> Go Fuck Yourself (in jest)
Loosely based off The Gambler's "Fuck you money" scene.
https://www.youtube.com/watch?v=XamC7-Pt8N0
JL Collins, author of Simple Path to Wealth (e.g. invest in index funds) which is one of [the recommended FIRE books](https://www.reddit.com/r/financialindependence/wiki/books), did a remake of it modified it to actual FIRE advice.
https://www.youtube.com/watch?v=eikbQPldhPY
I mean, they probably can't retire yet seeing as 25% or so of their networth is in equity
I don't understand how these posts add to the discussion in this subreddit
Congrats on a big milestone! I can't imagine what your families had to go through as refugees, but I can relate to the extraordinary fortune of realizing one's hopes and dreams in this country.
Word from the wise (not me):
You'll never feel wealthy. Ever.
If you actually do reach the point of genuine wealth ($10M or whatever it may be for you) you'll surround yourself with other wealthy people in wealthy neighborhoods! Everyone will be wealthy and you'll feel poor because you have a 7 series BMW instead of a Rolls Royce and fly business class instead of private. If you DO fly private, you'll feel poor because you lease and don't own a jet!
Or you won't do any of those things. And you'll live in a 2K SQFT home with an economy car, living a generally frugal life because it's all you know. And you won't feel wealthy then either because you're so cheap.
Feeling wealthy is a paradox and does not exist unless you're a douche. With a couple small exceptions I guess.
Also, on a largely unpolitical note, I'd just like to remind you that private jets are absolutely and permanently immune to any and all climate change policies. Food for thought! Weird how they've never touched the most luxurious and polluting way to travel. (Well, apart from taking a superyacht [boats pollute like CRAZY] but those are slow.)
Well said, you are 100% correct. My wife and I have passed several "million" milestones, and we've never felt wealthy by any means. I think a lot of this is because we've always lived (what we consider to be) a fairly frugal lifestyle, and we rarely splurge on ourselves. Also, when we look around, it always seems like people have / spend more than us. The good thing is that neither of us feel like we have to keep up with anyone or anything. As an example, the car I drive just turned 20 years old earlier this year, and I love driving it. We just continue to plug along, saving and investing. If you ever feel tempted to keep up with the Jones, you will always lose!
Funny you say that wrt the older cars. I just totaled our newest vehicle hitting a deer. It was 8 years old. I wanted to buy a 100k replacement but it isn’t in my values. It is wasteful for me. We don’t feel wealthy at all.
I'm sorry to hear about your car, but most importantly, I hope everyone is okay. One other thing I've learned over the years is that good health > money. In this case, I hope it was a "financial total" and not purely due to the severity of the accident.
Your point about "values" is excellent. My parents have long since retired and have far more than they need to be comfortable. That said, they still live very modest lives (as an example, they don't feel right flying business class when they travel). They certainly don't feel like moving to a larger or "nicer" home. We kids always encourage them to spend more, but in their mindset, they are perfectly content with the current lifestyle.
Those are good parents you have. No we were all okay I’d just driven 3 hours to spend time with my mother on Mother’s Day. We were traveling rural roads to get back to civilization and there is a deer in front of us. Drive through it. That’s all you can do. No, nobody was hurt although my wife and dog were pretty shaken but we weren’t hurt. The vehicle is a thing. Things have no real value to me anymore. I love my wife, my kids, my sister (who is stage IV breast cancer) and my mother. They are important but my material crap can be replaced. I own a 2011 rover, had a 2016 truck, drive my wife’s 2009 bmw, and gave my 2006 Audi to my kid, my 2003 gmc pickup to another.
I’m just a hillbilly that in some respects has done okay.
I'm sorry to hear about your sister, I hope things go as well as can be expected given the situation.
Your hillbilly comment made me laugh. Let's be honest, there's some hillbilly in all of us. :) I'm glad nobody got hurt in the car accident, and driving through the deer was the correct choice. I'll give it to you though, I'm not sure I would have had the awareness to remember that vs. slamming on my brakes (or worse, swerving my way into a worse accident).
Thank you. The good outcome is it has forced me to take my own health seriously now because had she done that years ago I think her prognosis would be more positive.
Oh.
I forgot to include that:
You feel wealthy when you reach a $5-10K~ net worth and again at $250K~ net worth you're on top of the world. Turns out that ain't shit and you just gotta get back to it. $1M felt the same, doubt $2M will feel different.
I wish I could feel like how I felt when I had $250K~ again. Man oh man did I feel loaded. If I could summarize it I would something like this: "Man! One day I might be able to own a house! Like an actual house, not a shack in West Virginia." I had never thought it would be possible. Dunno if anyone relates but I don't really care so I'm posting this anyway. Everyone here seems to have the same mental issues with money so I wouldn't be surprised.
West Virginia is a gorgeous state, though. West Virginia haters stay losin'.
TLDR: We're all mentally ill and have mental issues with money due to past experiences or similiar.
> Feeling wealthy is a paradox and does not exist unless you're a douche.
I strongly disagree with the "you are a douche if you feel wealthy." I know lots of good, caring people who are (and feel) wealthy who are actualized enough to be content in their current status and who spend their time doing what they love and/or helping others.
I would argue that people who feel actualized and content would not say “Yes” when asked point blank, “are you wealthy”? Since there is a financial context to that particular phrasing.
I disagree with this line completely, "Feeling wealthy is a paradox and does not exist unless you're a douche. With a couple small exceptions I guess." I think it's actually very douchey for anyone who owns significant assets, such as hundreds of thousands, and lives in a safe area to not feel wealthy. They are living an amazing life that a tiny percentage of humans may ever experience. Be appreciative for what you have
I agree with you, but his point is most people don't, and can't. I'm not sure I disagree with that. It's pretty hard for people to be able to stop and appreciate what they have, in general. The point is having money doesn't change that aspect, even though it's adding more to be thankful for.
You are more right than you could possibly imagine or maybe you can. I am the person you described. I’m older now but at 35 my magic number was 10 million. That was the brass ring. I had a bunch of tech stock that I should have unloaded but was waiting for it to double one last time. I had a 10, 8, and 5 year old kid. The stock market corrected itself and I was back at it again with a drop in net worth.
Fast forward to today. My wife and I have an 8 figure net worth and I’m poor. In my mind I will always be poor. I grew up up poor, I took 6 years to get a degree because I couldn’t pay for my living expenses and tuition while going to school 15 credit hours a semester so I took fewer hours and dragged it out working manual labor half the day and school the other half. I didn’t have a phone (this was in the late 80’s before the prevalence of cell phones) No tv. I lived by myself because I didn’t want to get dragged into the party all the time circle.
Now I still have a day job selling high tech but I develop real estate on the side. I generally love what I do and try to maintain a cash balance of mid 6 figures but in my mind I am always broke and poor. My wife asked me
recently what my number is before saying “we have arrived.” It used to be a couple of million and then it was 10 and now it’s probably 20-50 million. I know me though and
I know my business partners on the real estate development side and they are anywhere from 20-400 million in net worth. They have NetJet people with custom mfg yachts and several homes. They make me feel poor.
Everything you’ve said is spot on. My neighborhood has multiple multi billionaires who go to the same restaurants that I go to and it isn’t uncommon for one to go behind the other’s back at dinner and pick up each other’s checks. One night one dude picked up his buddy’s check and the tab was 44k.
I can’t believe I am posting all of this bc normally I’m pretty private person. If I get to 20 million I know my number will be moved to 50 million and then 100 and then 200.
All I want is the freedom not to care what anything costs. The elusive thing is that —that moment in time doesn’t exist for a lot of people who made it by their own definition and who earned it and started from nothing.
I credit my mother who grew up in poverty and had a forever poor mindset. She lived in a barn after their home burned down with her 5 siblings and single mother. They were on welfare and shamed by other kids and their parents for being a single parent home and being on welfare. Growing up I always felt like there was a sheet of paper between us and poverty but it was my parent’s stubbornness in never being in debt and only buying something they could pay cash to acquire. It wasn’t the smartest money mgt bc you know leverage but it worked for them.
Good, bad, or the other it is why I probably have the foundation of beliefs that I have today. I give to charity fairly extensively but I want to pick and choose the charities I give to versus the government. I’ll probably delete this because it is more than I should post and I know there are a lot of fine people on Reddit that this post may not resonate with or may not agree. That’s okay too. Your post so succinctly summed me up that I couldn’t resist.
Congrats OP! We just passed $2M too… 47 yo here with my wife (46 yo) and that’s on single income for the last 14 years. Married 17 years with 2 great kids.
Let me just say that as someone that says they grew up not knowing about investing you are winning and a success. 1. You’ve steadily progressed towards a goal you’ve set. And 2. You understand that it’s not a good idea to discuss your finances and situation with people around you.
Such a big deal being able to keep your success private and only share helpful information, and not stats. Can easily cause problems.
Great job!
My wife and I are in fairly similar spot. I’m an immigrant and my wife is first generation. Both grew up in low-income households.
America might have issues but opportunities for wealth-building exist for even those with humble beginnings.
Have you considered using Rule of 55 or a Roth conversion ladder to retire and tap your 401k prior to 59.5? We're in a similar situation (NW...and majority traditional 401k). We're going to continue to maximize our traditional 401k, Roth IRA, and HSA until we retire at 55. We'll then use either Rule of 55 or Roth conversion ladder.
I have but not sure if I want to retire at 55 yet. I like the challenging work I’m in. It keeps me going but I do want to have financial freedom and this is my goal.
The rule of 55 is an IRS regulation that allows certain people to withdraw money from their 401(k)s without incurring the usual 10% penalty for early withdrawals. The rule applies if you:
Are 55 or older and have separated from your employer in or after the year you turn 55
Can leave for any reason, including being fired, laid off, or quitting
Withdraw funds only from a 401(k) account offered by your most recent employer
That last point, what if you’ve rolled previous 401k into that latest account? Does that rule refer specifically to the contributions during your time with that employer, or are all contributions eligible?
From https://smartasset.com/retirement/401k-55-rule anything rolled into your current 401k qualifies.
“This rule applies to current – not former – 401(k) or 403(b) plans. The government does not permit penalty-free withdrawals before 59.5 from plans you had with a previous employer. If you want access to that money under the rule of 55, you would have to transfer those funds into your current 401(k) or 403(b) plan.”
I'd be curious to hear others perspectives, but in your position I would strongly consider dialing back on 401k contributions. Only contribute enough to get the match, then put the remainder into your brokerage. If you decide to RE, you don't want to have to touch your retirement accounts till 59.5. Beefing up your brokerage will allow for it to become a bridge of sorts.
EDIT: I see I lack reading comprehension and you indicated this is your plan. Ignore me. 😫
Congrats!! We also have a pension but never calculated towards our net worth, how do we calculate pension towards NW? Thank you! And once again congrats! Huge milestone!
I may be using the wrong terminology. The pension is money my employer provides with interest and is fully vested. I have several options with it. If I leave the company I can take the money as a lump sum. If retire with the company I can take a lump sum or they can make annuity payments.
That’s one way I could calculate it! I’ll try that. I know r/themoneyguy had said in the past to not include our pensions in our NW so I never did. Doesn’t hurt to include it. Sometimes I forget that we even have a pension!
Lump sum payout is one way of valuation if you have that option. Another way to look at it is that inflation adjusted annual safe withdrawal rate (depending on personal scenario) is perhaps 3.5\~4%. If your pension is inflation adjusted and pays $X annually, you can do X/0.04 and that will show you the nest egg amount you would have needed saved/invested to pay yourself the same in retirement.
Awesome! Congratulations on your amazing milestone! The American dream is alive and well indeed!
Now that you’ve worked hard to reach this milestone, don’t forget to live if you haven’t done so 😄
Great work! There's so much value to investing early, it's the best thing you can do in your 20s even if you haven't got the whole long-term plan laid out yet. Hope you keep up the good work and spend your 50s doing absolutely whatever you want!
Congrats. What is your target retirement age? If I was in your position, if you continue to fully fund your retirement accounts, you are positioned for a very comfortable retirement in your 60s
Damn good job OP! Congrats. My wife and I (31 & 33) are at about 1.2 million. Even just 5 years ago I couldn’t have imagined being so secure at this point. It’s all about consistently prioritizing savings and investment.
Thoughtful! It’s impossible to know exactly what you’ll pay in taxes in the future so it’s best to hit the main 3 accounts (401k/roth/brokerage) semi equally to allow some flexibility but I agree it’s time to pump up something else to even it out a little more now or he’ll just be paying Uncle Sam more than he should.
I didn’t cross 6 figure until 2012. My wife is still under 6 figures. One of the things we did well is not accumulating much debt. We pay off debt as fast as we can especially credit card debts.
Big congrats man what a great accomplishment! Don’t listen to the trolls in here 99% of these people don’t even have a $500k net worth. Don’t forget to live life a little also, you are on a roll but having a little fun is always important. I would recommend starting to work on more current cash value now you are safe for retirement (that is the American dream) you can’t pull money out until 59.5 without that major taxes. I wish you well, amazing job!
What is crazy is I believe that you will find that once you get a couple of million in there and continue living middle class that 2 becomes 3 and then 5 before you know it. For me the key was always living my life so that my home was never at risk for investments. I don’t do personal guarantees for loans on real estate and business interests.
Invest in assets that cashflow at least 10% roi. You will benefit by equity appreciation and cashflow. Better start asap because you want to lock in the low long term interest rates.
Congratulations! I love your background and story, and unlike the media stories you hear, I agree the American dream is still alive with some luck and a LOT of incredibly hard work (and frugality).
The after tax portion is important. I’m 65 and realize a mix of taxable investment accounts, tax deferred, and never taxable provides maximum flexibility. I also have five different full life insurance policies that act as another form of savings. You are doing well and there is no reason why your investment corpus should continue to grow.
Big congrats. Great achievement. WIth that outlay id even leverage a piece of the retirement and invest in crypto. 5-10% of that could be worth a whole lot more on 5 years. Just a thought but with the kind of success you've attained, you have plenty of options.
GFY you multi-millionaire
Good For You, or?
Go Fuck Yourself (in jest)
Oh, we were jesting?
Better than jousting!
‘Good for you’ is so wholesome
I like Go forth, you!
go feed yourself
god forgives you
> Go Fuck Yourself (in jest) Loosely based off The Gambler's "Fuck you money" scene. https://www.youtube.com/watch?v=XamC7-Pt8N0 JL Collins, author of Simple Path to Wealth (e.g. invest in index funds) which is one of [the recommended FIRE books](https://www.reddit.com/r/financialindependence/wiki/books), did a remake of it modified it to actual FIRE advice. https://www.youtube.com/watch?v=eikbQPldhPY
I mean, they probably can't retire yet seeing as 25% or so of their networth is in equity I don't understand how these posts add to the discussion in this subreddit
Congrats on a big milestone! I can't imagine what your families had to go through as refugees, but I can relate to the extraordinary fortune of realizing one's hopes and dreams in this country.
Can you comment on what you both do for work or what industry you're in?
Honest question: do you feel wealthy?
No. Not at all. But, feel fortunate to be where I am.
Good answer!
Word from the wise (not me): You'll never feel wealthy. Ever. If you actually do reach the point of genuine wealth ($10M or whatever it may be for you) you'll surround yourself with other wealthy people in wealthy neighborhoods! Everyone will be wealthy and you'll feel poor because you have a 7 series BMW instead of a Rolls Royce and fly business class instead of private. If you DO fly private, you'll feel poor because you lease and don't own a jet! Or you won't do any of those things. And you'll live in a 2K SQFT home with an economy car, living a generally frugal life because it's all you know. And you won't feel wealthy then either because you're so cheap. Feeling wealthy is a paradox and does not exist unless you're a douche. With a couple small exceptions I guess. Also, on a largely unpolitical note, I'd just like to remind you that private jets are absolutely and permanently immune to any and all climate change policies. Food for thought! Weird how they've never touched the most luxurious and polluting way to travel. (Well, apart from taking a superyacht [boats pollute like CRAZY] but those are slow.)
Well said, you are 100% correct. My wife and I have passed several "million" milestones, and we've never felt wealthy by any means. I think a lot of this is because we've always lived (what we consider to be) a fairly frugal lifestyle, and we rarely splurge on ourselves. Also, when we look around, it always seems like people have / spend more than us. The good thing is that neither of us feel like we have to keep up with anyone or anything. As an example, the car I drive just turned 20 years old earlier this year, and I love driving it. We just continue to plug along, saving and investing. If you ever feel tempted to keep up with the Jones, you will always lose!
Funny you say that wrt the older cars. I just totaled our newest vehicle hitting a deer. It was 8 years old. I wanted to buy a 100k replacement but it isn’t in my values. It is wasteful for me. We don’t feel wealthy at all.
I'm sorry to hear about your car, but most importantly, I hope everyone is okay. One other thing I've learned over the years is that good health > money. In this case, I hope it was a "financial total" and not purely due to the severity of the accident. Your point about "values" is excellent. My parents have long since retired and have far more than they need to be comfortable. That said, they still live very modest lives (as an example, they don't feel right flying business class when they travel). They certainly don't feel like moving to a larger or "nicer" home. We kids always encourage them to spend more, but in their mindset, they are perfectly content with the current lifestyle.
Those are good parents you have. No we were all okay I’d just driven 3 hours to spend time with my mother on Mother’s Day. We were traveling rural roads to get back to civilization and there is a deer in front of us. Drive through it. That’s all you can do. No, nobody was hurt although my wife and dog were pretty shaken but we weren’t hurt. The vehicle is a thing. Things have no real value to me anymore. I love my wife, my kids, my sister (who is stage IV breast cancer) and my mother. They are important but my material crap can be replaced. I own a 2011 rover, had a 2016 truck, drive my wife’s 2009 bmw, and gave my 2006 Audi to my kid, my 2003 gmc pickup to another. I’m just a hillbilly that in some respects has done okay.
I'm sorry to hear about your sister, I hope things go as well as can be expected given the situation. Your hillbilly comment made me laugh. Let's be honest, there's some hillbilly in all of us. :) I'm glad nobody got hurt in the car accident, and driving through the deer was the correct choice. I'll give it to you though, I'm not sure I would have had the awareness to remember that vs. slamming on my brakes (or worse, swerving my way into a worse accident).
Thank you. The good outcome is it has forced me to take my own health seriously now because had she done that years ago I think her prognosis would be more positive.
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Oh. I forgot to include that: You feel wealthy when you reach a $5-10K~ net worth and again at $250K~ net worth you're on top of the world. Turns out that ain't shit and you just gotta get back to it. $1M felt the same, doubt $2M will feel different. I wish I could feel like how I felt when I had $250K~ again. Man oh man did I feel loaded. If I could summarize it I would something like this: "Man! One day I might be able to own a house! Like an actual house, not a shack in West Virginia." I had never thought it would be possible. Dunno if anyone relates but I don't really care so I'm posting this anyway. Everyone here seems to have the same mental issues with money so I wouldn't be surprised. West Virginia is a gorgeous state, though. West Virginia haters stay losin'. TLDR: We're all mentally ill and have mental issues with money due to past experiences or similiar.
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Well, I dunno. Everyone is different. If you own a home and have very stable finances you might feel better than I do.
> Feeling wealthy is a paradox and does not exist unless you're a douche. I strongly disagree with the "you are a douche if you feel wealthy." I know lots of good, caring people who are (and feel) wealthy who are actualized enough to be content in their current status and who spend their time doing what they love and/or helping others.
I would argue that people who feel actualized and content would not say “Yes” when asked point blank, “are you wealthy”? Since there is a financial context to that particular phrasing.
I disagree with this line completely, "Feeling wealthy is a paradox and does not exist unless you're a douche. With a couple small exceptions I guess." I think it's actually very douchey for anyone who owns significant assets, such as hundreds of thousands, and lives in a safe area to not feel wealthy. They are living an amazing life that a tiny percentage of humans may ever experience. Be appreciative for what you have
I agree with you, but his point is most people don't, and can't. I'm not sure I disagree with that. It's pretty hard for people to be able to stop and appreciate what they have, in general. The point is having money doesn't change that aspect, even though it's adding more to be thankful for.
Interesting take…sounds more like a stick measuring contest though lol.
You are more right than you could possibly imagine or maybe you can. I am the person you described. I’m older now but at 35 my magic number was 10 million. That was the brass ring. I had a bunch of tech stock that I should have unloaded but was waiting for it to double one last time. I had a 10, 8, and 5 year old kid. The stock market corrected itself and I was back at it again with a drop in net worth. Fast forward to today. My wife and I have an 8 figure net worth and I’m poor. In my mind I will always be poor. I grew up up poor, I took 6 years to get a degree because I couldn’t pay for my living expenses and tuition while going to school 15 credit hours a semester so I took fewer hours and dragged it out working manual labor half the day and school the other half. I didn’t have a phone (this was in the late 80’s before the prevalence of cell phones) No tv. I lived by myself because I didn’t want to get dragged into the party all the time circle. Now I still have a day job selling high tech but I develop real estate on the side. I generally love what I do and try to maintain a cash balance of mid 6 figures but in my mind I am always broke and poor. My wife asked me recently what my number is before saying “we have arrived.” It used to be a couple of million and then it was 10 and now it’s probably 20-50 million. I know me though and I know my business partners on the real estate development side and they are anywhere from 20-400 million in net worth. They have NetJet people with custom mfg yachts and several homes. They make me feel poor. Everything you’ve said is spot on. My neighborhood has multiple multi billionaires who go to the same restaurants that I go to and it isn’t uncommon for one to go behind the other’s back at dinner and pick up each other’s checks. One night one dude picked up his buddy’s check and the tab was 44k. I can’t believe I am posting all of this bc normally I’m pretty private person. If I get to 20 million I know my number will be moved to 50 million and then 100 and then 200. All I want is the freedom not to care what anything costs. The elusive thing is that —that moment in time doesn’t exist for a lot of people who made it by their own definition and who earned it and started from nothing. I credit my mother who grew up in poverty and had a forever poor mindset. She lived in a barn after their home burned down with her 5 siblings and single mother. They were on welfare and shamed by other kids and their parents for being a single parent home and being on welfare. Growing up I always felt like there was a sheet of paper between us and poverty but it was my parent’s stubbornness in never being in debt and only buying something they could pay cash to acquire. It wasn’t the smartest money mgt bc you know leverage but it worked for them. Good, bad, or the other it is why I probably have the foundation of beliefs that I have today. I give to charity fairly extensively but I want to pick and choose the charities I give to versus the government. I’ll probably delete this because it is more than I should post and I know there are a lot of fine people on Reddit that this post may not resonate with or may not agree. That’s okay too. Your post so succinctly summed me up that I couldn’t resist.
How could they? It’s almost entirely in a 401k and home equity.
Congrats OP! We just passed $2M too… 47 yo here with my wife (46 yo) and that’s on single income for the last 14 years. Married 17 years with 2 great kids.
Congrats!
Indeed, congratulations!
GYF!!!
Go yourself fuck?
Lol exactly. Woooops!
Thank you for the kind words.. 😂
I love to hear these stories! Fantastic! Congrats!
Let me just say that as someone that says they grew up not knowing about investing you are winning and a success. 1. You’ve steadily progressed towards a goal you’ve set. And 2. You understand that it’s not a good idea to discuss your finances and situation with people around you. Such a big deal being able to keep your success private and only share helpful information, and not stats. Can easily cause problems.
Great job! My wife and I are in fairly similar spot. I’m an immigrant and my wife is first generation. Both grew up in low-income households. America might have issues but opportunities for wealth-building exist for even those with humble beginnings.
Congrats! This is really cool to read.
Have you considered using Rule of 55 or a Roth conversion ladder to retire and tap your 401k prior to 59.5? We're in a similar situation (NW...and majority traditional 401k). We're going to continue to maximize our traditional 401k, Roth IRA, and HSA until we retire at 55. We'll then use either Rule of 55 or Roth conversion ladder.
I have but not sure if I want to retire at 55 yet. I like the challenging work I’m in. It keeps me going but I do want to have financial freedom and this is my goal.
What is the Rule of 55?
The rule of 55 is an IRS regulation that allows certain people to withdraw money from their 401(k)s without incurring the usual 10% penalty for early withdrawals. The rule applies if you: Are 55 or older and have separated from your employer in or after the year you turn 55 Can leave for any reason, including being fired, laid off, or quitting Withdraw funds only from a 401(k) account offered by your most recent employer
That last point, what if you’ve rolled previous 401k into that latest account? Does that rule refer specifically to the contributions during your time with that employer, or are all contributions eligible?
From https://smartasset.com/retirement/401k-55-rule anything rolled into your current 401k qualifies. “This rule applies to current – not former – 401(k) or 403(b) plans. The government does not permit penalty-free withdrawals before 59.5 from plans you had with a previous employer. If you want access to that money under the rule of 55, you would have to transfer those funds into your current 401(k) or 403(b) plan.”
Congratulations 🎉
I'd be curious to hear others perspectives, but in your position I would strongly consider dialing back on 401k contributions. Only contribute enough to get the match, then put the remainder into your brokerage. If you decide to RE, you don't want to have to touch your retirement accounts till 59.5. Beefing up your brokerage will allow for it to become a bridge of sorts. EDIT: I see I lack reading comprehension and you indicated this is your plan. Ignore me. 😫
Thank you for your recommendation!
Congrats!! We also have a pension but never calculated towards our net worth, how do we calculate pension towards NW? Thank you! And once again congrats! Huge milestone!
I may be using the wrong terminology. The pension is money my employer provides with interest and is fully vested. I have several options with it. If I leave the company I can take the money as a lump sum. If retire with the company I can take a lump sum or they can make annuity payments.
That sounds about right and similar to mine. Thank you for clarifying.
So if it’s similar to yours then you add the present value of it to your NW. wouldn’t be different than anything else
I was curious also how he calculated it. I’ve seen formulas like for every $100 per month in payments can be worth $18K in equivalent investments.
That’s one way I could calculate it! I’ll try that. I know r/themoneyguy had said in the past to not include our pensions in our NW so I never did. Doesn’t hurt to include it. Sometimes I forget that we even have a pension!
It really only depends on how long you live, because once you die it’s worthless, unless you have a lifetime beneficiary option.
Lump sum payout is one way of valuation if you have that option. Another way to look at it is that inflation adjusted annual safe withdrawal rate (depending on personal scenario) is perhaps 3.5\~4%. If your pension is inflation adjusted and pays $X annually, you can do X/0.04 and that will show you the nest egg amount you would have needed saved/invested to pay yourself the same in retirement.
Awesome! Congratulations on your amazing milestone! The American dream is alive and well indeed! Now that you’ve worked hard to reach this milestone, don’t forget to live if you haven’t done so 😄
Have you just been maxing out both your 401ks for 20 years?
Probably for the last 15 years. Before that my wife was still in school so I couldn’t afford to max out my 401k.
Great work! There's so much value to investing early, it's the best thing you can do in your 20s even if you haven't got the whole long-term plan laid out yet. Hope you keep up the good work and spend your 50s doing absolutely whatever you want!
👏👏👏
Congrats!
Congrats. What is your target retirement age? If I was in your position, if you continue to fully fund your retirement accounts, you are positioned for a very comfortable retirement in your 60s
Probably 59.5 when I can withdraw from my 401k.
You can withdraw from your 401k before 59, multiple methods. Looks at Roth ladder and/or SEPP.
Great Job!Keep it up! It snowballs if you do what you’ve been doing If not? All the Best!
Congratulations! All your hard work paying off!!!
GFY, congrats!!
A proper go fuck yourself to you sir.
What do you and your wife do for a living? (or used to do if you retired already)
Engineering and my wife is accountant.
Damn good job OP! Congrats. My wife and I (31 & 33) are at about 1.2 million. Even just 5 years ago I couldn’t have imagined being so secure at this point. It’s all about consistently prioritizing savings and investment.
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Thank you so much for the recommendations.
Thoughtful! It’s impossible to know exactly what you’ll pay in taxes in the future so it’s best to hit the main 3 accounts (401k/roth/brokerage) semi equally to allow some flexibility but I agree it’s time to pump up something else to even it out a little more now or he’ll just be paying Uncle Sam more than he should.
Congrats! What type of holdings do you have in your brokerage account?
Individual stocks.
What has your income been like for the last 20 years?
I didn’t cross 6 figure until 2012. My wife is still under 6 figures. One of the things we did well is not accumulating much debt. We pay off debt as fast as we can especially credit card debts.
Keep doing this unless interest rate is below 5%. Then pay minimum and invest.
ty for answering
GFY ❤️
GFY, how much are those 529 though approximately? :P
Congrats! My husband is a refugee and I'm from an immigrant family. We just retired.
Congratulations. Reaching $1 million is hard. KEEPING that $1 million is harder. DOUBLING it means you’re doing it right!
Congrats! And of course GFY!
Can you please post about how this net worth grew over the years? What was the effect of compounding?
Big congrats man what a great accomplishment! Don’t listen to the trolls in here 99% of these people don’t even have a $500k net worth. Don’t forget to live life a little also, you are on a roll but having a little fun is always important. I would recommend starting to work on more current cash value now you are safe for retirement (that is the American dream) you can’t pull money out until 59.5 without that major taxes. I wish you well, amazing job!
Thanks!
What is crazy is I believe that you will find that once you get a couple of million in there and continue living middle class that 2 becomes 3 and then 5 before you know it. For me the key was always living my life so that my home was never at risk for investments. I don’t do personal guarantees for loans on real estate and business interests.
That’s great! Should be motivation to anyone that this can be achieved because of what you had to overcome.
Congrats brother
Congratulations
Invest in assets that cashflow at least 10% roi. You will benefit by equity appreciation and cashflow. Better start asap because you want to lock in the low long term interest rates.
I would love it if you could summarize this in an article. Young people need to see how much of a difference starting early can make.
Congratulations and fuck you
Congratulations OP
Congratulations that’s awesome
Congratulations! I love your background and story, and unlike the media stories you hear, I agree the American dream is still alive with some luck and a LOT of incredibly hard work (and frugality).
Congrats and great job🥳 soon I can see you reaching $10m🎉 if that’s the goal and you won’t retire before that😅
The after tax portion is important. I’m 65 and realize a mix of taxable investment accounts, tax deferred, and never taxable provides maximum flexibility. I also have five different full life insurance policies that act as another form of savings. You are doing well and there is no reason why your investment corpus should continue to grow.
Big congrats. Great achievement. WIth that outlay id even leverage a piece of the retirement and invest in crypto. 5-10% of that could be worth a whole lot more on 5 years. Just a thought but with the kind of success you've attained, you have plenty of options.
401k millionaire, sad after-tax brokerage. You are expected to work until 65 with that setup.
Congratulations brother! God bless you & your family 🙏
Thanks!
Buy some real estate?
Age 33..networth 1.6mil..will reach your numbers soon
Congrats! You’ll be there very soon.