I just became a millionaire at age 35, AMA (I've never made more than 150k annually)

undercover yeek wrote:

Congrats man. I also realized I'm technically a millionaire this year at age 41 (nice work beating me there!)

My investments:

2013 - $102k

2014 - $150k

2015 - $197k

2016 - $287k

2017 - $386k

2018 - $421k

2019 - $519k

2020 - $641k

2021 - $859k

I never count my home equity or my kids 529 plans but technically they are part of net worth so when I add them in this year it adds $159k equity & $45k for the kids = $1.06 million. Weird.

For reference back when I started tracking our household income was probably around $110k, and now it's about $230k. Our retirement number is $2.5 million in investments. I'd love to hit that by age 50 but my spreadsheet with conservative assumptions puts me there at age 56. I guess we'll see if real life beats my conservative outlook to get me there sooner.

Awesome! Yeah my next goal is to get there with only investments. I do have to live in my home after all.

the long run wrote:

Make up of net worth is:

20k in cash

386k home equity

594k in Vanguard total stock market index between HSA, 401k, IRAs

1) This is pretty good. Depending on when you want to retire though or how comfortably you want to retire, it's not all that great. Keep investing. Invest more if you can.

2) So, you have ZERO debt? If you still owe on the house, you need to subtract that. Yes, you could sell and buy a house for just the equity you have built up, but if you still owe, it's still currently a liability.

lol so wut wrote:

the long run wrote:

1) No I am not.

Ok, well the OP is "the long road," so if you aren't posting under two names, you aren't the OP. Why are you responding as if you are?

Hah, I guess I did. Sorry between my phone, my computer, and my Remote Desktop I guess I posted under the long run, the long road, and the long rd. I didn’t realize.

I disagree. Let's say my neighbor and I both have $5M in the bank. I live in a $6M house that I just bought on a $5M 20 year mortgage. He rents at $5k per month. We are 40 years old. He sounds a lot richer than me but I think I will be worth twice what he is in 20 years.

1) field of work is Accounting.

2) I wasn’t super focused on investing before 2016. I just did my employer match 4%, no IRA, HSA or 529. But we did save a lot for our first home which we bought on a 15 yr note 2.62% and with 25% down. Starting salary was 48k in 2010, wife made 34k. 2011 49.5 + 24k, 2012 55k+24k, 2013 61k + 24k, 2014 65.5k + 24k, 2015 72k + 24k, 2016 listed in OP.

3) Weve started increasing our disposable spending a bit. I haven’t calculated a retirement number it’s just so early, I expect to work til 55 at least bc I enjoy it. Most of these assets are retirement accounts. I would like to purchase a little more house in the next 2-3 yrs, with 4Bedrooms since we have 3 kids.

4) my current mortgage rate is 2.875% for 30yrs biweekly. I used to be fully in on the absolutely no debt camp. But currently I feel that rate is so low it’s a bit silly to pay it off. I have plans to buy into my company as an owner in the near term so the return on that kind of investment will certainly outpace 2.875%. I may refinance to a smaller term in the future but for now I say keep the mortgage and invest elsewhere after filling up tax adv Accts.

5) I have interest bc I have buddies singing praises of their Robinhood accounts or crypto or multiple rental properties. But at the end of the day this works really well with no additional hours or work/worry and that is huge.

Flagpole wrote:

the long run wrote:

Make up of net worth is:

20k in cash

386k home equity

594k in Vanguard total stock market index between HSA, 401k, IRAs

1) This is pretty good. Depending on when you want to retire though or how comfortably you want to retire, it's not all that great. Keep investing. Invest more if you can.

2) So, you have ZERO debt? If you still owe on the house, you need to subtract that. Yes, you could sell and buy a house for just the equity you have built up, but if you still owe, it's still currently a liability.

1) yes I have a long ways to go, this was just a big threshold for me to reach.

2) Sorry for confusion, I have a mortgage on my primary residence. The home is worth ~820k and the mortgage is 438k. I already subtracted the liability to arrive at the net worth number. Total assets are about 1.44M and total liabilities are 438k.

I am not a fan of subtracting the mortgage balance. You have the appreciating asset. I buy stocks on margin. I sell some of them in the same day but if I used the logic if subtracting my liability from my net worth, my net worth decreases by $100k one hour and then increases the next hour when I no longer have that liability.

How does it feel to be poor by letsrun standards?

the long rd wrote:

Flagpole wrote:

1) This is pretty good. Depending on when you want to retire though or how comfortably you want to retire, it's not all that great. Keep investing. Invest more if you can.

2) So, you have ZERO debt? If you still owe on the house, you need to subtract that. Yes, you could sell and buy a house for just the equity you have built up, but if you still owe, it's still currently a liability.

1) yes I have a long ways to go, this was just a big threshold for me to reach.

2) Sorry for confusion, I have a mortgage on my primary residence. The home is worth ~820k and the mortgage is 438k. I already subtracted the liability to arrive at the net worth number. Total assets are about 1.44M and total liabilities are 438k.

Ok. Cool. Wasn't meaning to take the wind out of your sail. It's a good milestone. You are way ahead of most people your age...even most people.

Vegas dude wrote:

I disagree. Let's say my neighbor and I both have $5M in the bank. I live in a $6M house that I just bought on a $5M 20 year mortgage. He rents at $5k per month. We are 40 years old. He sounds a lot richer than me but I think I will be worth twice what he is in 20 years.

Not sure what you are trying to get across there, but people have assets and liabilities.

If you own money on a home, that is a liability. Net worth is assets - liabilities.

What is my neighbor's liability for a lifetime of rent? Should he assume that he will live to 100 and calculate the rent for 60 years as a liability?

Vegas dude wrote:

I am not a fan of subtracting the mortgage balance. You have the appreciating asset. I buy stocks on margin. I sell some of them in the same day but if I used the logic if subtracting my liability from my net worth, my net worth decreases by $100k one hour and then increases the next hour when I no longer have that liability.

Hmm, i don’t know. I’m an accountant, assets minus liabilities = net equity, everything has to balance so this is the only way I know. I think the more conservative net worth calc is no home equity included.

fansofonly wrote:

How does it feel to be poor by letsrun standards?

Hahaha well done. Definitely slower too.

What if I own a house worth $5M that is paid off? You own a $5M house with a $4M mortgage while you have $4M in the bank? Our net worth is the same.

In addition to bragging about your net worth on Letsrun, do you brag about your 2:55 marathon on investing message boards?

Looks like you are still working. You can’t retire comfortably on 1 million. Brag when you are retired. Until then, it doesn’t matter how much money you have, you are still working your life away.

But congrats on your newfound “wealth” while you spend over half your waking hours at work.

Sesamoiditis wrote:

In addition to bragging about your net worth on Letsrun, do you brag about your 2:55 marathon on investing message boards?

Haha no. Once you’ve bought into buy and hold index fund investing there isn’t much to read about.

jfdhhjdd wrote:

Looks like you are still working. You can’t retire comfortably on 1 million. Brag when you are retired. Until then, it doesn’t matter how much money you have, you are still working your life away.

But congrats on your newfound “wealth” while you spend over half your waking hours at work.

For sure not close to retirement. Just happy to meet a significant threshold and my goal was to make it by 40, I was surprised how quickly the compounding worked.