2 Comma Club and Other Goals Reached!

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SeaToTheBay
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2 Comma Club and Other Goals Reached!

Post by SeaToTheBay » Tue Oct 10, 2017 12:03 pm

Considered and reconsidered whether to post or not, but I figured I won't reach a milestone quite like this maybe ever again, and maybe I can share some things that have helped.

Wife and I hit the 2 comma club last Friday, and yesterday hit the half-million mark for $ (no real estate). Yes, RE is nearly half of our NW - we bought a townhouse in the Bay Area a year ago, and both that and the condo in Seattle I own 50/50 with my parents (now renting out... weak cash flow but hot RE market and great tenants) have appreciated quite a bit in the past year to accelerate our unrealized on-paper gains. So the $1M NW mark should be taken with a big grain of salt, but it's nice to see that we hopefully made a good decision last year by buying a home in this ridiculous housing market.

How we got here is a bit different. We met during MBA, graduating in 2013 with $35-40k NW each. The makeup of our modest sums was very different. My parents had gotten me started saving for retirement super early (I made $300/mo Roth contributions from my HS jobs, and saved every penny of Xmas/Bday $ since I was 5), but graduated with $110k in student loans which cancelled out most of what I had. My now-wife, conversely, was criminally underpaid pre-MBA ($40k/yr in the Bay Area despite being in finance), but got a full ride to undergrad AND grad school, so she didn't have much saved but crucially, zero debt.

Our combined income was $125k before MBA, $260k when we graduated in 2013, and now ~$390k, although about 1/3 of that is variable in the form of bonuses and RSUs. We have been fortunate that our workplaces recognize our efforts and try to keep us happy :happy

From 2013 to now, we have saved a lot and taken many steps to improve our cash flow. We finished paying off my student loans two months ago, paid off my car, refinanced the rental condo to eliminate PMI, and learned more about taxes. I've whittled down our cable/internet/phone bills and cut buying lunch at work to ~3x/month. Year by year, we've pared down our expenses while income has gone up, which has had a predictably profound effect on our ability to save. A prolonged bull market and robust housing market have certainly helped a lot. Hoping to have a kid next year, so that will eat into our savings rate, but I'm glad we were able to improve our cash flow before that all happens.

Anyway, that is how we got here. Hope it is the only time we breach the 7-figure mark, as a down market could easily plunge us back below that mark!

RadAudit
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Re: 2 Comma Club and Other Goals Reached!

Post by RadAudit » Tue Oct 10, 2017 1:30 pm

Congrats. Welcome to the club.

Don't concern yourself with how many times you make it back and forth across the threshold. Some of us have been back and forth across that number more than a few times.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

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Sandtrap
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Re: 2 Comma Club and Other Goals Reached!

Post by Sandtrap » Tue Oct 10, 2017 1:33 pm

2 comma club including R/E.
Congratulations!
Onward. Onward. Onward.
:sharebeer

forkhorn
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Re: 2 Comma Club and Other Goals Reached!

Post by forkhorn » Tue Oct 10, 2017 9:58 pm

Congratulations. At the rate you went from six to seven figures, this milestone will be in the rearview mirror before you know it, even if you do go back and forth over it a few times.

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djpeteski
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Re: 2 Comma Club and Other Goals Reached!

Post by djpeteski » Wed Oct 11, 2017 6:18 am

All, in all, very positive changes. Onward and upward for you two. Congrats! :sharebeer

J295
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Re: 2 Comma Club and Other Goals Reached!

Post by J295 » Wed Oct 11, 2017 6:47 am

Happy for you. Glad you posted so you can share your excitement.

Utahdogowner
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Re: 2 Comma Club and Other Goals Reached!

Post by Utahdogowner » Wed Oct 11, 2017 6:52 am

Fabulous! Congrats! Hope I'm not too far behind you.

tampaite
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Re: 2 Comma Club and Other Goals Reached!

Post by tampaite » Wed Oct 11, 2017 7:58 am

SeaToTheBay wrote:
Tue Oct 10, 2017 12:03 pm

Wife and I hit the 2 comma club last Friday, and yesterday hit the half-million mark for $ (no real estate). Yes, RE is nearly half of our NW -
Congrats!

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lthenderson
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Re: 2 Comma Club and Other Goals Reached!

Post by lthenderson » Wed Oct 11, 2017 8:43 am

Congratulations! I'm guessing the number in front of the first comma will go from a 1 to a 2 before you know it.

BoulderTrojan
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Re: 2 Comma Club and Other Goals Reached!

Post by BoulderTrojan » Fri Nov 24, 2017 11:01 pm

My wife & I reached the 2 comma club today! Thanks Bogleheads.

We retired 3 years ago with $853,000. It has grown steadily these past 3 years, thankfully.

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abuss368
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Re: 2 Comma Club and Other Goals Reached!

Post by abuss368 » Fri Nov 24, 2017 11:14 pm

Congrats! :sharebeer
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Sandtrap
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Re: 2 Comma Club and Other Goals Reached!

Post by Sandtrap » Fri Nov 24, 2017 11:37 pm

BoulderTrojan wrote:
Fri Nov 24, 2017 11:01 pm
My wife & I reached the 2 comma club today! Thanks Bogleheads.

We retired 3 years ago with $853,000. It has grown steadily these past 3 years, thankfully.
Awesome!!!!
:sharebeer

tampaite
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Re: 2 Comma Club and Other Goals Reached!

Post by tampaite » Sun Nov 26, 2017 10:06 am

SeaToTheBay wrote:
Tue Oct 10, 2017 12:03 pm
Wife and I hit the 2 comma club last Friday, and yesterday hit the half-million mark for $ (no real estate). Yes, RE is nearly half of our NW
Keep chugging along. Congrats!

Momus
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Re: 2 Comma Club and Other Goals Reached!

Post by Momus » Sun Nov 26, 2017 10:18 am

If you make 400k/yr and don't have 2M at least in portfolio after a while, there is something wrong with you lmao...

I'm sure you will triple that NW easily in the next 15 yrs. Grats on the first milestone.

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MoneyJungle
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Re: 2 Comma Club and Other Goals Reached!

Post by MoneyJungle » Sun Nov 26, 2017 11:49 am

Congrats! I would add that having a kid might not decrease your savings rate as much as you think it will. My wife and I have found that while childcare is an enormous yearly outlay, we've seen our consumption/spending levels drop significantly. There's also the added personal tax exemption for junior, the ability to add junior to a "family" HSA plan and take the deduction from $3400 to $6800, etc...
"The avoidance of taxes is the only intellectual pursuit that still carries any reward." -- JM Keynes

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White Coat Investor
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Re: 2 Comma Club and Other Goals Reached!

Post by White Coat Investor » Sun Nov 26, 2017 3:28 pm

Congratulations! I know for a lot of people, this is the only place you can talk about this major life achievement.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

Grt2bOutdoors
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Re: 2 Comma Club and Other Goals Reached!

Post by Grt2bOutdoors » Sun Nov 26, 2017 3:48 pm

Congrats!

For some, even though they may achieve certain milestones in life, feel humble and hence will not even discuss achievements on an anonymous internet forum.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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mickeyd
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Re: 2 Comma Club and Other Goals Reached!

Post by mickeyd » Sun Nov 26, 2017 3:51 pm

Anyway, that is how we got here.
Congrats! The second million is way easier to acquire than the first one.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

2b2
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Re: 2 Comma Club and Other Goals Reached!

Post by 2b2 » Sun Nov 26, 2017 4:07 pm

Nicely done!

bubbadog
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Re: 2 Comma Club and Other Goals Reached!

Post by bubbadog » Sun Nov 26, 2017 7:31 pm

Well done, congrats! :sharebeer

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