"Millennial Millionaire" a Gem

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Taylor Larimore
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"Millennial Millionaire" a Gem

Post by Taylor Larimore »

Several months ago I was approached by Boglehead Blake Konrardy who asked me to write the Forward for his new book, Millennial Millionaire. I appreciated the honor and read Blake's pre-publication. His book is a winner and full of sound advice like this:
"The increase in your net worth is equal to your new savings plus your investment gains."

"Maximizing your income is hands-down the best thing you can do for your finances."

"If you get a 7% raise every year, it will take you about 10 years to double your salary."

"Create a list of your most impressive accomplishments and some measure of the company impact."

"The best time to ask for a raise is when your perceived value at the company is high."

"The most important benefit to take advantage of is your retirement savings plan."

"Recognizing that all execs had a master's degree and most had finance backgrounds, I decided to get an MBA."

"The fastest way to increase your pay is to regularly change jobs."

"In 2020, the average employee tenure is about 4 years."

"Selling yourself via your resume and cover letter gets you an interview; selling yourself in an interview gets you a job."

"The easiest way to search for jobs is to work with industry recruiters who will do the work for you."

"Indeed.com is an aggregator of job postings .." "Most of the time, you should be able to find a salary range for your position on Glassdoor."

"If you find a job you genuinely enjoy, it's probably not worth switching to something you hate just so you can retire a couple years earlier."

"You should remember that there are more important things in life than finance."

"If you're currently earning a low income and don't see a clear path to increase it, a career change may be your best option."

"You can increase your income even further by finding a lucrative side hustle."

"Each additional $10,000 after-tax you make through a side hustle, when compounded for 7% investment returns, results in an extra $400,000 over the course of 20 years."

"While increasing income has the greatest potential to accelerate your net worth accumulation, reducing expenses is the most efficient way to save more money."

"By making smarter spending decisions and buying fewer things, you'll not only have more money to save, you also increase your happiness."

"A short commute gives you more time to do what you enjoy in life."

"Recurring expenses like mortgage interest, property tax, utilities, and insurance are all higher for larger homes."

Scientifically proven: "Buying nicer material things typically does not lead to increased long-term happiness."

"As a general rule, the longer you will live in your house, the more it makes sense to buy, with a breakeven point typically between 5 and 10 years."

"After housing, transportation provides the greatest opportunity to cut costs and increase your savings rate."

"By selling our car, we saved $11,500 each year. Making that decision over the course of 30 years of driving compounding for investment returns, results in a $1.1 million difference."

"The average cost of a meal cooked at home was $4.31, a meal kit almost triple that at $12.41, and restaurant delivery nearly 5 times the cost at $20.37.

"Having children is expensive. Regardless of how frugal you are, there is no way around that."

"The performance gap between public and private schools is eliminated when controlling for socioeconomic factors (according to a University of Virginia study).

"Pay off all your credit card debt now."

"The Points Guy is the renowned authority on reward credit cards , so check there to determine what card is best for you."

"Your health is critical to your financial success. The best thing you can do for your health is to exercise on a regular basis."

"A study from Briston University found that working out results in a 20% increase in ability to finish work on time and a 40% increase in motivation to work."

"Like exercise, sleep is important for your long-term health and to protect your human capital."

"You can optimize your insurance expenditure by purchasing it only to protect against losing a life-changing amount of money."

"Life Insurance: You only need it if you have financial dependents. If so, buy term life."

"The Health Saving Account (HSA) is the only investment vehicle which enables you to never pay tax--not at contribution and not at withdrawal."

"Be sure to shop around for insurance every couple years -- to see how much you could save by switching."

"If you want to grow net worth quickly, you will need to rely on significant saving by increasing income and reducing expenses."

"Despite what the financial services industry want you to think, developing and executing on your investment strategy is easy."

"Buy target date funds in your retirement accounts and watch them grow. It really is that simple."

"While the value of equities can drop in the short-term, these fluctuations do not matter for a long-term investor."

"$1 invested in the U.S. stock market in 1871 would be worth $460,000 in July of 2020."

"(Real estate) is only worth doing if you're seeking an extra job as a landlord or house renovator."

"Peer-to-peer (P2P) lending, cryptocurrency, and other recent trends simply have not been proven to have consistent long-term returns of a stock-and-bond portfolio."

"The choice between pre-tax (IRA) and Roth boils down to your income tax rate today vs. what it will be when you withdraw funds in retirement."

"You can check out the Solo 401k page on the Bogleheads wiki for details."

"Setting your asset allocation and putting your money in the right spot should be your first two priorities as an investor."

"Efficient Market Hypothesis. This theory states that the market is efficient, meaning it is correctly priced based on all available information, and it is essentially impossible to beat market returns when adjusting for risk."

"The bad news is that consistently beating the market is virtually impossible for you as an individual investor. But the good news is that you can earn market returns, which are more than enough to make you a millionaire."

"According to the S&P Indices Versus Active (SPIVA) scorecard, almost 95% of actively managed funds fail to outperform their benchmark indexes over a 15-year period after accounting for fees."

"If you have no reason to pick one or the other, go with ETFs, at least in your taxable account."

"If you are a sophisticated investor, this (3-fund portfolio) is likely the approach you want to take."

"If you absolutely insist on paying someone to talk you through your investment decisions, look for an advisor who charges hourly rather than by AUM (Assets Under Management) or go with a lower cost firm like Vanguard Advisory Service. "

"Time in the market beats timing the market."

"Consolidate your investment accounts as much as possible."

"While reducing spending will help you achieve your financial goals, you should spend money on the things that make you happy."

"Keep in mind that the average American under 45 has just $36,000 in net worth."

"It's not uncommon for early retirees to see their health expenditure double."

"Based on the famous Trinity Study, the rule states that a retiree can safely withdraw 4% of their portfolio in the first year of retirement and increase that withdrawal according to inflation each year."

"If you'd like to dive in more on the (withdrawal) subject, the Bogleheads variable percentage withdrawal wiki page has more detail."

"Have a question or just want to fill me in on your net worth journey" Catch me on the Bogleheads Forum or email me at blake@millennialmillionairebook.com"
Best wishes
Taylor
Jack Bogle's Words of Wisdom: “It is the power of words and books—explaining and dramatizing great ideas and articulating high ideals that is the greatest weapon in the missionary’s arsenal.”
"Simplicity is the master key to financial success." -- Jack Bogle
sschullo
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Re: "Millennial Millionaire" a Gem

Post by sschullo »

Hi Taylor,
Thank you for this gem and all of your gems.
I have not found a gem for The Psychology of Money by Morgan Housel. Are you working on it?
Thanks for all you do,

Steve
"We have seen much more money made and kept by “ordinary people” who were temperamentally well suited for the investment process than by those who lacked this quality." Ben Graham
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Barry Barnitz
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Re: "Millennial Millionaire" a Gem

Post by Barry Barnitz »

Hi:
We have added this gem topic post to the wiki, at Taylor Larimore's Investment Gems.

Thank you Taylor.
Additional administrative tasks: Financial Page bogleheads.org. blog; finiki the Canadian wiki; The Bogle Center for Financial Literacy site; La Guía Bogleheads® España site.
000
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Re: "Millennial Millionaire" a Gem

Post by 000 »

I'm guessing that
Blake Konrardy wrote: An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office, and a bestselling personal finance author.
is the primary reason for his financial success, not MBAs, asking for raises, target date funds, cooking meals at home, et cetera.

It's strange that a person with so much ability and financial success is selling a book, i.e. profit margins from book writing is typically low relative to other business activities an entrepreneur could pursue.

Anyway, if you want to become financially successful like the author, you need to pursue high risk strategies and have them work out.
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Taylor Larimore
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Re: "Millennial Millionaire" a Gem

Post by Taylor Larimore »

sschullo wrote: Fri Oct 09, 2020 5:07 pm Hi Taylor,
Thank you for this gem and all of your gems.
I have not found a gem for The Psychology of Money by Morgan Housel. Are you working on it?
Thanks for all you do,

Steve
Steve:

I have heard good reports about The Psychology of Money. Unfortunately, my time is limited and I doubt if I will write more "Gems."

A knowledgeable and talented Boglehead author like Blake Konrardy was an exception.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “It is the power of words and books—explaining and dramatizing great ideas and articulating high ideals—that is the greatest weapon in the missionary’s arsenal.”
"Simplicity is the master key to financial success." -- Jack Bogle
stoptothink
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Re: "Millennial Millionaire" a Gem

Post by stoptothink »

000 wrote: Fri Oct 09, 2020 6:11 pm I'm guessing that
Blake Konrardy wrote: An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office, and a bestselling personal finance author.
is the primary reason for his financial success, not MBAs, asking for raises, target date funds, cooking meals at home, et cetera.

It's strange that a person with so much ability and financial success is selling a book, i.e. profit margins from book writing is typically low relative to other business activities an entrepreneur could pursue.

Anyway, if you want to become financially successful like the author, you need to pursue high risk strategies and have them work out.
This was already discussed at length in another thread, where the writer of the book bowed out very early and then it was locked. I'm sure there are some "gems" in the book, but the author is wealthy because of "An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office..." and not what is discussed in the book. Period.
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Re: "Millennial Millionaire" a Gem

Post by bog007 »

ty good stuff :dollar
Hendrik Bessembinder> the top performing 4% of listed companies explain the net gain for the entire US stock market since 1926 | The other 96% of stocks collectively did not do better than 90dayT-bills
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Re: "Millennial Millionaire" a Gem

Post by aktx97 »

"Each additional $10,000 after-tax you make through a side hustle, when compounded for 7% investment returns, results in an extra $400,000 over the course of 20 years."

"By selling our car, we saved $11,500 each year. Making that decision over the course of 30 years of driving compounding for investment returns, results in a $1.1 million difference."
---

As a 31 year old, I love reading things like this. Changes my perspective on being young and saving.
Keep calm and stay the course.
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Re: "Millennial Millionaire" a Gem

Post by rockstar »

Good stuff.
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millennialmillions
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Re: "Millennial Millionaire" a Gem

Post by millennialmillions »

Taylor Larimore wrote: Fri Oct 09, 2020 4:29 pm Several months ago I was approached by Boglehead Blake Konrardy who asked me to write the Forward for his new book, Millennial Millionaire. I appreciated the honor and read Blake's pre-publication. His book is a winner and full of sound advice like this:
...
Best wishes
Taylor
Taylor, thank you for the kind words. It is truly an honor to have my book included as one of your investment gems. I owe much of my knowledge to reading The Bogleheads' Guide to Investing at an early age and frequenting this forum.
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millennialmillions
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Re: "Millennial Millionaire" a Gem

Post by millennialmillions »

stoptothink wrote: Fri Oct 09, 2020 6:18 pm
000 wrote: Fri Oct 09, 2020 6:11 pm I'm guessing that
Blake Konrardy wrote: An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office, and a bestselling personal finance author.
is the primary reason for his financial success, not MBAs, asking for raises, target date funds, cooking meals at home, et cetera.

It's strange that a person with so much ability and financial success is selling a book, i.e. profit margins from book writing is typically low relative to other business activities an entrepreneur could pursue.

Anyway, if you want to become financially successful like the author, you need to pursue high risk strategies and have them work out.
This was already discussed at length in another thread, where the writer of the book bowed out very early and then it was locked. I'm sure there are some "gems" in the book, but the author is wealthy because of "An avid entrepreneur and inventor, Blake is the founder of a protein beer company, a former professional sports bettor, a licensed pilot, creator of over 40 patents granted by the U.S. Patent Office..." and not what is discussed in the book. Period.
I was keeping up with that thread right until it was locked. I agree that being willing to take career risks has substantially contributed to my financial position. I attempt to convey that mindset in the book, outlining how readers can proactively take control of their careers. I believe that is the most important aspect to obtaining wealth young, and intentionally seeking raises, promotions, and higher-paying jobs was my top reason for financial success. A Boglehead investment strategy contributed some but is more important for maintaining/growing wealth over a longer timeframe.

As far as the listed items:
  • The protein beer company lost me about $5,000 and took up an embarrassing amount of time (I probably spent 10 hours just peeling labels off bottles because I didn't want to buy my own)
  • I just became a pilot this year, which is by far my most expensive hobby to date. Definitely do not recommend for anyone whose primary goal is to save money!
  • The patents did earn me substantial bonuses at my corporate job, which I outlined as one way to maximize income (other opportunities include performance bonuses, referral bonuses, and automatic raises for educational milestones)
  • The sports betting venture was a success and made me just over $100k over 3 years. After trying some crazy things like the protein beer, it turned out that doing what I did in my day job (statistical modeling) could also make me money on a side hustle. Who would have guessed!
Tingting1013
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Re: "Millennial Millionaire" a Gem

Post by Tingting1013 »

The other thread was locked and I see no reason why this one shouldn’t be either.
JBTX
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Re: "Millennial Millionaire" a Gem

Post by JBTX »

Never mind.
Last edited by JBTX on Mon Oct 12, 2020 8:17 pm, edited 1 time in total.
Carguy85
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Re: "Millennial Millionaire" a Gem

Post by Carguy85 »

aktx97 wrote: Mon Oct 12, 2020 4:33 pm "Each additional $10,000 after-tax you make through a side hustle, when compounded for 7% investment returns, results in an extra $400,000 over the course of 20 years."

"By selling our car, we saved $11,500 each year. Making that decision over the course of 30 years of driving compounding for investment returns, results in a $1.1 million difference."
---

As a 31 year old, I love reading things like this. Changes my perspective on being young and saving.
I think the top one at least Is a bit of a typo....$10k at 7% would double at 10 years so $40k not $400k at 20years...however some nice nuggets no doubt
Day9
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Re: "Millennial Millionaire" a Gem

Post by Day9 »

Carguy85 wrote: Mon Oct 12, 2020 8:14 pm
aktx97 wrote: Mon Oct 12, 2020 4:33 pm "Each additional $10,000 after-tax you make through a side hustle, when compounded for 7% investment returns, results in an extra $400,000 over the course of 20 years."

"By selling our car, we saved $11,500 each year. Making that decision over the course of 30 years of driving compounding for investment returns, results in a $1.1 million difference."
---

As a 31 year old, I love reading things like this. Changes my perspective on being young and saving.
I think the top one at least Is a bit of a typo....$10k at 7% would double at 10 years so $40k not $400k at 20years...however some nice nuggets no doubt
I noticed that too and I assumed they meant contributing $10k each and every year for 20 years. Either way it's not clear
I'm just a fan of the person I got my user name from
ChrisBenn
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Re: "Millennial Millionaire" a Gem

Post by ChrisBenn »

JBTX wrote: Mon Oct 12, 2020 8:10 pm I am sure there are a lot of Bogleheads who could write a similar book.
That's a bit unfairly dismissive imo. In the end it's execution that matters; unrealized potential isn't worth much.
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Re: "Millennial Millionaire" a Gem

Post by JBTX »

ChrisBenn wrote: Mon Oct 12, 2020 8:19 pm
JBTX wrote: Mon Oct 12, 2020 8:10 pm I am sure there are a lot of Bogleheads who could write a similar book.
That's a bit unfairly dismissive imo. In the end it's execution that matters; unrealized potential isn't worth much.
You caught me before I edited post. Personally I tend to think a book should bring something new to the table, just regurgitating what you see in here daily, and putting pearls of wisdom like "use headhunters" is in itself underwhelming. But in fairness I haven't read the entire book and I'm not the target audience.

There are other things in there that I think are flat out wrong. I have rarely encountered "asking for raises" in corporate America. That's just not the way it works and in certain circumstances would be terrible advice.
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Re: "Millennial Millionaire" a Gem

Post by tmcc »

what i struggle with is how to identify which of my hare-brained ideas are actually a good idea for the masses as a side business. what I like and what the mass populace likes are very different it seems.
Carguy85
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Re: "Millennial Millionaire" a Gem

Post by Carguy85 »

Day9 wrote: Mon Oct 12, 2020 8:16 pm
Carguy85 wrote: Mon Oct 12, 2020 8:14 pm
aktx97 wrote: Mon Oct 12, 2020 4:33 pm "Each additional $10,000 after-tax you make through a side hustle, when compounded for 7% investment returns, results in an extra $400,000 over the course of 20 years."

"By selling our car, we saved $11,500 each year. Making that decision over the course of 30 years of driving compounding for investment returns, results in a $1.1 million difference."
---

As a 31 year old, I love reading things like this. Changes my perspective on being young and saving.
I think the top one at least Is a bit of a typo....$10k at 7% would double at 10 years so $40k not $400k at 20years...however some nice nuggets no doubt
I noticed that too and I assumed they meant contributing $10k each and every year for 20 years. Either way it's not clear
Ok so according to a calculator $10k at 7% is about $37k in 20. Adding $10k to the pot every year for 20 is about $477k. Anyhow
I see his point.
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Re: "Millennial Millionaire" a Gem

Post by jbmitt »

I respect his hustle, but I’m not sure it warrants a thread that reads as a puff piece for his ebook. I also have my CPCU, experience in the insurance industry and I’m a certificated pilot.

I’m skeptical of some of his claims, I guess I need to read the book. The FAA airman registry considers him a student pilot, which is different from how he promotes himself.

https://amsrvs.registry.faa.gov/airmeninquiry/Main.aspx
Carguy85
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Re: "Millennial Millionaire" a Gem

Post by Carguy85 »

jbmitt wrote: Mon Oct 12, 2020 8:34 pm I respect his hustle, but I’m not sure it warrants a thread that reads as a puff piece for his ebook. I also have my CPCU, experience in the insurance industry and I’m a certificated pilot.

I’m skeptical of some of his claims, I guess I need to read the book. The FAA airman registry considers him a student pilot, which is different from how he promotes himself.

https://amsrvs.registry.faa.gov/airmeninquiry/Main.aspx

My medical from 3 mo ago is still not showing...just the one from 2015. He says he just got his ppl so maybe hasn’t updated yet?
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