What age did you reach 100K networth?

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Startingover2019
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Re: What age did you reach 100K networth?

Post by Startingover2019 » Tue Jan 14, 2020 10:13 pm

Not there yet. As a physician at age 41. Bad marriage to a user loser and starting all over after finally divorcing his evil ass.
Will plan on being at 300k by years end God willing.

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topper1296
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Re: What age did you reach 100K networth?

Post by topper1296 » Tue Jan 14, 2020 10:30 pm

Sometime around my late 20's. It would have been sooner, however starting on a graduate degree that I never finished set me back a little.

primetime5
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Re: What age did you reach 100K networth?

Post by primetime5 » Tue Jan 14, 2020 10:54 pm

Not until about 33 I think. Luckily I have caught up on missing out on earnings in my 20's by going self-employed. I do envy those who come straight out of college and earn big and save up big time in their 20's. Keep it up!

Vihoo
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Re: What age did you reach 100K networth?

Post by Vihoo » Mon Jan 20, 2020 7:10 pm

cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
It does. I think it made me just step back and realize I had it all wrong. It was more of an “Oh sh*t” moment for me after reading your post.

I had never seen anyone post a goal NW in their early career, which meant they had “secured their retirement” with a modest growth rate for the remainder of their potential working life. I never did the math myself.

smitcat
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Re: What age did you reach 100K networth?

Post by smitcat » Mon Jan 20, 2020 7:17 pm

cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?

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backofbeyond
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Re: What age did you reach 100K networth?

Post by backofbeyond » Mon Jan 20, 2020 7:26 pm

age 27- year 1998
The question isn't at what age I want to retire, it is at what income. - George Foreman

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galving
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Re: What age did you reach 100K networth?

Post by galving » Tue Jan 21, 2020 7:39 am

Probably 25.
No debt.
Older, used, paid off car.
Good salary.
Intense plant startup that called for a lot of hours which had the effect of limiting my spending.

Unbrokenspark
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Re: What age did you reach 100K networth?

Post by Unbrokenspark » Tue Jan 21, 2020 9:04 am

I think We broke it when my wife and I were 24 and 25

Nowizard
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Re: What age did you reach 100K networth?

Post by Nowizard » Tue Jan 21, 2020 9:17 am

In actual dollars or inflation equivalent? As an old geezer, it would have probably been at age 35 or so, but the amount would have been substantially less than 100K. More relevant would be reaching seven or eight figure net worth for those of us in the RMD stage.

Tim

cpan00b
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Re: What age did you reach 100K networth?

Post by cpan00b » Sat Jan 25, 2020 5:28 pm

smitcat wrote:
Mon Jan 20, 2020 7:17 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.

Triple digit golfer
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Re: What age did you reach 100K networth?

Post by Triple digit golfer » Sat Jan 25, 2020 5:33 pm

cpan00b wrote:
Sat Jan 25, 2020 5:28 pm
smitcat wrote:
Mon Jan 20, 2020 7:17 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.

texasdiver
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Re: What age did you reach 100K networth?

Post by texasdiver » Sat Jan 25, 2020 7:09 pm

About age 34 in 1998. But then my 20s were like this:

18-22 College
23-26 Peace Corps
26-28 Biologist on fishing boats in Alaska (did $2500 IRAs each year)
28-30 Graduate school
31 First actual professional job with benefits
34 Hit 100k when counting all retirement savings

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abuss368
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Re: What age did you reach 100K networth?

Post by abuss368 » Sat Jan 25, 2020 7:36 pm

This has been a good thread. Incredible but the Boglehead way works!
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

Ron Ronnerson
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Re: What age did you reach 100K networth?

Post by Ron Ronnerson » Sat Jan 25, 2020 8:40 pm

Net Worth by Age:
30: -40k (wife and I each had $20k of credit card debt when we got married at age 30)
35: $100k
40: $500k
45 (current age): $1.1 million

I’m a teacher and my wife is a stay-at-home parent.

Anyway, the answer to the question is 35.

quantAndHold
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Re: What age did you reach 100K networth?

Post by quantAndHold » Sat Jan 25, 2020 9:14 pm

ruralavalon wrote:
Fri May 20, 2016 6:07 pm
I have absolutely no idea.
Me either, but I think it must during the dotcom bubble, which would have made me 35-37. But does it still count if I lost most of it immediately afterwards in the crash?

Regardless, I retired in 2017 at 52, with a $3M+ net worth. Some saving and some good returns happened between those two dates.

Not Law
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Re: What age did you reach 100K networth?

Post by Not Law » Sat Jan 25, 2020 9:14 pm

40, hit double commas at 60

smitcat
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Re: What age did you reach 100K networth?

Post by smitcat » Sun Jan 26, 2020 7:46 am

cpan00b wrote:
Sat Jan 25, 2020 5:28 pm
smitcat wrote:
Mon Jan 20, 2020 7:17 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
"Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead."
Absolutely - that would be correct.

arsenalfan
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Re: What age did you reach 100K networth?

Post by arsenalfan » Sun Jan 26, 2020 7:50 am

34 years old

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ofcmetz
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Re: What age did you reach 100K networth?

Post by ofcmetz » Sun Jan 26, 2020 8:58 am

poetryprofessor wrote:
Fri Jan 10, 2020 9:05 am
Hello Bogleheads. This is my first post. I’m on track to reach 100k in net worth sometime in 2020, likely after I turn 33. That’s including mortgage and home equity. I’m at 76K as of today, and have run the numbers for 2020:

-retirement contributions
-credit card debt payments (working BS2- will have these wiped out within 2 years)
-mortgage principal payments
-personal and auto loan payments

A bit more about me since this is my first post on Bogleheads, I’m in my 2nd year of my first tenure track job. Bought a house when I moved here for the job. Credit card debt is from grad school. Eager to get rid of it as soon as possible. Lucky to have no student loans as I was at public R1s throughout my education and on fellowships and scholarships. In some ways I’ve done things in a weird order in my life and am thankful to be gaining a clearer head when it comes to financial wisdom.
I love seeing threads from years ago resurrected. Although it's sometimes bittersweet to see some of the older names that I don't see anymore around here. I wonder how much inflation and time we will need before someone posts the "What age did you reach 100MM networth" thread.

Welcome to the Bogleheads, poetryprofessor. I think people with high level of educations tend to reach these net worth milestones a bit later in life. Then as they get in gear they pass up a lot of the college dropouts like me who entered the work force at younger ages. Congrats on the 100K milestone. I hope you stay around this site for some time to come to learn and share knowledge with others.
Never underestimate the power of the force of low cost index funds.

Olemiss540
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Re: What age did you reach 100K networth?

Post by Olemiss540 » Sun Jan 26, 2020 8:59 am

Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm
cpan00b wrote:
Sat Jan 25, 2020 5:28 pm
smitcat wrote:
Mon Jan 20, 2020 7:17 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm


Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.
In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

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ofcmetz
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Re: What age did you reach 100K networth?

Post by ofcmetz » Sun Jan 26, 2020 8:59 am

I have all our net worth milestones for us saved on a spreadsheet as a married couple since about 2004. Looks like we hit it together at him age 26 and her age 29. Of course maybe it's like we hit 50K each since we were a couple combining ours networths. Cheers
Never underestimate the power of the force of low cost index funds.

trumpet83
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Re: What age did you reach 100K networth?

Post by trumpet83 » Sun Jan 26, 2020 9:03 am

30. My dad and I built my house and finished that year, so pretty much as soon as we finished I was technically over that mark. Made it with retirement and cash alone at 35.

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Chris001122
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Re: What age did you reach 100K networth?

Post by Chris001122 » Sun Jan 26, 2020 9:26 am

32 years old
"It's always been a mistake to bet against the United States since 1776." - Warren Buffett

Triple digit golfer
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Re: What age did you reach 100K networth?

Post by Triple digit golfer » Sun Jan 26, 2020 9:51 am

Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm
cpan00b wrote:
Sat Jan 25, 2020 5:28 pm
smitcat wrote:
Mon Jan 20, 2020 7:17 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm


Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.
In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
Our opinions are not mutually exclusive. I agree that it is likely he will retire by age 65 financially secure.

I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.

TallBoy29er
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Re: What age did you reach 100K networth?

Post by TallBoy29er » Sun Jan 26, 2020 10:01 am

Probably when I got married in my early 30's. But I'm not sure the additive effect really counts for what you are asking. If I were to divide it by 2, then it would have been later mid-30's....probably around 36.

Silence Dogood
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Re: What age did you reach 100K networth?

Post by Silence Dogood » Sun Jan 26, 2020 10:19 am

Vihoo wrote:
Mon Jan 20, 2020 7:10 pm
cpan00b wrote:
Mon Jan 13, 2020 8:06 pm
Vihoo wrote:
Mon Jan 13, 2020 7:07 pm
cpan00b wrote:
Mon Jan 13, 2020 1:47 pm
2018, at the age of 28. Have $380k now as a 30 year old and hope to break into $400k at the end of January after bonuses. Was very very hard to finally get all of this though and for me, personally, the high income is unsustainable given the cost of the sacrifices made. Still I am happy that I feel financially secure now and retirement is pretty much funded. If I don't touch this and leave my current 80-20% allocation with 0 contributions, assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Retirement funded at 30 w/ $380k?
Doesn't the calculation I outlined work out? This assumes I retire at 65 (and work from now until then to just meet costs). I just meant I've reached a point where I don't have to save anymore, so I feel pretty financially secure. Of course, I'm going to keep saving aggressively instead to move that date up.
It does. I think it made me just step back and realize I had it all wrong. It was more of an “Oh sh*t” moment for me after reading your post.

I had never seen anyone post a goal NW in their early career, which meant they had “secured their retirement” with a modest growth rate for the remainder of their potential working life. I never did the math myself.
$400K by age 30, with a 3.87% real CAGR, would amount to $1.25 million (2020 dollars) by age 60.

With a 4% withdrawal rate starting at age 60, that would be $50K (2020 dollars) a year to live on.

This calculation ignores taxes, future contributions, and future Social Security income.

cpan00b
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Re: What age did you reach 100K networth?

Post by cpan00b » Sun Jan 26, 2020 1:22 pm

Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm

In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
Our opinions are not mutually exclusive. I agree that it is likely he will retire by age 65 financially secure.

I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
Great discussion and I find this all very interesting and am glad people are chiming in. Perhaps my assumption is wrong and the 7% real rate of return figure I'm thinking as the historical rate of return in the US stock market was for a 100-0 allocation and not an 80-20 allocation. Can anyone else please confirm? Anyway, yes I agree that everyone currently thinks that past performance won't indicate future results and people are gearing down for a much lower expected rate of return over the next 20 years. But no one knows.

Are you factoring in unemployment above because you assume during periods of unemployment, I'd be drawing down from this "nest" egg? Yes this is true, but I removed from the equation much the same way that I'm not counting any savings or contributions going forward (could equally assume that I'd have some emergency fund from the continued years of work going forward).
Silence Dogood wrote:
Sun Jan 26, 2020 10:19 am


$400K by age 30, with a 3.87% real CAGR, would amount to $1.25 million (2020 dollars) by age 60.

With a 4% withdrawal rate starting at age 60, that would be $50K (2020 dollars) a year to live on.

This calculation ignores taxes, future contributions, and future Social Security income.
Correct. What's the reasoning for the 3.87% CAGR figure?


And everyone else thanks! 400k by 30 is no walk in the park but boggleheads really helped me get into the investing and saving mindframe. I only discovered it at the age of 27. Here's my personal trajectory:

2011 (age 21) - graduate college into a 48k/year job back in 2011
2011-2014 - try to get better certifications, CPA license, etc. and advance salary up to 85k through job hopping and using said certifications. Don't know about investing yet but save about 40k in cash.
2014 - 2017 - give up 3 years of earning and advancement potential by going back to school for a different career. Summer jobs/internships etc. help mitigate some of the opportunity cost, but estimated difference and loss due to foregone salary about 200k. Ignores compounding or investment gains that would have been possible had I been working or investing during this time.
2017 - finish grad school and start investing in 3 fund portfolio. networth still about 30-40k because used summer job/internship money for COL during school. Finally high income (start at 190k, had 215k salary in 2018 and 230k in 2019).
2020 - Save like crazy and work like crazy since then. Hit 400k in net worth earlier this month. Savings as a percentage of gross income about 50% over these years (the rest is mostly taxes about 40%, with yearly expenditure at 10% of gross income)

Future - ? I am quitting my super stressful job this year. This is why I was amused with the whole 380k secure retirement idea as something I was pondering about. Ran different scenarios where I took massive paycuts and contributed only $2k/month into investments instead of the current $9.5k. Things still seemed fine ultimately from a financial perspective.

Triple digit golfer
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Re: What age did you reach 100K networth?

Post by Triple digit golfer » Sun Jan 26, 2020 1:59 pm

cpan00b wrote:
Sun Jan 26, 2020 1:22 pm
Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm

In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
Our opinions are not mutually exclusive. I agree that it is likely he will retire by age 65 financially secure.

I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
Great discussion and I find this all very interesting and am glad people are chiming in. Perhaps my assumption is wrong and the 7% real rate of return figure I'm thinking as the historical rate of return in the US stock market was for a 100-0 allocation and not an 80-20 allocation. Can anyone else please confirm? Anyway, yes I agree that everyone currently thinks that past performance won't indicate future results and people are gearing down for a much lower expected rate of return over the next 20 years. But no one knows.

Are you factoring in unemployment above because you assume during periods of unemployment, I'd be drawing down from this "nest" egg? Yes this is true, but I removed from the equation much the same way that I'm not counting any savings or contributions going forward (could equally assume that I'd have some emergency fund from the continued years of work going forward).
Silence Dogood wrote:
Sun Jan 26, 2020 10:19 am


$400K by age 30, with a 3.87% real CAGR, would amount to $1.25 million (2020 dollars) by age 60.

With a 4% withdrawal rate starting at age 60, that would be $50K (2020 dollars) a year to live on.

This calculation ignores taxes, future contributions, and future Social Security income.
Correct. What's the reasoning for the 3.87% CAGR figure?


And everyone else thanks! 400k by 30 is no walk in the park but boggleheads really helped me get into the investing and saving mindframe. I only discovered it at the age of 27. Here's my personal trajectory:

2011 (age 21) - graduate college into a 48k/year job back in 2011
2011-2014 - try to get better certifications, CPA license, etc. and advance salary up to 85k through job hopping and using said certifications. Don't know about investing yet but save about 40k in cash.
2014 - 2017 - give up 3 years of earning and advancement potential by going back to school for a different career. Summer jobs/internships etc. help mitigate some of the opportunity cost, but estimated difference and loss due to foregone salary about 200k. Ignores compounding or investment gains that would have been possible had I been working or investing during this time.
2017 - finish grad school and start investing in 3 fund portfolio. networth still about 30-40k because used summer job/internship money for COL during school. Finally high income (start at 190k, had 215k salary in 2018 and 230k in 2019).
2020 - Save like crazy and work like crazy since then. Hit 400k in net worth earlier this month. Savings as a percentage of gross income about 50% over these years (the rest is mostly taxes about 40%, with yearly expenditure at 10% of gross income)

Future - ? I am quitting my super stressful job this year. This is why I was amused with the whole 380k secure retirement idea as something I was pondering about. Ran different scenarios where I took massive paycuts and contributed only $2k/month into investments instead of the current $9.5k. Things still seemed fine ultimately from a financial perspective.
I believe the 7% real is accurate for the stock market over its history, or something very close to that. I don't believe we'll see that from an 80/20 portfolio because of the 20% bonds and because most expect lower returns moving forward. But nobody really knows. Over 35 years maybe you'll get 7%. Take a look at the late 20s through early 50s. It was awful and that is a pretty long time period.

I factored in unemployment because yes, maybe you'd be drawing some money from your portfolio in a period of unemployment. Or maybe you'll be permanently unemployed at 55 or 60. It happens.

I think he used 3.87% because that is the rate needed to get to $1.25 million, an arbitrary benchmark.. I think 4% real is a better number to use for planning purposes. I use 3% real over the next 15-20 years on my 80/20 portfolio, but I am very conservative in my projections.

You are doing a phenomenal job. Just keep saving and investing wisely and great things will happen. I'm in a similar situation, where I can likely not save more and still retire at 65 or sooner with even a 4% real return. I enjoy knowing that I have cushion built in to where I can be unemployed, take a lower paying job, save less, etc and still be okay. However, right now, at almost 35, I am keeping my foot on the gas. A lot can happen in the next 30 years. If good things continue to happen in the next 15, I can likely retire at 50.

Olemiss540
Posts: 1187
Joined: Fri Aug 18, 2017 8:46 pm

Re: What age did you reach 100K networth?

Post by Olemiss540 » Sun Jan 26, 2020 3:28 pm

Triple digit golfer wrote:
Sun Jan 26, 2020 9:51 am
Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm
cpan00b wrote:
Sat Jan 25, 2020 5:28 pm
smitcat wrote:
Mon Jan 20, 2020 7:17 pm


"assuming 7% return and 35 more years, I'll have 3.6mm at 65 (knock on wood).
Doesn't the calculation I outlined work out? "
What are your assumptions on inflation over those 35 years until 65?
What is your target value of that $3.6 million in todays purchasing power?
I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.
In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
i
I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
I agree with your opinion, but it's not that the poster was going to retire tomorrow based off of their math. What's the harm in letting someone celebrate a milestone in their savings life IMO.

Also, it might just be a bit of a pet peeve of mine, but "in my opinion" and "highly unlikely" seem to contradict. One seems like purely speculation and the other some form of statistic that one should be able to source IMO. Either something is statistically highly unlikely, or it's your opinion that it won't occur. Not a personal attack, just curious if it makes any sense to others.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Triple digit golfer
Posts: 3928
Joined: Mon May 18, 2009 5:57 pm

Re: What age did you reach 100K networth?

Post by Triple digit golfer » Sun Jan 26, 2020 4:08 pm

Olemiss540 wrote:
Sun Jan 26, 2020 3:28 pm
Triple digit golfer wrote:
Sun Jan 26, 2020 9:51 am
Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm
cpan00b wrote:
Sat Jan 25, 2020 5:28 pm


I'm not sure I understand or know the answer to the last question you posed. But isn't 7% the historical rate of return in the US markets after adjusting for inflation? I.e. inflation is something like 3% and returns are like 10%, so real rate of return 7%. Thus, I assume the 3.6 million is inflation adjusted.

Of course if it turns out that the real rate of return will be about 4% instead over the next 35 years, which I think is extremely conservative, that gets the FV of the $380k to about $1.4mm instead.
A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.
In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
i
I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
I agree with your opinion, but it's not that the poster was going to retire tomorrow based off of their math. What's the harm in letting someone celebrate a milestone in their savings life IMO.

Also, it might just be a bit of a pet peeve of mine, but "in my opinion" and "highly unlikely" seem to contradict. One seems like purely speculation and the other some form of statistic that one should be able to source IMO. Either something is statistically highly unlikely, or it's your opinion that it won't occur. Not a personal attack, just curious if it makes any sense to others.
My goal was to caution the poster against possibly not saving any more money and assuming a 7% real return.

I agree. Let him celebrate.

I believe that a 7% real return is highly unlikely. I don't know for sure. Maybe it isn't. Perhaps I could have made my points more clearly, but I think you and others know what I meant.

Olemiss540
Posts: 1187
Joined: Fri Aug 18, 2017 8:46 pm

Re: What age did you reach 100K networth?

Post by Olemiss540 » Sun Jan 26, 2020 4:21 pm

Triple digit golfer wrote:
Sun Jan 26, 2020 4:08 pm
Olemiss540 wrote:
Sun Jan 26, 2020 3:28 pm
Triple digit golfer wrote:
Sun Jan 26, 2020 9:51 am
Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am
Triple digit golfer wrote:
Sat Jan 25, 2020 5:33 pm


A 7% real return for an 80/20 portfolio and constant employment for 35 years are both highly unlikely, in my opinion.
In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
i
I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
I agree with your opinion, but it's not that the poster was going to retire tomorrow based off of their math. What's the harm in letting someone celebrate a milestone in their savings life IMO.

Also, it might just be a bit of a pet peeve of mine, but "in my opinion" and "highly unlikely" seem to contradict. One seems like purely speculation and the other some form of statistic that one should be able to source IMO. Either something is statistically highly unlikely, or it's your opinion that it won't occur. Not a personal attack, just curious if it makes any sense to others.
My goal was to caution the poster against possibly not saving any more money and assuming a 7% real return.

I agree. Let him celebrate.

I believe that a 7% real return is highly unlikely. I don't know for sure. Maybe it isn't. Perhaps I could have made my points more clearly, but I think you and others know what I meant.
I will start a new thread so as to not derail this one. But 7% real is highly unlikely over a 35 year horizon? Based on what? Cynicism or historical data? I think many have imposter syndrome of investment returns knowing that the wonderful Mr. Oz is going to find out how great their returns have been over the last 10 years and all of a sudden punish them for the next 4 decades for their misplaced exuberance.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Triple digit golfer
Posts: 3928
Joined: Mon May 18, 2009 5:57 pm

Re: What age did you reach 100K networth?

Post by Triple digit golfer » Sun Jan 26, 2020 4:33 pm

Olemiss540 wrote:
Sun Jan 26, 2020 4:21 pm
Triple digit golfer wrote:
Sun Jan 26, 2020 4:08 pm
Olemiss540 wrote:
Sun Jan 26, 2020 3:28 pm
Triple digit golfer wrote:
Sun Jan 26, 2020 9:51 am
Olemiss540 wrote:
Sun Jan 26, 2020 8:59 am


In my opinion, it is HIGHLY and extremely likely that cpan00b retires by 65 financially secure having saved $380k by age 30.

Sometimes conservatives come off as "get off my lawn" so I wanted to add a little enthusiasm for some fantastic work. Cant wait until I have $400k in retirement savings.
i
I think it is highly unlikely that he will achieve a 7% real return over the next 35 years on an 80/20 portfolio and not have any periods of unemployment.
I agree with your opinion, but it's not that the poster was going to retire tomorrow based off of their math. What's the harm in letting someone celebrate a milestone in their savings life IMO.

Also, it might just be a bit of a pet peeve of mine, but "in my opinion" and "highly unlikely" seem to contradict. One seems like purely speculation and the other some form of statistic that one should be able to source IMO. Either something is statistically highly unlikely, or it's your opinion that it won't occur. Not a personal attack, just curious if it makes any sense to others.
My goal was to caution the poster against possibly not saving any more money and assuming a 7% real return.

I agree. Let him celebrate.

I believe that a 7% real return is highly unlikely. I don't know for sure. Maybe it isn't. Perhaps I could have made my points more clearly, but I think you and others know what I meant.
I will start a new thread so as to not derail this one. But 7% real is highly unlikely over a 35 year horizon? Based on what? Cynicism or historical data? I think many have imposter syndrome of investment returns knowing that the wonderful Mr. Oz is going to find out how great their returns have been over the last 10 years and all of a sudden punish them for the next 4 decades for their misplaced exuberance.
In order for an 80/20 portfolio to earn a 7% real return, assuming bonds have a real return of 2%, equities would require 8.25%. I am no expert, but that seems high to me.

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