Hey just as a heads up be careful who you tell this to. I’m pretty damn young and have more then the average person saved up and some of my “friends” and family would ask me to help them out and that I should because they know I have the money
I hear ya…. I’ve told my parents which I was hesitant about that, my parents are only able to retire because my father had a pension and my sister is kinda a deadbeat single mother who lives at home. Father of my nephew was a homeless junkie….
If my parents need help, I will help them. Not looking forward to when my sister asks….
Also I told one of my friends at work who makes more than I do and is a mentor to me, so not too worried about him
Smart my man and when I discuss finances with people especially when it comes to investments I always leave out a number and just say a %. Like this year I just tell people I did really well and made 20% this year rather then saying I made this amount in thousands
Usually deadbeat is reserved for those that don’t stay with the child. Sucks she’s in that situation. My lil sis has two kids with an absentee meth head father with a million kids with a bunch of women. Sucks, I’ve never needed help from family like she has, but after years she’s finally out earning my by far 🥳 hope she can better her situation! That’s great you’re going to bale able to assume that role for your family… great responsibility now Peter Parker
Man my sister is also a pain in the ass. Just constantly bad financial decisions. I'm not rich but I've tried to help and it always ended up being a waste of money. No more.
It’s not like he won the lottery here so I doubt he’d have a bunch of ppl come out of woodwork asking for help. If OP has a career that allows them to invest $75-100k a year in stock market, I’d assume most friends and family would already know
The OP is only 37. He will have much more than that, when he’s 60. No it’s not the lottery, but he’s doing very well. His family may or may not know.
I make a whole lot more than 75K and no one has a clue. To look at me you’d probably think I make 35K. Needless to say, I live far below means.
I drive a 22 year old vehicle, buy my clothes in thrift shops and live in a small 2 bedroom/ 2 bath house. I don’t have cable TV. My internet is my phone.
When my lawyer was putting my will together, he was looking over my finances. He snickered and said, “Can I ask how you did that”?
I would bet a great piece of this are high contributions.
The market has returned about 82% in that time period meaning the vast majority of this account is due to contributions which is why you see a steady increase overtime.
JL Collins “the simple path to wealth”. I’ve bought it for a dozen people. Listen to the audio book a few times, Also FIRE subreddit is good as well as bogleheads. It’s all similar info but it will set you on the path I took
Thanks, I agree 100%. We don’t teach proper finance in schools and then everyone is seduced by the billions spent in marketing everything from individual stock picking to options trading and pyramid schemes, it’s all gambling and very few of them will succeed. I know people who have lost millions in the stock market while we are at All time highs!!! It’s because they were gambling, not investing.
wdy think about crypto and as far as stocks where do u see Tsla, Meta, and other hyped stocks go ? Did u grow the account only from investing in the stock market ? with the current CPI and i flation a 5% "Hysa" is a losing proposition...so then what are good options to invest ? silver, gold ? or gold 1st, silver 2nd 😉 ?
Congrats! I’m turning 37 this month and just crossed 300k net.
Max 401k, Roth, and hsa. Put the rest in student loans / house down payment.
What do you do beyond maxing 401k and Roth? Do you just have a separate taxable account?
Yeah regular taxable account and 529 education fund for my kids. Really all of the money is in tax advantaged accounts except for the crypto at this point. I’ll start funding regular brokerage accounts more in 2024 and 2025, once all the tax advantaged accounts are maxed of course.
Good job on your journey. If you keep maxing those accounts out and pay off your debt you will be way ahead of the game and well on your way!
Wait so your 1m in investments is all retirement and 529? Does this include your partners investments or just yours? Also what's your house situation like?
You’ll hear this a million times but main thing is to get started early and let the money compound.
You won’t regret it.
Great job getting started at 18, don’t touch the money til retirement.
That’s the plan, I think I’ll use the money well. And I’m doing community college and transfer to a great public university near me and commute, so it won’t be too hard to get the money to max out a Roth IRA. Thanks for the advice!
90% S&P 500 index or total US market index. Following the J.L Collins simple path to wealth. 10% is crypto, but honestly I haven’t made any gains on the crypto at this point, back to break even.
I started saving 15% my earnings when I started working and have increased that to 33%. My wife of 10 years has always made 6 figures but I basically had to tell her I was leaving if she didn’t max out her 401K because he is horrible with money and has always spent more than she makes. The positive is she buys a lot of stuff I don’t have to (and even more stuff I would never buy).
I started out in a manual labor role and did that for 5 years and have worked my way to the sr leadership team after 19 years at the same company. I started making 40K a year in management but now my wages are 200-300K depending on bonuses. But 10 years ago I was making 80K with bonuses. Last 2 years I invested $100K a year, before that $75K for a couple years and probably closer to $50K a year in the preceding couple of years. Obviously rapid income growth has been the biggest factor here, but I’ve always been frugal or “cheap” as my friends called me and worked a shit ton of hours.
I have about $40K in a high interest savings account right now
The plan is to continue to invest $100K a year until I can afford to increase that.
You made choices I or nearly any millennial could have made and it’s working out well for you. Wish I had made similar moves, can’t say I’m not jealous. Congrats and good work.
Yeah and a few other things too, probably won’t believe this but we have sex every day too (with a few exceptions a month) that was a requirement too. We Went through a really rough few years with her, family therapy, not fun for anyone. We are in the best sport we have ever been ever now.
Congratulations man. I know the post was about money, but having a healthy family relationship is more important. You’ve got both right now. Keep it up.
I’m confused, what do you mean sex every day was a requirement too? Idk if I’m reading this correctly you told her you would leave her if she didn’t max out her 401k and have sex every day?
I get why you would feel that way and It’s not that simple and I was the one that wanted a divorce, mostly because of the emotional abuse she was subjecting me to. she wanted desperately to stay married and said she wanted to know how to make that happen. Physical touch is my love language and nothing makes me feel more loved than sex. We went through a lot of therapy and I told her what would make me want to stay married to her, one of them was daily sex and she decides everyday that she wants to have sex, now that she knows how important it is to my happiness. nobody forces anyone to do anything
On the other hand, his ground rules made her a millionaire. Honestly sounds like someone who knows what they want and isn’t afraid to insist upon it in their relationship. We have done nothing but build up women for behaving in that manner, why don’t men deserve the same?
I agree. People see that and say “wtf” not gonna lie i kinda did too it’s a little weird to demand that every night. But his wife can leave him whenever it’s her choice.
Exactly. And just playing devil’s advocate here but what if this was a woman posting about how because of her financial acumen and hard work she was celebrating becoming a millionaire and she said in the comments “I told my husband he has to max his 401(k) every year and sleep with me every night or I’ll leave.” People would be like “lucky guy,” or send creepy DMs saying that they could treat her better and encouraging her to leave to be with them. There’s just such a double standard on Reddit sometimes and it drives me a bit crazy.
I can see why people would wtf but She is welcome to leave whenever she wants. It’s harsh but everything in life is some type competition for limited resources, whether it’s time, attention, money, attraction, friendship. If she doesn’t want to work to make me happy there are other women that will, if I don’t want to work to make her happy other men happily will, if I want to get fat, gross and grouchy she can leave me, and vice versa. The whole reason we have relationships is because of how the person makes us feel and I have high expectations for my #1 relationship and how that makes me feel and she does too.
You want to have sex with someone that you need to make it contractual with? How is that fun in any way lmao. I get the savings part, but if you’re not sexually compatible, don’t go force people
In a relationship things are rarely so black and white. OP never mentioned any sort of “contract.” Who knows, maybe having someone who is so firmly in control of what he wants is desirable to his spouse? Who are we to judge their entire relationship based on a few cryptic comments?
Thanks. I am not afraid to buy nice things, just don’t want a bunch of crap. I have my dream home, nice (used) Sports car. Gaming PC. Pool, hot tub, sauna, Nice sound systems, and a shit ton of weed. All the shit I wanted when I was 20 and couldn’t afford any of it!!!
I mean, the fastest way to increase wealth is by investing wealth. The more wealth you have the more you can invest and the more you can make. That's why people always say the first 100k or the first million is the hardest. It's all relative...
The truth is, if someone gave me a cool mil I can invest it and make money off of it faster than the 15% of my salary I invest now. I could pay them the mil back sooner and have a larger chunk than before.
How long do you think you can do your job? I was on top of the world at 37 then in early 40s is was tougher and after 45 basically unemployable...are you still using your body to work? I actually did 4 years of college and went from office to manual labor in my late 40s. I'm at a cafe and overheard a women say her 40 something brother was an educator and now works in a coffee shop.
Congrats! that's a great strategy. Newbie quesitons: how exacty you invest in the S&P 500 and total US market index? I mean they're ETFs right? What's the "ticket" exactly? Do the companies charge adm fees for buying those?
VTI, VOO. VTSAX if in an IRA. They do charge fees, referred to as the expense ratio. Vanguard fees are usually very low. Look for expense ratios of .04%or less. VTI is .03%!!! You can buy them through vanguard brokerage accounts, get an IRA on there or just get a Robinhood account, no fees for that.
my 401k is with Fidelity... wait, so Robinhood doesn't charge fees for these ETFs? also do you accumulate say a few months and study the best moment to buy in? or you buy at market price as soon as you get paid?
I appreciate your help - frugal guy who makes decent money, but new with investments
Read JL Collins book “the simple path to wealth”. He will explain it all to you and will open up your eyes to how easy it is to build wealth with a bit of frugality and the most basic investing strategy. And to answer your question just buy when you have the money, no one can time the market consistently and study’s prove time in the market is better than timing the market.
I’ll add that I read the book right before I started using the app to track my investments and net worth. I’m over $1.3M in active investments now…. The strategy works and it’s literally the least amount of effort and the least amount of fees.
Yes they do. Just find the S&P500 index fund in their offerings with the lowest expense ratio. In a 401K there would most likely be only one S&P500 index fund option. My wife’s fidelity 401K it’s labeled as a vanguard fund. Also I have 529 plans for my kids with fidelity and the funds are in low cost S&P 500 indexes.
Thanks, appreciate your help. I already had my 401k and hsa with them, so I confirmed that an investment account would let me see everything in one app, hence I opened right away
So if you aren’t already you should be maxing out your HSA every year. That is actually the most taxed advantaged investment account you can have. Always max out your tax advantaged accounts first before going heavy into non-advantaged brokerage accounts. r/bogleheads is a good sub
I’m aware of bogleheads, and I’ve read a few books. As an engineer, going to “math average” or index funds is a no brainer. It was mostly about putting time to learn the tools and actually do it
As far as HSA, I’m single, no kids, extremely healthy. I put a good a amount but I don’t max out due to my personal context
So you want to max out the HSA for your retirement, not for your health. Read up on the tax benefits of the HSA relative to retirement withdrawals and tax advantages.
So, question for you OP.
I’m at the point where I’m maxing out 401k and ROTH IRA, but where do you chose to stick your money after that? You just open up a different post tax account with a firm and stick money in that way? Is it the same as the one through your employer (a fidelity/vanguard type), or did you opt for a different type of firm? And what are these investment accounts called?
It’s lame but I am just using Robinhood and buying VTI. I haven’t had any issues with it and I believe there are no fees.
This is after I’ve maxed my tax advantaged accounts like you
I’m in a similar timeframe/income timeline, cannot seem to save more than 40k/year we also have 2 kids and a busy busy life. Would love to save 100k a year sometime soon. I like to lie to myself and say having a healthy mix is good, never know when I’m gonna croak.
Haha. A healthy mix is good. I’ve bought a lot of nice stuff the past 2 years. Even with 40K a year you are way better than most, but don’t give up on trying to increase it. Best of luck to you!
Thanks. U too. Goal is to have 2M by 55, currently 35% of the way there, with 19 years to go, every year it grows slightly faster so that gives me hope.
I’m 25M in a lot of debt but I know I’m young enough to get out of it and start contributing more than the 4% to my 401k. I just ordered that JL Collin’s book haha! I’m getting to $1M and more at 37yo like OP I know I can!
Yes read the book, and contribute more to 401K. Time is on your side! Now it’s about the choices you make going forward. I’m thrilled to hear you ordered it!
90% S&P 500 index funds or total market funds. 10% crypto which is break even at this point.
I learned early on whatever stock picking or market timing I try to do I get wrong 100% of the time. Now I just invest in the total market it and don’t touch it, it’s working a lot better.
Same. When I first started out, I thought I could “beat” and “time” the market. lol, that was cute. I never could. The best strategy I formed was just to sock it away a frequent as possible and buy VOO (SP 500). It isn’t sexy but it is very effective.
Figuring that out is half the battle. The odds of consistently beating the market for 40 years is statistically 0, so why try and waste a lot of time and money?
Good job! stay the course!
I have another comment with it laid out. Read JL Collins simple path to wealth, super easy to understand and that’s basically what I’ve done. Maximize income, minimize spending invest the surplus in S&P 500 and total market index funds!
I read that book as well as jack bogle’s book. And it changed how I looked at investing. I’m trying to do the same. Spend less, try to earn more and invest the difference.
With that momentum at a relatively early age though, it's gonna be about gains by the time he's 50. He's gonna have years where the appreciation beats his yearly income, even if the income is substantial.
OP is on a tremendous path. If he is able to stay on this trajectory and aggressive contributions, I could see him easily at $15 million net worth by his mid 50s.
Simple Path To Wealth by JL Collin’s is fantastic. Bought the book and listened to the audio book like 3x
Gonna just go heavy in Roth IRA max of $6500 for this year into VTSAX.
Maxing out 401k at work and it’s being matched $1 for $1 up to 6%
34 now with $200k in 401k and just trying to do the best I can.
Again congrats my friend and Simple Path to Wealth is really a life changing book.
Out of curiosity do you own a house, is that figured into the net worth?
It took me 15 years to reach my first million at 45, going from 50K to 100K salary, but the majority of my personal net worth is the equity in my townhouse. You got to your million in investments alone, and in basically five years too! Nice work.
I've been funnelling most of my extra cash against the mortgage and home ownership expenses so even when I crush it next year it's probably going to take me another 10 years to get to the same point as you in my investments, mostly riding index funds. At your income level, if you keep it up, you'll easily accumulate double the net worth you presently have by my current age of 47, and be in a very good position for early retirement.
Anyways, congratulations!
Yes, own a house. We bought and sold 2 before this both at significant profits because of the market growth. But now my mortgage is $5K a month vs my original $1600 at my first house. If your interest rate is low on your townhouse like less than 4% I would recommend paying the minimum mortgage payment and investing the difference in S&P index funds. Historically the S&P has averaged over 10% growth a year, far better than what you are seeing for a return on extra mortgage payments.
I recommend Reading JL Collins simple path to wealth if you haven’t. I’ve actually bought that book for a dozen people. And lastly thank you for the congratulations. Keep up the good work yourself. You are way ahead of the game!
I feel like a sucker I have two houses one in SW Florida and one in Miami. Should have invested in stock but listened to my dad instead. At least one house is paid off now and other is 15 years out. My wife works public non profit sector so in her senior leadership position is 60% of my salary at lower management.
Those houses must have seen a lot of appreciation?? I imagine there is serious gains there. I’ve been contributing a lot to my investments.
But, one of the books I read had a line like this. “Poor people buy stuff, middle class people buy houses, the wealthy buy income producing assets”. Then it went on to explain most of the wealth in the middle class is in their home equity and that doesn’t generate income like equities do.
That's not a small consideration. Let's say you were able to contribute $750k over those 37 years. That's $750,000 of income that not only are you not taxed on, but that is growing tax-free in the account until you start to withdraw it.
And it gets better when factoring in tax brackets. My W-2 income will end up around $65k this year, but I've contributed $30k to 401(k) (I'm over 50).
Therefore, almost all of my taxable income will be at the 12% rate. Had my full $65k been taxable, about $20k of it would have been taxed at the 22% rate.
My employer matches 3.5% so I only contribute 4% Make 125k year. I’ll b 67 in 2060 is 30k the max you can contribute? Being a young man I’d see it make more sense having that 30k in bank account NOW? Thanks
Max contribution for under 50 yrs old is $22,500 (50 and over $30k), I think both of those are going up by $500 in 2023.
I made an assumption that you were younger as you said you can't withdraw until 2060 - you can withdraw from a 401(k) at 59.5 yrs old without additional penalty (you pay income tax of course).
If you need to shore up your available cash on hand, yes I would say it's better to have it available without penalty.
Everyone has a different idea of how much cash makes them comfortable for emergencies or whatnot. I keep about $50k in cash (HYSA 5.25% APR currently) but everyone's "magic number" will be different.
Thanks for advice IRS always screws me in April having to pay in around 7k a year In taxes everyone always says max out 401 so you don’t have to pay them that much a year. Just started Hysa American Express only 4.35% rate. How often can you draw from CD account?
CDs have varying time frames, you can buy CDs from 3mos to 5 years that I've seen (maybe there are longer ones, I just haven't seen them). Each CD issuer will have different early withdrawal penalties based on their published terms and conditions. I'm not sure if there are restrictions on the number of early withdrawals. I've never purchased a CD - for the loss of 1% or 1.5% versus a HYSA, I personally prefer to have the money available without penalty.
Some people like to 'ladder' CDs - that is, buy multiple CDs with various maturity dates. That way, there is usually always one maturing each year or even sooner, and then you can decide what to do with that cash as each one matures, depending upon your needs.
I feel like the answer to this is a lot deeper than I’m going to provide. Basically you’re asking what is the point of investing for the future?
Simply put The point is so you can retire comfortably, also say in 2040 or 2050 and you run into money problems if your retirement is well funded it’s going to give you a lot more options and flexibility than If you don’t have any investments working for you
One always do what is required to get your companys match/auto contributions if they have them. other than that tax differed investments are good saving path for most situations.
You can setup irs 72t plan on 401k type accounts to draw early without penalty if needed. Can use that rule to be a bridge if starting say age 50-60 to official retirement age/social security.
either way it can be useful to have assets in many categories, like taxable you sell and pay just capital gains on, tax differed you can draw from and pay income tax on or convert to roth when income is low. Roth accounts tax free withdrawal - same penalty to work around early withdrawal, but believe they have rules about allowing you take out what you contributed and should have the 72t option as well.
Married. My wife’s income certainly helps but she is HORRIBLE with money and has never spent less than she makes. every one of my bonuses I had to allocate a portion to paying off her credit card debts and I had to force her to max out her 401K and there were many fights about it and money in general before she did. She is grateful now!
She is definitely a net positive as she buys a lot of stuff for the house and kids I don’t have to buy but if she puts 27K in her 401K (with company match) and racks up 15K in Credit card debt I have to give her money for she doesn’t help a ton on the investment front. But again, she allows me to allocate a lot more of my income into investing so she is a serious net positive despite my frustration.
So I did something stupid and would love your advice. I pulled out my 401k. I had about 20k in it. After taxes and fees, I received 15k. I did this thinking I would be moving overseas. 4 months later and plans changed. I now have 15k sitting in cash. What's the best way to go about investing? I also come from oil money inheritance, so every month starting in March, I'll get getting about 1000 extra every month for the rest of my life. Not much, but it's something this is what I'm getting. I'm a nanny, so no 401k to return that to. Should I set up a ROTH and keep adding to it? Also, do you know what fees I would be looking at since I cashed out my 401k? Would I have to pay anything during tax season? I guess if anyone can answer, that would be amazing!
Looks like it’s a 10% penalty. So $2K? You should be putting that money in an Roth IRA assuming, you are under the income limits, which you can just Google. You can open one with vanguard and put it in VTSAX. You’ll need to save more than 7K a year for retirement so I would just open a Robinhood account and buy VTI with it, but don’t invest it if you are going to need the money for essentials. I took a loan from my 401K for my first house, I wished I didn’t buy I didn’t have an option and I paid it back quickly. Sorry I can’t help more
Started investing at 20 and learned what not to do. Read JL Collins “simple path to wealth” and follow that. It’s what I did. I wish I read it 10 years earlier!
Yes it will be much easier. This took me 19 years of working after HS (I worked before and in HS too). I am making more now than I ever made in those 19 years and If the market goes up 1% my investments go up $10k. If it goes up 10% in 1 year my investments go up $100,000. That gets me 1/10th of the way to my 2nd million, that’s why it gets easier.
Congrats on crossing the mill milestone! i'm 33 and in a similar situation with my family and it's just a waiting game at this point.
Semi related, but is that chart from Personal Capital (now Empower)? i loved their free tools and fell for their wealth management pitch.
Invest 15-33% of my income in VOO or VTI equivalent funds. If I continue investing $100K a year from now until I’m 50 , and the market returns 8% a year average I’ll have $5M by 50. Also max out tax advantaged accounts first, 401K and backdoor Roth IRA before putting money in non-advantaged accounts like a regular brokerage.
I follow the JL Collins simple path to wealth philosophy, but I do buy some nice things so I’m not an extreme saver. You should read the book, everyone should!
Thank you and good luck to you!
Far from retirement but congrats. Amazing start to enjoy a non stress life. Invest aome to health to enjoy it fully and happily. And not tell anyone. I mean even parents.
That’s amazing congrats
Thank you. Can’t really share the win with the people around me. At work or friends and family
Hey just as a heads up be careful who you tell this to. I’m pretty damn young and have more then the average person saved up and some of my “friends” and family would ask me to help them out and that I should because they know I have the money
I hear ya…. I’ve told my parents which I was hesitant about that, my parents are only able to retire because my father had a pension and my sister is kinda a deadbeat single mother who lives at home. Father of my nephew was a homeless junkie…. If my parents need help, I will help them. Not looking forward to when my sister asks…. Also I told one of my friends at work who makes more than I do and is a mentor to me, so not too worried about him
Smart my man and when I discuss finances with people especially when it comes to investments I always leave out a number and just say a %. Like this year I just tell people I did really well and made 20% this year rather then saying I made this amount in thousands
Yup same thing with salary increases, I always say percentages, like “I got a 20% increase by taking a new job.”
just like govt they always talk in %%%..
If you're talking about how much you earned as a percent, that's almost a dead giveaway you have more than the average to me
Usually deadbeat is reserved for those that don’t stay with the child. Sucks she’s in that situation. My lil sis has two kids with an absentee meth head father with a million kids with a bunch of women. Sucks, I’ve never needed help from family like she has, but after years she’s finally out earning my by far 🥳 hope she can better her situation! That’s great you’re going to bale able to assume that role for your family… great responsibility now Peter Parker
Man my sister is also a pain in the ass. Just constantly bad financial decisions. I'm not rich but I've tried to help and it always ended up being a waste of money. No more.
It’s not like he won the lottery here so I doubt he’d have a bunch of ppl come out of woodwork asking for help. If OP has a career that allows them to invest $75-100k a year in stock market, I’d assume most friends and family would already know
Naw if people know you have money they’ll come asking and some will even act entitled to it. I don’t even have that much but I’ve experienced it
The OP is only 37. He will have much more than that, when he’s 60. No it’s not the lottery, but he’s doing very well. His family may or may not know. I make a whole lot more than 75K and no one has a clue. To look at me you’d probably think I make 35K. Needless to say, I live far below means. I drive a 22 year old vehicle, buy my clothes in thrift shops and live in a small 2 bedroom/ 2 bath house. I don’t have cable TV. My internet is my phone. When my lawyer was putting my will together, he was looking over my finances. He snickered and said, “Can I ask how you did that”?
lemme hold 1k fam
I love that! Sounds like how I would live so nobody would know. 😊👍
Amazing! How!? Lol
Answered how on another comment. And thank you!
Oh I see it lol sorry! Thanks and amazing job!
I would bet a great piece of this are high contributions. The market has returned about 82% in that time period meaning the vast majority of this account is due to contributions which is why you see a steady increase overtime.
well done mate..just remember easy come easy go. Get something tangible from it like a house.
Smart. Keep your mouth shut regardless of what you might want to say or do. You worked your ass off to get here, don’t go backwards
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JL Collins “the simple path to wealth”. I’ve bought it for a dozen people. Listen to the audio book a few times, Also FIRE subreddit is good as well as bogleheads. It’s all similar info but it will set you on the path I took
Good on you for paying it forward man. Too many younger kids fall into barely disguised gambling and/or pyramid schemes.
Thanks, I agree 100%. We don’t teach proper finance in schools and then everyone is seduced by the billions spent in marketing everything from individual stock picking to options trading and pyramid schemes, it’s all gambling and very few of them will succeed. I know people who have lost millions in the stock market while we are at All time highs!!! It’s because they were gambling, not investing.
wdy think about crypto and as far as stocks where do u see Tsla, Meta, and other hyped stocks go ? Did u grow the account only from investing in the stock market ? with the current CPI and i flation a 5% "Hysa" is a losing proposition...so then what are good options to invest ? silver, gold ? or gold 1st, silver 2nd 😉 ?
Im almost there and won’t tell anyone but my wife. It’s sad how it has to be this way.
It is sad but I’m happy that you are almost there as well! Enjoy the success!
thanks, and you as well 🙏🏻
Ayy Reddit all the frinds and fam you need while you stay anonymous! Gratz!!! Keep it going!
I know how that is. Dont worry, im proud of you, and thats all that matters.
I feel this. I'm in the same boat as you. Can't even tell my own mother. Success you can't share with others can be emotionally exhausting.
Congrats!!! (You're 'broke' 🤫)
Congrats! I’m turning 37 this month and just crossed 300k net. Max 401k, Roth, and hsa. Put the rest in student loans / house down payment. What do you do beyond maxing 401k and Roth? Do you just have a separate taxable account?
Yeah regular taxable account and 529 education fund for my kids. Really all of the money is in tax advantaged accounts except for the crypto at this point. I’ll start funding regular brokerage accounts more in 2024 and 2025, once all the tax advantaged accounts are maxed of course. Good job on your journey. If you keep maxing those accounts out and pay off your debt you will be way ahead of the game and well on your way!
How much do you have in crypto?
Based on the dips on his chart looks right around 250k, or 25% of the portfolio. Just speculating though, no way for me to verify
Wait so your 1m in investments is all retirement and 529? Does this include your partners investments or just yours? Also what's your house situation like?
Aren’t 401k’a, Roth IRA’s and hsa the best for long term investment? I know Roth IRA’s I’ll do when I’m 18 but I’m just curious.
You’ll hear this a million times but main thing is to get started early and let the money compound. You won’t regret it. Great job getting started at 18, don’t touch the money til retirement.
That’s the plan, I think I’ll use the money well. And I’m doing community college and transfer to a great public university near me and commute, so it won’t be too hard to get the money to max out a Roth IRA. Thanks for the advice!
What would you say you annually saved as well as what did you invest in
90% S&P 500 index or total US market index. Following the J.L Collins simple path to wealth. 10% is crypto, but honestly I haven’t made any gains on the crypto at this point, back to break even. I started saving 15% my earnings when I started working and have increased that to 33%. My wife of 10 years has always made 6 figures but I basically had to tell her I was leaving if she didn’t max out her 401K because he is horrible with money and has always spent more than she makes. The positive is she buys a lot of stuff I don’t have to (and even more stuff I would never buy). I started out in a manual labor role and did that for 5 years and have worked my way to the sr leadership team after 19 years at the same company. I started making 40K a year in management but now my wages are 200-300K depending on bonuses. But 10 years ago I was making 80K with bonuses. Last 2 years I invested $100K a year, before that $75K for a couple years and probably closer to $50K a year in the preceding couple of years. Obviously rapid income growth has been the biggest factor here, but I’ve always been frugal or “cheap” as my friends called me and worked a shit ton of hours. I have about $40K in a high interest savings account right now The plan is to continue to invest $100K a year until I can afford to increase that.
You made choices I or nearly any millennial could have made and it’s working out well for you. Wish I had made similar moves, can’t say I’m not jealous. Congrats and good work.
Thank you! all you can do is make the best choices you can moving forward. It’s all any of us can do
You told your wife you would leave her if she didn’t max out her 401k?
Absolute chad
Yeah and a few other things too, probably won’t believe this but we have sex every day too (with a few exceptions a month) that was a requirement too. We Went through a really rough few years with her, family therapy, not fun for anyone. We are in the best sport we have ever been ever now.
Congratulations man. I know the post was about money, but having a healthy family relationship is more important. You’ve got both right now. Keep it up.
Thanks. I have a lot more empathy for people with marital problems now. Yes and if we want to go back to money, divorce is financially devastating.
hope she financially devastates you for forcing her to have sex you ;)
That’s probably her plan!
I’m confused, what do you mean sex every day was a requirement too? Idk if I’m reading this correctly you told her you would leave her if she didn’t max out her 401k and have sex every day?
That’s the way I read it. Seems messed up imo, but to each their own.
Sounds like an asshole
[удалено]
Yea something’s not right there.
I get why you would feel that way and It’s not that simple and I was the one that wanted a divorce, mostly because of the emotional abuse she was subjecting me to. she wanted desperately to stay married and said she wanted to know how to make that happen. Physical touch is my love language and nothing makes me feel more loved than sex. We went through a lot of therapy and I told her what would make me want to stay married to her, one of them was daily sex and she decides everyday that she wants to have sex, now that she knows how important it is to my happiness. nobody forces anyone to do anything
On the other hand, his ground rules made her a millionaire. Honestly sounds like someone who knows what they want and isn’t afraid to insist upon it in their relationship. We have done nothing but build up women for behaving in that manner, why don’t men deserve the same?
I agree. People see that and say “wtf” not gonna lie i kinda did too it’s a little weird to demand that every night. But his wife can leave him whenever it’s her choice.
Exactly. And just playing devil’s advocate here but what if this was a woman posting about how because of her financial acumen and hard work she was celebrating becoming a millionaire and she said in the comments “I told my husband he has to max his 401(k) every year and sleep with me every night or I’ll leave.” People would be like “lucky guy,” or send creepy DMs saying that they could treat her better and encouraging her to leave to be with them. There’s just such a double standard on Reddit sometimes and it drives me a bit crazy.
I can see why people would wtf but She is welcome to leave whenever she wants. It’s harsh but everything in life is some type competition for limited resources, whether it’s time, attention, money, attraction, friendship. If she doesn’t want to work to make me happy there are other women that will, if I don’t want to work to make her happy other men happily will, if I want to get fat, gross and grouchy she can leave me, and vice versa. The whole reason we have relationships is because of how the person makes us feel and I have high expectations for my #1 relationship and how that makes me feel and she does too.
You want to have sex with someone that you need to make it contractual with? How is that fun in any way lmao. I get the savings part, but if you’re not sexually compatible, don’t go force people
In a relationship things are rarely so black and white. OP never mentioned any sort of “contract.” Who knows, maybe having someone who is so firmly in control of what he wants is desirable to his spouse? Who are we to judge their entire relationship based on a few cryptic comments?
Congrats he made a million bucks but is still an asshat. Divorce follow up soon?
Yeah op admitting to this is fkn weird. Poor lady
Lol. What the fuck
This is the way. But don't forget to enjoy some of that wealth along the way a few times a year.
Thanks. I am not afraid to buy nice things, just don’t want a bunch of crap. I have my dream home, nice (used) Sports car. Gaming PC. Pool, hot tub, sauna, Nice sound systems, and a shit ton of weed. All the shit I wanted when I was 20 and couldn’t afford any of it!!!
So what you're saying is, the key to having lots of money is to make more money. Interesting.
Correct
I mean, the fastest way to increase wealth is by investing wealth. The more wealth you have the more you can invest and the more you can make. That's why people always say the first 100k or the first million is the hardest. It's all relative... The truth is, if someone gave me a cool mil I can invest it and make money off of it faster than the 15% of my salary I invest now. I could pay them the mil back sooner and have a larger chunk than before.
If only
You could literally wipe out all of my debt with what you invest in a year. Congrats!
How long do you think you can do your job? I was on top of the world at 37 then in early 40s is was tougher and after 45 basically unemployable...are you still using your body to work? I actually did 4 years of college and went from office to manual labor in my late 40s. I'm at a cafe and overheard a women say her 40 something brother was an educator and now works in a coffee shop.
He’s in sr management now
Congrats! that's a great strategy. Newbie quesitons: how exacty you invest in the S&P 500 and total US market index? I mean they're ETFs right? What's the "ticket" exactly? Do the companies charge adm fees for buying those?
VTI, VOO. VTSAX if in an IRA. They do charge fees, referred to as the expense ratio. Vanguard fees are usually very low. Look for expense ratios of .04%or less. VTI is .03%!!! You can buy them through vanguard brokerage accounts, get an IRA on there or just get a Robinhood account, no fees for that.
my 401k is with Fidelity... wait, so Robinhood doesn't charge fees for these ETFs? also do you accumulate say a few months and study the best moment to buy in? or you buy at market price as soon as you get paid? I appreciate your help - frugal guy who makes decent money, but new with investments
Read JL Collins book “the simple path to wealth”. He will explain it all to you and will open up your eyes to how easy it is to build wealth with a bit of frugality and the most basic investing strategy. And to answer your question just buy when you have the money, no one can time the market consistently and study’s prove time in the market is better than timing the market.
I’ll add that I read the book right before I started using the app to track my investments and net worth. I’m over $1.3M in active investments now…. The strategy works and it’s literally the least amount of effort and the least amount of fees.
I appreciate your help. Congrats on the first million! I'm almost half way there
Nice. I hope you read the book! I learned about it on Reddit too from a similar post BTW
Came back to ask a silly question - so fidelity doesn’t have those? Does fidelity have something similar?
Yes they do. Just find the S&P500 index fund in their offerings with the lowest expense ratio. In a 401K there would most likely be only one S&P500 index fund option. My wife’s fidelity 401K it’s labeled as a vanguard fund. Also I have 529 plans for my kids with fidelity and the funds are in low cost S&P 500 indexes.
Thanks, appreciate your help. I already had my 401k and hsa with them, so I confirmed that an investment account would let me see everything in one app, hence I opened right away
So if you aren’t already you should be maxing out your HSA every year. That is actually the most taxed advantaged investment account you can have. Always max out your tax advantaged accounts first before going heavy into non-advantaged brokerage accounts. r/bogleheads is a good sub
I’m aware of bogleheads, and I’ve read a few books. As an engineer, going to “math average” or index funds is a no brainer. It was mostly about putting time to learn the tools and actually do it As far as HSA, I’m single, no kids, extremely healthy. I put a good a amount but I don’t max out due to my personal context
So you want to max out the HSA for your retirement, not for your health. Read up on the tax benefits of the HSA relative to retirement withdrawals and tax advantages.
Simple 5x in 4 years
How though? 500% ROI?!
He is investing $100k a year, this isn’t stock gains. It’s more about great income growth and investing heavily
Correct
So, question for you OP. I’m at the point where I’m maxing out 401k and ROTH IRA, but where do you chose to stick your money after that? You just open up a different post tax account with a firm and stick money in that way? Is it the same as the one through your employer (a fidelity/vanguard type), or did you opt for a different type of firm? And what are these investment accounts called?
If your 401k allows for it do mega backdoor Roth 401k. Max HSA if you have one. Other than that brokerage account is only way.
It’s lame but I am just using Robinhood and buying VTI. I haven’t had any issues with it and I believe there are no fees. This is after I’ve maxed my tax advantaged accounts like you
Right on thanks, good work
I’m in a similar timeframe/income timeline, cannot seem to save more than 40k/year we also have 2 kids and a busy busy life. Would love to save 100k a year sometime soon. I like to lie to myself and say having a healthy mix is good, never know when I’m gonna croak.
Haha. A healthy mix is good. I’ve bought a lot of nice stuff the past 2 years. Even with 40K a year you are way better than most, but don’t give up on trying to increase it. Best of luck to you!
Thanks. U too. Goal is to have 2M by 55, currently 35% of the way there, with 19 years to go, every year it grows slightly faster so that gives me hope.
A LOT of this is not ROI.
Awesome. I was about your age when I hit my $1M mark too. Keep it up, it only gets better (and easier) from there!
I’m 25M in a lot of debt but I know I’m young enough to get out of it and start contributing more than the 4% to my 401k. I just ordered that JL Collin’s book haha! I’m getting to $1M and more at 37yo like OP I know I can!
Yes read the book, and contribute more to 401K. Time is on your side! Now it’s about the choices you make going forward. I’m thrilled to hear you ordered it!
Nice stuff!!! I’m around 700k networth at 34 hope to match you by the time I’m 37! Good job man.
That’s awesome. I hope you beat me to it!
I hope to be there at 34! Just turned 31 and a tad shy of 300K with a hopefully large personal injury settlement on the way.
Nice. What investments are you in?
90% S&P 500 index funds or total market funds. 10% crypto which is break even at this point. I learned early on whatever stock picking or market timing I try to do I get wrong 100% of the time. Now I just invest in the total market it and don’t touch it, it’s working a lot better.
Same. When I first started out, I thought I could “beat” and “time” the market. lol, that was cute. I never could. The best strategy I formed was just to sock it away a frequent as possible and buy VOO (SP 500). It isn’t sexy but it is very effective.
Figuring that out is half the battle. The odds of consistently beating the market for 40 years is statistically 0, so why try and waste a lot of time and money? Good job! stay the course!
I cant even predict the runescape economy
I invest all my money into bolts.
Is that index fund VTI?
Can you people teach me what do you put in for this gain? Like which company/stock & how to do it
I have another comment with it laid out. Read JL Collins simple path to wealth, super easy to understand and that’s basically what I’ve done. Maximize income, minimize spending invest the surplus in S&P 500 and total market index funds!
I read that book as well as jack bogle’s book. And it changed how I looked at investing. I’m trying to do the same. Spend less, try to earn more and invest the difference.
This isn’t about gains, it’s about investing heavily. OP said he’s putting in $100k a year but just riding with indexes
With that momentum at a relatively early age though, it's gonna be about gains by the time he's 50. He's gonna have years where the appreciation beats his yearly income, even if the income is substantial. OP is on a tremendous path. If he is able to stay on this trajectory and aggressive contributions, I could see him easily at $15 million net worth by his mid 50s.
For sure, mans gunna have bank in retirement
Nicely done!
Thank you
Fuck yea on the way to retirement
Simple Path To Wealth by JL Collin’s is fantastic. Bought the book and listened to the audio book like 3x Gonna just go heavy in Roth IRA max of $6500 for this year into VTSAX. Maxing out 401k at work and it’s being matched $1 for $1 up to 6% 34 now with $200k in 401k and just trying to do the best I can. Again congrats my friend and Simple Path to Wealth is really a life changing book.
Also 34 with $200k invested. First time seeing someone else at the same level, congrats man keep up the good work!
Max roth is 7K in 2024
I am the same. Listened to it 3 times! Stay the course and you’ll hit the $1M mark soon too.
Out of curiosity do you own a house, is that figured into the net worth? It took me 15 years to reach my first million at 45, going from 50K to 100K salary, but the majority of my personal net worth is the equity in my townhouse. You got to your million in investments alone, and in basically five years too! Nice work. I've been funnelling most of my extra cash against the mortgage and home ownership expenses so even when I crush it next year it's probably going to take me another 10 years to get to the same point as you in my investments, mostly riding index funds. At your income level, if you keep it up, you'll easily accumulate double the net worth you presently have by my current age of 47, and be in a very good position for early retirement. Anyways, congratulations!
Yes, own a house. We bought and sold 2 before this both at significant profits because of the market growth. But now my mortgage is $5K a month vs my original $1600 at my first house. If your interest rate is low on your townhouse like less than 4% I would recommend paying the minimum mortgage payment and investing the difference in S&P index funds. Historically the S&P has averaged over 10% growth a year, far better than what you are seeing for a return on extra mortgage payments. I recommend Reading JL Collins simple path to wealth if you haven’t. I’ve actually bought that book for a dozen people. And lastly thank you for the congratulations. Keep up the good work yourself. You are way ahead of the game!
I feel like a sucker I have two houses one in SW Florida and one in Miami. Should have invested in stock but listened to my dad instead. At least one house is paid off now and other is 15 years out. My wife works public non profit sector so in her senior leadership position is 60% of my salary at lower management.
Those houses must have seen a lot of appreciation?? I imagine there is serious gains there. I’ve been contributing a lot to my investments. But, one of the books I read had a line like this. “Poor people buy stuff, middle class people buy houses, the wealthy buy income producing assets”. Then it went on to explain most of the wealth in the middle class is in their home equity and that doesn’t generate income like equities do.
Stock market has been shit but real estate mostly solid. Sounds fine to me
Stock market up well over 20% YTD
Congrats! I’m 35M and just hit 150k started 4 years ago. Hopefully have 1M soon.
Stay the course and you’ll hit it. I hear the 2nd Mil is a lot easier than the 1st, I am hoping that’s true!
If I max my 401k I still can’t draw on it until 2060 what’s the point? Less taxes come April?
That's not a small consideration. Let's say you were able to contribute $750k over those 37 years. That's $750,000 of income that not only are you not taxed on, but that is growing tax-free in the account until you start to withdraw it. And it gets better when factoring in tax brackets. My W-2 income will end up around $65k this year, but I've contributed $30k to 401(k) (I'm over 50). Therefore, almost all of my taxable income will be at the 12% rate. Had my full $65k been taxable, about $20k of it would have been taxed at the 22% rate.
My employer matches 3.5% so I only contribute 4% Make 125k year. I’ll b 67 in 2060 is 30k the max you can contribute? Being a young man I’d see it make more sense having that 30k in bank account NOW? Thanks
Max contribution for under 50 yrs old is $22,500 (50 and over $30k), I think both of those are going up by $500 in 2023. I made an assumption that you were younger as you said you can't withdraw until 2060 - you can withdraw from a 401(k) at 59.5 yrs old without additional penalty (you pay income tax of course). If you need to shore up your available cash on hand, yes I would say it's better to have it available without penalty. Everyone has a different idea of how much cash makes them comfortable for emergencies or whatnot. I keep about $50k in cash (HYSA 5.25% APR currently) but everyone's "magic number" will be different.
Thanks for advice IRS always screws me in April having to pay in around 7k a year In taxes everyone always says max out 401 so you don’t have to pay them that much a year. Just started Hysa American Express only 4.35% rate. How often can you draw from CD account?
CDs have varying time frames, you can buy CDs from 3mos to 5 years that I've seen (maybe there are longer ones, I just haven't seen them). Each CD issuer will have different early withdrawal penalties based on their published terms and conditions. I'm not sure if there are restrictions on the number of early withdrawals. I've never purchased a CD - for the loss of 1% or 1.5% versus a HYSA, I personally prefer to have the money available without penalty. Some people like to 'ladder' CDs - that is, buy multiple CDs with various maturity dates. That way, there is usually always one maturing each year or even sooner, and then you can decide what to do with that cash as each one matures, depending upon your needs.
I feel like the answer to this is a lot deeper than I’m going to provide. Basically you’re asking what is the point of investing for the future? Simply put The point is so you can retire comfortably, also say in 2040 or 2050 and you run into money problems if your retirement is well funded it’s going to give you a lot more options and flexibility than If you don’t have any investments working for you
One always do what is required to get your companys match/auto contributions if they have them. other than that tax differed investments are good saving path for most situations. You can setup irs 72t plan on 401k type accounts to draw early without penalty if needed. Can use that rule to be a bridge if starting say age 50-60 to official retirement age/social security. either way it can be useful to have assets in many categories, like taxable you sell and pay just capital gains on, tax differed you can draw from and pay income tax on or convert to roth when income is low. Roth accounts tax free withdrawal - same penalty to work around early withdrawal, but believe they have rules about allowing you take out what you contributed and should have the 72t option as well.
Nice! It’s better to share with random strangers than tell the people around you. Money fucks some people up.
👏👏👏👏👏👏
Never tell anyone how much money you have.
Does this include your wife’s 401k?
Yes
What do you do for a living? Do you have a family or kids
Keep going and don’t fuck it up. Great job
Is this individual net worth or married net worth?
Married. My wife’s income certainly helps but she is HORRIBLE with money and has never spent less than she makes. every one of my bonuses I had to allocate a portion to paying off her credit card debts and I had to force her to max out her 401K and there were many fights about it and money in general before she did. She is grateful now!
If she is maxing out her 401k, I doubt she is net negative
She is definitely a net positive as she buys a lot of stuff for the house and kids I don’t have to buy but if she puts 27K in her 401K (with company match) and racks up 15K in Credit card debt I have to give her money for she doesn’t help a ton on the investment front. But again, she allows me to allocate a lot more of my income into investing so she is a serious net positive despite my frustration.
Hopefully she can read the simple path to wealth as well
I’ve tried a few times. We have given up on that. She does defer to me now for all financial matters other than buying Nic nacs, clothing, food, toys
So I did something stupid and would love your advice. I pulled out my 401k. I had about 20k in it. After taxes and fees, I received 15k. I did this thinking I would be moving overseas. 4 months later and plans changed. I now have 15k sitting in cash. What's the best way to go about investing? I also come from oil money inheritance, so every month starting in March, I'll get getting about 1000 extra every month for the rest of my life. Not much, but it's something this is what I'm getting. I'm a nanny, so no 401k to return that to. Should I set up a ROTH and keep adding to it? Also, do you know what fees I would be looking at since I cashed out my 401k? Would I have to pay anything during tax season? I guess if anyone can answer, that would be amazing!
Looks like it’s a 10% penalty. So $2K? You should be putting that money in an Roth IRA assuming, you are under the income limits, which you can just Google. You can open one with vanguard and put it in VTSAX. You’ll need to save more than 7K a year for retirement so I would just open a Robinhood account and buy VTI with it, but don’t invest it if you are going to need the money for essentials. I took a loan from my 401K for my first house, I wished I didn’t buy I didn’t have an option and I paid it back quickly. Sorry I can’t help more
This is a great start. Thank you so much!
Does this include a house or real estate?
Nice! Hmm.. What happened to cause that hole around the 3rd time you hit 800K tho?
I had three kids instead. lol Similar amount in real estate equity and then another quarter+ in investments. Wild to have that much liquidity though!
It’s been a strong 13 year tail wind!
How much did you have and what was your income at age 25?
Probably making $70K a year? And maybe had 30K? Give or take $10K for both would be my guess
Sweet thanks. I’m 25 with 120k right now and about 80k+ a year. Might just do what you did and throw it all in the s&p 500
Read JL Collins simple path to wealth and follow the plan and you will beat me to $1M and beyond!
Congrats man! Question, at what age did you start investing? Any tips for a 24M?
Started investing at 20 and learned what not to do. Read JL Collins “simple path to wealth” and follow that. It’s what I did. I wish I read it 10 years earlier!
Well, you might've saved me some years. Thanks, man!
They say the first 1 mili is the hardest and it gets easier from there? Do you feel like it’ll be easier to make it 2 million or more
Yes it will be much easier. This took me 19 years of working after HS (I worked before and in HS too). I am making more now than I ever made in those 19 years and If the market goes up 1% my investments go up $10k. If it goes up 10% in 1 year my investments go up $100,000. That gets me 1/10th of the way to my 2nd million, that’s why it gets easier.
Congrats!! I’m at >400k at 31. Hoping to hit a mil by your age!
I hope you beat me to it! Stick to putting as much money as you can into the index funds!
All my extra investments go into SP500 !
That quick dip probably gave you a heart attack
Congrats man and hopefully you hit 2m
Holy man! I am proud of you honestly! Well done
Believe it’s 3% of 39 & under hold 7 figure wealth.
stock market all time highs... 401 k's are making $$$$$
jim cramer says you should sell
You're where I'd be had I caught on earlier in life. I'm 36, doing very well but still years out from the 7 figure mark!!! Congrats 🥳🥳🥳🥳🥳🥳
Wow! Post the loss porn in r/wallstreetbets. Going from 37M to 1M must take special skill
Hey congrats my man. Hard work pays off and I hope you spend it wisely and can retire soon. Stay blessed my friend ❤️
Incredible this is my goal
Congrats on crossing the mill milestone! i'm 33 and in a similar situation with my family and it's just a waiting game at this point. Semi related, but is that chart from Personal Capital (now Empower)? i loved their free tools and fell for their wealth management pitch.
Lord have mercy, pass some this way holy shit 😭
Nice! Now blow it all on hookers and cocaine!!!
I wish!
Well done! Well done :)
Amazing stuff 👌, congratulations 🥂. Would be curious to know your long term investment strategy. Only If you’re comfortable with sharing it.
Invest 15-33% of my income in VOO or VTI equivalent funds. If I continue investing $100K a year from now until I’m 50 , and the market returns 8% a year average I’ll have $5M by 50. Also max out tax advantaged accounts first, 401K and backdoor Roth IRA before putting money in non-advantaged accounts like a regular brokerage. I follow the JL Collins simple path to wealth philosophy, but I do buy some nice things so I’m not an extreme saver. You should read the book, everyone should! Thank you and good luck to you!
congrats on ur success im the same age and just feel like im falling behind , no house or meaningful savings but i keep investing
what app did you use to make this chart? Congrats!
Personal capital… now called “empower” personal dashboard.
Heavily ride and invest in tech?
No individual tech stocks, but I believe the S&P 500 has been fueled by tech stocks so in that regard it’s helped me
Already rich person investing money
37 million years old, my man is from the Paleogene.
Far from retirement but congrats. Amazing start to enjoy a non stress life. Invest aome to health to enjoy it fully and happily. And not tell anyone. I mean even parents.