Share your net worth progression

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Autiger144
Posts: 1
Joined: Sat Sep 03, 2016 10:42 pm

Re: Share your net worth progression

Post by Autiger144 »

Male, Married, 1 kid, 35 y/o

No debt other than mortgage

2015 $53,000
2016 $114,000
2017 $170,000
2018 $225,000
2019 $329,000
YTD '20 $419,000

Hope to hit $1M net worth by 39 y/o

2020 Savings Rate - 58%
TravelforFun
Posts: 2186
Joined: Tue Dec 04, 2012 11:05 pm

Re: Share your net worth progression

Post by TravelforFun »

Keenobserver wrote: Tue Sep 08, 2020 7:06 am
TravelforFun wrote: Mon Sep 07, 2020 11:23 am
Ciel wrote: Sat Sep 05, 2020 11:33 pm In case any readers of this thread need a healthy dose of reality/perspective, check out the NY Times net worth ranker: https://www.nytimes.com/interactive/201 ... ealth.html

Many of the responses in this thread are those in the 99th percentile for their age range (or thereabouts).
Be careful when using the chart. Net worth is total assets minus total liabilities and can consist of many things including savings, investments, home equities, business asset, etc. If your net worth is mostly in 401ks or IRAs, make sure you subtract out 20-30% because that's Uncle Sam's money.

TravelforFun
Its uncle Sam's money only if you are up and are cashing out whilst still earning salary.
It's Uncle Sam's money if you are in any tax bracket greater than 0%.

TravelforFun
SovereignInvestor
Posts: 597
Joined: Mon Aug 20, 2018 4:41 pm

Re: Share your net worth progression

Post by SovereignInvestor »

Keenobserver wrote: Tue Sep 08, 2020 7:06 am
TravelforFun wrote: Mon Sep 07, 2020 11:23 am
Ciel wrote: Sat Sep 05, 2020 11:33 pm In case any readers of this thread need a healthy dose of reality/perspective, check out the NY Times net worth ranker: https://www.nytimes.com/interactive/201 ... ealth.html

Many of the responses in this thread are those in the 99th percentile for their age range (or thereabouts).
Be careful when using the chart. Net worth is total assets minus total liabilities and can consist of many things including savings, investments, home equities, business asset, etc. If your net worth is mostly in 401ks or IRAs, make sure you subtract out 20-30% because that's Uncle Sam's money.

TravelforFun
Its uncle Sam's money only if you are up and are cashing out whilst still earning salary.
Not exactly. There are many on here that have 1M+ in tax deferred accounts. Assuming 1M, Unless it is nearly all in fixed income and never grows much it is essentially impossible to get it all out of the account in ones life with having to take maybe 40K to 50K or a lot more per year which is very likely to trigger income tax of some form.

If one assumes low 3% annual returns on 1M in 401K at age 62 they likely need to withdraw at least 50K a year to actually draw it down to actually enjoy the net worth. That would trigger some tax. If one has net worth but can never actually use it because of tax then the tax liability is real. Minumum required distributions also support ideanof tax haircut.

People should haircut their pretax accounts for some assumed tax liability. 20-30% may be too high but for most it won't be 0% either especially if one never plans on living in an income tax free state and has smaller balance and low outside taxable income.
Keenobserver
Posts: 453
Joined: Thu Aug 13, 2015 1:05 pm

Re: Share your net worth progression

Post by Keenobserver »

TravelforFun wrote: Tue Sep 08, 2020 4:19 pm
Keenobserver wrote: Tue Sep 08, 2020 7:06 am
TravelforFun wrote: Mon Sep 07, 2020 11:23 am
Ciel wrote: Sat Sep 05, 2020 11:33 pm In case any readers of this thread need a healthy dose of reality/perspective, check out the NY Times net worth ranker: https://www.nytimes.com/interactive/201 ... ealth.html

Many of the responses in this thread are those in the 99th percentile for their age range (or thereabouts).
Be careful when using the chart. Net worth is total assets minus total liabilities and can consist of many things including savings, investments, home equities, business asset, etc. If your net worth is mostly in 401ks or IRAs, make sure you subtract out 20-30% because that's Uncle Sam's money.

TravelforFun
Its uncle Sam's money only if you are up and are cashing out whilst still earning salary.
It's Uncle Sam's money if you are in any tax bracket greater than 0%.

TravelforFun
deleted
Keenobserver
Posts: 453
Joined: Thu Aug 13, 2015 1:05 pm

Re: Share your net worth progression

Post by Keenobserver »

SovereignInvestor wrote: Wed Sep 09, 2020 6:39 am
Keenobserver wrote: Tue Sep 08, 2020 7:06 am
TravelforFun wrote: Mon Sep 07, 2020 11:23 am
Ciel wrote: Sat Sep 05, 2020 11:33 pm In case any readers of this thread need a healthy dose of reality/perspective, check out the NY Times net worth ranker: https://www.nytimes.com/interactive/201 ... ealth.html

Many of the responses in this thread are those in the 99th percentile for their age range (or thereabouts).
Be careful when using the chart. Net worth is total assets minus total liabilities and can consist of many things including savings, investments, home equities, business asset, etc. If your net worth is mostly in 401ks or IRAs, make sure you subtract out 20-30% because that's Uncle Sam's money.

TravelforFun
Its uncle Sam's money only if you are up and are cashing out whilst still earning salary.
Not exactly. There are many on here that have 1M+ in tax deferred accounts. Assuming 1M, Unless it is nearly all in fixed income and never grows much it is essentially impossible to get it all out of the account in ones life with having to take maybe 40K to 50K or a lot more per year which is very likely to trigger income tax of some form.

If one assumes low 3% annual returns on 1M in 401K at age 62 they likely need to withdraw at least 50K a year to actually draw it down to actually enjoy the net worth. That would trigger some tax. If one has net worth but can never actually use it because of tax then the tax liability is real. Minumum required distributions also support ideanof tax haircut.

People should haircut their pretax accounts for some assumed tax liability. 20-30% may be too high but for most it won't be 0% either especially if one never plans on living in an income tax free state and has smaller balance and low outside taxable income.
Agreed. Assuming 30% off the back seems too high.
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Hawaiishrimp
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Re: Share your net worth progression

Post by Hawaiishrimp »

moneywise3 wrote: Sat Aug 29, 2020 1:51 pm
Hawaiishrimp wrote: Thu Aug 27, 2020 9:19 pm I did. My 1st post with >10M. See above.
If my hypothesis is right, this might be the last time you posted you NW progression here :happy
Haha, I am still here. Happy to report back.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.
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Hawaiishrimp
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Re: Share your net worth progression

Post by Hawaiishrimp »

JamalJones wrote: Sat Sep 05, 2020 12:49 pm
Hawaiishrimp wrote: Thu Aug 27, 2020 7:45 pm Update: As of end of Aug 2020

2020: $10.1M (As of today: $10,173,394)
That’s hot. That’s a hot way to live.
Stay the course. Invest for the long term. Live below our means. I'm doing the same thing just like before. No lifestyle change whatsoever. Still having a full time job work from home. It's just a number honestly.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.
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Hawaiishrimp
Posts: 476
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Re: Share your net worth progression

Post by Hawaiishrimp »

mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.
justsomeguy2018
Posts: 1188
Joined: Wed Oct 03, 2018 8:11 pm

Re: Share your net worth progression

Post by justsomeguy2018 »

Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm
mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
latesaver
Posts: 220
Joined: Thu Aug 03, 2017 3:35 pm

Re: Share your net worth progression

Post by latesaver »

justsomeguy2018 wrote: Sun Sep 13, 2020 8:46 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm
mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
It isn't so much interest rates, but return on any investment in general. If the stock market gains 2-3% a year, you'll notice the growth. if it grows 6-7% it isn't that hard for it to outpace your salary.
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JamalJones
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Re: Share your net worth progression

Post by JamalJones »

Hawaiishrimp wrote: Sun Sep 13, 2020 8:37 pm
JamalJones wrote: Sat Sep 05, 2020 12:49 pm
Hawaiishrimp wrote: Thu Aug 27, 2020 7:45 pm Update: As of end of Aug 2020

2020: $10.1M (As of today: $10,173,394)
That’s hot. That’s a hot way to live.
Stay the course. Invest for the long term. Live below our means. I'm doing the same thing just like before. No lifestyle change whatsoever. Still having a full time job work from home. It's just a number honestly.
Impressive nonetheless! I plan on having that much myself. Should get there by the time I turn 95. :)
TSP + Vanguard Roth IRA + Vanguard Taxable: 80% equities / 20% bonds | "I don't shine shoes, I don’t tape ankles, I don't cut checks - straight cash homie!!" --R. Moss
stoptothink
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Joined: Fri Dec 31, 2010 9:53 am

Re: Share your net worth progression

Post by stoptothink »

justsomeguy2018 wrote: Sun Sep 13, 2020 8:46 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm
mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
Net worth more than tripling in less than a year, growing about 60x more than it had any previous year, didn't occur as a result of saving 25-30% of a $200k HHI and compound interest. Very clearly, #2 should be bolded and italicized.
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Hawaiishrimp
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Re: Share your net worth progression

Post by Hawaiishrimp »

justsomeguy2018 wrote: Sun Sep 13, 2020 8:46 pm
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
Sorry, I meant to say investing (+dividend reinvestment) compound growth over the years.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.
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Hawaiishrimp
Posts: 476
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Re: Share your net worth progression

Post by Hawaiishrimp »

stoptothink wrote: Mon Sep 14, 2020 12:15 pm
Net worth more than tripling in less than a year, growing about 60x more than it had any previous year, didn't occur as a result of saving 25-30% of a $200k HHI and compound interest. Very clearly, #2 should be bolded and italicized.
#2 makes a difference (about $1M). Mainly #3, significant return of some individual stocks (e.g. TSLA 10x in one year, NVDA & other tech stocks that are doing exceptionally well).
I save and invest my money, so money can make money for me, so I don't have to make money eventually.
goos_news
Posts: 31
Joined: Mon Jun 10, 2019 7:14 pm

Re: Share your net worth progression

Post by goos_news »

stoptothink wrote: Mon Sep 14, 2020 12:15 pm
justsomeguy2018 wrote: Sun Sep 13, 2020 8:46 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm
mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
Net worth more than tripling in less than a year, growing about 60x more than it had any previous year, didn't occur as a result of saving 25-30% of a $200k HHI and compound interest. Very clearly, #2 should be bolded and italicized.
I think substantial options and higher risk individual stocks are more exceptional gains, to be honest, versus more Bogle-esque index gains.

I'm a bit behind Hawaiishrimp and have benefited from NQs/RSUs and a $900K inheritance. But aside from the latter, I've been able to make substantial gains since 2014 with just index fund investing and a 80% savings rate. Once you get to $5m, adding index gains to 80% gross savings on some really good years can really accelerate the accumulation. So I would say for me it is mostly index investing and the willingness to save.

on the other thread...
Tax deferred accounts are just that, I agree. But other types of investments also have a tax burden, so the classic definition of NW doesn't normally factor all of these in. I always look look at both. It is important to know where you really stand, especially if your future draw rate is at higher levels.
stoptothink
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Re: Share your net worth progression

Post by stoptothink »

Hawaiishrimp wrote: Tue Sep 15, 2020 4:01 am
stoptothink wrote: Mon Sep 14, 2020 12:15 pm
Net worth more than tripling in less than a year, growing about 60x more than it had any previous year, didn't occur as a result of saving 25-30% of a $200k HHI and compound interest. Very clearly, #2 should be bolded and italicized.
#2 makes a difference (about $1M). Mainly #3, significant return of some individual stocks (e.g. TSLA 10x in one year, NVDA & other tech stocks that are doing exceptionally well).
Good for you. That's amazing, you won. As someone in their mid-late 30's with a ~$220k HHI and a 55%+ gross savings rate, the chances of ever reaching where you are now with just basic savings and compounding is slim to none without access to company stock. Well, I could invest in individual stocks, but my stomach for high risk investing is very low. Congrats.
tibbitts
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Joined: Tue Feb 27, 2007 6:50 pm

Re: Share your net worth progression

Post by tibbitts »

Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm 4. Just an average joe with a household income ~200k annually.
Average household income would be more like $60k/year.
tibbitts
Posts: 11930
Joined: Tue Feb 27, 2007 6:50 pm

Re: Share your net worth progression

Post by tibbitts »

Keenobserver wrote: Wed Sep 09, 2020 9:07 am Agreed. Assuming 30% off the back seems too high.
It's not that much of a stretch for a single person, particularly if you add the average state income tax at roughly, oh, 5%. It does depend if you count things like potential social security taxation and medicare/IRMAA as "taxes." And if you want to add in other taxes like real estate taxes and sales taxes, various governments can easily take more than 30% combined from someone who might not have had a high income but saved diligently (maybe overly so) in deferred accounts.
wldlndfirefghtr
Posts: 55
Joined: Tue Jul 28, 2009 12:22 pm

Re: Share your net worth progression

Post by wldlndfirefghtr »

Currently 42, married two kids. Always been an 'uber saver/investor'.

Net Worth Progression;

Started tracking in 2012, every December 31st. I was 35.

2012 $513,987
2013 $564,166
2014 $621,146
2015 $689,213
2016 $781,488
2017 $947,022
2018 $990,186
2019 $1,224,533

This year on August 6th I finally made the two comma club (savings/checking, taxable account, ROTH IRAs, TSP/401K's).

I started early, got my wife onboard and we live beneath our means. We are very fortunate.
Normchad
Posts: 1311
Joined: Thu Mar 03, 2011 7:20 am

Re: Share your net worth progression

Post by Normchad »

wldlndfirefghtr wrote: Tue Sep 15, 2020 6:02 pm Currently 42, married two kids. Always been an 'uber saver/investor'.

Net Worth Progression;

Started tracking in 2012, every December 31st. I was 35.

2012 $513,987
2013 $564,166
2014 $621,146
2015 $689,213
2016 $781,488
2017 $947,022
2018 $990,186
2019 $1,224,533

This year on August 6th I finally made the two comma club (savings/checking, taxable account, ROTH IRAs, TSP/401K's).

I started early, got my wife onboard and we live beneath our means. We are very fortunate.
Nice work! I'm super impressed whenever somebody hits $1M at 40. If you do that, you've got the hard part out of the way, and the rest of the journey should be relatively easy! Keep up the good work!
bck63
Posts: 1317
Joined: Fri Sep 28, 2018 4:59 pm

Re: Anybody near retirement with mid-six figures?

Post by bck63 »

I see a lot of big numbers on this site. Just wondering if anyone is at or near retirement with mid-six figure portfolios? Or is it all 7-8 figures or more?
bluebolt
Posts: 1246
Joined: Sat Jan 14, 2017 9:01 am

Re: Share your net worth progression

Post by bluebolt »

tibbitts wrote: Tue Sep 15, 2020 3:15 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm 4. Just an average joe with a household income ~200k annually.
Average household income would be more like $60k/year.
Depends whether you are talking about mean or median. Mean is over $100K.
https://fred.stlouisfed.org/series/MAFAINUSA672N
Keenobserver
Posts: 453
Joined: Thu Aug 13, 2015 1:05 pm

Re: Share your net worth progression

Post by Keenobserver »

Ok. So everyone here is smarter and richer than I. Cool.
5280Tim
Posts: 49
Joined: Wed Jul 26, 2017 9:33 pm

Re: Share your net worth progression

Post by 5280Tim »

Keenobserver wrote: Tue Sep 15, 2020 6:35 pm Ok. So everyone here is smarter and richer than I. Cool.
It’s certainly easy to feel that way sometimes.
l1am
Posts: 372
Joined: Wed Mar 02, 2016 2:27 pm

Re: Anybody near retirement with mid-six figures?

Post by l1am »

bck63 wrote: Tue Sep 15, 2020 6:15 pm I see a lot of big numbers on this site. Just wondering if anyone is at or near retirement with mid-six figure portfolios? Or is it all 7-8 figures or more?
All depends what your expenses are, but yes most Americans retire on a lot less than 7 figures just fine.
mikejuss
Posts: 122
Joined: Tue Jun 23, 2020 1:36 pm

Re: Share your net worth progression

Post by mikejuss »

stoptothink wrote: Mon Sep 14, 2020 12:15 pm
justsomeguy2018 wrote: Sun Sep 13, 2020 8:46 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm
mikejuss wrote: Sat Sep 05, 2020 1:43 pm Well done, all.

But I wonder how much of these extraordinary wealth progressions is basically owing to windfalls such as raises, inheritances, or sales (and the resultant savings), rather than to index investing (which, at best, grows one's capital at relatively modest rates). I say this as a committed Boglehead. I think there's value in remaining clear-eyed about the many factors that drive wealth creation, and it seems that a high income and one's willingness to save a substantial amount of it are the prerequisites to successful index investing.
In my case:
1. No inheritance, no lottery.
2. I have stock options from my job.
3. I did have individual stocks on top of index funds.
4. Just an average joe with a household income ~200k annually.
5. I do save & invest a decent amount. Probably 25-30% of my income.
6. Compound interest is the key.
7. Take educated risk is also important to me.

Good luck to you. Cheers.
How helpful can compound interest be when interest rates have been less than 2% for the better half of 10+ years??
Net worth more than tripling in less than a year, growing about 60x more than it had any previous year, didn't occur as a result of saving 25-30% of a $200k HHI and compound interest. Very clearly, #2 should be bolded and italicized.
This topic might well be worth a separate message thread.

I'll reiterate that the net-worth progressions here--many of which show figures doubling and tripling year in and year out--have little to do with index investing and much more to do with X factors (inheritances, single stock picks, company options).
Last edited by mikejuss on Fri Sep 18, 2020 10:11 pm, edited 4 times in total.
Tingting1013
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Joined: Mon Aug 24, 2020 5:44 pm

Re: Share your net worth progression

Post by Tingting1013 »

Keenobserver wrote: Tue Sep 15, 2020 6:35 pm Ok. So everyone here is smarter and richer than I. Cool.
Probably better looking too!

:sharebeer
slyfox1357
Posts: 57
Joined: Tue Dec 26, 2017 6:13 pm

Re: Share your net worth progression

Post by slyfox1357 »

mikejuss wrote: Fri Sep 18, 2020 7:59 pm
This topic might well be worth a separate message thread.

I'll reiterate that the net-worth progressions here--many of which show figures doubling and tripling year in and year out--have little to do with index investing. I'm not sure that the posters on this site understand that.
[ quote fixed by admin LadyGeek]

+1, very important point
Keenobserver
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Re: Share your net worth progression

Post by Keenobserver »

slyfox1357 wrote: Fri Sep 18, 2020 9:43 pm
mikejuss wrote: Fri Sep 18, 2020 7:59 pm
This topic might well be worth a separate message thread.

I'll reiterate that the net-worth progressions here--many of which show figures doubling and tripling year in and year out--have little to do with index investing. I'm not sure that the posters on this site understand that.
[ quote fixed by admin LadyGeek]

+1, very important point
I disagree. I think this thread is a prime example of how one can accumulate wealth whilst minimizing risk i.e indexing. Many posts here are an illustration of the Booglehead approach. In fact, to me this thread is one of the most important as it encapsulates the end goal in a measurable manner. Most people here explain that they did it the simple Booglhead way, routine investing in low index funds and ignoring the noise. I dont see anyone talking about taking a mortage out on their primary house to go all in on Bitcoin or penny stocks. So I respectfully disagree. I have read most if not all the posts on this thread.
Keenobserver
Posts: 453
Joined: Thu Aug 13, 2015 1:05 pm

Re: Share your net worth progression

Post by Keenobserver »

Tingting1013 wrote: Fri Sep 18, 2020 8:09 pm
Keenobserver wrote: Tue Sep 15, 2020 6:35 pm Ok. So everyone here is smarter and richer than I. Cool.
Probably better looking too!

:sharebeer
Definately better looking.
mptfan
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Re: Share your net worth progression

Post by mptfan »

bluebolt wrote: Tue Sep 15, 2020 6:28 pm
tibbitts wrote: Tue Sep 15, 2020 3:15 pm
Hawaiishrimp wrote: Sun Sep 13, 2020 8:43 pm 4. Just an average joe with a household income ~200k annually.
Average household income would be more like $60k/year.
Depends whether you are talking about mean or median. Mean is over $100K.
https://fred.stlouisfed.org/series/MAFAINUSA672N
Median household income is a more meaningful measure of the "average household" because the mean is skewed higher by a very small number of ultra high income households.
Jablean
Posts: 522
Joined: Sat Jun 02, 2018 2:38 pm

Re: Share your net worth progression

Post by Jablean »

Here is my compressed 25 year timeline

96 - (65,000)...Started underwater in 96, just married, no kids, 2nd small house, in our 30s, paid off DH college loans, got a dog
99 - (88,000)...Started kid, bought new (30yrold) house rented out the other one for a few years before selling
05 - 9,000......Broke even for the 1st time, able to buy some newish cars, DW started w2 job
09 - 150,000...15,000 inheritance from DH father, Had enough cash could pay off all bills including mortgage if needed
14 - 400,000...Best income year on w2 jobs was $140,000 combined , DW went part-time contractor
16 - 500,000...Slow and steady, DH went full contractor - less money more family time, pretty proud of that 1/2 mill
17 - 800,000...Sad year - inherited $ from DW mother
19 -1,035,000..The stock market is not the economy but it had good returns, paid off mortgage
20 -1,100,000..DH still working, kid finally in virtual college. All numbers are w/o real estate value DH63 DW59
wtfire
Posts: 21
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Re: Share your net worth progression

Post by wtfire »

Jablean wrote: Sat Sep 19, 2020 10:50 pm Here is my compressed 25 year timeline

96 - (65,000)...Started underwater in 96, just married, no kids, 2nd small house, in our 30s, paid off DH college loans, got a dog
99 - (88,000)...Started kid, bought new (30yrold) house rented out the other one for a few years before selling
05 - 9,000......Broke even for the 1st time, able to buy some newish cars, DW started w2 job
09 - 150,000...15,000 inheritance from DH father, Had enough cash could pay off all bills including mortgage if needed
14 - 400,000...Best income year on w2 jobs was $140,000 combined , DW went part-time contractor
16 - 500,000...Slow and steady, DH went full contractor - less money more family time, pretty proud of that 1/2 mill
17 - 800,000...Sad year - inherited $ from DW mother
19 -1,035,000..The stock market is not the economy but it had good returns, paid off mortgage
20 -1,100,000..DH still working, kid finally in virtual college. All numbers are w/o real estate value DH63 DW59
Congratulations!! This is an amazing accomplishment! Any plan on retirement?
rexhat
Posts: 68
Joined: Sat Jun 08, 2013 4:56 pm

Re: Share your net worth progression

Post by rexhat »

rexhat wrote: Thu Jun 13, 2019 9:52 am
rexhat wrote: Sun Jan 07, 2018 9:29 pm 2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
2018 $1,214k
As of 1/1
2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
bought a house
2018 $1,214k
2019 $1,463k
to date $1,683k
As of 1/1
2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
bought a house
2018 $1,214k
2019 $1,463k
2020 $2,237k
2020 to date 2,650k
mikejuss
Posts: 122
Joined: Tue Jun 23, 2020 1:36 pm

Re: Share your net worth progression

Post by mikejuss »

rexhat wrote: Thu Sep 24, 2020 8:55 pm
rexhat wrote: Thu Jun 13, 2019 9:52 am
rexhat wrote: Sun Jan 07, 2018 9:29 pm 2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
2018 $1,214k
As of 1/1
2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
bought a house
2018 $1,214k
2019 $1,463k
to date $1,683k
As of 1/1
2011 $-27k
2012 $8.9k
2013 $77.5k
2014 $102k
2015 $294k
2016 $610k
2017 $1,037k
bought a house
2018 $1,214k
2019 $1,463k
2020 $2,237k
2020 to date 2,650k
Terrific. What was your average income during this period?
Mr F
Posts: 20
Joined: Wed Jul 29, 2020 7:50 am

Re: Share your net worth progression

Post by Mr F »

Another great thread seeing BHs from all backgrounds achieve (on the whole) some positive returns.

Mid 30s. And hitting some positive low (ish) milestones.

Throughout this thread:
A) Some individuals have been including equity from their property, no right or wrong, but how many people include this in their net worth considering its not a liquid investment? Personally I wouldn’t count it as I couldn’t sell it at the tap of a button.

B) How quickly did the individuals who went from $(£)100k northwards; move to there desired AA? I am currently procrastinating at the moment with perhaps a short term view we could have another crash. I know market timing is pointless, along with dollar cost averaging being (percentage wise) not as beneficial as lump sum.

C) Generally interested to see If there are many from this thread who has achieved FI (or are close to) who spent most of their careers self employed. The reason I ask (as a self employed person) is I require a larger emergency fund, don’t have the security of a company matching my pension contributions, and have higher insurance policies to pay for. Its a huge challenge, along with being the households only income to continue to save hard, invest it and more importantly than all, give my family what they need (we are modest and humble) as well as have aspirations of a larger home.
newguy123
Posts: 31
Joined: Tue Oct 13, 2020 8:44 am

Re: Share your net worth progression

Post by newguy123 »

I didn't track it, but this was roughly it after college
23 graduated college (2009) - net worth 12,000 , not invested in any stocks (had a bad experience a few years before which I blew up an account with margin) - entry level programmer salary $35,000 a year with benefits - living with my parents so no rent etc
24 - 2010 laid off from above job - net worth ~20,000 - unemployment 300 a week - stayed on unemployment for 3 weeks until I met someone on craigslist who wanted to hire as an independent contractor for software development @ $30 a hour
25 - 2011 net worth 60,000
26 - 2012 net worth ~100,000 found another client who needed software maintenance (existing software) , $35 a hour - revenue ~110,000 per year - near the end of the year I decide to yolo everything (my whole net worth) into Visa stock
27 - 2013 net worth ~200,000 - my visa stock went up and my contracting was still paying me about ~110,000 a year , plus I was in talks for a new contract bump to 50 a hour
28 - 2014 net worth ~340,000 - between my saving, contracting and visa stock going up, I had ~340,000 . I decide to take all the money out of stocks, pay the capital gains and buy a house cash for $260,000
29 2015 net worth ~400,000 - I was out of the market and had expenses related to the house even though I did not have a mortgage, there was bills and things which needed to be fixed which lowered my savings rate. I was not saving as much as before but still saving a good portion of the ~110,000 a year
30 2016 net worth ~425,000 - I took on 2 more clients which pushed me close to 170,000 a year, the downside is I had to hire a remote programmer so this was revenue and my profit wise was 140,000 or so. I was also going on vacations a lot, eating out a lot (high maintenance girlfriend who I am no longer with).. .basically wasting money but I didn't figure it out at the time sadly. I also day traded the 3x nugt /dust and lost 16,000 during this year
31 2017 net worth ~440,000 - again my net worth was not moving , I was making money but spending it as fast as I made it, traveling , clothes, food etc , I was still together with my girlfriend at the time who is an awesome person, but liked to go out to drink, bars , clubs etc
32 2018 net worth ~450,000 - I decided I needed to do something, I had been contributing to a SEP IRA as my accountant set one up for me and the money was just sitting there (he told me to invest it, but I had a bad experience from day trading gold earlier). SEP IRA had ~45,000 in it and my day trading stock account had 0 in it, I decided to put 140,000 which was sitting in my bank account into my stock trading account and decided to just invest it into one stock once again like I did with Visa. I kept hearing chatter about AMD and looked into their CEO, their chips which were still not that great and decided to just go all in AMD with both my SEP IRA and my stock account for $185,000 worth of shares averaged around 12-13 dollars a share and logged out of my account and did not touch it.
33 2019 net worth ~780,000 - AMD stock jumped to 33 dollars a share and I sold at around 33 dollars a share. I felt like a god .. only to watch AMD keep going up after crashing a few times .... the FOMO got into me ... and I decided to play "catch up" with options into 2020. My stock account now had about 350,000 in it and my IRA had about 80,000 after contributions and gains for a total of 430,000 in combined stock account value + my house which is now worth ~350,000
34 2020 net worth at the peak ~1.3 million during my short time option day trading (+190%), I only day traded the non retirement portion of my account because I felt like I had missed out on the massive tech/amd run and sold too early. I was out of the market most of 2019 and 2020 after I sold because I felt everything was too high and bubbly (massive end of year run). Then the corona virus came along and I went short CCL, united airlines, tesla monthly puts and held. My stock account bubbled 190% in a short time during March but I was greedy and held and it took all it gave , plus another 30% of my capital (105,000). Leaving me with a net worth of ~675,000.

Maybe my story will serve as a warning to those that want to follow my path of speculating. I know I am doing better than most people my age, but man ... I made it to the top for a short month and fell from there ... feels like I won the lottery then lost it. It is weird because I didn't think it would ever happen to me and that I could lose that amount of money. Anyways, I know what I did was stupid, but at the time it seemed smart. Just wanted to share my story. It just kept getting worse and worse like a drug because I kept winning, first start with stocks , then wanted to make more so I went to options. etc. Enough is never enough
jsapiandante
Posts: 146
Joined: Thu Jul 30, 2015 5:58 pm

Re: Share your net worth progression

Post by jsapiandante »

Age 38/36

These are my rough estimates. Didn't start tracking specifically until 2015 or so. Graduated in 2008 with $120k in student loans.

2008 -$90k (had 30k in savings/cash, moved back in with my parents, opened my practice)
2009 -$60k (bought my first new car - mistake, paid 30k but currently still driving to this day)
2011 0 (met my girlfriend/wife, paid off student loans, moved out of my parents, finally got partying/spending out of my system, had zero
knowledge about investing)
2012 +$30k (moved in with girlfriend/wife, had to support her while she quit her job to get pharm D license)
2013 +$40k (opened Roth, found Bogleheads, got engaged, wife/girlfriend became pharmacist)
2014 +$60k (opened simple IRA)
2015 +$186k (got married, combined finances, spent 30k on wedding, bought house for 730k with 110k down payment, opened taxable account)
2016 +$383k
2017 $545k (had son, bought new Subaru Forester for $22.5k)
2018 +$647k
2019 +$832k
2020 +$1058k (refinanced, current cash/investable assets at $780k, house appraised between $840-900k, mortgage balance is $560k)

I didn't really celebrate the two comma milestone because we will most likely stay in our home forever. I'll celebrate when my cash/investable assets get there.
dziuniek
Posts: 872
Joined: Mon Jul 23, 2012 2:54 pm
Location: Corrupticut

Re: Share your net worth progression

Post by dziuniek »

hookemhorns wrote: Sun Aug 30, 2020 12:36 pm It's interesting how this thread is revived when the market reaches all-time highs and goes silent for long periods when the market dips. Perhaps a contrarian indicator, not that anybody should try to time the market :D
I doubt it, but maybe some don't look when they know they're down :)
kerfuffle
Posts: 16
Joined: Fri Oct 16, 2020 9:45 am

Re: Share your net worth progression

Post by kerfuffle »

Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
newguy123
Posts: 31
Joined: Tue Oct 13, 2020 8:44 am

Re: Share your net worth progression

Post by newguy123 »

kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Wow congrats! Just wondering what is your profession ? Also do you do the standard boglehead index fund/bond strategy ?
kerfuffle
Posts: 16
Joined: Fri Oct 16, 2020 9:45 am

Re: Share your net worth progression

Post by kerfuffle »

newguy123 wrote: Fri Oct 16, 2020 11:53 am
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Wow congrats! Just wondering what is your profession ? Also do you do the standard boglehead index fund/bond strategy ?
Law :) one in private practice, one in-house. Yes, pretty standard index investing.
dziuniek
Posts: 872
Joined: Mon Jul 23, 2012 2:54 pm
Location: Corrupticut

Re: Share your net worth progression

Post by dziuniek »

kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Amazing progression. Nicely done!
Normchad
Posts: 1311
Joined: Thu Mar 03, 2011 7:20 am

Re: Share your net worth progression

Post by Normchad »

kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
mikejuss
Posts: 122
Joined: Tue Jun 23, 2020 1:36 pm

Re: Share your net worth progression

Post by mikejuss »

Normchad wrote: Fri Oct 16, 2020 12:18 pm
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
But isn't this progression due less to index-investing returns and more to simply making and saving a lot of money? I'm fully on-board with the indexing philosophy, but let's be clear about one how one goes from zero to $3.75 million in a dozen years (for which achievement my compliments).
Normchad
Posts: 1311
Joined: Thu Mar 03, 2011 7:20 am

Re: Share your net worth progression

Post by Normchad »

mikejuss wrote: Fri Oct 16, 2020 12:28 pm
Normchad wrote: Fri Oct 16, 2020 12:18 pm
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
But isn't this progression due less to index-investing returns and more to simply making and saving a lot of money? I'm fully on-board with the indexing philosophy, but let's be clear about one how one goes from zero to $3.75 million in a dozen years (for which achievement my compliments).
To me, the philosophy is primarily about index investing and sticking with it in good times and bad, for a long time. In addition though, this board really encourages living beneath your means and saving aggressively. These posters are doing those things. And certainly a lot of them earn a lot of money which helps, no doubt.

This is in stark contrast to the ideas of showing off your wealth, chasing hot stock tips, having a guy, etc. playing fast and loose and hoping for the best.

I’ve been at this longer than the poster above, but have also done extremely well, better than I ever could have imagined. And index investing is the biggest reason for it..... my portfolio is 3x bigger than what I have contributed to it.....
mikejuss
Posts: 122
Joined: Tue Jun 23, 2020 1:36 pm

Re: Share your net worth progression

Post by mikejuss »

Normchad wrote: Fri Oct 16, 2020 12:53 pm
mikejuss wrote: Fri Oct 16, 2020 12:28 pm
Normchad wrote: Fri Oct 16, 2020 12:18 pm
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
But isn't this progression due less to index-investing returns and more to simply making and saving a lot of money? I'm fully on-board with the indexing philosophy, but let's be clear about one how one goes from zero to $3.75 million in a dozen years (for which achievement my compliments).
To me, the philosophy is primarily about index investing and sticking with it in good times and bad, for a long time. In addition though, this board really encourages living beneath your means and saving aggressively. These posters are doing those things. And certainly a lot of them earn a lot of money which helps, no doubt.

This is in stark contrast to the ideas of showing off your wealth, chasing hot stock tips, having a guy, etc. playing fast and loose and hoping for the best.

I’ve been at this longer than the poster above, but have also done extremely well, better than I ever could have imagined. And index investing is the biggest reason for it..... my portfolio is 3x bigger than what I have contributed to it.....
I agree that the longer one stays in the market the more one's investment returns will affect one's net worth. But the progression above, of merely a dozen years, is better explained by investment contributions, not investment yield. This is to take nothing away from the power of compounding; it's to note that meaningful index investing is a decades-long proposition.
TechieTechie
Posts: 34
Joined: Tue Mar 06, 2018 7:36 pm

Re: Share your net worth progression

Post by TechieTechie »

Just me and da dog.

Spent the first 15 years of my earning years doing what I wanted. Peace Corps, working at nonprofits, traveling the globe in the travel industry, started my own travel company....Which barely paid the rent, much less any space for saving.

Went corporate (IT consulting) 16 years ago with virtually no money in the bank.

@2005, bought my first home (condo) with 30k in the bank
@2006, $50k ish in the bank.
@2010, sold the condo for 20% profit, bought a house.
@2012, finally started to get serious about saving for retirement. $200k in retirement funds
@2020, $650k saved for retirement in pensions/401k
@2020, Sold house for ~$300k gross profit
@Fall 2020, getting close to the 2 comma club :). Still maxing out retirement, but shifted lots of my future investment into bonds to balance out my portfolio.
Hoping to retire in 5 or 6 years...and return to volunteering around the globe.

It can be done late in life...but IMHO, it's easier with an in-demand, high paying, soul sucking job :shock:
kerfuffle
Posts: 16
Joined: Fri Oct 16, 2020 9:45 am

Re: Share your net worth progression

Post by kerfuffle »

Normchad wrote: Fri Oct 16, 2020 12:18 pm
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
Thank you! And absolutely - it's so important that people are not intimidated and scared away by the mystique of high finance, when a simple method suits most of us quite well.
kerfuffle
Posts: 16
Joined: Fri Oct 16, 2020 9:45 am

Re: Share your net worth progression

Post by kerfuffle »

mikejuss wrote: Fri Oct 16, 2020 1:08 pm
Normchad wrote: Fri Oct 16, 2020 12:53 pm
mikejuss wrote: Fri Oct 16, 2020 12:28 pm
Normchad wrote: Fri Oct 16, 2020 12:18 pm
kerfuffle wrote: Fri Oct 16, 2020 10:14 am Loooong-time lurker, first-time poster! Don't ask me why today is finally the day.

Background: Two professional incomes/3 kids; includes home equity

2006: -37,000 (partner 1 graduates professional school)
2007: -20,000 (partner 2 graduates professional school)
2008: +70,000
2009: +215,000
2010: +330,000
2011: +500,000
2012: +715,000
2013: +1,030,000
2014: +1,380,000
2015: +1,575,000 (first kid!)
2016: +2,065,000
2017: +2,570,000 (a couple more kids!)
2018: +2,665,000
2019: +3,500,000
2020: +3,750,000

We've been very lucky with our jobs, saved aggressively (especially early on) and invested simply. Maybe I'm posting because I still find it hard to believe. We owe so much to the wisdom found in the Bogleheads philosophy and the insights in this forum.
Well done, congratulations! Hopefully, people read this thread in the future and see how well the “standard bogelhead” approach works.....

The total impact of all the great success stories in this thread is a real testament to simplicity and the power of being “just average” in our investments.....
But isn't this progression due less to index-investing returns and more to simply making and saving a lot of money? I'm fully on-board with the indexing philosophy, but let's be clear about one how one goes from zero to $3.75 million in a dozen years (for which achievement my compliments).
To me, the philosophy is primarily about index investing and sticking with it in good times and bad, for a long time. In addition though, this board really encourages living beneath your means and saving aggressively. These posters are doing those things. And certainly a lot of them earn a lot of money which helps, no doubt.

This is in stark contrast to the ideas of showing off your wealth, chasing hot stock tips, having a guy, etc. playing fast and loose and hoping for the best.

I’ve been at this longer than the poster above, but have also done extremely well, better than I ever could have imagined. And index investing is the biggest reason for it..... my portfolio is 3x bigger than what I have contributed to it.....
I agree that the longer one stays in the market the more one's investment returns will affect one's net worth. But the progression above, of merely a dozen years, is better explained by investment contributions, not investment yield. This is to take nothing away from the power of compounding; it's to note that meaningful index investing is a decades-long proposition.
I'll clarify that, while investment contributions absolutely play a key role for us, the 2020 figure above also includes about 1.2MM in returns, or about 1/3 of our net worth. So, index investing definitely played an important role in the progression, working hand-in-hand with steadily increasing savings and income. It would not have been possible without all of three of these, and it has certainly reinforced my willpower to stick with it for the long haul so that we can see the true power of compounding over decades, and maybe someday reach that fantastic 3x contributions figure (I'd love to know how many decades that was for you!).
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