FedGuy wrote:I realize the whole "two comma club" thing is just a fun shorthand for having a certain level of assets, but when people think of the term that way, to what extent do they account for whether or not the money is in a retirement account?
I'm not a member of the two comma club, and wouldn't say that I'm close, but I would say that I'm close to being close, and I can see some plausible scenarios that might get me there in the next 5-10 years. But with roughly 40% of my assets currently in 401(k)s and Roth IRAs, I almost feel like I'll consider it a larger milestone when I reach $1,000,000 excluding my retirement accounts--that is, having $1,000,000 in my savings account and regular brokerage accounts--than when I reach $1,000,000 counting everything. Does anyone else feel that way?
Hmm. I include everything in our net worth. Our home equity in 2 homes, retirement, and after tax. Even our cars (which I depreciate 2 X a year).
I can see where that 2-comma in non-retirement accounts would be good. However, I look at my non-home equity as BEING my retirement accounts, whether tax advantaged or otherwise. That said, about 50% of my non-equity net worth is in taxable indexes or individual stocks. And it is growing significantly faster than the tax preferred "retirement" accounts.
I'm shooting for 2.1 commas, which we should hit by the end of 2015 if things stay on track.