounts do generally compound faster, this was mostly something entirely unique to you and not applicable to anyone else. Young people looking at a decade of near-zero real investment returns and near-zero real wage growth aren't necessarily going to be able to duplicate your experience.

The good news is that looking back years from now, that may make your accomplishment seem even more impressive.

User avatar
LittleGreenSoldiers
Posts: 52
Joined: Fri Nov 14, 2014 6:59 pm

Re: 2nd million is easier!

Post by LittleGreenSoldiers » Fri Dec 15, 2017 8:53 pm

tibbitts wrote:
Fri Dec 15, 2017 8:29 pm
bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
While greater amounts do generally compound faster, this was mostly something entirely unique to you and not applicable to anyone else. Young people looking at a decade of near-zero real investment returns and near-zero real wage growth aren't necessarily going to be able to duplicate your experience.

The good news is that looking back years from now, that may make your accomplishment seem even more impressive.
I think there's a good lesson here for younger investors. Bubbadog mentioned that his contributions were ~30%-35% of this milestone. That's in excess of $75K a year. >$300,000K! (way to go bubbadog) Saving to invest is one of the biggest components to building over your working lifetime. While time is your friend when you are young most don't(or have the wisdom to realize) have the means to save more than they do. As we get older if we learn how to be frugal and save as our earnings increase we are able to invest more. For some this might also coincide with paying off a mortgage therefore being able to contribute even for towards our investments.

TonyDAntonio
Posts: 430
Joined: Thu Mar 03, 2016 8:32 pm

Re: 2nd million is easier!

Post by TonyDAntonio » Fri Dec 15, 2017 9:22 pm

tibbitts wrote:
Fri Dec 15, 2017 8:29 pm
bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
While greater amounts do generally compound faster, this was mostly something entirely unique to you and not applicable to anyone else. Young people looking at a decade of near-zero real investment returns and near-zero real wage growth aren't necessarily going to be able to duplicate your experience.

The good news is that looking back years from now, that may make your accomplishment seem even more impressive.
Don't minimize 2000-2010. While wages weren't retarded like they seem to be now stock returns were zip. I believe they were dubbing it the lost decade. I thought I was going to have to work forever. But the lesson is to keep investing. Control what you can.

moneywise3
Posts: 395
Joined: Mon Nov 22, 2010 6:54 pm

Re: 2nd million is easier!

Post by moneywise3 » Fri Dec 15, 2017 9:33 pm

Happy for you. So you contributed 300-350k of new funds in last 46 months? Can’t be retirement accounts. Your income must be super high $500k- 1M a year?

User avatar
randomizer
Posts: 1540
Joined: Sun Jul 06, 2014 3:46 pm

Re: 2nd million is easier!

Post by randomizer » Fri Dec 15, 2017 9:46 pm

2nd bull market million is easier.
87.5:12.5, EM tilt — HODL the course!

bhsince87
Posts: 1904
Joined: Thu Oct 03, 2013 1:08 pm

Re: 2nd million is easier!

Post by bhsince87 » Fri Dec 15, 2017 9:50 pm

Congratulations!

The market giveth.

I hit 1 million at 41, 2 million at 50, 3 million at 52!
Retirement: When you reach a point where you have enough. Or when you've had enough.

User avatar
joe8d
Posts: 4298
Joined: Tue Feb 20, 2007 8:27 pm
Location: Buffalo,NY

Re: 2nd million is easier!

Post by joe8d » Fri Dec 15, 2017 9:52 pm

Yes,it was.
All the Best, | Joe

Lonestarz
Posts: 97
Joined: Sat Oct 14, 2017 8:40 pm

Re: 2nd million is easier!

Post by Lonestarz » Fri Dec 15, 2017 10:01 pm

moneywise3 wrote:
Fri Dec 15, 2017 9:33 pm
Happy for you. So you contributed 300-350k of new funds in last 46 months? Can’t be retirement accounts. Your income must be super high $500k- 1M a year?
Let’s say 320k over 4 years or 90k/yr. that’s doable on 250k as a couple. Think about it: $30-60k tax deferred in 401k/Ira, maybe 50k tax, so that leaves $155k after tax - 45k additional savings means living an impoverished life on only $110k a year.

bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

Re: 2nd million is easier!

Post by bubbadog » Fri Dec 15, 2017 10:02 pm

moneywise3 wrote:
Fri Dec 15, 2017 9:33 pm
Happy for you. So you contributed 300-350k of new funds in last 46 months? Can’t be retirement accounts. Your income must be super high $500k- 1M a year?
My employment income is not that high. It has been around 250-260k over the last 4 years.

I contribute a little over 60K/year to tax deferred accounts including my employer's match. (24K-403B, 18K-457, 6.5 wife's Roth IRA, 15K employer match)

I probably add 25-35K/year to my taxable account sporadically when I have more than I need for the near term in my checking account.

I don't have a mortgage or car payments so basic living expenses are not that great.

PhillyPhan
Posts: 29
Joined: Wed Nov 28, 2012 9:35 am

Re: 2nd million is easier!

Post by PhillyPhan » Fri Dec 15, 2017 10:57 pm

Kudos on the milestone, very impressive!

Curious of what your gains within the market have been for 2017, 200 - 300k?

sambb
Posts: 2199
Joined: Sun Mar 10, 2013 3:31 pm

Re: 2nd million is easier!

Post by sambb » Fri Dec 15, 2017 11:02 pm

the first billion is the hardest

User avatar
LittleGreenSoldiers
Posts: 52
Joined: Fri Nov 14, 2014 6:59 pm

Re: 2nd million is easier!

Post by LittleGreenSoldiers » Fri Dec 15, 2017 11:43 pm

sambb wrote:
Fri Dec 15, 2017 11:02 pm
the first billion is the hardest
Hear, hear!
Here's to the BH 3 commas club.

If not us our heirs and those that listen.
(note: if you are young and it is 2037 please pay attention and study this forum from the beginning.)

User avatar
White Coat Investor
Posts: 13597
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: 2nd million is easier!

Post by White Coat Investor » Sat Dec 16, 2017 12:00 am

bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
I wrote a post about this once. I couldn't agree more. Several factors at work- first, your first million is helping. Second, you're likely making a lot more money than when you first started saving. Third, you're paying down debt rapidly. Fourth, we've been in a big bull market.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

Re: 2nd million is easier!

Post by bubbadog » Sat Dec 16, 2017 12:26 am

WCI,
You are correct on three of the four. I make slightly more than I did when I finished residency 21-22 years ago. Several years ago, I switched from full time emergency medicine to occupational health 3 days a week. I follow your site and know you are an ED doc as well. Your site is great and you do a lot to help physicians. You should be very proud!

winterfan
Posts: 103
Joined: Mon Jan 05, 2015 11:06 am

Re: 2nd million is easier!

Post by winterfan » Sat Dec 16, 2017 12:28 am

I love this. I'm curious to see how long it will take us. The road from 500K to 1m was surprisingly short (about 6 yrs).

More Please
Posts: 151
Joined: Mon Jan 31, 2011 10:13 am

Re: 2nd million is easier!

Post by More Please » Sat Dec 16, 2017 8:16 am

I second this!

User avatar
WoodSpinner
Posts: 523
Joined: Mon Feb 27, 2017 1:15 pm

Re: 2nd million is easier!

Post by WoodSpinner » Sat Dec 16, 2017 8:27 am

bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
Congrats!

You deserve the beer and an opportunity to bask in the success of your financial plan. I definitely hear you about this being a good place to share and celebrate these kind of milestones. Not something for Facebook! :beer

Looking back, what were some of the key things you did, or didn’t do?

WoodSpinner 8-)

bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

Re: 2nd million is easier!

Post by bubbadog » Sat Dec 16, 2017 9:36 am

:happy
WoodSpinner wrote:
Sat Dec 16, 2017 8:27 am
bubbadog wrote:
Fri Dec 15, 2017 7:44 pm
I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends.

I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only took an additional 46 months to top 2 million in my accounts which I did today. I have always heard the saying about how the 2nd million is a lot easier. I would have never guessed it would happen so quickly. Obviously the last four years have been great and things can change very quickly for the worse.

I wanted to share with the Boglehead Community, especially those a lot younger and just starting out, that once things get going, compounding really does work its magic!

I have a simple 3 fund portfolio (65/35 stocks/bonds)
Maybe 30-35% of the second million was contributions to my accounts.

I have learned a great deal from this community and really appreciate all of the advice I have been given in the past. :sharebeer
Congrats!

You deserve the beer and an opportunity to bask in the success of your financial plan. I definitely hear you about this being a good place to share and celebrate these kind of milestones. Not something for Facebook! :beer

Looking back, what were some of the key things you did, or didn’t do?

WoodSpinner 8-)
WoodSpinner

Nothing special:

I finished residency in 1996 with about $60,000 in student loan debt. I paid that off as quickly as I could.

The first 12 years or so years of investing seemed like I was just treading water with a big drop at the end 2008-09 (ouch!) I was basically just maxing out retirement accounts and not a lot of taxable investing in the markets.

I paid off my home and also bought farm property along the way. (Country boy at ♡ and had to do it. It is nice to own something you can see and not just numbers on a website.)

All in all, pretty basic simple stuff.

I appreciate all of the kind remarks,

Bubbadog

Billionaire
Posts: 299
Joined: Sat Jan 04, 2014 3:05 pm

Re: 2nd million is easier!

Post by Billionaire » Sat Dec 16, 2017 10:21 am

LittleGreenSoldiers wrote:
Fri Dec 15, 2017 11:43 pm
sambb wrote:
Fri Dec 15, 2017 11:02 pm
the first billion is the hardest
Hear, hear!
Here's to the BH 3 commas club.
Thanks for the shout out.

User avatar
bertilak
Posts: 6160
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: 2nd million is easier!

Post by bertilak » Sat Dec 16, 2017 11:56 am

Even in a relatively calm market, the second million will be MUCH easier. Starting with Charlie Munger's example of $100K:

To get from $100K to $1M you need to grow your nest egg by a factor of 10. To get from $1M to $2M is only a factor of 2, much easier to do.

Come to think of it, yes, the power of compounding is a Wonder of the World, but what's nice is that as time goes by less of it still gets great results!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

User avatar
dratkinson
Posts: 4384
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: 2nd million is easier!

Post by dratkinson » Sat Dec 16, 2017 12:08 pm

"The 2nd million is easier!" I heard this a long time ago.

To make it actionable, I stopped working on my first million... and started on the second. :)
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

User avatar
bertilak
Posts: 6160
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: 2nd million is easier!

Post by bertilak » Sat Dec 16, 2017 12:52 pm

dratkinson wrote:
Sat Dec 16, 2017 12:08 pm
"The 2nd million is easier!" I heard this a long time ago.

To make it actionable, I stopped working on my first million... and started on the second. :)
Brilliant! Has no one else thought of this? :oops:
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

Slacker
Posts: 633
Joined: Thu May 26, 2016 8:40 am

Re: 2nd million is easier!

Post by Slacker » Sat Dec 16, 2017 1:53 pm

Congrats to the OP!
We're still climbing toward the first million
moneywise3 wrote:
Fri Dec 15, 2017 9:33 pm
Happy for you. So you contributed 300-350k of new funds in last 46 months? Can’t be retirement accounts. Your income must be super high $500k- 1M a year?
2016 my wife and I earned less than $200K and saved $65K (contributions and match in various retirement and non retirement accounts)
2017 my wife and I earned less than $250K and saved $80K (contributions and match in various retirement and non retirement accounts)

It doesn't take a super high $500K+ income, but it does take an income in the top 10% IMO.

Thesaints
Posts: 1664
Joined: Tue Jun 20, 2017 12:25 am

Re: 2nd million is easier!

Post by Thesaints » Sat Dec 16, 2017 2:26 pm

"Easy come, easy go"
It is not only a proverb, but also a definition of market volatility. If you made ~20%/year over the last 4 years it only means you run the risk of substantial losses.

User avatar
willthrill81
Posts: 6553
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: 2nd million is easier!

Post by willthrill81 » Sat Dec 16, 2017 5:35 pm

It's mathematically easier to earn the second million because far less compounding is needed.

If you start with $125k, you need it to double three times to reach $1M.

If you start with $1M, you only need it to double once to reach $2M.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

ryman554
Posts: 1116
Joined: Sun Jan 12, 2014 9:44 pm

Re: 2nd million is easier!

Post by ryman554 » Sat Dec 16, 2017 5:45 pm

bubbadog wrote:
Fri Dec 15, 2017 10:02 pm
My employment income is not that high. It has been around 250-260k over the last 4 years.
Sorry to say, but your employment income is VERY high.

Even still, many folks with that income do not save 70k+ a year. That takes fortitude. Great job.

JustinR
Posts: 783
Joined: Tue Apr 27, 2010 11:43 pm

Re: 2nd million is easier!

Post by JustinR » Sat Dec 16, 2017 5:53 pm

Has anyone been tracking their net worth on a spreadsheet?

For some reason, my line is linear, even though it would seem it should be somewhat exponential (like a curve). What's your line like?

CJC000
Posts: 53
Joined: Sat Jul 09, 2016 11:41 am

Re: 2nd million is easier!

Post by CJC000 » Sat Dec 16, 2017 5:55 pm

"It's mathematically easier to earn the second million because far less compounding is needed."

Exactly like the SR 71 Blackbird: The faster it goes, the faster it goes faster!

Well done!!

EddyB
Posts: 565
Joined: Fri May 24, 2013 3:43 pm

Re: 2nd million is easier!

Post by EddyB » Sat Dec 16, 2017 6:25 pm

BlackHat wrote:
Fri Dec 15, 2017 8:24 pm
Charlie Munger has said to focus on getting your first 100,000 grand and then everything else will come easier.

“100,000 grand” is one hundred thousand thousand, or one hundred million. I’m not going to focus on that, at least not in US dollars.

bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

Re: 2nd million is easier!

Post by bubbadog » Sat Dec 16, 2017 6:27 pm

ryman554 wrote:
Sat Dec 16, 2017 5:45 pm
bubbadog wrote:
Fri Dec 15, 2017 10:02 pm
My employment income is not that high. It has been around 250-260k over the last 4 years.
Sorry to say, but your employment income is VERY high.

Even still, many folks with that income do not save 70k+ a year. That takes fortitude. Great job.
I was referring to someone who thought I must be making 500-1000K/year. My employment income is not "that" high.

User avatar
Garco
Posts: 707
Joined: Wed Jan 23, 2013 2:04 am

Re: 2nd million is easier!

Post by Garco » Sat Dec 16, 2017 6:54 pm

The latest $1.5 million was by far the easiest. We did nothing but survive our parents, who graciously gifted most of their estate to their children.

Of course, that money really would have been handy 20 years ago when we were supporting our children's college educations.

But we're grateful to have this money and haven't gone on a spendathon or anything. We learned from our parents to be careful as well as generous with our money.

Thesaints
Posts: 1664
Joined: Tue Jun 20, 2017 12:25 am

Re: 2nd million is easier!

Post by Thesaints » Sat Dec 16, 2017 6:54 pm

JustinR wrote:
Sat Dec 16, 2017 5:53 pm
Has anyone been tracking their net worth on a spreadsheet?

For some reason, my line is linear, even though it would seem it should be somewhat exponential (like a curve). What's your line like?
That depends. If your main income driver is work, then it should grow about linearly. If it is investments, the the exponential law will show up.
All this assuming that your expenses don’t follow your net worth, in which case back to linear you go.

SimplepathtoBogle
Posts: 42
Joined: Tue Jul 25, 2017 4:07 pm

Re: 2nd million is easier!

Post by SimplepathtoBogle » Sat Dec 16, 2017 7:07 pm

Great job and congrats. I enjoy reading these posts....for motivation and it’s nice to have somewhere to celebrate these milestones anonymously and without appearing arrogant.

arsenalfan
Posts: 668
Joined: Mon Dec 09, 2013 12:26 am

Re: 2nd million is easier!

Post by arsenalfan » Sat Dec 16, 2017 7:17 pm

Congratulations! That must feel tremendously satisfying. All your work...and now all your money working for you too!

mmcmonster
Posts: 271
Joined: Sun Jan 12, 2014 1:18 pm

Re: 2nd million is easier!

Post by mmcmonster » Sat Dec 16, 2017 7:53 pm

JustinR wrote:
Sat Dec 16, 2017 5:53 pm
Has anyone been tracking their net worth on a spreadsheet?

For some reason, my line is linear, even though it would seem it should be somewhat exponential (like a curve). What's your line like?
I started doing this just before I hit $1M. I check my net worth on a monthly basis since 5/2015 and so far it's looking like a slight curve upwards. That being said, I have a very high savings rate.

Maybe with a smaller savings rate it would look like a straight line on anything except a log graph?

NYCguy
Posts: 265
Joined: Sun Nov 13, 2016 12:42 pm

Re: 2nd million is easier!

Post by NYCguy » Sat Dec 16, 2017 10:07 pm

For me it looks something like this:

Starting in 1993:

8 years $500k - 2001
10 years $1 million - 2004
12 years $2 million - 2006
17 years $5 million - 2010
21 years $10 million - 2014
24 years $15 million - 2017

In the past 12 months I added over $2.3 million to my net worth, approximately half of which was from investment earnings and the other half from retained income.

For a kid who learned the boglehead way in his late 20s, works hard, and was afraid of going broke, I am astonished by my progression, particularly in recent years. When I consider that in the past year I accumulated in each three month period what it took me to accumulate in my first eight years working really hard, making great money and investing boglehead style, I am astonished.
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

BlackHat
Posts: 85
Joined: Tue Feb 14, 2017 1:47 pm

Re: 2nd million is easier!

Post by BlackHat » Sat Dec 16, 2017 10:44 pm

EddyB wrote:
Sat Dec 16, 2017 6:25 pm
BlackHat wrote:
Fri Dec 15, 2017 8:24 pm
Charlie Munger has said to focus on getting your first 100,000 grand and then everything else will come easier.

“100,000 grand” is one hundred thousand thousand, or one hundred million. I’m not going to focus on that, at least not in US dollars.
Woops! I mean 100,000 lol :D
“Life is really simple, but we insist on making it complicated.” -- Confucius

JustinR
Posts: 783
Joined: Tue Apr 27, 2010 11:43 pm

Re: 2nd million is easier!

Post by JustinR » Sat Dec 16, 2017 10:45 pm

NYCguy wrote:
Sat Dec 16, 2017 10:07 pm
For me it looks something like this:

Starting in 1993:

8 years $500k - 2001
10 years $1 million - 2004
12 years $2 million - 2006
17 years $5 million - 2010
21 years $10 million - 2014
24 years $15 million - 2017

In the past 12 months I added over $2.3 million to my net worth, approximately half of which was from investment earnings and the other half from retained income.

For a kid who learned the boglehead way in his late 20s, works hard, and was afraid of going broke, I am astonished by my progression, particularly in recent years. When I consider that in the past year I accumulated in each three month period what it took me to accumulate in my first eight years working really hard, making great money and investing boglehead style, I am astonished.
What's your salary during those different time periods?

moneywise3
Posts: 395
Joined: Mon Nov 22, 2010 6:54 pm

Re: 2nd million is easier!

Post by moneywise3 » Sat Dec 16, 2017 11:11 pm

NYCguy wrote:
Sat Dec 16, 2017 10:07 pm
For me it looks something like this:

Starting in 1993:

8 years $500k - 2001
10 years $1 million - 2004
12 years $2 million - 2006
17 years $5 million - 2010
21 years $10 million - 2014
24 years $15 million - 2017

In the past 12 months I added over $2.3 million to my net worth, approximately half of which was from investment earnings and the other half from retained income.

For a kid who learned the boglehead way in his late 20s, works hard, and was afraid of going broke, I am astonished by my progression, particularly in recent years. When I consider that in the past year I accumulated in each three month period what it took me to accumulate in my first eight years working really hard, making great money and investing boglehead style, I am astonished.
Very inspiring

User avatar
StevieG72
Posts: 855
Joined: Wed Feb 05, 2014 9:00 pm

Re: 2nd million is easier!

Post by StevieG72 » Sat Dec 16, 2017 11:45 pm

I hope so...

Of course 1 million isn’t what it used to be.....

When I was younger I thought if a person had 1 million they were set for life.

Now I realize that not to be the case. Oh well, I will keep plugging away.
Fools think their own way is right, but the wise listen to others.

cp73
Posts: 35
Joined: Thu May 31, 2012 6:02 pm

Re: 2nd million is easier!

Post by cp73 » Sun Dec 17, 2017 12:37 am

I have learned by watching others and myself it is never enough!

snarlyjack
Posts: 780
Joined: Fri Aug 28, 2015 12:44 pm
Location: Montana

Re: 2nd million is easier!

Post by snarlyjack » Sun Dec 17, 2017 5:35 am

Bubbadog,

Congrat's...keep it going!

As one of the young guy's at Bogleheads I would say
I' am cruzing right along. I' am investing 60% of
my income each month.

I' am 23 years old, no debt, not married, pretty frugal.
(But I don't make near as much as you).
Currently at $300,000. It's all about the 8th wonder
of the world = compounding.

NYCguy
Posts: 265
Joined: Sun Nov 13, 2016 12:42 pm

Re: 2nd million is easier!

Post by NYCguy » Sun Dec 17, 2017 7:21 am

JustinR wrote:
Sat Dec 16, 2017 10:45 pm
NYCguy wrote:
Sat Dec 16, 2017 10:07 pm
For me it looks something like this:

Starting in 1993:

8 years $500k - 2001
10 years $1 million - 2004
12 years $2 million - 2006
17 years $5 million - 2010
21 years $10 million - 2014
24 years $15 million - 2017

In the past 12 months I added over $2.3 million to my net worth, approximately half of which was from investment earnings and the other half from retained income.

For a kid who learned the boglehead way in his late 20s, works hard, and was afraid of going broke, I am astonished by my progression, particularly in recent years. When I consider that in the past year I accumulated in each three month period what it took me to accumulate in my first eight years working really hard, making great money and investing boglehead style, I am astonished.
What's your salary during those different time periods?
1993 - $80k
1997 - $135k
2001- 400k
2004 - 850k
2006 - $1.3
2010 - $1.8
2014 - $2.1
2017 - $2.9
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

bubbadog
Posts: 672
Joined: Wed Mar 26, 2014 9:17 pm

Re: 2nd million is easier!

Post by bubbadog » Sun Dec 17, 2017 7:26 am

snarlyjack wrote:
Sun Dec 17, 2017 5:35 am
Bubbadog,

Congrat's...keep it going!

As one of the young guy's at Bogleheads I would say
I' am cruzing right along. I' am investing 60% of
my income each month.

I' am 23 years old, no debt, not married, pretty frugal.
(But I don't make near as much as you).
Currently at $300,000. It's all about the 8th wonder
of the world = compounding.
Thank you snarlyjack. It sounds like you are on well on your way.

I love the Einstein quote about compounding interest being the 8th wonder of the world.

He who understands it...earns it. He who doesn't... pays it. (very true BTW)

Post Reply