If your networth is over $3 million, how did you do it?

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ahmadcpa
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If your networth is over $3 million, how did you do it?

Post by ahmadcpa » Tue Nov 11, 2014 12:41 am

Hello..just curious for those of you who has a net worth over $3 million, what was the most significant source of those savings? Inheritance, real estate, business income, salary or just appreciate in your stock market investments?

edge
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Re: If your networth is over $3 million, how did you do it?

Post by edge » Tue Nov 11, 2014 1:38 am

Cash and stock bonuses

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Re: If your networth is over $3 million, how did you do it?

Post by asset_chaos » Tue Nov 11, 2014 2:56 am

I'm more curious as to why you picked the precise value of $3 million.
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Re: If your networth is over $3 million, how did you do it?

Post by White Coat Investor » Tue Nov 11, 2014 3:31 am

I'm not there, but expect to be in a decade or so.

A big chunk will be saved earnings from my primary job/business. Smaller chunks will come from saved earnings from my secondary job/business, investment gains, and debt paydown/real estate equity.

I'm trying to get my parents to spend my inheritance.
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Re: If your networth is over $3 million, how did you do it?

Post by obgyn65 » Tue Nov 11, 2014 3:34 am

Studying over many years, good paying position, very conservative with my investments, bought a small condo instead of a large house, overall LBYM. I reached this NW level in my mid 40s I believe.
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Re: If your networth is over $3 million, how did you do it?

Post by JDCarpenter » Tue Nov 11, 2014 8:06 am

Probably the biggest factor for us (another OBG family, due to DW) has been a strong partnership/marriage with compatible long-range goals and willingness to defer/ignore consumer gratification; we started discussing retirement about the time we were getting out of grad school.

To be fair, two-professionals (although I was out for quite a while), and being essentially 100% in equities since we started investing have been big factors--enough to overcome large real estate losses. First IRAs funded in the mid-80s, with the first half-year of income.

We've taught our kids--save early and often and shop at Goodwill.
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Re: If your networth is over $3 million, how did you do it?

Post by livesoft » Tue Nov 11, 2014 8:19 am

Some families use some simple and easy tax saving strategies: http://www.bogleheads.org/forum/viewtopic.php?t=79510
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Re: If your networth is over $3 million, how did you do it?

Post by Grt2bOutdoors » Tue Nov 11, 2014 8:32 am

Not there yet, but here's a couple of ways you could get there:


1) Hit the lottery
2) Had the dumb luck to have majored in some obscure specialty that is suddenly in demand and people will pay anything to have your expertise
3) Married like-minded individual
4) Scrimped and saved, and scrimped and invested
5) Not spending any money - did I mention the term "scrimping"?
6) Got lucky and landed a high paying job early in your career with a company that offered an ESOP plan, a profit sharing plan and a generous pension plan
7) or work for the Suffolk County, NY police department where with overtime you too could be pulling in $250K per year as a detective and a pension based on that salary to boot!
8) You had a big life insurance policy, the good news is your worth $3 million, the bad news is your new home is at Rolling Hills cemetary :twisted:
9) You live in a low-tax state, as opposed to a high cost of living, high tax state
10) You successfully passed the CPA exam and fully understand the intricacies of tax law leading to a successful practice and are now worth more than $3 million.
11) You own a string of gas stations built with borrowed money - in other words, you used leverage to take a gamble and got lucky.
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Re: If your networth is over $3 million, how did you do it?

Post by Professor Emeritus » Tue Nov 11, 2014 8:46 am

JDCarpenter wrote:Probably the biggest factor for us (another OBG family, due to DW) has been a strong partnership/marriage with compatible long-range goals and willingness to defer/ignore consumer gratification; we started discussing retirement about the time we were getting out of grad school.

To be fair, two-professionals (although I was out for quite a while), and being essentially 100% in equities since we started investing have been big factors--enough to overcome large real estate losses. First IRAs funded in the mid-80s, with the first half-year of income.

We've taught our kids--save early and often and shop at Goodwill.
+1
Can I add
Don't move, don't get divorced, don't pay any fees to financial vultures, teach your kids financial skills from day one.
WE bought our first new car when I was 37. I'm 63 and at this moment we own one car, a used 2009 Pontiac Vibe.

I do buy gold earrings for DW. It's a balanced portfolio, one in each ear at a time!

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Re: If your networth is over $3 million, how did you do it?

Post by jebmke » Tue Nov 11, 2014 9:02 am

Professor Emeritus wrote:Don't move
Many high reward, high risk job changes (either with the same employer or internal) involve relocation. I know with my employer, people who were unable/unwilling to relocate eventually got pigeon-holed and the best promotions went to those who moved around. All of the top-level jobs (the ones with high bonus, high stock grants) were filled by people who had worked in more than one location -- and often more than one country.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Re: If your networth is over $3 million, how did you do it?

Post by SamB » Tue Nov 11, 2014 9:14 am

Savings and investment over 36 years and a spouse who would go along with the approach. I also managed to avoid a lot of risks unrelated to the stock market. The greatest gains were from equities, invested pretty much as described in this forum. Buy the total market and hold it forever.

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Re: If your networth is over $3 million, how did you do it?

Post by babydoc » Tue Nov 11, 2014 9:28 am

A good income helps but the most important factor is living below your means and investing the rest and being disciplined doing it. I know plenty of people who make a great income and have little to show for it. There is generally no shortcut.

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Re: If your networth is over $3 million, how did you do it?

Post by Erwin » Tue Nov 11, 2014 9:30 am

Very simple, save an invest during lucky years.
Erwin

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Re: If your networth is over $3 million, how did you do it?

Post by Professor Emeritus » Tue Nov 11, 2014 9:41 am

jebmke wrote:
Professor Emeritus wrote:Don't move
Many high reward, high risk job changes (either with the same employer or internal) involve relocation. I know with my employer, people who were unable/unwilling to relocate eventually got pigeon-holed and the best promotions went to those who moved around. All of the top-level jobs (the ones with high bonus, high stock grants) were filled by people who had worked in more than one location -- and often more than one country.
I will only note that people enormously underestimate the total cost of moving. It routinely derails your spouse's career

it correlates (and yes I know what that means) with family breakdowns.

I got the most amazing girl to marry me with the clear agreement that we would make our careers in this area.

ahmadcpa
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Re: If your networth is over $3 million, how did you do it?

Post by ahmadcpa » Tue Nov 11, 2014 9:48 am

So no lottery winners here? or at least, people inheriting millions?

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Re: If your networth is over $3 million, how did you do it?

Post by JDCarpenter » Tue Nov 11, 2014 9:49 am

Professor Emeritus wrote:
jebmke wrote:
Professor Emeritus wrote:Don't move
Many high reward, high risk job changes (either with the same employer or internal) involve relocation. I know with my employer, people who were unable/unwilling to relocate eventually got pigeon-holed and the best promotions went to those who moved around. All of the top-level jobs (the ones with high bonus, high stock grants) were filled by people who had worked in more than one location -- and often more than one country.
I will only note that people enormously underestimate the total cost of moving. It routinely derails your spouse's career

it correlates (and yes I know what that means) with family breakdowns.

I got the most amazing girl to marry me with the clear agreement that we would make our careers in this area.
Like everything else, "it depends." :-)

I was SAHD and DW was in the midst of spiking medmal premiums at old location that we planned to live and die in. DW's precisely mid-career move was well worth it--even though we had to pay 200K tail to get out of jail (State A). Yeah, we had a terrible income year or two, and I had to take the bar in new state when we wanted my income again (so two weeks to study, no biggie), but we've never had second thoughts.
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Re: If your networth is over $3 million, how did you do it?

Post by RootyToot » Tue Nov 11, 2014 9:51 am

DH and I shared similar views with regard to saving/spending. While we both earned above average salaries, we lived below our means -- saving one salary and living off the other.

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Re: If your networth is over $3 million, how did you do it?

Post by Professor Emeritus » Tue Nov 11, 2014 9:55 am

JDCarpenter wrote:
Professor Emeritus wrote:
jebmke wrote:
Professor Emeritus wrote:Don't move
Many high reward, high risk job changes (either with the same employer or internal) involve relocation. I know with my employer, people who were unable/unwilling to relocate eventually got pigeon-holed and the best promotions went to those who moved around. All of the top-level jobs (the ones with high bonus, high stock grants) were filled by people who had worked in more than one location -- and often more than one country.
I will only note that people enormously underestimate the total cost of moving. It routinely derails your spouse's career

it correlates (and yes I know what that means) with family breakdowns.

I got the most amazing girl to marry me with the clear agreement that we would make our careers in this area.
Like everything else, "it depends." :-)

I was SAHD and DW was in the midst of spiking medmal premiums at old location that we planned to live and die in. DW's precisely mid-career move was well worth it--even though we had to pay 200K tail to get out of jail (State A). Yeah, we had a terrible income year or two, and I had to take the bar in new state when we wanted my income again (so two weeks to study, no biggie), but we've never had second thoughts.
Sure but did you move again since then? the other poster was describing multiple relocations. Top academics normally make one well timed career move. Lawyers rarely make geographic moves for exactly the reason you mention. If you were a full time SAHD (and good for you!) it is that fact , not the move that affected your career.
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Re: If your networth is over $3 million, how did you do it?

Post by VictoriaF » Tue Nov 11, 2014 9:58 am

Professor Emeritus wrote:
jebmke wrote:
Professor Emeritus wrote:Don't move
Many high reward, high risk job changes (either with the same employer or internal) involve relocation. I know with my employer, people who were unable/unwilling to relocate eventually got pigeon-holed and the best promotions went to those who moved around. All of the top-level jobs (the ones with high bonus, high stock grants) were filled by people who had worked in more than one location -- and often more than one country.
I will only note that people enormously underestimate the total cost of moving. It routinely derails your spouse's career

it correlates (and yes I know what that means) with family breakdowns.

I got the most amazing girl to marry me with the clear agreement that we would make our careers in this area.
Much depends on the area you live in. The D.C. region always seems to have higher employment opportunities than other areas. In contrast, when people live in a "company town," and the company does not do well, the people are both compelled to move and unable to sell their houses to move.

Victoria
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Re: If your networth is over $3 million, how did you do it?

Post by Professor Emeritus » Tue Nov 11, 2014 10:01 am

VictoriaF wrote:
Much depends on the area you live in. The D.C. region always seems to have higher employment opportunities than other areas. In contrast, when people live in a "company town," and the company does not do well, the people are both compelled to move and unable to sell their houses to move.

Victoria
Absolutely but it also means they don't accumulate 3M portfolios

The question was how to accumulate a portfolio, not how to survive.

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Re: If your networth is over $3 million, how did you do it?

Post by hicabob » Tue Nov 11, 2014 10:06 am

Started a small biz in my field of expertise after my eng job was off-shored and it took off then I sold it at an appropriate time. It was the hardest 7 years I have ever worked in my life though.

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Re: If your networth is over $3 million, how did you do it?

Post by DFrank » Tue Nov 11, 2014 10:07 am

There is no single reason in our case as our net worth is spread fairly evenly across a few sources.

Being a consistent two income household with above average salaries has allowed us to save aggressively - we save 30+% of our gross income. We didn't start out that high, but as our income has grown over the years we've plowed more and more into our savings rather than into our "lifestyle."

We've always followed a Boglehead style investment strategy, even before I knew what that was.

Being in the California for the past 37 years, we've accumulated 6 figures of real estate equity, all in our principal residence. For the past 20 years we've been aggressively paying down the mortgage targeting being mortgage free in retirement.

We also had the good fortune to inherit some money from my wife's family, but we would have met the OP's $3M threshold even without that.
Dave

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Re: If your networth is over $3 million, how did you do it?

Post by Postmon » Tue Nov 11, 2014 10:28 am

1. Start early, save as much as you can and live below your means. When you get out of college, don't go out and buy a BMW, rent a fancy apartment, take expensive vacations, etc. Get a cheap car, rent a modest apartment, pay off your student loan, and any debts.
2. Pay off your credit card each month.
2. Maximize your retirement contributions, flexible spending accounts, HSA, etc.
3, Set up an automatic investment plan for what's leftover. This way the money is already committed, no emotion is involved, and you dollar-cost average in.
4. Buy and Hold no matter what. Don't watch CNBC or any of the financial networks. I still remember Black Monday. The world was panicking, but it didn't really bother me. I left my investment plan on auto-pilot and unconsciously scooped up some bargains that really paid off. Having gone though that at a young age it gave me the fortitude to be able to ride through the bumps in rode as I got older.
5. Marry someone who will go with the program or trusts you to steer the ship.
6. Buy the cheapest house on the block.
7. Don't buy individual stocks or hold onto your company's stock.
8. Rinse and repeat! :beer

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Re: If your networth is over $3 million, how did you do it?

Post by Twins Fan » Tue Nov 11, 2014 10:51 am

ahmadcpa wrote:So no lottery winners here? or at least, people inheriting millions?
I think a high net worth is temporary for those folks. Seems easier to lose it when one didn't earn it or learn how to make it or keep it.

Just my guess... I don't fit into the catagory now matter which way it was done, so... :happy

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Re: If your networth is over $3 million, how did you do it?

Post by VictoriaF » Tue Nov 11, 2014 11:02 am

Postmon wrote:1. Start early, save as much as you can and live below your means. When you get out of college, don't go out and buy a BMW, rent a fancy apartment, take expensive vacations, etc. Get a cheap car, rent a modest apartment, pay off your student loan, and any debts.
2. Pay off your credit card each month.
2. Maximize your retirement contributions, flexible spending accounts, HSA, etc.
3, Set up an automatic investment plan for what's leftover. This way the money is already committed, no emotion is involved, and you dollar-cost average in.
4. Buy and Hold no matter what. Don't watch CNBC or any of the financial networks. I still remember Black Monday. The world was panicking, but it didn't really bother me. I left my investment plan on auto-pilot and unconsciously scooped up some bargains that really paid off. Having gone though that at a young age it gave me the fortitude to be able to ride through the bumps in rode as I got older.
5. Marry someone who will go with the program or trusts you to steer the ship.
...
The advice was fine until I got to item #5. That's a type of an attitude to a spouse that is likely to turn her or him into an ex-spouse.

Victoria
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Re: If your networth is over $3 million, how did you do it?

Post by Lynette » Tue Nov 11, 2014 11:16 am

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Re: If your networth is over $3 million, how did you do it?

Post by Postmon » Tue Nov 11, 2014 11:19 am

VictoriaF wrote:5. Marry someone who will go with the program or trusts you to steer the ship.
...

The advice was fine until I got to item #5. That's a type of an attitude to a spouse that is likely to turn her or him into an ex-spouse.
A poor choice of words on my part. :oops: Was trying to convey that if you want to build significant net worth, both spouses need to be on the same page. And, if one isn't as interested in investing, they need to trust the other to take the lead.

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Re: If your networth is over $3 million, how did you do it?

Post by Professor Emeritus » Tue Nov 11, 2014 11:20 am

VictoriaF wrote:
Postmon wrote:r.
5. Marry someone who will go with the program or trusts you to steer the ship.
...
The advice was fine until I got to item #5. That's a type of an attitude to a spouse that is likely to turn her or him into an ex-spouse.

Victoria
+1 I married a girl who was more bogle than I was. Smarter too.

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Re: If your networth is over $3 million, how did you do it?

Post by nelson1015 » Tue Nov 11, 2014 11:21 am

Lynette wrote:Work longer, live longer and have full SS and pensions. I'm not there and I don't see any reason to have 3m. I have spent and continue to spend a great deal on travel while I have my health. But I plan to retire at 75 and my needs should be covered by SS and pensions. My savings are for emergencies and as I don't have family close to me as I grew up in another country. If I live to 90, and live on SS and pensions .. maybe I'll have 3m. But I'll likely give it to charity ..

I suppose my question is why anyone wants 3m. But I could also be asked why I want to work till 75? Likely a little neurotic about the economy and don't mind work.

On other threads, its asked if one can still have a job at 70. Why do I still have a job? Initial degree was in History and Latin but I've mainly worked in IT - experience and company trained me. Most colleges do not train young people in the "old" technologies that still run our critical applications. They work and its too expensive to convert to "new" technology. A colleague told me that 80% of these critical applications still work on "old' technology.
I'm 31 and I'm anticipating that I will need at least 3mil by the time I retire considering no pensions and who the hell knows what social security will look like. Right now I'm shooting for over 4 mil in some vague projections. The big question is inflation and what will 4 mil be worth in 35 years?

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Re: If your networth is over $3 million, how did you do it?

Post by Wagnerjb » Tue Nov 11, 2014 11:32 am

Worked hard in college, studied and passed the CPA test, worked hard at my first job, studied and get a good score on the MBA entrance test (GMAT), borrowed a small fortune and went to a good MBA school, worked hard in my job for 30 years, didn't quit when times seemed frustrating, accepted 5 transfers (two to foreign countries), lived below my means, invested wisely (taking more risk when young, being more conservative approaching retirement, kept costs low).

I will be retiring soon with around 30 times my annual spending. We inherited what amounts to 2x spending from our parents, so we saved 28x our spending from our jobs.

Best wishes.
Andy

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Re: If your networth is over $3 million, how did you do it?

Post by TomatoTomahto » Tue Nov 11, 2014 11:36 am

I married up. She makes the money, I manage the money, and we pick and choose in which areas to spend a lot and in which to LBYM.

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Re: If your networth is over $3 million, how did you do it?

Post by flyingaway » Tue Nov 11, 2014 11:49 am

ahmadcpa wrote:So no lottery winners here? or at least, people inheriting millions?
I now understand why I do not have $3M. I played slot machines at casinos for fun, and I have reverse inheritance (supporting my parents and my disabled sister financially). I am happy where I am.

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Re: If your networth is over $3 million, how did you do it?

Post by Lynette » Tue Nov 11, 2014 12:01 pm

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Re: If your networth is over $3 million, how did you do it?

Post by Pizzasteve510 » Tue Nov 11, 2014 12:04 pm

1) have a Modest Lifestyle. Spent less than I earned for 30 years. Saved roughly 25%-50% of income.

2) Invest. Invested taxable savings primarily in equities, some loans to third parties, and a bit of real estate (real estate has generally underperformed, with a lot more volatility). This is roughly 2/3 of our investment assets.

3) Fully Fund Retirement Vehicles. Maxed out all available pre-tax govt subsidized retirement savings programs for my income level, when available (e.g. IRA/401k). This is roughly 1/3 of our invested assets. ( would have been better, but we lost quite a bit due to employer match situations due to acquisitions of my 401k by two of the largest corporate bankruptcy cases in Ud history :oops: )

4). Control Housing, Fashion and Food Costs with Lifestyle Choices . A sub-set of 1), this point is to understand the difference between true value and fake value (e.g. pointless fashion or laziness) --- in other words, the realization that happiness is not buying the stuff advertisers want you think you need, but actually economically source the things/services that actually make you happy.

The idea to invest in strategies and skills that turn a modest lifestyle into a rich life. For example, we cook most of our own meals. But we do not cook just rice and beans (though they are delicious); we source healthy, local ingredients; improve ourselves by studying cooking; and hang out with like minded friends. As a result we make high quality restaurant quality food and wine (make our own wine too) for a fraction if the cost. Hosting a pot luck gourmet dinner party is a blast. With our like minded friends we drink and eat $300+ quality meals, with more variety, for a fraction of what a restaurant dinner party would cost. Or when we do go out we pick an excellent restaurant by using review sites to sift out those average meals. Why drink 1 bottle for $100 when everyone can sample the best of what everyone brought to the party? This mind set applies to many other areas of services, such as travel. Use knowledge to get better value in your life. Similar other areas include research to buy high quality used cars or use car sharing services to get more for less, coupons, using Frequent flyer programs for travel savings on business class, etc..

We limited financing costs by avoiding PMI and by buying less house than we 'could afford.' This added another chunk of home equity to our assets.

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Re: If your networth is over $3 million, how did you do it?

Post by Steven439 » Tue Nov 11, 2014 12:12 pm

ahmadcpa wrote:So no lottery winners here? or at least, people inheriting millions?
I'll be that guy. I received several million from my parents through a trust fund and an inheritance when they passed away. They were both doctors, lived in a low COL area, and were very frugal. My wife and I don't spend that money; we invest it and let it grow and live off our salaries. We both make good money so this is no big hardship. We've considered having one of us stay home with the kids full time, but we both like our jobs and have things we still want to accomplish in our careers.

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Re: If your networth is over $3 million, how did you do it?

Post by czeckers » Tue Nov 11, 2014 12:30 pm

For a 27 year-old who has a good job and starts maxing out their 401k beginning on Jan 1st, it would be straightforward.

$18,000 invested each year x 40 years (retire at 67) x 6% return (after taxes and expenses) = $2,952,858.30

Now that's in nominal terms so the purchasing power won't be the same as it is today, but it's 3M.

However, the max 401K contribution limit also goes up with inflation, so your contributions will increase accordingly if you continue to max out each year. I also didn't include an employer match/contribution which would boost the savings rate.

3M is attainable for many people as long as you follow the excellent advice given by the previous posters. You don't need to inherit the money nor to win the lottery. But you do need to make sure that you acquire the skills to have a good income and you save and invest diligently while minimizing investing costs and avoiding costly mistakes.

By costly mistakes I mean things such as panic selling at the bottom of a market cycle, bankruptcy, divorce, and uninsured catastrophic loss.

-K
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Re: If your networth is over $3 million, how did you do it?

Post by Postmon » Tue Nov 11, 2014 12:44 pm

And one more....don't ever forget about the bulls, the bears and the pigs! :wink:

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Re: If your networth is over $3 million, how did you do it?

Post by curmudgeon » Tue Nov 11, 2014 12:57 pm

I suppose we are about at that level. In our case it roughly comes from:

10% inheritance
30% retirement savings/investment in 401K and rollover IRA (largely equities)
30% real estate (about half through appreciation, and half through mortgage paydown)
30% post-tax savings and stock options

Largely based on one salary. I caught the tech wave at a good time, and have ridden it for 35 years, always trying to stay a bit ahead of the curve. We've always tried to balance spending and saving, with time for family the top priority.

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Re: If your networth is over $3 million, how did you do it?

Post by antiqueman » Tue Nov 11, 2014 1:00 pm

[quote="JDCarpenter""]Probably the biggest factor for us (another OBG family, due to DW) has been a strong partnership/marriage with compatible long-range goals and willingness to defer/ignore consumer gratification; we started discussing retirement about the time we were getting out of grad school."



+1

UADM
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Re: If your networth is over $3 million, how did you do it?

Post by UADM » Tue Nov 11, 2014 1:11 pm

czeckers wrote:For a 27 year-old who has a good job and starts maxing out their 401k beginning on Jan 1st, it would be straightforward.

$18,000 invested each year x 40 years (retire at 67) x 6% return (after taxes and expenses) = $2,952,858.30

Now that's in nominal terms so the purchasing power won't be the same as it is today, but it's 3M.

However, the max 401K contribution limit also goes up with inflation, so your contributions will increase accordingly if you continue to max out each year. I also didn't include an employer match/contribution which would boost the savings rate.

3M is attainable for many people as long as you follow the excellent advice given by the previous posters. You don't need to inherit the money nor to win the lottery. But you do need to make sure that you acquire the skills to have a good income and you save and invest diligently while minimizing investing costs and avoiding costly mistakes.

By costly mistakes I mean things such as panic selling at the bottom of a market cycle, bankruptcy, divorce, and uninsured catastrophic loss.

-K
Median income for a family of 4 in this country i around 50k. How can they put away 18k? Also, where is there a guaranteed 6% returns? Also, who wants to work to 67? : P

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William4u
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Re: If your networth is over $3 million, how did you do it?

Post by William4u » Tue Nov 11, 2014 1:23 pm

If you have a household with two professional careers, it is easy if you live entirely off of one salary and invest the other in a simple 3-fund portfolio. In a couple of decades you will likely have well over $3 million.

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Re: If your networth is over $3 million, how did you do it?

Post by jlawrence01 » Tue Nov 11, 2014 1:23 pm

1) Listened to my parents/grandparents about the concepts of thrift and savings.
2) Married the daughter of a dairy farmer. She strongly values hard work, education, and thrift.
3) My salary was not all that high until 2008.
4) Always lived well below my means.
5) For years, my investments were three Vanguard funds - Windsor II, Wellington, GNMA. I underperformed the market in go-go years but had few real bad years.
6) Avoided debt like the plague - despite working with "smart" CFOs who nearly put two corporations into Chapter 11 with their high leverage moves.

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Re: If your networth is over $3 million, how did you do it?

Post by Lynette » Tue Nov 11, 2014 1:31 pm

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Last edited by Lynette on Wed Dec 06, 2017 9:18 am, edited 1 time in total.

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czeckers
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Re: If your networth is over $3 million, how did you do it?

Post by czeckers » Tue Nov 11, 2014 1:37 pm

I didn't say that it was possible for everyone. You do have to be able to acquire a skill set that leads to an above average income.

6% long-term return is not guaranteed of course, but not crazy either. Given current inflation of 1.7%, that's only a real return of 4.3% -- well under the historical average for most stock markets in the US and abroad.

I chose 67 as the retirment age as it is currently the full SS retirement age for those born in 1960 or later.

-K
The Espresso portfolio: | | 16% LCV, 16% SCV, 16% EM, 8% Int'l Value, 8% Int'l Sm, 8% US REIT, 8% Int'l REIT, 20% Inter-term US Treas | | "A journey of a thousand miles begins with a single step."

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czeckers
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Re: If your networth is over $3 million, how did you do it?

Post by czeckers » Tue Nov 11, 2014 1:41 pm

I am certain that even among the people with 6-figure incomes, relatively few will have 3M at retirement.

-K
The Espresso portfolio: | | 16% LCV, 16% SCV, 16% EM, 8% Int'l Value, 8% Int'l Sm, 8% US REIT, 8% Int'l REIT, 20% Inter-term US Treas | | "A journey of a thousand miles begins with a single step."

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Re: If your networth is over $3 million, how did you do it?

Post by goodenyou » Tue Nov 11, 2014 1:48 pm

Make the choices that many do not want to make. Work hard, get educated, move to areas of opportunity and live below your means. If you get married, be sure your spouse shares your values. If you want $3M or whatever the goal, make it a priority.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

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goodenyou
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Re: If your networth is over $3 million, how did you do it?

Post by goodenyou » Tue Nov 11, 2014 1:54 pm

czeckers wrote:I am certain that even among the people with 6-figure incomes, relatively few will have 3M at retirement.

-K
It is not what you make, it is what you spend that determines what you have at retirement. Some high 6-figure income earners with have next to nothing at retirement. Several of my partners fall and had fallen into that category. One shot and killed himself at 66 because he was broke after all those years of livin' big.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

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Re: If your networth is over $3 million, how did you do it?

Post by basspond » Tue Nov 11, 2014 1:56 pm

Most in 401k account investments started as soon as I started working, DW who is very thrifty, and a life grounded first in our faith not material possessions.
ahmadcpa wrote:So no lottery winners here? or at least, people inheriting millions?
This is the misconception of most poor people. My first job was barely 5 figures, but by starting as early as one can anyone can be rich.

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Re: If your networth is over $3 million, how did you do it?

Post by gator15 » Tue Nov 11, 2014 2:19 pm

I haven't saved anything close to $3 million but I would like to think I am well on my way. Early in my career and while I was single, I tried to save at least 15% of my income. I'm now a dual income family and I'm trying to save as much as I can while times are good. I'm a hope for the best, plan for the worse type of person. As a result, I'm going to save as much as I can right now as I don't know what the future holds regarding my job. By no means am I frugal. I try to have a balance between spending and saving as I know tomorrow isn't promised to us. I really don't have a total dollar figure in mind in regard to what I will need to retire. I just save.

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Re: If your networth is over $3 million, how did you do it?

Post by Bubbagump » Tue Nov 11, 2014 2:21 pm

Started a company 10 years ago, was super poor for a while, worked about 1000 hours per week, was lucky enough to have brilliant partners and found a good niche... then stuck with it and didn't get stupid with my life style.

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