Is the first 100k really the hardest?

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supersharpie
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Re: Is the first 100k really the hardest?

Post by supersharpie » Sun Mar 01, 2015 12:47 pm

First 100k took 6 years and 3 months (June 2006 - September 2012), but there was very investing going on for the first three years of that stretch

Hit 200k 18 months later in March 2014

We are now $19,500 away from hitting 300k

beach2035
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Re: Is the first 100k really the hardest?

Post by beach2035 » Sun Mar 01, 2015 1:12 pm

It took me about 6 years from when I was first employed to hit 100k, only funded the 401k at 10% because of ignorance about savings methods.

In the 2 years since, I’ve fully funded the 401k each year, fully funded the IRA, and as a result I’m close to 200k. It does begin to build much faster when you have a clue. :happy

bac573
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Re: Is the first 100k really the hardest?

Post by bac573 » Sun Mar 01, 2015 6:08 pm

This thread will be saved in my "favorites", as it is a great motivational thread, thank you to all.

No doubt the subsequent $100k's (generally) come quicker than the first $100k. For the month of February, our primary retirement account---excluding the contributions we made---gained over $11k, which is slightly less than our (projected) total 2015 contributions will be. After $200k, the compounding affect really starts to take off.

(Now I will brace for a bad March where that $11k could be given back :happy )
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JoeJohnson
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Re: Is the first 100k really the hardest?

Post by JoeJohnson » Sun Mar 01, 2015 8:13 pm

Of course the first 100k is the hardest. 100-->200 should be easier than 200->300 and so on.

Salaries go up, investing goes up, and compounding.

Should really be looking at 100>200, then 200-->400, 400-->800, etc. Double the previous number. 100-->200 is 100% increase while 200-->300 is only 50%, 300-->400 33.33%.

angelescrest
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Re: Is the first 100k really the hardest?

Post by angelescrest » Sun Mar 01, 2015 11:00 pm

JoeJohnson wrote: Salaries go up
Sounds like you're taking that for granted. Salaries in the U.S. have not been keeping up at all.

r00ster
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Re: Is the first 100k really the hardest?

Post by r00ster » Thu Mar 05, 2015 12:22 am

Thank you all for the great responses and encouraging personal anecdotes. In the words of the late Mr. Nimoy, may we all Live Long and Prosper.

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wander
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Re: Is the first 100k really the hardest?

Post by wander » Thu Mar 05, 2015 1:20 am

Set aside money for investing was the hardest, everything else became easy after that. Frankly, I do not remember when I got my first $100k.

Luv2savmoney
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Re: Is the first 100k really the hardest?

Post by Luv2savmoney » Thu Mar 05, 2015 8:36 am

Surely thread is encouraging but we are in a bull market as well..I have not kept track and lost track due to changes in 401K providers etc but I do know that VG portfolio progressed this way

March 2008 - 3.5K
March 2009 - 3K
March 2010 - 4.5K
March 2011 - 5K
March 2012 - 7.5K
March 2013- 25K (Got introduced to Bogleheads. Started IRA for wife and contributed max for 2012 for both of us and regular investment to max in 2013. Started taxable savings)
March 2014- 54K (Maxed IRAs through regular investment and put in couple of lump sum money in taxable savings in addition to regular contributions of 500 per month)
March 2015 - 91K ( Maxed IRAs and continue to put money in taxable in regular contributions of 500)

Now, to think what it would have been if I had my introduction in 2009 :oops:

401K probably has slightly better progress since I used to do the minimum to get match until 2012 and thereafter maxing it.

Pugs135
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Re: Is the first 100k really the hardest?

Post by Pugs135 » Thu Mar 05, 2015 5:49 pm

Toons wrote:
LateStarter1975 wrote:
NeutrinoPerson wrote:I know it's irrational but I worry about how the stock market has been on a rocket ride straight up the past 5 years. I know it's gambler's fallacy to assume this, but I worry that I'll start investing heavily (now that I've finally been able to start, after paying off my high-interest debt) and it'll just get wiped out by a crash in the near future.

I'm only at $43k right now so I have a ways to go before I hit 100k.

If it gets wiped out and you keep on investing, you'll make a killing in the years to follow when the market eventually returns. Just learn to stay the course and don't peek too much in your portfolio during those periods
+1
Excellent advice,,,,
Money is made during bear markets as long as you are continuing with your purchases,,you just don't know it at the time :happy
Maybe don't look at the dollar amount and just monitor number of shares will give you less stress.

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Re: Is the first 100k really the hardest?

Post by JGoneRiding » Sat Nov 21, 2015 12:32 pm

The first 100k felt like mollasses, in part cause I started 80k + in the hole, I also checked constantly and up dated nw monthly. Then 2 yrs ago I stopped checking much. I updated for getting married and buying a house together and omg my nw was over 250k wasn't even sure when n how it happened! I think it might gave dropped a bit after the wedding n honeymoon spending and the recent dips. But yeah I would say the first 100k was way longer.

Looking fwd to when my invested funds is above 250k

jackholloway
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Is the first 100k really the hardest?

Post by jackholloway » Sat Nov 21, 2015 3:37 pm

Yes and no

To get 100k free and clear, you need to save from your income. That is very challenging for most, because your co-workers probably make roughly what you do, and if you are saving 20%, then you will have noticeably less stuff, or a noticeably smaller house, or an older car. Further, if you are also paying off debt, then you may get a double tap - 20% to save, and some larger-than-mimimim to debt service.

In addition, with nothing in the market, you do not have "non-salary" income that is just compounding behind the scenes.

Further, assuming you are at the family median of $57k, and saving 20%, you will only put aside 11k a year. Even a traditional IRA/401k so no taxes, and a generous 50% match, you still will take 100k/16=almost 7 years to get that first 100k set aside.

So, while it may be that the first 100k looks the hardest, it is more the behavioral change needed to save at all that is the hardest.

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wander
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Re: Is the first 100k really the hardest?

Post by wander » Sat Nov 21, 2015 3:57 pm

r00ster wrote:I've often heard people say that the first 100k is the hardest...it only gets easier from here...now the magic of compounding begins, etc. I was wondering if anyone had any statistical support for this or if it's more of a cerebral victory.
I don't think it was hardest but it takes longest time too reach this number, the next 200k, 300k ... take pretty much shorter times.

sawhorse
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Re: Is the first 100k really the hardest?

Post by sawhorse » Sat Nov 21, 2015 4:33 pm

There was an ad around the time of the Olympics that said, "It takes 10 seconds to get to the finish line. It takes a lifetime to get to the starting line."

Going from debt to $0 is often much harder than going from $0 to $100k.

sawhorse
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Re: Is the first 100k really the hardest?

Post by sawhorse » Sat Nov 21, 2015 4:42 pm

angelescrest wrote:
JoeJohnson wrote: Salaries go up
Sounds like you're taking that for granted. Salaries in the U.S. have not been keeping up at all.
Salaries for the same position have not been going up for many professions, but usually salary for an individual goes up the first phase of a career as they become more experienced. That usually plateaus after a while.

That's not to say that it's a hard and fast rule. Some people are stuck with the same or lower salary for decades. With few secure jobs, anyone can suddenly drop to 0 salary or suffer a huge decrease in a difficult time. But in general, the first phase of a career involves a salary increase nominally.

That's another thing to remember, nominal vs real. Usually people talk about net worth milestones in nominal terms without accounting for inflation. Going from $100k to $200k may only be a $60k increase in real terms.

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stemikger
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Re: Is the first 100k really the hardest?

Post by stemikger » Sat Nov 21, 2015 7:25 pm

I felt like $100K took forever, but I don't have the amount of time it took. I agree it's more psychological. The problem I have now, is reaching new milestones don't feel the way I thought they would. Reaching $100K was the most gratifying for me, but when I reached $500K recently, it had very little effect. Paying off my mortgage a couple of years ago was more satisfying.
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EnjoyIt
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Re: Is the first 100k really the hardest?

Post by EnjoyIt » Sat Nov 21, 2015 9:31 pm

For me, hitting $0 net worth was by far the hardest.

Congrats on reaching your $100,000 milestone.

island
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Re: Is the first 100k really the hardest?

Post by island » Sat Nov 21, 2015 9:50 pm

Never paid any attention to when hit most milestones. If maxing out my 401K, saving a reasonable amount, and nowhere near retirement, what purpose would it serve? Nothing useful that I could ever see.
What's that old expression..."A watched pot never boils"? Yeah, that's how I see it.

Detroittl
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Re: Is the first 100k really the hardest?

Post by Detroittl » Sat Nov 21, 2015 10:43 pm

Ten years for me.

Higher income and owning my home were top two drivers.

JinroSoju
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Re: Is the first 100k really the hardest?

Post by JinroSoju » Sat Nov 21, 2015 10:53 pm

EmergDoc wrote:The first "whatever milestone" IS harder than the next milestone of the same size because you don't have your money working for you as much. When you're going from $100K to $200K, you not only have your work, but also the work of that first $100K to help you get there. Capitalism is a beautiful thing!
Yep, this is along the lines of what I was thinking. I have no statistical data to back up my hunch, but I assume the first 100k will be built mostly of your own money. Eventually the market upswings, compounding, and dividends reinvested will begin to really add up. Not only will you continue to add more of your own money on your way to 200k, but that first 100k will be working for you, too. I would also venture to guess that the first 100k milestone is earned at a time when when a young investor is paying off school loans, mortgage, or starting a career (at a lower salary). Perhaps all of these factors slow down that first milestone.

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Re: Is the first 100k really the hardest?

Post by White Coat Investor » Sat Nov 21, 2015 11:49 pm

JinroSoju wrote:
EmergDoc wrote:The first "whatever milestone" IS harder than the next milestone of the same size because you don't have your money working for you as much. When you're going from $100K to $200K, you not only have your work, but also the work of that first $100K to help you get there. Capitalism is a beautiful thing!
Yep, this is along the lines of what I was thinking. I have no statistical data to back up my hunch, but I assume the first 100k will be built mostly of your own money. Eventually the market upswings, compounding, and dividends reinvested will begin to really add up. Not only will you continue to add more of your own money on your way to 200k, but that first 100k will be working for you, too. I would also venture to guess that the first 100k milestone is earned at a time when when a young investor is paying off school loans, mortgage, or starting a career (at a lower salary). Perhaps all of these factors slow down that first milestone.
I've got bad news for you. There's a good chance that most of the first million will be your money too, unless you reach it near or during retirement.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

nukewerker
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Re: Is the first 100k really the hardest?

Post by nukewerker » Sun Nov 22, 2015 6:57 am

If we just consider assets in stocks/bonds we are on track to hit 160k or so by years end. Net worth is a little north of 200k not counting my portion of an inherited lake house or 300k if you include it. Doesn't count the cash in my self employment side gig (~10k). Not too bad I don't think to be in our 30s (Me= 33, Wife = 31) with a single income and 3 kids. Really hoping to retire by early 50s.

The first 100k took about 7 years, one year of which was unemployment.
The second 100k is on track for about 3 years net worth and 4 years in stocks/bonds.

So for us it definitely was the first $100k that was the hardest. I only made $40k starting out and this year on track to make about $140k including my side business. So that makes a huge difference. This is the first year we have made that kind of money and its really helped. Last 3 or 4 years gross was about $90k-$100k.

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Re: Is the first 100k really the hardest?

Post by Stormbringer » Sun Nov 22, 2015 8:24 am

Getting to $0 is very challenging for someone who starts out deeply in debt. Every two steps forward is accompanied by a step back (interest payments).

Getting to $100K is also challenging because it includes overcoming the psychological hurdle of self-deprivation (i.e. not spending every dollar you make) over an extended period of time. Additionally, the contribution of compounding is fairly minimal.

After that, once the snowball gets rolling, it gets easier and easier.
"Compound interest is the most powerful force in the universe." - Albert Einstein

MrNewEngland
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Re: Is the first 100k really the hardest?

Post by MrNewEngland » Sun Nov 22, 2015 10:55 am

$100k is probably the hardest, and it's not just the mental thing.

When you start investing you're probably not making nearly as much. When I graduated college my first job paid me a little over $40k. Now I make about 2.5 times that. It's obviously much easier to save money on a higher income.

I also now have an investment property that generates some income. That helps.

When I left college I had some consumer debt and college loans and those are all paid off. Now I only have a mortgage and I didn't get an expensive house.

Plus I was lucky enough to get one of my biggest promotions/raises in late 2007 so I started really throwing money into my 401k and IRA right through the crash and all the way through the recovery.

Plus at some point the return on the investments will outpace what you're putting in.

So yes... there's no reason to say the first $100k isn't the hardest. But $100k is just an arbitrary (round) number, you could say the same about just about any number.

ShiftF5
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Re: Is the first 100k really the hardest?

Post by ShiftF5 » Sun Nov 22, 2015 1:00 pm

Your investment balance grows from new contributions and growth on those investments.

$100 to $200. +100%
$200 to $300. +50%
$300 to $400. +33.3%
$400 to $500. +25%
$500 to $600. +20%
$600 to $700. +16.6%
$700 to $800. +14.3%
$800 to $900. +12.5%
$900 to $1,000. +11.1%

Generally in the early years your contributions have a bigger impact, in later years growth has a bigger impact.

Detroittl
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Re: Is the first 100k really the hardest?

Post by Detroittl » Thu Dec 10, 2015 1:15 am

ShiftF5 wrote:Your investment balance grows from new contributions and growth on those investments.

$100 to $200. +100%
$200 to $300. +50%
$300 to $400. +33.3%
$400 to $500. +25%
$500 to $600. +20%
$600 to $700. +16.6%
$700 to $800. +14.3%
$800 to $900. +12.5%
$900 to $1,000. +11.1%

Generally in the early years your contributions have a bigger impact, in later years growth has a bigger impact.

This puts things into perspective for me and motivates me to save as much as I can.

After ten years of professional work after college this is the first year I've maxed my 401k out. Putting similar amount in brokerage too. On my way! Thanks everyone!

trimatty471
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Re: Is the first 100k really the hardest?

Post by trimatty471 » Thu Dec 10, 2015 11:22 am

CMartel2 wrote:Loads of other factors are at play here. The first 100k is harder because typically much more is going on unless you're single.

1) Saving for a home? Hard to save 20% down and save for retirement optimally.
2) School debt
3) Lower starting income
4) Beginner expenses. Much easier to purchase a car outright later in life. Buying a home? You need furniture.
5) Babies. Medical expenses. Etc...


This is true. I think it took me 14 years (counting 401k only) due to the reasons stated above.

Down Payment
Lower salary
School debt
Beginner expenses
Stupidity - moved all my investments to bonds after 911

Dandy
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Re: Is the first 100k really the hardest?

Post by Dandy » Thu Dec 10, 2015 12:28 pm

The assumption is that the earnings on the 100k plus continued savings will be a tail wind rather than just savings alone. If the 100k earns 5% that's 5k plus you savings each year from now on. After awhile the return on your assets will be much higher than your savings making each milestone a bit easier.

That assumes that your assets don't suffer from a bad sequence of returns and that you don't lose your job so you stop savings etc. Sometimes life events e.g. marriage, children, college education, buying a house etc make savings hard. But, if you get 5% on your 100k each year your assets will still climb a bit and you will be glad you saved the first 100k.

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obgyn65
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Re: Is the first 100k really the hardest?

Post by obgyn65 » Fri Dec 11, 2015 6:11 am

Same for me.
Mitchell777 wrote:For me, the first $100K was the hardest or seemed to take the longest.
"The two most important days in someone's life are the day that they are born and the day they discover why." -John Maxwell

bigtex
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Re: Is the first 100k really the hardest?

Post by bigtex » Fri Apr 20, 2018 3:09 pm

Is this thread referring to the first $100k of net worth, first $100k of cash savings, or first $100k of investment holdings?

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Re: Is the first 100k really the hardest?

Post by Glockenspiel » Fri Apr 20, 2018 3:17 pm

In my case, yes. It certainly was. I feel like it took 5 years of working to accumulate $100k in my retirement, and in the 6 years since then, I've gone from $100k to $360k.

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Re: Is the first 100k really the hardest?

Post by Barefootgirl » Fri Apr 20, 2018 3:24 pm

Every rocket requires a booster.
How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

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whodidntante
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Re: Is the first 100k really the hardest?

Post by whodidntante » Fri Apr 20, 2018 7:35 pm

This thread just keeps on giving. For me, the first 10k of bonds was the hardest.

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Re: Is the first 100k really the hardest?

Post by CedarWaxWing » Fri Apr 20, 2018 7:56 pm

It will be the hardest for some because those early years also tend to be your lower income years to start with. Earning less means not able to save as much, at a time when one is also tending to need to buy their first good car, cover their own insurance, pay off student loans... etc.

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tooluser
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Re: Is the first 100k really the hardest?

Post by tooluser » Fri Apr 20, 2018 8:21 pm

It took me a good six years to earn my first dollar. I'm pretty sure that was for helping Dad trim the lawn with hand clippers.

The next big uptick was four years later getting a paper route. Finally a steady source of income.

It was pretty much magic thereafter, with jobs requiring progressively more responsibility until I got my first full-time, year-round gig at age 22. I'm not sure when I hit 100k net worth, but it was sometime well after that due to mortgage debt.

Since then, things have gone really well, except for the "lost decade" from 2000-2010, where it surely did feel like I was not making much progress despite regular large amounts of investing.

All golden since 2011, when I joined Bogleheads.org, though I think that was just a coincidence. This site has increased my investing confidence immeasurably.

There was definitely a point at which I felt less financial stress, and it was definitely well after $100k net worth. Probably when I had enough to live for a 5-10 years unsupported if I had needed to.

Apologies for this:
"I know we've only known each other four weeks and three days, but to me it seems like nine weeks and five days. The first day seemed like a week and the second day seemed like five days and the third day seemed like a week again and the fourth day seemed like eight days and the fifth day you went to see your mother and that seemed just like a day and then you came back and later on the sixth day, in the evening, when we saw each other, that started seeming like two days, so in the evening it seemed like two days spilling over into the next day and that started seeming like four days, so at the end of the sixth day on into the seventh day, it seemed like a total of five days. And the sixth day seemed like a week and a half. I have it written down, but I can show it to you tomorrow if you want to see it. Anyway, I've decided that tomorrow, when the time is right, I'm going to ask you to marry me, if that's o.k. with you." - Navin R. Johnson
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Re: Is the first 100k really the hardest?

Post by Grt2bOutdoors » Fri Apr 20, 2018 8:29 pm

bigtex wrote:
Fri Apr 20, 2018 3:09 pm
Is this thread referring to the first $100k of net worth, first $100k of cash savings, or first $100k of investment holdings?
First 100k of net worth.
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Re: Is the first 100k really the hardest?

Post by randomizer » Fri Apr 20, 2018 8:34 pm

Is all seems hard to me. Progress is slow, investing is boring, and it’s not clear if or when true financial independence will materialize at last.
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Re: Is the first 100k really the hardest?

Post by Exterous » Fri Apr 20, 2018 9:52 pm

It would be interesting to see what the 2015 posters feel about whether the last couple of years were easier. Although the strong market probably helps the "yes" decision

For me the money is growing faster but it doesn't seem mentally easier after the baseline habits were established. The multi-decade timelines involved clash with my impatient side:

Looks at account balances
"Hmmm....not high enough to retire"
Hit browser refresh button
"Damnit still not high enough to retire"
*pokes screen*
"Grow faster!"

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Re: Is the first 100k really the hardest?

Post by Darth Xanadu » Fri Apr 20, 2018 11:49 pm

whodidntante wrote:
Fri Apr 20, 2018 7:35 pm
This thread just keeps on giving. For me, the first 10k of bonds was the hardest.
I don't follow....what do you mean? The challenge of shifting from equity to fixed income?
"A courageous teacher, failure is."

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Re: Is the first 100k really the hardest?

Post by whodidntante » Sat Apr 21, 2018 12:57 am

Darth Xanadu wrote:
Fri Apr 20, 2018 11:49 pm
whodidntante wrote:
Fri Apr 20, 2018 7:35 pm
This thread just keeps on giving. For me, the first 10k of bonds was the hardest.
I don't follow....what do you mean? The challenge of shifting from equity to fixed income?
I went without any fixed income for a long time. Which is fine for a young investor. At the point where I "really needed" to add some, yields were at lifetime lows and the term premium was minimal and at risk of turning negative. I still struggle with the possibility that I added a boat anchor to my portfolio but convincingly better options are elusive.

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Re: Is the first 100k really the hardest?

Post by Eric76 » Sat Apr 21, 2018 3:58 am

My dad has always said the following about accumulating wealth that rings so true:

"If you can get to $1 million net worth by 40 you're likely doing something right. If you don't turn $1 million into $2 million from 40 to 50, you're likely doing something wrong."

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Re: Is the first 100k really the hardest?

Post by TheFIminator » Sat Apr 21, 2018 4:20 am

Its not about getting to a certain milestone like $100k that makes compounding fascinating. You can start with any amount to enjoy the benefits. Try to focus more on increasing your income and reducing your expenses. Hopefully you after-tax income is more than your full expenses, which means you can save some $. That saves money can then be invested using various vehicles starting from a simple bank interest savings account all the way to investing in Real Estate Shares and Business.

The key point here is, start saving money to invest as soon as you can, dont let a certain figure scare you off. Time is the best friend of investments and compounding.

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Re: Is the first 100k really the hardest?

Post by selters » Sat Apr 21, 2018 5:23 am

At some point, provided that you have positive returns, the annual gains in your portfolio will become larger than your annual contributions.

With a savings rate in the 10-30% range and annual returns in the 5-10% range, this will happen after something like 5-15 years.

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Re: Is the first 100k really the hardest?

Post by JoMoney » Sat Apr 21, 2018 9:26 am

The real hurdle is getting above zero and staying above zero... that indicates you have what it takes to accumulate wealth, which is simply to spend less than you earn. Getting to 100k, presuming an average salary, and that it wasn't inherited/gifted, is a pretty good indicator you have what it takes. Keep at it.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Re: Is the first 100k really the hardest?

Post by lthenderson » Sat Apr 21, 2018 9:34 am

FreemanB wrote:
Wed Feb 25, 2015 8:14 am
To me, the statement that the first $XXX amount was the hardest referred more to the idea that getting into the habit of budgeting, saving, and investing for the future are really the hardest steps.(Many people don't even get past the budgeting part) Once you've completed that and stuck with it long enough to hit a significant milestone, be it $10k, $100k, or $1M, then it will get easier. Partially because of compounding, but mostly because at that point the habits have become ingrained enough to stick.
+1 The saying has everything to do with creating good financial habits.

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Re: Is the first 100k really the hardest?

Post by michaeljc70 » Sat Apr 21, 2018 10:58 am

JoeJohnson wrote:
Sun Mar 01, 2015 8:13 pm
Of course the first 100k is the hardest. 100-->200 should be easier than 200->300 and so on.

Salaries go up, investing goes up, and compounding.

Should really be looking at 100>200, then 200-->400, 400-->800, etc. Double the previous number. 100-->200 is 100% increase while 200-->300 is only 50%, 300-->400 33.33%.
Exactly. It is not just a matter of compounding. It is a matter of salaries being lower when starting out (and some have student debt).

Dottie57
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Re: Is the first 100k really the hardest?

Post by Dottie57 » Sat Apr 21, 2018 11:22 am

r00ster wrote:
Tue Feb 24, 2015 10:46 pm
Greetings all. The wiki converted me to a Boglehead and I've learned a lot reading the forum. I passed 100k invested assets two weeks ago and will pass 100k net worth by the end of the month.

I've often heard people say that the first 100k is the hardest...it only gets easier from here...now the magic of compounding begins, etc. I was wondering if anyone had any statistical support for this or if it's more of a cerebral victory.

Thanks in advance!
Reaching 100k took about 9 years. Of course 401k limits were MUCH LESS from 1987 - 1996. And my salary range was 30-40k. 100k seemed an impossible goal much less 1m. But I kept raising my percent with each raise. By the time I left I had 115 k And then the tech bubble burst.

yuppiebogle
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Re: Is the first 100k really the hardest?

Post by yuppiebogle » Sun May 20, 2018 12:07 am

I've been fortunate to have established some good financial habits young.. living with parents post college has helped too. Should be hitting 100k net worth by end of this year.. 2 years out of college :happy Would've been several months sooner if I had not made some 10-20k mistakes over the past 2 years .. :oops:

SQRT
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Re: Is the first 100k really the hardest?

Post by SQRT » Sun May 20, 2018 8:06 am

By definition the first (pick a number) is the hardest. Think about it. How could it be otherwise? The bigger the number the more self evident the statement is. For example” the first billion is the most difficult”. No kidding.

GCD
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Re: Is the first 100k really the hardest?

Post by GCD » Sun May 20, 2018 8:27 am

Eric76 wrote:
Sat Apr 21, 2018 3:58 am
My dad has always said the following about accumulating wealth that rings so true:

"If you can get to $1 million net worth by 40 you're likely doing something right. If you don't turn $1 million into $2 million from 40 to 50, you're likely doing something wrong."
Despite the fact that this describes my experience, a lot of that has to do with the vagaries of the market.

retired early&luv it
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Re: Is the first 100k really the hardest?

Post by retired early&luv it » Sun May 20, 2018 10:54 am

It is all luck. If the market tanks, your $100k is worth less and might stay worth less for a few years. But if the market does great, having that first $100k gives you a tailwind.

I would say that the first $100k is hardest because early in your career you are accumulating a household full of stuff, you might have had student debt to pay off. Maybe kids need tuition too? Car payments, etc. But once you got to the stage of life where you could accumulate a six digit amount, you have gotten past that stage of life where expenditures always want to exceed revenue. At your stage of life saving some of every paycheck is pretty painless.

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