How long did it take you to reach $1M net worth?

33 or so, jointly with my wife. Jointly we're about 1.9 now, 5 years later.

Not exactly sure, but I at about $1.6m now at age 47 I have accrued significant equity in my home over the last few years through a refinancing and aggressive debt payments, and the market has gone through the roof in recent years; so I am guessing I hit the $1,000,000 mark about 6-7 years ago. So early 40s would be a good ballpark answer.

Had $5M+ at birth.

Not my usual handle wrote:

I have accrued significant equity in my home over the last few years through a refinancing and aggressive debt payments,

Those two things do not help you "accrue" or increase equity.

Refinancing initially decreases you equity because closing costs get put in and increases what you owe.

A lower interest rate will help over time.

Aggressive debt payments are simply a transfer of liquid equity to not so liquid equity.

Maybe you reduce the interest paid over time, which helps, but if that extra cash went into an average yield investment your equity/net worth would increase more vs paying mortgage debt down.

Lower debt does not really increase your net worth.

If you took loans against your assets and made good investments on new assets, that could increase your net worth.

If you borrow against your 401k and invest in anything that grows, that is a 100% gain because you are paying interest back to yourself.

I hit a million not counting home equity about 16 years after finishing grad school. Most of that was in a 401k and maybe $200k from an employee stock purchase plan that I got really lucky on. I probably have another $400k in the home, but it’s not like I’m going to sell it and move somewhere cheaper. I suspect I’ll feel moderately wealthy when I pay the mortgage off.

Wife and I are probably around $500k at age 32?

Yeah, when I went from 4.25% to 3.0% on my mortgage rate and then paid a couple of years worth of reduced interest, it resulted in an increase in my net worth. You don't measure the value of a refi at the moment the loan closes.

Sure, thanks for the great insight. The real question is this though: had I not paid down my debt with that money, what would I have done with it? If I would have spent it, then aggressive debt payment did increase my net worth. If I would have hid it under a mattress, the interest savings resulting from the aggressive debt payments would result in an increase in my net worth. If I invested it, it would all depend on my return on the alternative investment. You assumed what I would have done with the money I used to reduce debt (and still kind of botched that).

See the discussion above.

Here's a tip: try to brush up on personal finance and economics some before being a pedantic dcik.

I imagined I had it and I had it.

$2.5M is the new $1M

Jussayin

Fair responses.

But really you're saying you increased your net worth by being fiscally conservative over a long period of time.

That beats being fiscally reckless.

But being fiscally aggressive is what really could increase your net worth.

Yes, that's risky but risk is what it takes to get reward.

“Yes, that's risky but risk is what it takes to get reward.”

Poor people say stuff like that.

Not much truth in this thread.

X-Runner wrote:

Yes, that's risky but risk is what it takes to get reward.

I disagree with your conclusion, but appreciate you being open minded.

I have gone from a negative net worth at age 27 (when I finished my education with not-quite-six-figures in student loan debt) to $1.6m in net worth at age 47, all by being conservative. $1.2m in investments, with the bulk of that being in my 401(k), with all of that being in an S&P index fund.* The other $400k or so is a mix of home equity (a little over $300k) and cash or cash equivalents (a bit under $100k).

Much like successful distance running - nothing exotic, just the consistent and disciplined application of basic principles over time. Basically, I maxed out my 401(k), got about a $10k per year employer match, made some money on the sale of my first home ($130k gain), bought a house that stretched my budget but didn't break the budget even in the great recession, and aggressively paid down that home debt because I thought if I invested the cash in other ways, I might be tempted to liquidate those investments for other purposes. I also liked the large home equity component as a hedge against a big drop in the S&P (although if the drop in the S&P came as a result of another real estate bubble, I would take it in the rear).

* Some will argue that a 100% investment in large cap domestic equities is not conservative. I disagree for a few reasons (mostly because of my investment horizon), but acknowledge that some would take this position.

Not my usual handle wrote:

* Some will argue that a 100% investment in large cap domestic equities is not conservative. I disagree for a few reasons (mostly because of my investment horizon), but acknowledge that some would take this position.

You could do a lot worse than investing in Large Cap Domestic Equities. Completely fine.

I'm about 100% invested in VTSAX.

There could be a lot - there are over 7m millionaire households in the US.

Not my usual handle wrote:

Not exactly sure, but I at about $1.6m now at age 47 I have accrued significant equity in my home over the last few years through a refinancing and aggressive debt payments, and the market has gone through the roof in recent years; so I am guessing I hit the $1,000,000 mark about 6-7 years ago. So early 40s would be a good ballpark answer.

Hi smoove

Excluding inheritance? If so, age 27 until the tech market bubble burst. Then it took another 10 years for me to make come back from that carnage.

Smoove wishes he had my net worth.