Tracking progress to $1M portfolio and no mortgage by 40

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des999
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by des999 » Tue Jun 20, 2017 9:23 am

aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).

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aj76er
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by aj76er » Tue Jun 20, 2017 11:16 am

des999 wrote:
aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).
That is about my salary as well. Seems to be a ceiling for IT and developers in MCOL areas. I've tried everything to get promoted, including taking on the most critical, visible projects, being a team lead, sitting on the architecture team, working 7 days a week in some instances to out produce my peers. I've been denied a promotion and any raises are just a bit above inflation.

So my choices are to put on the brakes and start coasting or try something different. I'm inclined to do the latter
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

des999
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by des999 » Tue Jun 20, 2017 1:05 pm

aj76er wrote:
des999 wrote:
aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).
That is about my salary as well. Seems to be a ceiling for IT and developers in MCOL areas. I've tried everything to get promoted, including taking on the most critical, visible projects, being a team lead, sitting on the architecture team, working 7 days a week in some instances to out produce my peers. I've been denied a promotion and any raises are just a bit above inflation.

So my choices are to put on the brakes and start coasting or try something different. I'm inclined to do the latter
Ha, I'm doing the former. Coasting, but it is tempting to make more money. just don't see it at my current job.

cjcerny
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by cjcerny » Tue Jun 20, 2017 1:38 pm

If it were me, I would want goals that are more under my control. So, for example, rather than setting a goal of "I want my portfolio to be worth X by year YYYY", I would have a goal of "I want contribute $xxxx in year YYYY to my portfolio". That is a goal that you can strive for. If the stock market tanks tomorrow or next year or in 5 years and goes down 20% or 40% or 60% (yikes), you won't meet your portfolio goal through no fault of your own.

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Jun 23, 2017 6:20 pm

FootballFan5548 wrote:I'm reading through this thread for the first time, and I am also very motivated by what I'm seeing.

I'm 33 (wife 33), we have a 2.5 yr old and #2 on the way any day now.
We also live in NJ, and currently have a NW over $1M (including home equity). My first goal, is to hit $1M NW WITHOUT home equity.
After reading this thread, I can say I have similar goals to the OP.

My mortgage is a bear... $750k outstanding, but my taxable, IRA's/401K all add up to $1.5M or so.

I don't think I'll get my mortgage to zero by the time I'm 40, but would love to be in a position to have NW of $2M (including home equity).

My wife is currently a SAHM, but I'm hopeful when the kids are a bit older she can reenter the workforce in some capacity. She was a teacher before our 1st.
Nice job! Very impressed

goblue100
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by goblue100 » Fri Jun 23, 2017 6:28 pm

Congrats on all the 30 somethings with such positive habits and goals. I would like to throw a couple of little reminders in the air.
1. Life is what happens to you when you're making other plans.
2. Certain things are worth doing while you and your family are young. Don't put off taking your 5 and 6 year olds to Disney World because it means you can't max your 401k or the market is down 10%. It just won't be the same if you take them when they are 22 and 23. :D
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Jun 23, 2017 6:49 pm

des999 wrote:
aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).
There are a couple of different paths. You could find an inside sales role to start which won't pay great but it's good experience to learn the industry. And from there you can jump into an account manager/sales role. Many companies wouldn't hire you right into sales with no experience. Look for a business development role.

If you already work in IT a good way to get in is to find a sales engineer role. You become the technical expert but it will pay well and you can learn the sales piece from experience supporting sales people. Some sales engineers make great sales people (some also don't).

You have to be self motivated, eager to always be learning, love working with people, have a competitive nature, and have thick skin.

Its the best way to have complete responsibility of what you make and puts your success in your own hands.

RJNetworking
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by RJNetworking » Fri Jun 23, 2017 7:08 pm

Keep up the good work! Very motivating thread indeed!

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Jun 23, 2017 9:52 pm

cjcerny wrote:If it were me, I would want goals that are more under my control. So, for example, rather than setting a goal of "I want my portfolio to be worth X by year YYYY", I would have a goal of "I want contribute $xxxx in year YYYY to my portfolio". That is a goal that you can strive for. If the stock market tanks tomorrow or next year or in 5 years and goes down 20% or 40% or 60% (yikes), you won't meet your portfolio goal through no fault of your own.
I have very specific savings goals each month/quarter/year. Still like to keep an eye on the bigger milestones personally.

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Jun 23, 2017 10:04 pm

goblue100 wrote:Congrats on all the 30 somethings with such positive habits and goals. I would like to throw a couple of little reminders in the air.
1. Life is what happens to you when you're making other plans.
2. Certain things are worth doing while you and your family are young. Don't put off taking your 5 and 6 year olds to Disney World because it means you can't max your 401k or the market is down 10%. It just won't be the same if you take them when they are 22 and 23. :D
Understand or on both points. One of the major components of my goals is to also enjoy life. My 3 year old has been to Disney twice and 1 year old has once. We travel for vacations a few times per year. I have a lot of personal goals based around my family that have nothing to do with money

That being said, it's good to hear this advice. Nobody's perfect, and I can use a reminder now and then to prioritize what really matters. I am very thankful for every minute I spend with my family, and need to remember to keep my goals balanced for the present and future

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Mon Dec 18, 2017 1:56 pm

Just_For_Jenna wrote:
Sat Feb 18, 2017 12:48 pm
I've had a goal for the past 5 years or so to hit $1M in my portfolio and have the house completely paid off by the time I hit 40. I'm 33 now. I started tracking my assets and progress 5 years ago. At the current pace I should hit it early, so my new stretch goal is to reach it by the time my wife turns 40 (she just turned 37).

End of 2012 (age 29, wife 33)
•portfolio $87k (8.7% to goal)
•mortgage 4% paid off

End of 2013 (age 30, wife 34)
•portfolio $158k (15.8% to goal)
•mortgage 9% paid off

End of 2014 (age 31, wife 35)
•portfolio $221k (22.1% to goal)
•mortgage 25% paid off

End of 2015 (age 32, wife 36)
•portfolio $291k (29.1% to goal)
•mortgage 38% paid off

End of 2016 (age 33, wife 37)
•portfolio $420k (42% to goal)
•mortgage 50% paid off

2-18-2017
•portfolio $444k (44.4% to goal)
•mortgage 52% paid off

Goal for end of 2017 (I will be 34, wife 38)
•portfolio $550k
•mortgage 63% paid off
Update for end of 2017:

* portfolio $577k
* mortgage 62% paid off

Still chugging along!

cusetownusa
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by cusetownusa » Mon Dec 18, 2017 2:11 pm

interesting thread...I have the same goal. Albeit I am 38.

You are doing much better than I was at 33.

Here's to hoping we both succeed. :sharebeer

Tal-
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Tal- » Mon Dec 18, 2017 3:04 pm

Props man!

A few suggestions:
1: Do not change your goal. Hit it, and...
2: Celebrate the milestone of $1M with no mortgage. Set aside some money to treat yourselves to something special. This could be as small as a really nice dinner or as big as a new car.

Also, please keep posting. I'm cheering for you to get there!
Debt is to personal finance as a knife is to cooking.

bhough
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by bhough » Mon Dec 18, 2017 3:07 pm

You are strong. Thanks for the motivation.

H-Town
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by H-Town » Mon Dec 18, 2017 3:13 pm

Keep it up! Just focus on hitting singles and not home runs, you'll get there.

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Mon Dec 18, 2017 3:40 pm

Tal- wrote:
Mon Dec 18, 2017 3:04 pm
Props man!

A few suggestions:
1: Do not change your goal. Hit it, and...
2: Celebrate the milestone of $1M with no mortgage. Set aside some money to treat yourselves to something special. This could be as small as a really nice dinner or as big as a new car.

Also, please keep posting. I'm cheering for you to get there!
Thanks for the reminder. I do need to practice more on celebrating milestones. I'm in sales, so I'm conditioned to finish a milestone or a quarter, and immediately move onto the next quarter.

I just took my family to Disney World and I love travel. I should start thinking about the "big trip" I want to take when I hit these large milestones. Even if it's a few years away.

lolbatross
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by lolbatross » Mon Dec 18, 2017 4:11 pm

This is an awesome thread and and awesome goal. Great work OP.

I have had a mortgage since early 2012.
I pay about $2k addl principal per month.
Our taxable savings (in lieu of pay down or excess retirement savings) is about the same amount.

On the backs of a great bull market the invest strategy is ahead about 50k after factoring taxes drag, capital gains taxes, and saved interest. What interesting is that only a 25-30% correction would erase all this difference.

There are many roads to dublin. Yours looks great.

Keep updating. <and call me out in the future when the markets are down>

Tal-
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Tal- » Mon Dec 18, 2017 4:35 pm

Just_For_Jenna wrote:
Mon Dec 18, 2017 3:40 pm
Tal- wrote:
Mon Dec 18, 2017 3:04 pm
Props man!

A few suggestions:
1: Do not change your goal. Hit it, and...
2: Celebrate the milestone of $1M with no mortgage. Set aside some money to treat yourselves to something special. This could be as small as a really nice dinner or as big as a new car.

Also, please keep posting. I'm cheering for you to get there!
Thanks for the reminder. I do need to practice more on celebrating milestones. I'm in sales, so I'm conditioned to finish a milestone or a quarter, and immediately move onto the next quarter.

I just took my family to Disney World and I love travel. I should start thinking about the "big trip" I want to take when I hit these large milestones. Even if it's a few years away.
Travel sounds good, but make is a special and unique trip... Something you'll remember.

When we hit our first big milestone, I got to buy a 40k car. I grew up below the poverty line, and at that time, had spent a total of something like $20k on all cars over a 15 year period, so this was a big deal for me. I love driving it every day, in part because it is a reminder of our financial success (I'm a bit of a jerk like that... :) )
Debt is to personal finance as a knife is to cooking.

iasw
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by iasw » Mon Dec 18, 2017 8:39 pm

Good goals, go get 'em! I like your drive and that you also prioritize stuff like Disney.

Throw me in the pot of early 30s people (I'm 32) with a goal of $1m by 40.

Our micro generation graduated college around the great recession and personally, I felt the pinch in oh, 2007-2009 while I tried to keep my expenses as low as possible and save all I could. I was and am very fortunate.

My own numbers are around $550k net worth including house equity, $90k to go on low interest mortgage. $210k gross income for 2017.

Let's do this.

InnocentAbroad
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by InnocentAbroad » Tue Dec 19, 2017 10:24 am

I'm going to throw my hat in the ring for the $1M by 40 challenge.

What I'd really like £1M, but, baring a large miracle, that is out of reach. Alas I did not find this forum 10 years ago!
I'm a bit behind the curve compared to some in this thread, but a quick back-of-the-envelope calculation shows $1M could be achievable with a lot of care, even more good luck and perhaps a smaller miracle.

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marti038
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by marti038 » Tue Dec 19, 2017 11:00 am

Nothing wrong with having goals and measuring progress. I've been doing it since I started saving when I was 27. I've got a spreadsheet that gives my wife a headache, but she's glad I have it because it helps keep us on track. Toward what? I don't know exactly, mainly we just want to avoid reaching our 60s and wondering how we're going to retire.

I'm 36 and not likely to make the two comma club by 40, at least not in my portfolio. We are in good shape to hit $1M in net worth by 40, so I'm pretty happy about that.

Way to go so far and good luck on your future goals.

jeg208
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by jeg208 » Tue Dec 19, 2017 11:01 am

InnocentAbroad wrote:
Tue Dec 19, 2017 10:24 am
I'm going to throw my hat in the ring for the $1M by 40 challenge.

What I'd really like £1M, but, baring a large miracle, that is out of reach. Alas I did not find this forum 10 years ago!
I'm a bit behind the curve compared to some in this thread, but a quick back-of-the-envelope calculation shows $1M could be achievable with a lot of care, even more good luck and perhaps a smaller miracle.
This thread is rather soul crushing! I too found this forum later than I wish I had, but at least I am on a much better path now. I took over my investments from a FA just about 5 months ago, but I am already seeing great things! My parents still are invested with this FA, and he has hardly managed 7% this year, so even with my losses from moving to a 3 fund, I have beat that!

Current age is 31, and my goal is probably more like 1m/no mortgage by 45. I think that is doable. We have been making double principle payments each month since we bought the house 2 years ago. It was more house than I wanted, but happy wife and all that. Plus I made a good profit on a previous remodel, so we were able to put 40k down on it. LCOL area and only grossing 150k combined, but 135k invested and 200k to go on the mortgage! For 2017 I focused on building an emergency fund, and happy to report that I have 20k there now too.

It is amazing what some of you have accomplished and I wished that I had gotten on board sooner. However, I know that I am still ahead of the vast majority of my peers, and should be able to actually retire at a reasonable age if I continue down this path.

iasw
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by iasw » Tue Dec 19, 2017 11:16 am

This thread is rather soul crushing! I too found this forum later than I wish I had, but at least I am on a much better path now.
You are 31 and on a good path already. Keep on at it, and I think you'll be surprised at the progress you make now.

CnC
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by CnC » Tue Dec 19, 2017 3:44 pm

1m by 40 is my needs to happen goal. I am on pace to reach.

32 here and 0 morgage and we just broke 500k in investments savings and cash. We just got serious about investing beginning of this year. Here is my plan for 1m it will be interesting

Actual
2017 me 32 dw 31
500k mostly was just savings

Goals forcast based on typical markets.

2017
475k

2018
570k

2019
675k

2020
805k

2021
950k

2022 me 37 dw 36
1.1m

That's my goal atleast.

bgf
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by bgf » Tue Dec 19, 2017 4:23 pm

got me thinking. i am 32, and our portfolio is ~$270k, which is 2x our gross annual income. we owe $148k on the house at 2.875% on a 15 year, and itll probably be paid off around 40, maybe a year or two after.

if we get 8-10% on our portfolio over the next 8 years we can probably get to $1m by 40. that's a big IF obviously.

you guys have WAY higher incomes though... makes me doubt it.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Sat Jan 20, 2018 11:15 am

I hit a bump in the road:

viewtopic.php?f=1&t=238661

I did not stay the course and lost $30k in a crypto platform scam. I learned my lesson.

I will still hit my goals and I will not make a mistake like that again.

Still at roughly $575k, but should have passed the $600k mark by now.

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CyclingDuo
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by CyclingDuo » Sat Jan 20, 2018 11:28 am

Just_For_Jenna wrote:
Sat Jan 20, 2018 11:15 am
I hit a bump in the road:

viewtopic.php?f=1&t=238661

I did not stay the course and lost $30k in a crypto platform scam. I learned my lesson.

I will still hit my goals and I will not make a mistake like that again.

Still at roughly $575k, but should have passed the $600k mark by now.
Ouch!

Not only did you lose $30K, but you also lost the power of compounding that $30K would have been able to provide you over the fake lottery ticket for the next few decades. So, at 6% for 30 years, you really just lost $172K, at 7% for 30 years you just lost $228K, at 8% you just lost $301K, and so on and so forth.... :beer

Hopefully a lesson learned, and certainly akin to the dot.com bubble mania in the 1998 - 2000 time frame when many of us experienced a few poofs as well. :shock:

Back to your battle plan and the next few decades of real investing.

On the other hand, there are members on these forums that are stuck with 401k/403b plans that only have choices of ER fees approaching the 1% - 1.25% range. Compared to your $30K sudden loss and potential compounding of what that money could have earned over the years, look what higher ER fees do to many retirement plans...

Image

In other words, there's more than one way to lose money. :mrgreen:
Last edited by CyclingDuo on Sat Jan 20, 2018 11:42 am, edited 1 time in total.
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JC565
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by JC565 » Sat Jan 20, 2018 11:36 am

What the heck is tech sales and how do I do it? because apparently mechanical engineering is not the correct field :oops:

DrivingFun
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by DrivingFun » Sat Jan 20, 2018 11:47 am

JCBiggs wrote:
Sat Jan 20, 2018 11:36 am
What the heck is tech sales and how do I do it? because apparently mechanical engineering is not the correct field :oops:
People can make ridiculous money in sales, my understanding however it's not something people are able to maintain for decades at a time. At least not in a sense of bringing in said ridiculous money. The people you see posting in threads like this one are the elite of the elite in terms of having a cash printer, important to keep that in mind.

JC565
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by JC565 » Sat Jan 20, 2018 12:02 pm

I get that, But what are they selling?

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Sat Jan 20, 2018 12:27 pm

JCBiggs wrote:
Sat Jan 20, 2018 12:02 pm
I get that, But what are they selling?
Enterprise networking technology and software. Selling to Fortune 500 companies. I don’t want to be too specific on a public forum. Sales can be very lucrative but is a challenging career. My financial goals are aggressive earlier in my life because it’s not something I want to do forever. I’m shooting for financial freedom by 50. For now I actually like what I do and have fun doing it. I just can’t imagine doing it for 30 more years

hulburt1
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by hulburt1 » Sat Jan 20, 2018 12:47 pm

For those that do not make the big buck you can still retire at a young age. Always pay cash. We paid off our hose when we where 35. We invested that money. no debt sense then. At 40 we worked part time. We loved our jobs and they were not our lives. Once you hit 1m it really go's up fast to 2m then 3m. We are retired but stayed in the same house for 38 years. Our Ira and 401k have grown by 13% in the last 10 years and we do not add to them. Made 500000 last year in the stock marked. but still live on 60000 a year. I'm a little cheap I still get a weekly allowance, Its so nice that at 65 this year I have not worked for 10 years and have the flexibility of doing what I want. I looked at my SS last week and the most I ever made was 40000.
Its what you spend not what you make. :sharebeer

staythecourse
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by staythecourse » Sat Jan 20, 2018 2:31 pm

hulburt1 wrote:
Sat Jan 20, 2018 12:47 pm
Its what you spend not what you make. :sharebeer
Agreed. High income or low income the most important number is how much $$ do you save per year. That is all that matters when it comes to investing.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

hightower
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by hightower » Sat Jan 20, 2018 2:55 pm

I think you're doing all the right things at this point. I don't necessarily think you need to pay off your mortgage at such a young age. You could try refinancing to a better rate and do a 15 year term? That would allow you to put more cash in investment accounts now, which ultimately will pay off with higher returns later.
Also remember that the dollar amount of your portfolio could crash pretty easily with the next market correction, but it will come back.
FWIW, I'm in a similar situation as you in that I make similar money as a physician and I have a goal to hit 1 mil in investable assets by age 40 (my net worth should be well over 1 mil long before then due to the equity on my house). I'm not too concerned with paying off my mortgage though, because I doubt I'll stay in my current house forever. I'm refinancing to a 3.25% 15 year loan now actually. I have student loans and a family loan to pay off this year instead, which is my main focus right now. I'm almost 36, so you're ahead of me:) Keep up the great work!

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Sun Jan 21, 2018 6:59 am

CyclingDuo wrote:
Sat Jan 20, 2018 11:28 am
Just_For_Jenna wrote:
Sat Jan 20, 2018 11:15 am
I hit a bump in the road:

viewtopic.php?f=1&t=238661

I did not stay the course and lost $30k in a crypto platform scam. I learned my lesson.

I will still hit my goals and I will not make a mistake like that again.

Still at roughly $575k, but should have passed the $600k mark by now.
Ouch!

Not only did you lose $30K, but you also lost the power of compounding that $30K would have been able to provide you over the fake lottery ticket for the next few decades. So, at 6% for 30 years, you really just lost $172K, at 7% for 30 years you just lost $228K, at 8% you just lost $301K, and so on and so forth.... :beer

Hopefully a lesson learned, and certainly akin to the dot.com bubble mania in the 1998 - 2000 time frame when many of us experienced a few poofs as well. :shock:

Back to your battle plan and the next few decades of real investing.

On the other hand, there are members on these forums that are stuck with 401k/403b plans that only have choices of ER fees approaching the 1% - 1.25% range. Compared to your $30K sudden loss and potential compounding of what that money could have earned over the years, look what higher ER fees do to many retirement plans...

Image

In other words, there's more than one way to lose money. :mrgreen:
Thanks for the input and perspective. I’m going to keep this thread focused on the topic at hand moving forward.

I just wanted to drop my personal update in here because it shows that mistakes are made, financial success isn’t just an upward linear trajectory. I learned a tough lesson about straying from the course. But I won’t let it derail me. Back on the train.

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by KNMLHD » Sun Jan 21, 2018 8:34 am

NibbanaBanana wrote:
Sat Feb 18, 2017 1:43 pm
I started to really seriously focus on investing around the beginning of 1995. It went well for a while. I didn't get involved in the TMT bubble. But that stretch from around 2001-2002 until just about five years ago was a slow difficult slog. Hopefully you'll (we'll) see smoother sailing. Good luck.
Boy... the aughts were rough...

I suspect many of the <35 yo's with similar goals have likely been in the market for the last 9-10 years which has seen incredible growth. Even if one has been in the market for 13-15 years, likely the stockpile one had in '08 was small enough in the grand scheme of things that they didn't loose much in '08/09.

Certainly the OP seems well situated in terms AA using low cost index funds...

However, those who are assuming similar rates of return for the next three - five years... Not critiquing, and I hope your right, but history would suggest you may be overly optimistic. I would recommend dialing down the rates of return goals and if the market beats, then it's ice cream on the cake.

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Sat Jul 21, 2018 2:30 pm

Just_For_Jenna wrote:
Mon Dec 18, 2017 1:56 pm
Just_For_Jenna wrote:
Sat Feb 18, 2017 12:48 pm
I've had a goal for the past 5 years or so to hit $1M in my portfolio and have the house completely paid off by the time I hit 40. I'm 33 now. I started tracking my assets and progress 5 years ago. At the current pace I should hit it early, so my new stretch goal is to reach it by the time my wife turns 40 (she just turned 37).

End of 2012 (age 29, wife 33)
•portfolio $87k (8.7% to goal)
•mortgage 4% paid off

End of 2013 (age 30, wife 34)
•portfolio $158k (15.8% to goal)
•mortgage 9% paid off

End of 2014 (age 31, wife 35)
•portfolio $221k (22.1% to goal)
•mortgage 25% paid off

End of 2015 (age 32, wife 36)
•portfolio $291k (29.1% to goal)
•mortgage 38% paid off

End of 2016 (age 33, wife 37)
•portfolio $420k (42% to goal)
•mortgage 50% paid off

2-18-2017
•portfolio $444k (44.4% to goal)
•mortgage 52% paid off

Goal for end of 2017 (I will be 34, wife 38)
•portfolio $550k
•mortgage 63% paid off
Update for end of 2017:

* portfolio $577k
* mortgage 62% paid off

Still chugging along!
Update for mid(ish)-2018:

* portfolio $648k
* mortgage 66% paid off

Just turned 35 couple weeks ago^^

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Sep 21, 2018 7:22 pm

Quick update:

Portfolio $692k
Mortgage 67% paid off

I’ve slowed down on additional mortgage principal lately but may put a chunk toward end of year.

I expect to be around $725k portfolio / 72% mortgage paid off by 12/31.

Then $850k / 85% by 12/31/2019
Then $1M / no mortgage by 12/31/2020

I’ll be 37. Of course a lot can change.

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Snowjob » Fri Sep 21, 2018 8:34 pm

Just_For_Jenna wrote:
Fri Sep 21, 2018 7:22 pm
Quick update:

Portfolio $692k
Mortgage 67% paid off

I’ve slowed down on additional mortgage principal lately but may put a chunk toward end of year.

I expect to be around $725k portfolio / 72% mortgage paid off by 12/31.

Then $850k / 85% by 12/31/2019
Then $1M / no mortgage by 12/31/2020

I’ll be 37. Of course a lot can change.
How big is that mortgage? Is it consuming a lot of your cashflow? I assume yes given the northeast area & occupation. I'm in CT and I'm shooting to be paid off around 45. I earn about 1/3rd of your salary though, so for me its tough to focus on both the mortgage and investing at the same time. I guess I'm doing a little bit of market timing by switching my focus to the mortage given the length of the bull market. Congrats on the sucess though, you seem to be moving right along!

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by LadyGeek » Sun Sep 23, 2018 10:45 am

New member Peanut&Cashew has a question which I've moved to a new thread. See: [Are we prioritizing our investments properly?]
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by novemberrain » Mon Sep 24, 2018 12:33 am

aj76er wrote:
Tue Jun 20, 2017 11:16 am
des999 wrote:
aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).
That is about my salary as well. Seems to be a ceiling for IT and developers in MCOL areas. I've tried everything to get promoted, including taking on the most critical, visible projects, being a team lead, sitting on the architecture team, working 7 days a week in some instances to out produce my peers. I've been denied a promotion and any raises are just a bit above inflation.

So my choices are to put on the brakes and start coasting or try something different. I'm inclined to do the latter
That was my situation too till 2 years back when I was a software engineer at a "regular" company. Total comp reached a ceiling of 200k. Then I got into a top tier 1 tech company (global behemoth) in silicon valley and total comp (incl RSU) put me into $350k plus range. I can even see it going to $500k at some point. Just a software engineer still though.

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by aj76er » Thu Sep 27, 2018 12:32 pm

novemberrain wrote:
Mon Sep 24, 2018 12:33 am
aj76er wrote:
Tue Jun 20, 2017 11:16 am
des999 wrote:
aj76er wrote:
tin369 wrote:This is a very motivating thread, can people in tech sales tell me how do you get into that kinda job? I have had a late start in my career and right now looks like the only way to have that kinda portfolio is by having a high paying job, which will allow you to have a substantial savings each year.
I'd be curious as well. I'm a software engineer, and my salary seems to have leveled off recently with no path to promotion.
agree. I'm in IT now, and have long thought about going into IT sales as I know the pay is very good (but usually comes with a lot of travel). I have a very easy job now but only make about 120k.

If I could double that for a few years, I could cut my working career in half (assuming my spending stays the same).

Any suggestions/advice on how to break into the career would be appreciated. I have 15 years IT experience and I am a pretty good salesman (did Ins sales on the side a few years back).
That is about my salary as well. Seems to be a ceiling for IT and developers in MCOL areas. I've tried everything to get promoted, including taking on the most critical, visible projects, being a team lead, sitting on the architecture team, working 7 days a week in some instances to out produce my peers. I've been denied a promotion and any raises are just a bit above inflation.

So my choices are to put on the brakes and start coasting or try something different. I'm inclined to do the latter
That was my situation too till 2 years back when I was a software engineer at a "regular" company. Total comp reached a ceiling of 200k. Then I got into a top tier 1 tech company (global behemoth) in silicon valley and total comp (incl RSU) put me into $350k plus range. I can even see it going to $500k at some point. Just a software engineer still though.
Thanks for the info; out of curiosity how much did your living expenses increase when moving to the valley? Also what about the quality of life (work hours, etc). Since my post, I've gotten the promotion I was working toward, and a small pay bump with more profit sharing potential. But I'm still no where near the numbers you posted!
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by novemberrain » Thu Sep 27, 2018 1:24 pm

aj76er wrote:
Thu Sep 27, 2018 12:32 pm
novemberrain wrote:
Mon Sep 24, 2018 12:33 am

That was my situation too till 2 years back when I was a software engineer at a "regular" company. Total comp reached a ceiling of 200k. Then I got into a top tier 1 tech company (global behemoth) in silicon valley and total comp (incl RSU) put me into $350k plus range. I can even see it going to $500k at some point. Just a software engineer still though.
Thanks for the info; out of curiosity how much did your living expenses increase when moving to the valley? Also what about the quality of life (work hours, etc). Since my post, I've gotten the promotion I was working toward, and a small pay bump with more profit sharing potential. But I'm still no where near the numbers you posted!
I was already living in Silicon Valley before joining my current job. So the bump from 200k to 350k helped me with living expenses. There is a huge difference in pay between regular companies like HP/Oracle and the top tier tech companies of Silicon Valley. The numbers I have posted are only possible at the top 5 or 7 companies of SV. One of my old friend joined another one of them recently and his salary is $500k+ (again regular average software engineer)

Quality of life surprisingly became better when I joined my current job ! They are very flexible and work culture is amazing.
Last edited by novemberrain on Fri Sep 28, 2018 11:16 am, edited 2 times in total.

wannabedebtfreejared
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by wannabedebtfreejared » Thu Sep 27, 2018 2:28 pm

We have a similar goal but ours is 1M networth at 40. We are currently both 29 and house is 70 percent done with 87k left and only 150k invested.

4strings
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by 4strings » Thu Sep 27, 2018 3:31 pm

Just_For_Jenna wrote:
Sun Feb 19, 2017 10:07 am
ff4930 wrote:That is very impressive! May I ask what is your profession and how much is your salary? And do you mind sharing your portfolio? Want to follow in your milestones.
Tech Sales
Salary $110k
Variable $160k if on target, could be more, could be less (so far I've always exceeded goals)
Total $270k+ (last year made $300k)

Emergency funds: 9 Months of Expenses
Debt: Mortgage $129k @ 4.875%
Tax Filing Status: Married Filing Jointly
Tax Rate: 28% Federal, 5.525% State
State of Residence: NJ
Age: 33 (him), 37 (her)
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 25% of stocks
I don't quite understand how your income can be +$250k and only be in the 5.525% NJ state tax bracket...

GuyFromGeorgia
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by GuyFromGeorgia » Thu Sep 27, 2018 4:36 pm

Another mid-30 year old tech sales person here. I can definitely say it is a lucrative career, but it has been frustrating at times. The big take away for me, at least at my company, is that the RSUs really start to play a big role in total compensation once you hit the higher pay brackets. My total comp has averaged a 12% annual growth rate over the last 10 years. I've mostly stayed the course and hit $1.1M net worth last month when I checked. About $800k of that is investable assets. MCOL area which is also a plus. I'm not in any rush to pay off my 3.5% mortgage, though I do seeing that as a fantastic goal and one to celebrate when the time comes.

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by DrivingFun » Fri Sep 28, 2018 8:54 am

hulburt1 wrote:
Sat Jan 20, 2018 12:47 pm
Its what you spend not what you make. :sharebeer
Don't mean to derail this love-fest, but I completely disagree. Certainly frugality is a quality a lot of financially successful people possess, but it's their income that gets them to their goals. You can be as frugal as anything making average American salary, chances are you won't attain the goals discussed in this thread by retirement, let alone 40. The people in this thread are the elite of the elite in terms of salary. It's really easy to grow your nest-egg when it's raining dollars.

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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by cusetownusa » Fri Sep 13, 2019 10:41 am

Bump...any updates OP?

I didn't think I would make it but with a few things going in my favor (stock market being one of them), I have just passed the $1M (at least for now)in my portfolio and I just recently paid of my mortgage...all within a few weeks off turning 40. :sharebeer

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Sep 20, 2019 5:08 am

Congrats!! You did it cusetownusa!!

————

Quick update on me:

Portfolio $885k
Mortgage 75% paid off

It’s been a great year professionally.

I should hit $1M / no mortgage before 12/31/2020

I’ll be 37. Of course a lot can change.
Last edited by Just_For_Jenna on Fri Sep 20, 2019 5:14 am, edited 1 time in total.

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Just_For_Jenna
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Re: Tracking progress to $1M portfolio and no mortgage by 40

Post by Just_For_Jenna » Fri Sep 20, 2019 5:13 am

Just_For_Jenna wrote:
Fri Sep 21, 2018 7:22 pm
Quick update:

Portfolio $692k
Mortgage 67% paid off

I’ve slowed down on additional mortgage principal lately but may put a chunk toward end of year.

I expect to be around $725k portfolio / 72% mortgage paid off by 12/31.

Then $850k / 85% by 12/31/2019
Then $1M / no mortgage by 12/31/2020

I’ll be 37. Of course a lot can change.
Oddly enough, this post was 364 days ago^^. I haven’t been on here in a while. A lot certainly can change. I was as high as $692k in Sept 2018 but by Dec 2018 that was down to $644k, despite investing $10k during that period. I thought I’d be at $725k by December 2018 but I was way off based on market changes. That being said, I more than made up for it this year with a great year. I probably just jinxed myself for another tank between Sept-Dec 🤷‍♂️🤷‍♂️

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