Time to reach 1M and 2M milestones

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Dregob
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Re: Time to reach 1M and 2M milestones

Post by Dregob »

sanfran2015 wrote: Mon May 18, 2015 11:12 pm
Yesterdaysnews wrote:I hit $1M net worth in 2010 (age 34), 2M in 2013 and 3M in 2015.
Wow! Thats super-fast. How much of that was market returns and how much was your additional contributions?
How much was inherited?
Bonehead3
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Re: Time to reach 1M and 2M milestones

Post by Bonehead3 »

Those in Vanguard can go into their account to see line charts of net worth year over year. Seems like it took me a long time but with a rising market as we have had the last 4 years, another M comes every year. Not from contributions (which help) but appreciation and the power of compounding. "Compound interest is the eighth wonder of the world." Ol' Al was right!
quadog
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Re: Time to reach 1M and 2M milestones

Post by quadog »

sanfran2015 wrote: Sun May 17, 2015 5:25 pm I am wondering if you could chime in with how long it took you to reach 1M and 2M milestones.
Milestone 1: 21 years
Milestone 2: 23 years
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Strifey
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Re: Time to reach 1M and 2M milestones

Post by Strifey »

I'm hoping I hit $1M soon, I'm 36 (15 years in market) and currently at $909K. A little worried for a correction though, excluding the temporary covid drop I'm up like 30% from Jan 2020 which is pretty huge, feel like everyone has had insane growth even if you didn't buy the covid dip... like even 30% is low when I see all these people making 500%+ gains on meme stocks, crypto, tesla, etc.

I'm a pretty heavy saver but its nice to start seeing compounding interest start passing my contributions the past few years... just wondering how long it will continue and if I can reach $2M much faster.
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DarkNyte
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Re: Time to reach 1M and 2M milestones

Post by DarkNyte »

After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
am
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Re: Time to reach 1M and 2M milestones

Post by am »

DarkNyte wrote: Sun Jun 06, 2021 12:09 am After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
Ain’t it easy when your making top 1% income and the markets are cooperating! :D
am
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Re: Time to reach 1M and 2M milestones

Post by am »

The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
smitcat
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Re: Time to reach 1M and 2M milestones

Post by smitcat »

am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
Interestingly the amount of time it takes to go from 20 to 10 is the same as 4 to 2 .....a public service message for those that have not had significant funds invested for more than a dozen years.
Bonus question - if you have 2 million dollars invested in the market and it drops 50% (to one million) how much of a % rise does it take to get back to 2 million dollars?
am
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Re: Time to reach 1M and 2M milestones

Post by am »

smitcat wrote: Sun Jun 06, 2021 7:28 am
am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
Interestingly the amount of time it takes to go from 20 to 10 is the same as 4 to 2 .....a public service message for those that have not had significant funds invested for more than a dozen years.
Bonus question - if you have 2 million dollars invested in the market and it drops 50% (to one million) how much of a % rise does it take to get back to 2 million dollars?
Except, those who have 4 mil should reduce risk if that meets their needs. So 4 to 2 mil may not be the same as 20 to 10k.
smitcat
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Re: Time to reach 1M and 2M milestones

Post by smitcat »

am wrote: Sun Jun 06, 2021 8:33 am
smitcat wrote: Sun Jun 06, 2021 7:28 am
am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
Interestingly the amount of time it takes to go from 20 to 10 is the same as 4 to 2 .....a public service message for those that have not had significant funds invested for more than a dozen years.
Bonus question - if you have 2 million dollars invested in the market and it drops 50% (to one million) how much of a % rise does it take to get back to 2 million dollars?
Except, those who have 4 mil should reduce risk if that meets their needs. So 4 to 2 mil may not be the same as 20 to 10k.
Its all relative - $500K to $250K is the same %.
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DarkNyte
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Re: Time to reach 1M and 2M milestones

Post by DarkNyte »

am wrote: Sun Jun 06, 2021 7:08 am
DarkNyte wrote: Sun Jun 06, 2021 12:09 am After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
Ain’t it easy when your making top 1% income and the markets are cooperating! :D
In order to do it we have had to save 60% of our gross income, pay 20% of income to taxes, and live off the remaining 20%, so not exactly a walk in the park.

I need to make up for lost time. I finished college at age 20, but didn't finish medical training until age 30. If I had just taken a regular job in science or engineering at age 20 I'm sure I would have accumulated more by now, but choosing to become a doctor isn't a financial decision.
amucaze
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Re: Time to reach 1M and 2M milestones

Post by amucaze »

Arrived in USA in 2015 with $30K (and a job!)
- Hit $1 million in 2019
- Currently at $1.7 million
- Assuming all goes well, we should hit $2 million in early 2022

I didn't think it would go like this, I feel very lucky. My plan was to retire on 2million after 30 years of working.
smitcat
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Re: Time to reach 1M and 2M milestones

Post by smitcat »

DarkNyte wrote: Sun Jun 06, 2021 10:26 am
am wrote: Sun Jun 06, 2021 7:08 am
DarkNyte wrote: Sun Jun 06, 2021 12:09 am After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
Ain’t it easy when your making top 1% income and the markets are cooperating! :D
In order to do it we have had to save 60% of our gross income, pay 20% of income to taxes, and live off the remaining 20%, so not exactly a walk in the park.

I need to make up for lost time. I finished college at age 20, but didn't finish medical training until age 30. If I had just taken a regular job in science or engineering at age 20 I'm sure I would have accumulated more by now, but choosing to become a doctor isn't a financial decision.
"In order to do it we have had to save 60% of our gross income, pay 20% of income to taxes, and live off the remaining 20%, so not exactly a walk in the park."
Wow - really low taxes here.
NoRegret
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Re: Time to reach 1M and 2M milestones

Post by NoRegret »

:twisted:
market timer wrote: Mon May 18, 2015 8:13 am
empb wrote:The older I get, the more I come around to this way of thinking. However, I think I'd be crippled with anxiety using a 4% withdrawal rate starting at, say, 37. The possibility of working part-time not withstanding. Have you actually done this? Or are you still working?
I left my job to become a stay-at-home dad about a year ago. There was a fairly long honeymoon phase with early retirement, and I traveled for a couple months, but now I'm thinking of trying a new career.
:sharebeer

I did that for 3 years after my first was born. Had a start up idea that went nowhere — I quit in 2007 and it was a stressful time. I then did some consulting work and eventually found a new job in CA, when it became my wife’s turn to be a stay-home parent as we had our second around that time.

Looking back being a stay-at-home-dad is one of the harder and more rewarding things I’ve done. Only more recently has my wife gone back to work by helping out at a friend’s company. We are at a good place where retirement is gated more by time than money.

My 30-year self could not have foreseen any of these happening. Life turned out pretty far from those Excel sheets.
Market timer targeting long term cycles -- aiming for several key decisions per asset class per decade
penicillinman
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Re: Time to reach 1M and 2M milestones

Post by penicillinman »

DarkNyte wrote: Sun Jun 06, 2021 10:26 am
am wrote: Sun Jun 06, 2021 7:08 am
DarkNyte wrote: Sun Jun 06, 2021 12:09 am After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
Ain’t it easy when your making top 1% income and the markets are cooperating! :D
In order to do it we have had to save 60% of our gross income, pay 20% of income to taxes, and live off the remaining 20%, so not exactly a walk in the park.

I need to make up for lost time. I finished college at age 20, but didn't finish medical training until age 30. If I had just taken a regular job in science or engineering at age 20 I'm sure I would have accumulated more by now, but choosing to become a doctor isn't a financial decision.
Well, I don’t know about that……a large percentage of people I know go in to medicine for the money, or rather, they would not go into it if there was no money. I mean, you’re 37 and have 2 million…..not many careers would give you the ability to save and invest like that. Sorry, I just find this whole notion of “I would have more money if I was not a doctor” a little inaccurate. But I suppose that’s my opinion and you are certainly entitled to yours.
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wander
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Re: Time to reach 1M and 2M milestones

Post by wander »

am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
This is only true if you leave the $10k (or 2M) alone. In the real calculation (I am sure the Op's question also inludes new money), I add $26k every year so from 10 to 20k happens in one year, but getting from 2M to 4M has to wait for quite a long time.
am
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Re: Time to reach 1M and 2M milestones

Post by am »

DarkNyte wrote: Sun Jun 06, 2021 10:26 am
am wrote: Sun Jun 06, 2021 7:08 am
DarkNyte wrote: Sun Jun 06, 2021 12:09 am After I finished medical residency in 2014 I had a net worth of negative 25K. Took 3 years to get to 500k. Took an additional 2 years to get to 1 million. So total of 5 years to get to 1 million. It took another 2 years after that to hit 2 million. So 7 years to get to 2 million.
Ain’t it easy when your making top 1% income and the markets are cooperating! :D
In order to do it we have had to save 60% of our gross income, pay 20% of income to taxes, and live off the remaining 20%, so not exactly a walk in the park.

I need to make up for lost time. I finished college at age 20, but didn't finish medical training until age 30. If I had just taken a regular job in science or engineering at age 20 I'm sure I would have accumulated more by now, but choosing to become a doctor isn't a financial decision.
Financial prospects were a big part of me wanting to become a doctor. It wouldn’t make sense if I was making less then top 1-2% income. It is a job after all with a lot of stress and responsibly. You better get paid for doing it otherwise you could help people in other ways.
Harri88
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Re: Time to reach 1M and 2M milestones

Post by Harri88 »

We hit our 1st M in late 2017 about 29-30 years of our working careers, and we are inching our way to our second, so close I can smell it :happy. Another 1.6% rise in the market should put us at that mark.
ryman554
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Re: Time to reach 1M and 2M milestones

Post by ryman554 »

smitcat wrote: Sun Jun 06, 2021 7:28 am
am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
Interestingly the amount of time it takes to go from 20 to 10 is the same as 4 to 2 .....a public service message for those that have not had significant funds invested for more than a dozen years.
Bonus question - if you have 2 million dollars invested in the market and it drops 50% (to one million) how much of a % rise does it take to get back to 2 million dollars?
Both of you are incorrect since you neglect an important factor: contribuitons.

WHen going from 0 -> whatever, you hae to contribute something. ANd the amount you contribute typically (but not always) increates. It is true that compounding is a wonder, but it's also assisted (to a great degree) by a tailwind of extra contributions. At $1M investments, folks are contributing what, $50-100k a year? That's 5-10% of growth "guaranteed".

And, in reverse, when faced with a downturn (say 10%) at $1M if you manage to contribute 100k, you are treading water, not losing absolute money.

So, you ignore your contributions at your own peril, at least until you a) stop contributing, or b) you get to the 5M mark (or so), where it really does start to become a rounding error.
BrooklynInvest
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Re: Time to reach 1M and 2M milestones

Post by BrooklynInvest »

Another factor that speeds up the accumulation of "the second million" -

Lottery winners aside, because it happens quite a bit after we start accumulating the first million (duh) earnings and savings could very well be higher.
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MrBobcat
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Re: Time to reach 1M and 2M milestones

Post by MrBobcat »

BrooklynInvest wrote: Mon Jun 07, 2021 10:41 am Another factor that speeds up the accumulation of "the second million" -

Lottery winners aside, because it happens quite a bit after we start accumulating the first million (duh) earnings and savings could very well be higher.
Way easier to save once the house is paid for, business is paid for, kids educated and income higher.

Haven't hit my first 1MM yet but soon. 1st $500k took 30 years, second $500K is taking less than 3 years.
Vanguard User
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Re: Time to reach 1M and 2M milestones

Post by Vanguard User »

It took me 14 years to reach $500k. Safe to say, I reach $1M in 7 years and $2M in another 3.5 years?
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tennisplyr
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Re: Time to reach 1M and 2M milestones

Post by tennisplyr »

Never did reach the two comma club. Can’t say that that’s got in the way of having a wonderful retirement of 10 years.
Those who move forward with a happy spirit will find that things always work out.
Ajcorpus
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Re: Time to reach 1M and 2M milestones

Post by Ajcorpus »

Vanguard User wrote: Mon Jun 07, 2021 6:15 pm It took me 14 years to reach $500k. Safe to say, I reach $1M in 7 years and $2M in another 3.5 years?
I believe if the market co operates and with contributions, that sounds about right! Congrats on your milestone, it’s huge !
GG1273
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Re: Time to reach 1M and 2M milestones

Post by GG1273 »

Looking back at our stuff
we were at $98,355 on 9/26/2006 when I first started to keep a spreadsheet of our investments
$2,125,153 as of 6/4/2021 ($2,363,550 including cash) - not including house equity
just under 15 years - key was putting money away, opening Roth's for both of us and never taking any loans.
Retirement in a year looks quite doable.
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Re: Time to reach 1M and 2M milestones

Post by Vanguard User »

Ajcorpus wrote: Mon Jun 07, 2021 6:19 pm
Vanguard User wrote: Mon Jun 07, 2021 6:15 pm It took me 14 years to reach $500k. Safe to say, I reach $1M in 7 years and $2M in another 3.5 years?
I believe if the market co operates and with contributions, that sounds about right! Congrats on your milestone, it’s huge !
Thanks.
Vanguard User
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Re: Time to reach 1M and 2M milestones

Post by Vanguard User »

GG1273 wrote: Mon Jun 07, 2021 7:44 pm Looking back at our stuff
we were at $98,355 on 9/26/2006 when I first started to keep a spreadsheet of our investments
$2,125,153 as of 6/4/2021 ($2,363,550 including cash) - not including house equity
just under 15 years - key was putting money away, opening Roth's for both of us and never taking any loans.
Retirement in a year looks quite doable.
How much did you invest per year in the stock market in those years since 2006?
Vanguard User
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Re: Time to reach 1M and 2M milestones

Post by Vanguard User »

MrBobcat wrote: Mon Jun 07, 2021 10:57 am
BrooklynInvest wrote: Mon Jun 07, 2021 10:41 am Another factor that speeds up the accumulation of "the second million" -

Lottery winners aside, because it happens quite a bit after we start accumulating the first million (duh) earnings and savings could very well be higher.
Way easier to save once the house is paid for, business is paid for, kids educated and income higher.

Haven't hit my first 1MM yet but soon. 1st $500k took 30 years, second $500K is taking less than 3 years.
How did you accomplish $500k in 3 years?
jsapiandante
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Re: Time to reach 1M and 2M milestones

Post by jsapiandante »

We just crossed the two comma club in investible assets this week after 8 years of investing. Started in 2013 after paying off student loans and my wife began her career. We started off maxing both our Roths and 401k but we ramped it up even more with an after tax account before having a child. Crossed $500k in mid 2019. The last 2 years have been a combination of luck with market returns and investing over 6 figures per year.

We scaled down this year since we moved to part time but will continue to max retirement accounts and whatever we have left over after expenses into our after tax account. Hopefully we can cross 2 million in the same time frame before pulling the plug for good.
Archimedes
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Re: Time to reach 1M and 2M milestones

Post by Archimedes »

The first million took me 10 years, back in the day. Lately, those numbers have been rolling over in a matter of months.
GG1273
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Re: Time to reach 1M and 2M milestones

Post by GG1273 »

Vanguard User wrote: Mon Jun 07, 2021 11:43 pm
GG1273 wrote: Mon Jun 07, 2021 7:44 pm Looking back at our stuff
we were at $98,355 on 9/26/2006 when I first started to keep a spreadsheet of our investments
$2,125,153 as of 6/4/2021 ($2,363,550 including cash) - not including house equity
just under 15 years - key was putting money away, opening Roth's for both of us and never taking any loans.
Retirement in a year looks quite doable.
How much did you invest per year in the stock market in those years since 2006?
Average $40K in investments per year and used catch up a few times.
eldinerocheapo
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Re: Time to reach 1M and 2M milestones

Post by eldinerocheapo »

I've tracked our investments every quarter since 2005, so this is a great question. My charts list the following timeline....

1980 to 3rd qtr 2013.........$1 million in 33 years, 3 months.

2013 to 4nd quarter 2017.....$2 million in 4 years 3 months.

Had to double check these figures as I really couldn't believe it myself. We had nothing but 401k's and IRAS in effect to hit these numbers. No inheritance, bonuses or lotto jackpots either.

This amount is even higher than the numbers from four years ago. We live below the radar in retirement and really enjoy the lifestyle this has afforded us.
"Dream, Dare, Do."
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MrBobcat
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Re: Time to reach 1M and 2M milestones

Post by MrBobcat »

Vanguard User wrote: Mon Jun 07, 2021 11:44 pm
MrBobcat wrote: Mon Jun 07, 2021 10:57 am
BrooklynInvest wrote: Mon Jun 07, 2021 10:41 am Another factor that speeds up the accumulation of "the second million" -

Lottery winners aside, because it happens quite a bit after we start accumulating the first million (duh) earnings and savings could very well be higher.
Way easier to save once the house is paid for, business is paid for, kids educated and income higher.

Haven't hit my first 1MM yet but soon. 1st $500k took 30 years, second $500K is taking less than 3 years.
How did you accomplish $500k in 3 years?
Massively increased savings rate and good markets. Had 3 kids in college (one took 5 years other two 4 years, each 2 years apart), paid out of pocket (no 529s), when they got out used all money to pay off remaining debt and when that was done dumped it all into savings. Household income doubled between 1st one going to college and last one getting out so had more to save too. Our income increased from about $105K per year to $210K and have had no lifestyle creep. We had $535K saved 5/31/19 when I switched from EJ to Fidelity and it's sitting at $985K right now. Between now and year end well save another $58K.
Wedemeyer
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Re: Time to reach 1M and 2M milestones

Post by Wedemeyer »

24 years - $1M (2019)
4 years later - $2M (2023 target, today in 2021 it's $1.6M)

Above does not reflect real estate or private company equity.
Last edited by Wedemeyer on Wed Jun 09, 2021 8:19 am, edited 2 times in total.
18_bank_accounts
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Re: Time to reach 1M and 2M milestones

Post by 18_bank_accounts »

16 years to 1M. 3 years to 2M.
Ajcorpus
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Re: Time to reach 1M and 2M milestones

Post by Ajcorpus »

18_bank_accounts wrote: Tue Jun 08, 2021 11:22 pm 16 years to 1M. 3 years to 2M.
Did you get an inheritance? Or invest in Tesla to get that million in 3 years?
18_bank_accounts
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Re: Time to reach 1M and 2M milestones

Post by 18_bank_accounts »

Ajcorpus wrote: Wed Jun 09, 2021 1:08 am
18_bank_accounts wrote: Tue Jun 08, 2021 11:22 pm 16 years to 1M. 3 years to 2M.
Did you get an inheritance? Or invest in Tesla to get that million in 3 years?
Got a higher paying job. Mostly increased savings rate, plus regular index market returns.
Harri88
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Re: Time to reach 1M and 2M milestones

Post by Harri88 »

Harri88 wrote: Sun Jun 06, 2021 2:28 pm We hit our 1st M in late 2017 about 29-30 years of our working careers, and we are inching our way to our second, so close I can smell it :happy. Another 1.6% rise in the market should put us at that mark.
We officially reached #2 today, around 3.5 years from 1 to 2. I was surprised that it happened quickly from my previous post on Sunday! Now on to #3.
stocknoob4111
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Re: Time to reach 1M and 2M milestones

Post by stocknoob4111 »

15 years to $1M
To $2M? TBD... I just hit $1M earlier this month
mrsgoldilocks
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Re: Time to reach 1M and 2M milestones

Post by mrsgoldilocks »

To calculate how fast your stock/mutual fund account can grow, you can try to use ...

https://www.portfoliovisualizer.com/mon ... simulation

Put in your starting balance and annual contribution, your AA (it can be just asset class or specific ticket number), and then, it simulates and give you the possible outcome of your balance and the likelihood for that to happen. In no time, if you are discipline to putting in as much as you can, it really can reach 1M without you realizing ... (given that you are not the type checking your account everyday).

Yes, I do think reaching the first 1M is hard because your income is probably not that high so after paying the essentials, you don't have much left to invest.

But when you reach 1M, your income is likely much more decent, so after paying your "essentials", you have more left to invest. Then, the snowball just grow a lot faster.
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CyclingDuo
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Re: Time to reach 1M and 2M milestones

Post by CyclingDuo »

smitcat wrote: Sun Jun 06, 2021 7:28 am
am wrote: Sun Jun 06, 2021 7:11 am The level of difficulty and amount of time doubling from 10—>20k or 2 mil—>4 mil is the same. I guess that’s why they say that money makes money.
Interestingly the amount of time it takes to go from 20 to 10 is the same as 4 to 2 .....a public service message for those that have not had significant funds invested for more than a dozen years.
Bonus question - if you have 2 million dollars invested in the market and it drops 50% (to one million) how much of a % rise does it take to get back to 2 million dollars?
That's a relevant public service message. :beer

Of course, the answer is 100%.

Since the thread is focused on $1 -----> $2M, here are the percentage of drops (give or take) based on a 50% haircut and the required percentage gain to climb back to the previous level based on one's allocation (source being the near -50% bear market decline of 1973-74)...

Image

Mega Melt-Downs and their subsequent recoveries provide plenty of roller coaster round trips for many to bounce between $1M and $2M in both directions (or whatever portfolio figure you want to use).

Image

For those of us who did experience the -50% drop in the 2000-02 time frame, and the -56% drop in 2007-09, we certainly have that experience of going from $1M to $2M more than once, twice, or even three times. :D

Image

Fortunately, recoveries from the recessions/bear markets, on average, provided the impetus to meet the required answer to your question of 100% given time, patience - and even more if one is able to continue accumulating through the economic and stock market down cycle. To continue with the public service message, we cannot emphasize how important controlling one's emotions are in terms of being involved in investing, coupled with the power of time. The drops are a part of the journey. As is choosing an asset allocation that allows you to tolerate it all.

Image

My favorite table. What if, in spite of all the ups and downs in the market, you maxed out your 401k (403b) plan each and every year through it all?

Image
Courtesy of RetireBy40.org

Pick the year you could have started in the table above and see how much you would have if it had been 100% in the S&P 500.

In it for the long haul...

CyclingDuo
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RadAudit
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Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Time to reach 1M and 2M milestones

Post by RadAudit »

IIRC, it took us about 30 years to get to 1m. It took about 10 years more to get the next 1m.

What bothers me is that when I started, 1m was considered enough to retire well, if you had a pension and SS. Now, numbers like 3m are thrown around, assuming no pension. Hard to get to retirement when "they" keep moving the goalposts.
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
smitcat
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Joined: Mon Nov 07, 2016 10:51 am

Re: Time to reach 1M and 2M milestones

Post by smitcat »

RadAudit wrote: Fri Jun 11, 2021 9:37 am IIRC, it took us about 30 years to get to 1m. It took about 10 years more to get the next 1m.

What bothers me is that when I started, 1m was considered enough to retire well, if you had a pension and SS. Now, numbers like 3m are thrown around, assuming no pension. Hard to get to retirement when "they" keep moving the goalposts.
"Now, numbers like 3m are thrown around,"
The inflation index tells us that 1 million in 1981 had the purchasing power of about 3 million today.

"Hard to get to retirement when "they" keep moving the goalposts."
Always work with your best estimates in nominal dollars for your plan(s).
X528
Posts: 158
Joined: Fri Nov 30, 2018 8:51 am

Re: Time to reach 1M and 2M milestones

Post by X528 »

sanfran2015 wrote: Sun May 17, 2015 5:25 pm Hi all,
For those folks who are in the two comma club, I am wondering if you could chime in with how long it took you to reach 1M and 2M milestones.
They say the first $1M is the hardest. Is that really true? If so, time to go from $1M to $2M should be much shorter than time to get to $1M.

Has there been a poll done on this kind of question?

Thanks.
Can posters also state their portfolio asset allocation? - Whether one uses 100% stock or 60/40 stock/bond allocation, or something else, and their chosen asset classes/funds, especially if they use specialty funds like REITs or high-yield bonds. Just stating the time to reach a certain milestone does not mean much if we don't know how or what they invested in.
LittleMaggieMae
Posts: 819
Joined: Mon Aug 12, 2019 9:06 pm

Re: Time to reach 1M and 2M milestones

Post by LittleMaggieMae »

It took me 28 years to hit 1m in 401k/Roth accounts. I had a 1 mil net worth (scrape together everything - retirement accounts, HSA, savings, EF, real estate) in about 25-26 years.

I set my contribution at 8% and then "forgot" about my 401K for 14 years. I've learned that "set it and forget it" REALLY means - set it up and then review it on some schedule (yearly is nice) and make changes. I possibly would have hit 1m sooner if I had been a little more involved with my Retirement savings (if I had bumped up the contribution level a percent or 2 a few times during those 14 years - I never would have noticed it. I didn't do to bad with what I was invested in... I just didn't contribute enough - instead I frittered my growing income on stuff.)
SanAntionetta
Posts: 96
Joined: Fri Apr 06, 2018 1:42 pm

Re: Time to reach 1M and 2M milestones

Post by SanAntionetta »

It took us 15 years to get to 1MM, starting at an entry level salary at 5% contribution and moving up, for the past 3 years we have been finally maxing out and contributing to backdoor ROTH and starting mega-backdoor ROTH, and coupled with my 10% employer match we are contributing about 65K/yr to retirement accounts plus 12k to taxable accounts, unless something goes terribly wrong we should reach 2MM in a much shorter timeframe :P
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MrBobcat
Posts: 668
Joined: Fri Jan 11, 2019 5:19 pm

Re: Time to reach 1M and 2M milestones

Post by MrBobcat »

Just hit $1MM yesterday, took 32.75 years. I'm not sure I'll hit $2MM.
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MrBobcat
Posts: 668
Joined: Fri Jan 11, 2019 5:19 pm

Re: Time to reach 1M and 2M milestones

Post by MrBobcat »

RadAudit wrote: Fri Jun 11, 2021 9:37 am IIRC, it took us about 30 years to get to 1m. It took about 10 years more to get the next 1m.

What bothers me is that when I started, 1m was considered enough to retire well, if you had a pension and SS. Now, numbers like 3m are thrown around, assuming no pension. Hard to get to retirement when "they" keep moving the goalposts.
If it were $3MM, there'd be very few retirees. I plan on pulling the plug around $1.5MM and fully expect not to have to cut my lifestyle ever, it very well may go up.
mptfan
Posts: 6576
Joined: Mon Mar 05, 2007 9:58 am

Re: Time to reach 1M and 2M milestones

Post by mptfan »

RadAudit wrote: Fri Jun 11, 2021 9:37 amHard to get to retirement when "they" keep moving the goalposts.
It's your retirement, you get to put the goalposts wherever you want.
Wedemeyer
Posts: 40
Joined: Mon Jan 25, 2021 11:14 pm

Re: Time to reach 1M and 2M milestones

Post by Wedemeyer »

smitcat wrote: Fri Jun 11, 2021 10:09 am
RadAudit wrote: Fri Jun 11, 2021 9:37 am IIRC, it took us about 30 years to get to 1m. It took about 10 years more to get the next 1m.

What bothers me is that when I started, 1m was considered enough to retire well, if you had a pension and SS. Now, numbers like 3m are thrown around, assuming no pension. Hard to get to retirement when "they" keep moving the goalposts.
"Now, numbers like 3m are thrown around,"
The inflation index tells us that 1 million in 1981 had the purchasing power of about 3 million today.

"Hard to get to retirement when "they" keep moving the goalposts."
Always work with your best estimates in nominal dollars for your plan(s).
...and $1M in the S&P 500 in 1981 would be worth over $40M today....
Last edited by Wedemeyer on Fri Jun 11, 2021 5:09 pm, edited 1 time in total.
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