Post your Financial Milestone Announcements Here

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toto238
Posts: 1891
Joined: Wed Feb 05, 2014 2:39 am

Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Fri Jun 28, 2019 2:08 pm

Mullins wrote:
Fri Jun 28, 2019 1:47 pm
I just wanted to jump on board to congratulate your milestone! Good for you!

Keep going! I'm assuming you're investing BH style, so, "Stay the Course."

There's also nothing wrong with investing into taxable accounts after you've maxed tax advantaged accounts.

When IRAs first became a thing I was close to your age and they said "sock away $2000 a year, you'll have a million when you retire!" Then the common wisdom from the "gurus" was to save 10% of your income.

In hindsight I now say they were all wrong.

I went through all that and what I finally realized was what you want to do for the long term is invest every dollar you can spare. You'll determine what that amount is. But there's no such thing as set amounts or set percentages, that just makes it sound like it's been figured out. Yet common sense dictates having more capital working more years should yield results better than investing less capital over that same period, in the same vehicles (though of course nothing is 100% certain, right? But you do your part and diligence during this journey).
I'm investing pretty close to BH style, but I do commit a couple sins that some of the purists would not agree with. For example, I do not currently have any bonds in my portfolio, though I will in the future. The reason is that when I have student loans (basically a negative bond) with a 6.5% interest rate, and the interest rate on bonds are about 2-3%, any money that I would put into bonds I simply put into paying down one of those high interest rate student loans. Guaranteed rate of return of 6.5% (taxes notwithstanding).

I also have a little bit of active in my portfolio (PRIMECAP) and I have no plans on getting rid of it. They are relatively low cost for an active fund (30-40bps), I've studied their methods and their history well, and I believe they are set up for long term success. With low expenses, the PMs investing heavily in their own funds, their long-term perspective and the closed status of their fund, if any active fund will be able to earn its expenses, it'll be this guy (IMHO).

But that's not my greatest investment sin. That would be the plan I've written into my IPS that states that I will increase the leverage of my investment portfolio when the S&P 500 hits certain negative thresholds. So when the S&P 500 falls 10% from its previous all-time high, I change my portfolio to 110% equities. When it hits 20% down from its previous all-time high, I change my portfolio to 120% equities. And then I de-leverage as it works its way back up. I do this by using either double or triple leveraged ETFs in my Roth IRA. I've done back-testing analysis for this technique and found it to have a positive ROI even through events like the 2008 financial crisis. It also compared it to a portfolio that was always leveraged by the same average % (approximately 11%) and it outperformed that portfolio as well. What we've observed here is that when the market falls significantly (10% or more) the actual expected ROI for the market goes up. We can't predict when it will have those drops, and generally speaking it's not a good idea to keep money on the "sidelines" so I remain at least 100% invested at all times. But when the expected ROI goes up enough at those thresholds, I use that leverage to go 110% or 120% or more (my IPS sets a limit at 150%) because the increased ROI is worth it to me. This has been very profitable for me, but I definitely don't recommend it to others. The stress of being leveraged is pretty high, but I'm the sick kind of guy that enjoys that.

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Sandtrap
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by Sandtrap » Fri Jun 28, 2019 2:11 pm

:sharebeer
Congratulations.

Now. . . time to get at those loans.
High interest ones first.
j
Wiki Bogleheads Wiki: Everything You Need to Know

toto238
Posts: 1891
Joined: Wed Feb 05, 2014 2:39 am

Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Fri Jun 28, 2019 2:18 pm

Schlabba wrote:
Fri Jun 28, 2019 1:23 pm
toto238 wrote:
Fri Jun 28, 2019 1:13 pm
I think if we continue aggressively saving and making good decisions that enjoying an early retirement in our 50s is very achievable.
Absolutely! You are well on your way! A savings rate of 40k a year is pretty amazing, especially at your age.

Keep it up!
I don't know if it's really a savings rate of 40k per year, as about $30k of my change in net worth was due to investment returns. And another approximately 70k or so of my change in net worth was equity gained in my house (which went up in value by about 45% in only 3 years which is crazy and I don't anticipate continuing). So my actual "savings" which is money put away into investments along with reductions in debt was probably about half that at an average of $20k per year. If equity and housing markets hadn't been so nice over the last 5 years, I might not have had nearly as much gains as I did.
Sandtrap wrote:
Fri Jun 28, 2019 2:11 pm
:sharebeer
Congratulations.

Now. . . time to get at those loans.
High interest ones first.
j
Yup! The day of being high-interest debt free will be soon. Step 1 is getting rid of everything over 6%. Then everything over 5%. Then everything over 4%. Gonna work our way down.

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MrBobcat
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by MrBobcat » Fri Jun 28, 2019 2:20 pm

Congrats, the first $100,000 is the hardest.

https://fourpillarfreedom.com/the-math- ... irst-100k/

260chrisb
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by 260chrisb » Fri Jun 28, 2019 2:22 pm

:beer Very well done!! Generally the second 100K comes quicker!

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Wiggums
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by Wiggums » Fri Jun 28, 2019 2:24 pm

Congratulations. Well done...

bubbadog
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by bubbadog » Fri Jun 28, 2019 2:28 pm

Nice Job! the second 100K will be much easier. :sharebeer

Investing.Newbie
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Re: Post your Financial Milestone Announcements Here

Post by Investing.Newbie » Fri Jun 28, 2019 2:36 pm

runner23 wrote:
Thu Jun 27, 2019 5:35 pm
This is a great sounding board to post financial milestones. I always enjoy reading through them.

I received a 30k raise recently that brings our HHI between DW and I to $350k. This will certainly help in reaching more financial milestones for years to come as we are both 29 years old and settled into our careers. It is a marathon and not a sprint! I encourage younger people to focus on increasing income instead of solely focusing on cutting expenses in younger years.

I joined bogleheads 4 years ago with $50k NW and just clipped $650k. The advice and support here are amazing.

Cheers.
Congrats runner23 ! 30K increase is great ! can you tell us what you do for a living ?
Thanks !

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ChowYunPhat
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by ChowYunPhat » Fri Jun 28, 2019 2:52 pm

Awesome sauce! Keep plugging away, but take a moment to savor the victory. Date night fo shizzles.
A wise man and his money are friends forever...

Jesteroftheswamp
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by Jesteroftheswamp » Fri Jun 28, 2019 3:04 pm

Great job! Which funds do you hold?

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ruralavalon
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Re: Post your Financial Milestone Announcements Here

Post by ruralavalon » Fri Jun 28, 2019 3:17 pm

Investing.Newbie wrote:
Fri Jun 28, 2019 2:36 pm
runner23 wrote:
Thu Jun 27, 2019 5:35 pm
This is a great sounding board to post financial milestones. I always enjoy reading through them.

I received a 30k raise recently that brings our HHI between DW and I to $350k. This will certainly help in reaching more financial milestones for years to come as we are both 29 years old and settled into our careers. It is a marathon and not a sprint! I encourage younger people to focus on increasing income instead of solely focusing on cutting expenses in younger years.

I joined bogleheads 4 years ago with $50k NW and just clipped $650k. The advice and support here are amazing.

Cheers.
Congrats runner23 ! 30K increase is great ! can you tell us what you do for a living ?
Thanks !
At age 29 you are "younger people" :D

Congratulations on your raise, and your accelerating net worth.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

A440
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by A440 » Fri Jun 28, 2019 3:31 pm

Congrats!
Keep feeding your investments and some day they will feed you. :beer
I don't know what the future holds, but I know who holds my future.

LFS1234
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by LFS1234 » Fri Jun 28, 2019 3:35 pm

toto238 wrote:
Fri Jun 28, 2019 2:08 pm

....But that's not my greatest investment sin. That would be the plan I've written into my IPS that states that I will increase the leverage of my investment portfolio when the S&P 500 hits certain negative thresholds. So when the S&P 500 falls 10% from its previous all-time high, I change my portfolio to 110% equities. When it hits 20% down from its previous all-time high, I change my portfolio to 120% equities. And then I de-leverage as it works its way back up. I do this by using either double or triple leveraged ETFs in my Roth IRA. I've done back-testing analysis for this technique and found it to have a positive ROI even through events like the 2008 financial crisis. It also compared it to a portfolio that was always leveraged by the same average % (approximately 11%) and it outperformed that portfolio as well. What we've observed here is that when the market falls significantly (10% or more) the actual expected ROI for the market goes up. We can't predict when it will have those drops, and generally speaking it's not a good idea to keep money on the "sidelines" so I remain at least 100% invested at all times. But when the expected ROI goes up enough at those thresholds, I use that leverage to go 110% or 120% or more (my IPS sets a limit at 150%) because the increased ROI is worth it to me. This has been very profitable for me, but I definitely don't recommend it to others. The stress of being leveraged is pretty high, but I'm the sick kind of guy that enjoys that.
Congratulations on your investment success so far!

I would urge a bit more caution when it comes to leverage, especially as time goes on and you get richer, older, and have less time ahead of you to recover from financial setbacks.

The market will almost certainly drop by 50% or more at least several more times during your lifetime. These drops cannot be predicted ahead of time and are often accompanied by serious economic disruptions - jobs disappear, credit lines go away, loans get called, illiquid assets can't be sold at any price, and a whole lot of other nasty things. The most extreme economic situation during the past century in the US was the Great Depression, where the stock market's drop was the equivalent of three 50% drops in a row with no recovery between them. While we as a country recovered from that one (as well all the other ones), several generations were marked by it. I would not want to put myself in a situation where a really severe market setback could wipe me out. Having 150% in stocks (=33% leverage) would not have survived the Great Depression, and would have gotten way too close for comfort at several other points in our financial history. Remember, when you get forced out, it is at the lows. And when you already have a substantial portfolio, you can no longer rebuild it from zero with just a few years of hard work.

Taking a lot of risk is fine when you're young, have no responsibilities and few assets. You can quickly make back your losses with labor income. A decade or two later, you may already have assets, family responsibilities, and a whole lot more to lose which you cannot quickly recover from. By this point, that leverage may be too dangerous.

For now, you're doing great. I'm all for the 100% stock portfolio and paying down fixed income obligations. Just please bear in mind that even if your IPS might be defensible at your current age and financial situation, it would be good to review it with a critical eye as the years go on.

Best of luck to you!

toto238
Posts: 1891
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Fri Jun 28, 2019 3:54 pm

Jesteroftheswamp wrote:
Fri Jun 28, 2019 3:04 pm
Great job! Which funds do you hold?
I do a 33-33-33 split between Vanguard Total Stock Market, Vanguard Total International Stock Market, and PRIMECAP fund Admiral Shares.

The end result is very low cost, while having a domestic tilt that I like.

toto238
Posts: 1891
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Fri Jun 28, 2019 4:08 pm

LFS1234 wrote:
Fri Jun 28, 2019 3:35 pm
toto238 wrote:
Fri Jun 28, 2019 2:08 pm

....But that's not my greatest investment sin. That would be the plan I've written into my IPS that states that I will increase the leverage of my investment portfolio when the S&P 500 hits certain negative thresholds. So when the S&P 500 falls 10% from its previous all-time high, I change my portfolio to 110% equities. When it hits 20% down from its previous all-time high, I change my portfolio to 120% equities. And then I de-leverage as it works its way back up. I do this by using either double or triple leveraged ETFs in my Roth IRA. I've done back-testing analysis for this technique and found it to have a positive ROI even through events like the 2008 financial crisis. It also compared it to a portfolio that was always leveraged by the same average % (approximately 11%) and it outperformed that portfolio as well. What we've observed here is that when the market falls significantly (10% or more) the actual expected ROI for the market goes up. We can't predict when it will have those drops, and generally speaking it's not a good idea to keep money on the "sidelines" so I remain at least 100% invested at all times. But when the expected ROI goes up enough at those thresholds, I use that leverage to go 110% or 120% or more (my IPS sets a limit at 150%) because the increased ROI is worth it to me. This has been very profitable for me, but I definitely don't recommend it to others. The stress of being leveraged is pretty high, but I'm the sick kind of guy that enjoys that.
Congratulations on your investment success so far!

I would urge a bit more caution when it comes to leverage, especially as time goes on and you get richer, older, and have less time ahead of you to recover from financial setbacks.

The market will almost certainly drop by 50% or more at least several more times during your lifetime. These drops cannot be predicted ahead of time and are often accompanied by serious economic disruptions - jobs disappear, credit lines go away, loans get called, illiquid assets can't be sold at any price, and a whole lot of other nasty things. The most extreme economic situation during the past century in the US was the Great Depression, where the stock market's drop was the equivalent of three 50% drops in a row with no recovery between them. While we as a country recovered from that one (as well all the other ones), several generations were marked by it. I would not want to put myself in a situation where a really severe market setback could wipe me out. Having 150% in stocks (=33% leverage) would not have survived the Great Depression, and would have gotten way too close for comfort at several other points in our financial history. Remember, when you get forced out, it is at the lows. And when you already have a substantial portfolio, you can no longer rebuild it from zero with just a few years of hard work.

Taking a lot of risk is fine when you're young, have no responsibilities and few assets. You can quickly make back your losses with labor income. A decade or two later, you may already have assets, family responsibilities, and a whole lot more to lose which you cannot quickly recover from. By this point, that leverage may be too dangerous.

For now, you're doing great. I'm all for the 100% stock portfolio and paying down fixed income obligations. Just please bear in mind that even if your IPS might be defensible at your current age and financial situation, it would be good to review it with a critical eye as the years go on.

Best of luck to you!
I think everything you said here is correct. My intention is that when my high interest-rate loans are gone to start including a bond allocation in my investment portfolio and that is when I would stop leveraging at all.

I do also have one "out" in my IPS with this investment plan that if in my judgment I determine that a disruptive event on the scale of the 2008 financial crisis is underway (or larger), that I basically abandon the plan. I've been executing this plan for about 3 years now and while I was on the lookout for that size event around the time of the 2016 election, I held steady and haven't pulled the trigger on that "out" clause.

Is that "timing the market"? maybe. The way I see it though, I think back to 2008 and I remember following the market during that time, and while I confess I had no idea where "the bottom" would be, I was certain that this was "the big one" by the time the market dropped 10%. Perhaps it is hubris to think that I'll be able to tell the next "big one" before it hits 10 or 20%. I know I can't predict the bottom, and I can't predict when "the big one" will happen. But I'm betting that when we're in the middle of "the big one" that I think I'll be able to recognize that we're in it. Once I see that we are in that big one, I snap back to BH principle of not trying to time in any way shape or form, because I know I'll be in for enough stress just watching my equities with no leverage.

KlangFool
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Re: Post your Financial Milestone Announcements Here

Post by KlangFool » Fri Jun 28, 2019 9:50 pm

Folks,

My year to date portfolio growth is about the same size as my annual income. I am getting closer to my FI's number.

KlangFool

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ruralavalon
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Re: Post your Financial Milestone Announcements Here

Post by ruralavalon » Sat Jun 29, 2019 7:05 am

KlangFool wrote:
Fri Jun 28, 2019 9:50 pm
Folks,

My year to date portfolio growth is about the same size as my annual income. I am getting closer to my FI's number.

KlangFool
Congratulations :D

That is a nice feeling, isn't it.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

KlangFool
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Re: Post your Financial Milestone Announcements Here

Post by KlangFool » Sat Jun 29, 2019 9:08 am

ruralavalon wrote:
Sat Jun 29, 2019 7:05 am
KlangFool wrote:
Fri Jun 28, 2019 9:50 pm
Folks,

My year to date portfolio growth is about the same size as my annual income. I am getting closer to my FI's number.

KlangFool
Congratulations :D

That is a nice feeling, isn't it.
Thanks.

I am conflicted. Working hard does not pay as well as my portfolio.

KlangFool

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ruralavalon
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Re: Post your Financial Milestone Announcements Here

Post by ruralavalon » Sat Jun 29, 2019 9:52 am

KlangFool wrote:
Sat Jun 29, 2019 9:08 am
ruralavalon wrote:
Sat Jun 29, 2019 7:05 am
KlangFool wrote:
Fri Jun 28, 2019 9:50 pm
Folks,

My year to date portfolio growth is about the same size as my annual income. I am getting closer to my FI's number.

KlangFool
Congratulations :D

That is a nice feeling, isn't it.
Thanks.

I am conflicted. Working hard does not pay as well as my portfolio.

KlangFool
You will get over it.

It's nice that working hard and your portfolio both benefit you.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

KlangFool
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Re: Post your Financial Milestone Announcements Here

Post by KlangFool » Sat Jun 29, 2019 9:56 am

ruralavalon wrote:
Sat Jun 29, 2019 9:52 am
KlangFool wrote:
Sat Jun 29, 2019 9:08 am
ruralavalon wrote:
Sat Jun 29, 2019 7:05 am
KlangFool wrote:
Fri Jun 28, 2019 9:50 pm
Folks,

My year to date portfolio growth is about the same size as my annual income. I am getting closer to my FI's number.

KlangFool
Congratulations :D

That is a nice feeling, isn't it.
Thanks.

I am conflicted. Working hard does not pay as well as my portfolio.

KlangFool
You will get over it.

It's nice that working hard and your portfolio both benefit you.
ruralavalon,

Thanks. I hope so.

KlangFool

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Mullins
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by Mullins » Sat Jun 29, 2019 11:07 am

toto238 wrote:
Fri Jun 28, 2019 2:08 pm
But that's not my greatest investment sin. That would be the plan I've written into my IPS that states that I will increase the leverage of my investment portfolio... I do this by using either double or triple leveraged ETFs
That's where I'd not go... the increased risk weakens the plan. But if you're right then it works out. So, you'll eventually either say it was a good plan or a bad one, but that will be based on an Outcome Bias.

rst113
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Re: Post your Financial Milestone Announcements Here

Post by rst113 » Mon Jul 01, 2019 11:14 am

Just hit the $1M mark in net worth today. Age 42, wife 36, 2 kids age 2 and 4. Many thanks to the bogleheads community for helping guide me on this path. I am a sub-specialty MD and have been in practice 5 years now. Wife finished fellowship yesterday. Both of us are MD/PhD and were lucky on the student loan side. I joined late and had 2 years Med school loans (paid off with help of a NIH Loan Repayment program during grad school and aggressively paying down rest on our own). I enjoy the slicing/dicing approach for now but can envision reverting to a lazier portfolio as I get older but for now this approach is fun for me. This may sound odd to some but all of our investments are currently in Roth/backdoor IRA, 401ks, 457s, and I bonds, all of which we max out yearly in most recent years (and Roth much longer). I anticipate opening a taxable account in the next year or so as my wife's income (finally) increases. I have included my current allocations below. It is a bit complicated for some obviously but it works for me. Thanks again!

Index/Large 12.50%
International 12.50%
Mid Cap US 5.00%
Small Cap US 6.25%
Small Cap Intl 6.25%
US REIT 5.00%
Intl REIT 5.00%
BOND Index (including global bonds) 5.00%
Corporate BOND 7.50%
TIPS Long 3.75%
TIPS Short 3.75%
I BONDS 7.50%
Other (individual stocks/alternative investments) 10.00%
Gold 10.00%

stonerolled
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Big milestone, thanks bogleheads

Post by stonerolled » Mon Jul 01, 2019 7:42 pm

After today's gains my Vanguard account just crossed over $1,000,000.00 for the first time.
This forum has reinforced good investing principles over and over again. Just wanted to say thanks to the forum plus sadly this is the only place I can discuss such an event. None of my friends are real savers and investors.

This has taken about 22 years to achieve with the first ten saving and investing with high fees.
I read Mr. Bogle's 'Common Sense on Mutual Funds' in 2007 and have been with Vanguard since.
How Providence put that book on my radar I'm not sure but it was like cold water in the desert.

Thanks again and I don't care if it drops to one comma tomorrow. I've been checking the balance much much more than I normally do.

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prudent
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Re: Post your Financial Milestone Announcements Here

Post by prudent » Mon Jul 01, 2019 7:48 pm

stonerolled wrote:
Mon Jul 01, 2019 7:42 pm
After today's gains my Vanguard account just crossed over $1,000,000.00 for the first time.
This forum has reinforced good investing principles over and over again. Just wanted to say thanks to the forum plus sadly this is the only place I can discuss such an event. None of my friends are real savers and investors.

This has taken about 22 years to achieve with the first ten saving and investing with high fees.
I read Mr. Bogle's 'Common Sense on Mutual Funds' in 2007 and have been with Vanguard since.
How Providence put that book on my radar I'm not sure but it was like cold water in the desert.

Thanks again and I don't care if it drops to one comma tomorrow. I've been checking the balance much much more than I normally do.
Congrats on the major milestone, stonerolled! I moved your thread into this topic where milestones are celebrated.

Silk McCue
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Re: Big milestone, thanks bogleheads

Post by Silk McCue » Mon Jul 01, 2019 8:05 pm

stonerolled wrote:
Mon Jul 01, 2019 7:42 pm
After today's gains my Vanguard account just crossed over $1,000,000.00 for the first time.
...
Congratulations! Onward and upward.

Cheers

mmp
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Re: Post your Financial Milestone Announcements Here

Post by mmp » Mon Jul 01, 2019 11:52 pm

just hit my target FI number in investible assets. Not ready to get off the treadmill just yet. Sort of like when Y2k hit. Nothing seems different on the other side. Question now is - whether to downshift to a substantially lower pay / lower stress job or continue to ride things out at the high-stress gig as long as I can for a buffer.

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ruralavalon
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Re: Big milestone, thanks bogleheads

Post by ruralavalon » Tue Jul 02, 2019 6:07 am

stonerolled wrote:
Mon Jul 01, 2019 7:42 pm
After today's gains my Vanguard account just crossed over $1,000,000.00 for the first time.
This forum has reinforced good investing principles over and over again. Just wanted to say thanks to the forum plus sadly this is the only place I can discuss such an event. None of my friends are real savers and investors.

This has taken about 22 years to achieve with the first ten saving and investing with high fees.
I read Mr. Bogle's 'Common Sense on Mutual Funds' in 2007 and have been with Vanguard since.
How Providence put that book on my radar I'm not sure but it was like cold water in the desert.

Thanks again and I don't care if it drops to one comma tomorrow. I've been checking the balance much much more than I normally do.
Congratulations :D .

Stay the course.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

notmyhand
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Hit double comma net worth!

Post by notmyhand » Tue Jul 02, 2019 8:35 am

[Thread merged into here, see below. --admin LadyGeek]

Thanks to the markets and a paycheck hitting, DH and I hit the double comma net worth club! :D

-30% house equity
-10% cash
-60% retirement/taxable in 90/10% stock/bond allocation

Can't share with anyone else so decided to share here! So glad I stumbled upon this website in my early 20s to help this happen.

Hit one million in seven years, right before my 30th birthday. Hoping to double that in the next five years and then double again and go part time in our late 40s, if we're lucky enough to make it that long.

Two questions:
-How does everyone celebrate hitting financial milestones? Seeing the number there yesterday was a little anticlimactic so we're hoping to celebrate a little and looking for some ideas.
-DH and I both work for the same company in the commodities area. Very up and down, we were both unemployed in 2016. How many months of an emergency fund would you hold? We currently have about one year of expenses.

student
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Re: Hit double comma net worth!

Post by student » Tue Jul 02, 2019 8:37 am

Congratulations.

fareastwarriors
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Re: Hit double comma net worth!

Post by fareastwarriors » Tue Jul 02, 2019 8:38 am

Awesome, Congratulations!

Keep up the good work.

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onthecusp
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Re: Hit double comma net worth!

Post by onthecusp » Tue Jul 02, 2019 8:42 am

:sharebeer Congratulations! Great milestone!

Well, that's about it. Markets are down a little today, LOL.

But seriously, good work to get there, staying the course should help it build faster. Took me most of my working career to get there, my balances wobbled around there then took off again. There are not many opportunities to celebrate in public, but a nice dinner works for you and your loved ones.

You could search for the Two Comma Club thread and join up!

bubbadog
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Re: Hit double comma net worth!

Post by bubbadog » Tue Jul 02, 2019 8:43 am

Congrats! :sharebeer

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Sandtrap
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Re: Hit double comma net worth!

Post by Sandtrap » Tue Jul 02, 2019 8:45 am

notmyhand wrote:
Tue Jul 02, 2019 8:35 am
Thanks to the markets and a paycheck hitting, DH and I hit the double comma net worth club! :D

-30% house equity
-10% cash
-60% retirement/taxable in 90/10% stock/bond allocation

Can't share with anyone else so decided to share here! So glad I stumbled upon this website in my early 20s to help this happen.

Hit one million in seven years, right before my 30th birthday. Hoping to double that in the next five years and then double again and go part time in our late 40s, if we're lucky enough to make it that long.

Two questions:
-How does everyone celebrate hitting financial milestones? Seeing the number there yesterday was a little anticlimactic so we're hoping to celebrate a little and looking for some ideas.
-DH and I both work for the same company in the commodities area. Very up and down, we were both unemployed in 2016. How many months of an emergency fund would you hold? We currently have about one year of expenses.
:sharebeer
Congratulations.
Next step: exclude the home equity.
1. We don't celebrate.
IE: Dear, did you know we're now worth $$$$ . . . . . that's nice. . . . did you close the garage door when you came in?

2. EF is unique per person. Job instabilty is one factor that should raise it. There are other considerations.

How about posting for a portfolio review?

j :D
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TomatoTomahto
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Re: Hit double comma net worth!

Post by TomatoTomahto » Tue Jul 02, 2019 8:46 am

Congrats.

IMO, ixnay on the celebration. YMMV.
Okay, I get it; I won't be political or controversial. The Earth is flat.

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onthecusp
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Re: Hit double comma net worth!

Post by onthecusp » Tue Jul 02, 2019 8:46 am

One year of expenses is pretty darn good for an emergency fund, particularly if your other investments are asset allocated with some bonds. If you are otherwise 100% stocks, since you are both in the same industry, you could go for another 3-6 months, but anything more than that is missing too much growth opportunity at your age.

kalrocmk
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Re: Hit double comma net worth!

Post by kalrocmk » Tue Jul 02, 2019 8:54 am

Congratulations! :sharebeer
Just trying to make a living

Coburn
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Re: Hit double comma net worth!

Post by Coburn » Tue Jul 02, 2019 8:57 am

Congrats.

I'm conservative in that I don't count your current home equality in the equation of net worth. After all, if you sold your house...where do you live then?! :wink:

But certainly, you are well on the path of FI. :happy

Have a nice dinner out...then back to the grindstone.

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lthenderson
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Re: Hit double comma net worth!

Post by lthenderson » Tue Jul 02, 2019 9:06 am

We don't consider house equity either. But I don't track net worth, I track retirement assets.

Whenever we cross a comma or similar financial milestone, I generally mention it to my DW who doesn't follow our finances and she will say something like, "That's nice dear" and go about her business. We plan to celebrate when we start reversing our retirement asset growth.

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Re: Post your Financial Milestone Announcements Here

Post by LadyGeek » Tue Jul 02, 2019 9:11 am

I merged notmyhand's thread into the on-going discussion, which is a sticky in the US Chapters forum (Bogleheads Community).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

notmyhand
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Re: Post your Financial Milestone Announcements Here

Post by notmyhand » Tue Jul 02, 2019 9:16 am

LadyGeek wrote:
Tue Jul 02, 2019 9:11 am
I merged notmyhand's thread into the on-going discussion, which is a sticky in the US Chapters forum (Bogleheads Community).
Thank you! Didn't realize this thread existed.

stonerolled
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Re: Big milestone, thanks bogleheads

Post by stonerolled » Tue Jul 02, 2019 10:28 am

ruralavalon wrote:
Tue Jul 02, 2019 6:07 am
stonerolled wrote:
Mon Jul 01, 2019 7:42 pm
After today's gains my Vanguard account just crossed over $1,000,000.00 for the first time.
This forum has reinforced good investing principles over and over again. Just wanted to say thanks to the forum plus sadly this is the only place I can discuss such an event. None of my friends are real savers and investors.

This has taken about 22 years to achieve with the first ten saving and investing with high fees.
I read Mr. Bogle's 'Common Sense on Mutual Funds' in 2007 and have been with Vanguard since.
How Providence put that book on my radar I'm not sure but it was like cold water in the desert.

Thanks again and I don't care if it drops to one comma tomorrow. I've been checking the balance much much more than I normally do.
Congratulations :D .

Stay the course.
Thanks. I have no idea what that number really means, and have no goals other than to do just that, stay the course. At some point though, I may begin considering half of the growth as income, and begin lifestyle creep, but not sure yet. I am in the same modest house, driving the same modest car, cooking the same modest meals, and I love it. As long as we are able to work and play, the account should probably always be growing.

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jriding
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Re: Post your Financial Milestone Announcements Here

Post by jriding » Tue Jul 02, 2019 10:53 am

Savings/Mortgage Milestone - for the first time my savings account balance exceeds my mortgage balance (~$20k). Just knowing that I could payoff the mortgage anytime is a great feeling!

user9532
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Re: Post your Financial Milestone Announcements Here

Post by user9532 » Tue Jul 02, 2019 1:29 pm

Combined balance of my TSP and DW's 401(k):

On 5/3/2015 $1,001,526.44

On 7/2/2019 $1,511,158.07

Bully3000
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Re: Post your Financial Milestone Announcements Here

Post by Bully3000 » Tue Jul 02, 2019 1:37 pm

back to my pre Divorce Net Worth again, did not really invest or do anything prior to Divorce and pretty much lived pay check to paycheck and contributed minimum to 401k to get match.

Now I Max 401k, opened and Max IRA and use also contribute to a taxable account and have a nice emergency fund.

SDLinguist
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Celebrating milestones and a Thank you

Post by SDLinguist » Tue Jul 02, 2019 2:38 pm

I wanted to say a big thank you to the boglehead community. This morning I was filling out our spreadsheets getting ready to for my ESPP distribution coming in a few days and I noticed we finally crossed our first goal of 1x income saved. We knew it would happen sometime this year but since I only really look in January to do Roth contributions and espp sale, July to do espp sale and December to make sure the year is wrapped up well I don't know when exactly we crossed the line

I am turning 30 at the end of the month and my wife is at the end of the year. Our goal when we set it 3 years ago was 1x income by Jan 2020.

September will be our 3 year wedding anniversary. At the time I had just started working after my masters and my wife had been forced out of her job where, in hindsight, we can see she was hired only to fill a spot while someone was on maternity leave.

Combined we had brought about 40k into the marriage but my wife had 15k in student loans still outstanding and 15k in a car loan her parents had talked her into. I am lucky that my parents payed of all my schooling and I didn't have to take any loans.

From where we were 3 years ago to now we more than doubled our HHI income so our goal kept getting bigger, but we hunkered down. We payed off the student loans with a lump sum payment from the 40k because they were at 7% and the last car payment will be done in December. Since the car loan is at 1.49% we decided to just pay it over its term instead of paying it off early.

We have both have become believers in the idea of pay yourself first and in what I jokingly like to call Klangfoolism: spend a $, save a $.

90% of our savings comes from money never even hitting the checking account and we aim to save a years worth of spending every year. Last year we did about ~85%. This year we should be on track to hit about 90+%

Our next goal is 5x by 40. What we have learned here has been invaluable.

[merged into this existing thread for celebrating milestones - moderator prudent]

toto238
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Wed Jul 03, 2019 11:52 am

Mullins wrote:
Sat Jun 29, 2019 11:07 am
toto238 wrote:
Fri Jun 28, 2019 2:08 pm
But that's not my greatest investment sin. That would be the plan I've written into my IPS that states that I will increase the leverage of my investment portfolio... I do this by using either double or triple leveraged ETFs
That's where I'd not go... the increased risk weakens the plan. But if you're right then it works out. So, you'll eventually either say it was a good plan or a bad one, but that will be based on an Outcome Bias.
I don't think you're advocating that any increase in risk weakens a plan. Say someone says they're increasing their exposure to equity vs fixed income due to a change in their expected returns of the two asset classes. You wouldn't say their plan is weakened just because they've accepted more risk.

People make adjustments to their allocations all the time based on expected future returns of various asset classes. For example, when bond yields are significantly depressed (as they have been for the last 10ish years), and you're significantly invested in bonds, your shortfall risk increases. It may make sense to increase your portfolio risk by some amount today to reduce your shortfall risk in the future. Typically people do that by adjusting out of Fixed Income and into Equity. I would argue that going from 80 to 90% equity isn't fundamentally different than going to 100% to 110% equity as I will do. And I only do it as a function of my changing expectations of future returns.

In the same way that when expected future returns of bonds fall it is rational to decrease your holdings in it to reduce your shortfall risk, it is also rational that when expected future returns of equities rise it is rational to increase your holdings in it.

RocketCity22
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by RocketCity22 » Wed Jul 03, 2019 12:15 pm

Congratulations and keep up the great progress!

pinhead
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by pinhead » Wed Jul 03, 2019 1:12 pm

Congrats! I remember my first $10K and I already felt like a superstar walking around town thinking I would be mugged if someone found out I had $10K saved up. lol

transient_academic
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by transient_academic » Wed Jul 03, 2019 1:32 pm

Congratulations on the milestone! You're way ahead of me at the same age so you're on a great track.
toto238 wrote:
Fri Jun 28, 2019 2:08 pm
I do this by using either double or triple leveraged ETFs in my Roth IRA. I've done back-testing analysis for this technique and found it to have a positive ROI even through events like the 2008 financial crisis. It also compared it to a portfolio that was always leveraged by the same average % (approximately 11%) and it outperformed that portfolio as well. What we've observed here is that when the market falls significantly (10% or more) the actual expected ROI for the market goes up. We can't predict when it will have those drops, and generally speaking it's not a good idea to keep money on the "sidelines" so I remain at least 100% invested at all times. But when the expected ROI goes up enough at those thresholds, I use that leverage to go 110% or 120% or more (my IPS sets a limit at 150%) because the increased ROI is worth it to me. This has been very profitable for me, but I definitely don't recommend it to others. The stress of being leveraged is pretty high, but I'm the sick kind of guy that enjoys that.
At least you aren't getting the leverage by buying on margin. How long do you hold the leveraged funds when you buy into them? Can you post the link for the back-testing?

You probably don't need me to tell you, but the problem with leveraged ETFs is they hurt you more when they go down, so even in a rising market you can still lose money if there is a lot of volatility in the movement. So if you're day trading them then you're using them properly but UPRO and the like are not really buy and hold style funds. If you want leverage I would recommend you do it using LEAPS or shorter term deep in the money calls. You can lose out on the premium for the option (also dividends) but that's all the downside you get.

toto238
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Re: Celebrating a milestone today: my first day with $100,000 in retirement accounts

Post by toto238 » Wed Jul 03, 2019 4:32 pm

transient_academic wrote:
Wed Jul 03, 2019 1:32 pm
Congratulations on the milestone! You're way ahead of me at the same age so you're on a great track.
toto238 wrote:
Fri Jun 28, 2019 2:08 pm
I do this by using either double or triple leveraged ETFs in my Roth IRA. I've done back-testing analysis for this technique and found it to have a positive ROI even through events like the 2008 financial crisis. It also compared it to a portfolio that was always leveraged by the same average % (approximately 11%) and it outperformed that portfolio as well. What we've observed here is that when the market falls significantly (10% or more) the actual expected ROI for the market goes up. We can't predict when it will have those drops, and generally speaking it's not a good idea to keep money on the "sidelines" so I remain at least 100% invested at all times. But when the expected ROI goes up enough at those thresholds, I use that leverage to go 110% or 120% or more (my IPS sets a limit at 150%) because the increased ROI is worth it to me. This has been very profitable for me, but I definitely don't recommend it to others. The stress of being leveraged is pretty high, but I'm the sick kind of guy that enjoys that.
At least you aren't getting the leverage by buying on margin. How long do you hold the leveraged funds when you buy into them? Can you post the link for the back-testing?

You probably don't need me to tell you, but the problem with leveraged ETFs is they hurt you more when they go down, so even in a rising market you can still lose money if there is a lot of volatility in the movement. So if you're day trading them then you're using them properly but UPRO and the like are not really buy and hold style funds. If you want leverage I would recommend you do it using LEAPS or shorter term deep in the money calls. You can lose out on the premium for the option (also dividends) but that's all the downside you get.
So my rule is that I continue to hold the leveraged holding until the next 10% trigger is hit. So when the market is down 10%, I buy. When it recovers back to its initial value, I sell.

The last time the market hit 20% down (in December) I bought it when it was down 10%, bought in again when it hit 20% down, then sold part of it when it recovered to only be down 10%, and sold the rest when the market hit a new high.

Here is a picture of my transactions over the last few years and you can see how it has worked:

https://i.imgur.com/YNGqWym

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