Half Milestone Hit!

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Topic Author
Working2notWork
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Half Milestone Hit!

Post by Working2notWork »

Since I cannot share the delight with my neighbors or family, I thought I'd share here.

My wife (28) and I (35) just hit the half point of a major milestone. I looked at our retirement spreadsheets/personal capital dashboard and saw that we've now crossed over the $500,000 threshold! I know that for some of you this isn't that big of a deal, but we all have to start from somewhere :)

For those interested, this includes his/her 401K, T-IRA, Roth, Pension payout (as lump sum if taken today)[cashed out pension] and home equity.

Happy Saving!

- Working

----------------------------------------------------------------------------------------------------------------------------------------
UPDATES:
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ORIGINAL (06/03/14): Crossed over $500,000

UPDATE #1 (09/26/14): Hit $585,000 [Huge increase in home value and constant dumping into IRA & 401K]

UPDATE #2 (01/16/15): Hit $620,000 [Moved 'south' for a new job. Renting out the fixer-upper and big increase in pay and 401K match]

UPDATE #3 (11/11/15): Hit $642,330 Plugging away towards early retirement. Hopefully in another 10 years.

UPDATE #4 (11/15/16): Hit $706,503. Sold the house for a nice profit ($180,000). Decided to focus on my career and really work hard this past year. I got rewarded with a ~$20,000 raise when I approached management with other offers. I now have to refocus my attention into getting back to the gym!!

UPDATE #5 (03/03/17): Hit $766,395. Still need to refocus my attention into getting back to the gym!

UPDATE #6 (06/01/17): Hit $847,388. (Including old pension lump sum) Still need to refocus my attention into getting back to the gym (There's a theme here)! Amazing how making the decision to move affected my NW. In two years since we moved we've almost increased our savings by $200,000.

UPDATE #7 (04/16/18): Arrived at $996,729. My second son was recently born and it got me thinking about college, so I looked at my NW and decided to update this post. Almost in the 2 comma club :) Looking forward to some sleep as well.

UPDATE #8 (05/09/18): Crossed into the "2 comma club"!!!! Sitting around $1,022,500.00 as of right now. Pretty amazing that in 4 years we've een able to double our initial milestone mark :sharebeer Still looking for that allusive sleep however.

UPDATE #9 (12/18/20) [I'm now 43 and my wife is 35] : $1,536,114. Two kids in (5.5 and 2.5). A new house purchase and a major renovation have been ongoing since 2019. Amazon moved to the area and really drove up the home prices, which has really helped our value a lot [The ONLY reason we've seen a $500K increase in NW in 2 years. Previously took 4 to generate that increase]. Company has given me many merit bonuses and increased their 401K match by 4% - now 10% matching. My (company standard) 1.5% yearly raises, which were previously laughable, are now starting to add up to fund our yearly vacations. Looks like we'll have to save the trip for next year due to COVID. Life is good!
Last edited by Working2notWork on Wed Dec 30, 2020 6:19 am, edited 31 times in total.
Johm221122
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Re: Half Milestone Hit!

Post by Johm221122 »

Congratulations :sharebeer
Can't wait to join you
John
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Johm221122 wrote:Congratulations :sharebeer
Can't wait to join you
John
Thanks John, it almost seems like autopilot now. This forum really helped us out with this milestone - albeit "half milestone".
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matjen
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Re: Half Milestone Hit!

Post by matjen »

Fantastic! It gets easier as the money works harder and harder for you. Keep up the good work and don't freak out during downturns which are sure to come....someday.
Last edited by matjen on Tue Jun 03, 2014 7:59 am, edited 1 time in total.
A man is rich in proportion to the number of things he can afford to let alone.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

matjen wrote:... don't freak out during downturns which are sure to come....someday.
I welcome them :sharebeer
ALinLI
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Re: Half Milestone Hit!

Post by ALinLI »

Congratulations OP. Was just updating my net worth spreadsheet and saw that our household is approaching the 1 million mark (including home equity) DW & I are both 42. Have adapted the booglehead philosophy & lifestyle in past 3-4 years and it has paid off nicely. It is simple but hard since requires discipline & diligent saving and living below one's means. I would like to thank this community again for their support and wisdom that has been passed to all members for free :). Thank you all. Financial freedom is coming soon hopefully !
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

ALinLI wrote:Congratulations OP. Was just updating my net worth spreadsheet and saw that our household is approaching the 1 million mark (including home equity) DW & I are both 42. Have adapted the booglehead philosophy & lifestyle in past 3-4 years and it has paid off nicely. It is simple but hard since requires discipline & diligent saving and living below one's means. I would like to thank this community again for their support and wisdom that has been passed to all members for free :). Thank you all. Financial freedom is coming soon hopefully !
That's great - congrats. I look forward to repeating your accomplishments!
kaudrey
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Re: Half Milestone Hit!

Post by kaudrey »

Congrats! That's a big deal for anyone, and you are still young!
am
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Re: Half Milestone Hit!

Post by am »

Congrats! Bogleheads are deinitely a succesful bunch in terms of wealth accumulation. Only a young boglehead would ever say that accumulating 500k is not a big deal. For the average person out there, that is way more wealth than they will accumulate in a lifetime! This website can really skew your reality.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

am wrote:This website can really skew your reality.
I'd like to think that it opens ones eyes to your potential future needs. :D
SuperGrafx
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Re: Half Milestone Hit!

Post by SuperGrafx »

Nicely done!
I'm well on my way to that milestone as well :)
So glad I found this forum...it's both inspiring and motivating for frugal investors like ourselves.
Topic Author
Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

SuperGrafx wrote:Nicely done!
I'm well on my way to that milestone as well :) ...
Do you mean the 1M mark or "half milestone"? I'd be curious to know if it gets any easier as time/accumulation marches on.

Currently, our savings rate is roughly 43% and I've always wondered "if we stopped contributing towards retirement and just let the rule-of-72 run its course, could we survive in the future". I'd be interested in seeing the number if anyone has some free cycles this afternoon :wink:
Last edited by Working2notWork on Tue Jun 03, 2014 10:31 am, edited 2 times in total.
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Taylor Larimore
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Stay the course.

Post by Taylor Larimore »

Working2notWork wrote:Since I cannot share the delight with my neighbors or family, I thought I'd share here.

My wife (28) and I (35) just hit the half point of a major milestone. I looked at our retirement spreadsheets and saw that we've now crossed over the $500,000 threshold! I know that for some of you this isn't that big of a deal, but we all have to start from somewhere :)

For those interested, this includes his/her 401K, T-IRA, Roth, Pension payout (as lump sum if taken today) and home equity.

Happy Saving!

- Working
Working:

I wish we had hit the "$500,000 threshold" when we were your ages.

Stay the course.

Congratulations and best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Working2notWork
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Re: Stay the course.

Post by Working2notWork »

Taylor Larimore wrote:
Working2notWork wrote:Since I cannot share the delight with my neighbors or family, I thought I'd share here.

My wife (28) and I (35) just hit the half point of a major milestone. I looked at our retirement spreadsheets and saw that we've now crossed over the $500,000 threshold! I know that for some of you this isn't that big of a deal, but we all have to start from somewhere :)

For those interested, this includes his/her 401K, T-IRA, Roth, Pension payout (as lump sum if taken today) and home equity.

Happy Saving!

- Working
Working:

I wish we had hit the "$500,000 threshold" when we were your ages.

Stay the course.

Congratulations and best wishes.
Taylor
Thank you!
Longtimelurker
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Re: Half Milestone Hit!

Post by Longtimelurker »

You will be amazed at how much this grows on its own going forward. My wife and I hit $500k in december. Now sitting at $560k. Also if you estimate your dividends and interest (which we do in our spreadsheet) you may find that you have $750 - $800 per MONTH in dividends and interest being reinvested. its really motivating to keep contributing at this point. Congrats!
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.
fareastwarriors
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Re: Half Milestone Hit!

Post by fareastwarriors »

Great job! Happy for you guys.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Longtimelurker wrote:You will be amazed at how much this grows on its own going forward. My wife and I hit $500k in december. Now sitting at $560k. Also if you estimate your dividends and interest (which we do in our spreadsheet) you may find that you have $750 - $800 per MONTH in dividends and interest being reinvested. its really motivating to keep contributing at this point. Congrats!
It does motivate you. Funny how setting/meeting goals will do that! :D
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Longtimelurker wrote: Also if you estimate your dividends and interest (which we do in our spreadsheet) you may find that you have $750 - $800 per MONTH in dividends and interest being reinvested.
I'd be interested in seeing your calculations. Is this something you're willing to share (The spreadsheet with the formula, not the data)?
Last edited by Working2notWork on Tue Jun 03, 2014 10:40 am, edited 1 time in total.
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swimirvine
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Re: Half Milestone Hit!

Post by swimirvine »

that's great! Make sure you post when you hit the $1M mark and put a link in to this post so people can appreciate the progress.

:sharebeer
The way I invest my money is not the right way to invest, it's the right way for ME to invest.
Longtimelurker
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Re: Half Milestone Hit!

Post by Longtimelurker »

Working2notWork wrote:
Longtimelurker wrote: Also if you estimate your dividends and interest (which we do in our spreadsheet) you may find that you have $750 - $800 per MONTH in dividends and interest being reinvested.
I'd be interested in seeing your calculations. Is this something you're willing to share (The spreadsheet with the formula, not the data)?
- I manually look at the TTM yield about 2x per year
- Total those up by investment to an annual dividend amount
- Total up the "by investment" annual dividend to a portfolio dividend
- Calculate estimated yield (dividend amount / portfolio balance), Monthly dividend, daily divided etc

I understand that TTM isn't the best measure, and there are inherent inaccuracies in my methodology. However, is should be a decent approximate.
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.
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FelixTheCat
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Re: Half Milestone Hit!

Post by FelixTheCat »

That's amazing! You guys are so young. I think I just purchased a townhome with my parents help at your age.
Felix is a wonderful, wonderful cat.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

imgritz wrote:I think I just purchased a townhome with my parents help at your age.
Isn't it great to have a supporting family!??! We did something very similar with our parents during the housing downturn.
heyyou
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Re: Half Milestone Hit!

Post by heyyou »

First, congratulations from all of us amateur LBYM practitioners to a superb LBYM saver.
I'd be curious to know if it gets any easier as time/accumulation marches on.
Good news and other news: You get used to living at your spending level, and you get to retire early due to living that way. The next doubling of your portfolio may take a while to accomplish, but your velocity towards your goal is increasing.

As your portfolio grows, the numerical size of the market drops increases too. Saving becomes easier, but with more emotional risk. Your wife can ask about what a big drop did to your savings yesterday, and you will answer that it erased an entire year of savings, just because your portfolio is that large. It is a good problem to have, but it doesn't feel that way.
ivyinvestor
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Re: Half Milestone Hit!

Post by ivyinvestor »

OP, when you hit your target, you'll find tha the momentum of compounding interest will take you far beyond the target you sought.

Celebrate with a cake whose only message is: " , ," ;)

Best,
ivy
ajcp
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Re: Half Milestone Hit!

Post by ajcp »

Working2notWork wrote:
SuperGrafx wrote:Nicely done!
I'm well on my way to that milestone as well :) ...
Do you mean the 1M mark or "half milestone"? I'd be curious to know if it gets any easier as time/accumulation marches on.

Currently, our savings rate is roughly 43% and I've always wondered "if we stopped contributing towards retirement and just let the rule-of-72 run its course, could we survive in the future". I'd be interested in seeing the number if anyone has some free cycles this afternoon :wink:
I plugged your situation into my spreadsheet. My situation is much simpler than yours (no pension, no home equity, just invested money), but it's a rough estimate no matter what, so it's a least a good starting point.

http://imgur.com/ApzdjXO
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dratkinson
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Re: Half Milestone Hit!

Post by dratkinson »

Congratulations.
Working2notWork wrote:...
Do you mean the 1M mark or "half milestone"? I'd be curious to know if it gets any easier as time/accumulation marches on. ...:
In a topic near the current forums founding, it was said the first $500K is the hardest, so I've always considered the first milestone is $500K. The milestones should come more quickly after this. Why?

After some thinking, I've realized that the market return needed to go from $5 to $6, is the same as required to go from $500K to $600K, or $5M to $6M. It's just that when you only have $5 invested, it doesn't seem like much.



Idea for a warm fuzzy.

I play with nest egg (FV) growth projections based on Excel's compound interest formulas.
--Assume any past December statement values (total: Vanguard, 401k,...) to be your baseline (PV).
--Then, each new row (N) is incremented from the baseline (PV), plus new investments (PMT), times your total portfolio growth rate (I) for the year.
--Next December, tweak your growth rate (I) such that it gives an ending row value (FV) for that year that exactly matches your total statement values. This gives you an estimate of your total portfolio's growth rate (I). (Continue updating I at the end of each new year to refine your I.)

Now, by replicating new rows based on same PMT and I, you can guestimate when you will cross different milestones.
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

dratkinson wrote:Congratulations.
Working2notWork wrote:...
Do you mean the 1M mark or "half milestone"? I'd be curious to know if it gets any easier as time/accumulation marches on. ...:
In a topic near the current forums founding, it was said the first $500K is the hardest, so I've always considered the first milestone is $500K. The milestones should come more quickly after this. Why?

After some thinking, I've realized that the market return needed to go from $5 to $6, is the same as required to go from $500K to $600K, or $5M to $6M. It's just that when you only have $5 invested, it doesn't seem like much.



Idea for a warm fuzzy.

I play with nest egg (FV) growth projections based on Excel's compound interest formulas.
--Assume any past December statement values (total: Vanguard, 401k,...) to be your baseline (PV).
--Then, each new row (N) is incremented from the baseline (PV), plus new investments (PMT), times your total portfolio growth rate (I) for the year.
--Next December, tweak your growth rate (I) such that it gives an ending row value (FV) for that year that exactly matches your total statement values. This gives you an estimate of your total portfolio's growth rate (I). (Continue updating I at the end of each new year to refine your I.)

Now, by replicating new rows based on same PMT and I, you can guestimate when you will cross different milestones.
Thanks, I'll give it a shot when I get home this evening :sharebeer
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rob
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Re: Half Milestone Hit!

Post by rob »

I think it's important to look at the steps along the way.....

- Wow - look no credit card debit.
- Ya know, I could pay my bills without a pay check for a while.
- Hey, My net worth seems to be into positive numbers.
....
- Ya know I could pay off my mortgage.
.....
- If I have a bad day at work, I can be done here and now.
.....
- A beach somewhere ;-)

I'm not near the end yet but making progress is good and the steps along the way help to keep on track.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
Gattamelata
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Re: Half Milestone Hit!

Post by Gattamelata »

Congratulations! It's always so fun to hit milestones. May the second 500k come soon.
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Meg77
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Re: Half Milestone Hit!

Post by Meg77 »

Congrats! For what it's worth it gets much easier from here with a bit of momentum - even if you hit a recession. Plus since you are young your earnings from work still have time to grow too. I reached $500K just a few years ago and am already crossing the 7 figure mark (a marriage to a fellow Boglehead and a few big raises have helped a lot) - whereas it took much longer to get from $250K to $500K (of course the recession didn't help). It's fun and motivating to watch the compounding start to take shape. :beer
"An investment in knowledge pays the best interest." - Benjamin Franklin
island
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Re: Half Milestone Hit!

Post by island »

Don't sell yourself short it is a big deal, so good for you! Congrats!
Curious is this a net worth calc or is it your retirement nest egg? Wondering because I'm just starting to play with my numbers and haven't counted my pension in net worth because I'm not retired or planning to take it early. Also even though mortgage is paid I don't consider it a retirement asset because even if I sell it I've got to pay to live somewhere. Do the rest of you Bogleheads count pension in net worth if not take yet or home equity as part of your retirement funds?
Thanks.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

island wrote:Curious is this a net worth calc or is it your retirement nest egg?
This is a net worth calculation based on my own personal spreadsheets and Fidelity's "Open View" account aggregation application (I think that's the name), although I'd guess that 60% of my assets reside within a "retirement" account.

island wrote: Wondering because I'm just starting to play with my numbers and haven't counted my pension in net worth because I'm not retired or planning to take it early. Also even though mortgage is paid I don't consider it a retirement asset because even if I sell it I've got to pay to live somewhere. Do the rest of you Bogleheads count pension in net worth if not take yet or home equity as part of your retirement funds?
Thanks.
My pension administrator allows me to view what I would get as a lump sum if I were to leave the organization on a specific date. I am only using the lump sum value, not the future monthly value. I counted the equity in my house, however I know others do not - I guess it's personal preference. I figured I've been fixing it up and paying it down over the years, why not count it?
Last edited by Working2notWork on Wed Nov 11, 2015 1:49 pm, edited 1 time in total.
amitb00
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Re: Half Milestone Hit!

Post by amitb00 »

congratulations!!! It is a great achievement and we are sure you will remain focused to enable you to not work in near future :-)
island
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Re: Half Milestone Hit!

Post by island »

Working2notWork wrote:
island wrote:Curious is this a net worth calc or is it your retirement nest egg?
This is a net worth calculation based on my own personal spreadsheets and Fidelity's "Open View" account aggregation application (I think that's the name), although I'd guess that 90% of my assets reside within a "retirement" account.

island wrote: Wondering because I'm just starting to play with my numbers and haven't counted my pension in net worth because I'm not retired or planning to take it early. Also even though mortgage is paid I don't consider it a retirement asset because even if I sell it I've got to pay to live somewhere. Do the rest of you Bogleheads count pension in net worth if not take yet or home equity as part of your retirement funds?
Thanks.
My pension administrator allows me to view what I would get as a lump sum if I were to leave the organization on a specific date. I am only using the lump sum value, not the future monthly value. I counted the equity in my house, however I know others do not - I guess it's personal preference. I figured I've been fixing it up and paying it down over the years, why not count it?
Got it, thanks! You've inspired me to play around with my pension numbers now.
MoonOrb
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Re: Half Milestone Hit!

Post by MoonOrb »

island wrote:Don't sell yourself short it is a big deal, so good for you! Congrats!
Curious is this a net worth calc or is it your retirement nest egg? Wondering because I'm just starting to play with my numbers and haven't counted my pension in net worth because I'm not retired or planning to take it early. Also even though mortgage is paid I don't consider it a retirement asset because even if I sell it I've got to pay to live somewhere. Do the rest of you Bogleheads count pension in net worth if not take yet or home equity as part of your retirement funds?
Thanks.
I'm not counting pension in NW calculation but do count estimated home equity. I don't consider estimated home equity really part of my retirement funds, though, but it's something I keep track of when I calculate NW. Maybe when I get closer to retirement I'll consider tracking the present value of the pension, too.

They're all just different data points. I don't know that there's one true or right way to do it. The important thing is that you are making sure the information you're looking at is the type that can help you make the big decisions you need to make.

And to the OP--congratulations and keep up the good work. One page I have in my spreadsheet is an array of estimated future average annual returns/estimated annual contributions. In other words, I can look at that page and say to myself, "Okay, if I continue to invest the exact same amount I am today for the next 20 years at 6% average return, I'll have $___" or "If I increase my annual contribution by x% or $x/mo and earn an average return of 5% each year, then in x years I'll have $____." Totally speculative of course but a kind of fun thing to think about, and looking at the page as a whole gives me an idea of the different ranges of outcomes I can expect and the differing impacts of average annual return/saving percentage. The closer I get to retirement the more meaningful such a chart might be. For now it's just fun to dream about.
am
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Re: Half Milestone Hit!

Post by am »

For high income accumulators at 500k portfolio, yearly investments still play a big role in growth. When you hit 1 mil or so than returns matter more. Lose 20% of 500k than down to 400k but 60k yearly contribution gets you to 460k. With 1 mil, you lose 20%, down to 800k with 60k contribution gets you to 860k.

Just an aside, when portfolio gets that big, and you get closer to financial independence, think my risk tolerance will be much lower. Losses of 200k would hurt much more since that may represent 2.5 years of living expenses. How do you dial risk down? Increase bonds 5% for every 10% closer you are to your goal or something like that?
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Jay69
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Re: Half Milestone Hit!

Post by Jay69 »

rob wrote:I think it's important to look at the steps along the way.....

- Wow - look no credit card debit.
- Ya know, I could pay my bills without a pay check for a while.
- Hey, My net worth seems to be into positive numbers.
....
- Ya know I could pay off my mortgage.
.....
- If I have a bad day at work, I can be done here and now.
.....
- A beach somewhere ;-)

I'm not near the end yet but making progress is good and the steps along the way help to keep on track.
+1,

Its after that pesky mortgage where I felt the biggest freedom thus far.
"Out of clutter, find simplicity” Albert Einstein
Dulocracy
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Re: Half Milestone Hit!

Post by Dulocracy »

Congratulations! I am still aiming for the quarter milestone, but it is encouraging to see others reach levels like that. Posts like this give me drive to keep plugging away. Thanks for the post, and congratulations again!!! :sharebeer
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Jay69 wrote: +1,

Its after that pesky mortgage where I felt the biggest freedom thus far.

I dont think I'll ever know the feeling of paying it off early. Our current plan is to keep chugging along and anything that we would have used to pay it off earlier goes into a taxable account. We figure we can find decent investments that return better than 3.3% making paying down the mortgage less than desirable for now. Who knows, we'll see if that plan changes though.
Last edited by Working2notWork on Tue Jun 03, 2014 4:33 pm, edited 1 time in total.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Dulocracy wrote:Congratulations! I am still aiming for the quarter milestone, but it is encouraging to see others reach levels like that. Posts like this give me drive to keep plugging away. Thanks for the post, and congratulations again!!! :sharebeer
Thank you! Never thought the day would come as it has. No bells, no whistles... avoid the noise and keep socking it into idx funds.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

ivyinvestor wrote: Celebrate with a cake whose only message is: " , ," ;)
or Image :mrgreen:
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

ajcp wrote:
Working2notWork wrote:
SuperGrafx wrote:Nicely done!
I'm well on my way to that milestone as well :) ...
Do you mean the 1M mark or "half milestone"? I'd be curious to know if it gets any easier as time/accumulation marches on.

Currently, our savings rate is roughly 43% and I've always wondered "if we stopped contributing towards retirement and just let the rule-of-72 run its course, could we survive in the future". I'd be interested in seeing the number if anyone has some free cycles this afternoon :wink:
I plugged your situation into my spreadsheet. My situation is much simpler than yours (no pension, no home equity, just invested money), but it's a rough estimate no matter what, so it's a least a good starting point.

http://imgur.com/ApzdjXO
Thanks so much for doing that. It's truly incredible to see how compounding & time are your best friends!

Thanks again!

- Working
Random Poster
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Re: Half Milestone Hit!

Post by Random Poster »

am wrote:For high income accumulators at 500k portfolio, yearly investments still play a big role in growth. When you hit 1 mil or so than returns matter more. Lose 20% of 500k than down to 400k but 60k yearly contribution gets you to 460k. With 1 mil, you lose 20%, down to 800k with 60k contribution gets you to 860k.

Just an aside, when portfolio gets that big, and you get closer to financial independence, think my risk tolerance will be much lower. Losses of 200k would hurt much more since that may represent 2.5 years of living expenses. How do you dial risk down? Increase bonds 5% for every 10% closer you are to your goal or something like that?
This is something that I'm wrestling with. Overall AA is 60 stocks/40 bonds, but I just crossed the $1M mark in the taxable portfolio, and I'm starting to seriously question my risk tolerance when the downturn hits. Maybe 50/50 is better? 40/60? Who knows? I guess I've spent so much time trying to get to a certain number that I've neglected to think about what I'll do (or should do) once I hit that number.
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

Random Poster wrote:
am wrote:...Just an aside, when portfolio gets that big, and you get closer to financial independence, think my risk tolerance will be much lower. Losses of 200k would hurt much more since that may represent 2.5 years of living expenses. How do you dial risk down? Increase bonds 5% for every 10% closer you are to your goal or something like that?
This is something that I'm wrestling with. Overall AA is 60 stocks/40 bonds, but I just crossed the $1M mark in the taxable portfolio, and I'm starting to seriously question my risk tolerance when the downturn hits. Maybe 50/50 is better? 40/60? Who knows? I guess I've spent so much time trying to get to a certain number that I've neglected to think about what I'll do (or should do) once I hit that number.
There are a lot of opinions out there for sure. MMM and his posters have talked about living off dividends vs chasing gains. Not sure if this is something your interested in reading, but it definitely makes you think!
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rob
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Re: Half Milestone Hit!

Post by rob »

Jay69 wrote:Its after that pesky mortgage where I felt the biggest freedom thus far.
Unlike a lot here, I still carry a mortgage.... BUT I have to admit that the day I knew I could sell my taxable holdings, pay the tax and the mortgage was a nice feeling.... (Yeah I know the market could drop that same day but these are all just feel good milestones to me to help down the path).
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

rob wrote:
Jay69 wrote:Its after that pesky mortgage where I felt the biggest freedom thus far.
Unlike a lot here, I still carry a mortgage.... BUT I have to admit that the day I knew I could sell my taxable holdings, pay the tax and the mortgage was a nice feeling.... (Yeah I know the market could drop that same day but these are all just feel good milestones to me to help down the path).
Having a 3.3% mortgage helps us sleep at night. No need to throw more at the principal...
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TxAg
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Re: Half Milestone Hit!

Post by TxAg »

congrats. gota keep on keeping on. I can't wait to retire...fingers crossed!
dave415
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Re: Half Milestone Hit!

Post by dave415 »

great job. You are saving at an incredible rate. I admire it.
LateStarter1975
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Re: Half Milestone Hit!

Post by LateStarter1975 »

Working2notWork wrote:Since I cannot share the delight with my neighbors or family, I thought I'd share here.

My wife (28) and I (35) just hit the half point of a major milestone. I looked at our retirement spreadsheets and saw that we've now crossed over the $500,000 threshold! I know that for some of you this isn't that big of a deal, but we all have to start from somewhere :)

For those interested, this includes his/her 401K, T-IRA, Roth, Pension payout (as lump sum if taken today) and home equity.

Happy Saving!

- Working

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
UPDATES:
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ORIGINAL (06/03/14): Crossed over $500,000

UPDATE #1 (09/26/14): Hit $585,000 [Huge increase in home value and constant dumping into IRA & 401K]

UPDATE #2 (01/16/15): Hit $620,000 [New job. Renting out the fixer-upper and big increase in pay and 401K match]
At 35, I had negative net worth, so trust me half a million dollars at your age is a big deal. I hope I get there at 45
Debt is dangerous...simple is beautiful
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Working2notWork
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Re: Half Milestone Hit!

Post by Working2notWork »

LateStarter1975 wrote: At 35, I had negative net worth, so trust me half a million dollars at your age is a big deal. I hope I get there at 45
Technically, I am 36 now ;) Care to share how you're accomplishing such a monster task?
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