Net worth goal reached

[cypher1]

I haven't been on active on this forum for at least two years, but figured I'd give an update. I hit my $1M net worth goal back in June of this year at age 43. I included the equity of my home at a conservative number, which equals about 27% within that net worth value. Crazy how quickly time flies by along with compound interest. Life changes as well, but feel that's a whole separate thread for another time. I truly believe the biggest contributor to achieving this goal and continuing on this financial journey is due to this forum for support and advice. So thanks again! Next goal is 2M!

[disneysteve]

I haven't been on active on this forum for at least two years, but figured I'd give an update. I hit my $1M net worth goal back in June of this year at age 43. I included the equity of my home at a conservative number, which equals about 27% within that net worth value. Crazy how quickly time flies by along with compound interest. Life changes as well, but feel that's a whole separate thread for another time. I truly believe the biggest contributor to achieving this goal and continuing on this financial journey is due to this forum for support and advice. So thanks again! Next goal is 2M!

Congrats! That's awesome. And what's really funny and a great lesson, is looking back at your original post. You said, "with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events." Here we are 4 years later and look what has actually happened. In September 2020 when you started this thread, the S&P was 3,300. Today it's 5,500. So much for that bubble you were concerned about.

2M will get here before you know it. Keep up the great work. The first million always takes the longest.

[Drake3287]

Yep, congratulations, that's how it's all done. Keep up the investing and savings and you'll be looking at a million or two in a number of years. I was in the same boat as you around your age and now I've surpassed countless saving goals. And it doesn't take a high paying job to make it happen, just the drive to do it which you seem to have.

[cypher1]

Congrats! That's awesome. And what's really funny and a great lesson, is looking back at your original post. You said, "with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events." Here we are 4 years later and look what has actually happened. In September 2020 when you started this thread, the S&P was 3,300. Today it's 5,500. So much for that bubble you were concerned about.

2M will get here before you know it. Keep up the great work. The first million always takes the longest.

Thanks DS, for the added perspective in relation to the current market performance versus four years ago. I still stand by my previous comments that NW at any given time is a simply snapshot of unrealized gains (or losses) depending on that point of time. But it further proves of the idea of staying the course and consistency for investing regularly. While it is simply one value of many goals in my life, I use it as one benchmark to validate that I'm moving forward and not backwards.

This is the first time I've actually expressed or told anyone that goal out loud. I could never tell anyone in person since I see no benefit and only comes off as bragging. But in this community (my only social media) I believe others in common and relate to goals of financial independence while not making it our only identity.

[Jluke]

I stopped including my home in my calculations and strictly focus on amount invested and cash.

at this point I don’t see myself downsizing anymore since home prices really took off. And if I did, I’m probably looking at net 200k after selling/buying. And then would need some of that for improvements, etc

[kork13]

This is the first time I've actually expressed or told anyone that goal out loud. I could never tell anyone in person since I see no benefit and only comes off as bragging. But in this community (my only social media) I believe others in common and relate to goals of financial independence while not making it our only identity.

You're totally right. Around here, we're all aligned toward similar (broadly generic) goals, and it's easy to cheer people on when you're on the same path as someone else (whether ahead or behind them). On that vein ... CONGRATULATIONS! Benchmark numbers are definitely encouraging to see accumulate over time, and it's always worth taking a step back to appreciate the work you've put in to get there.

To echo what Steve mentioned earlier, the first million is definitely hardest. For specific numbers, our first million took about 11 years ... the second million, another 6 years. Less than 1 year later? We're already passing $2.2M. Your wealth accelerates over time... that's the beauty of compounding growth! (although income growth also has a part to play)

[disneysteve]

To echo what Steve mentioned earlier, the first million is definitely hardest. For specific numbers, our first million took about 11 years ... the second million, another 6 years. Less than 1 year later? We're already passing $2.2M. Your wealth accelerates over time... that's the beauty of compounding growth! (although income growth also has a part to play)

So true. Look at us. I officially retired in June but essentially stopped working in January. Despite having little to no work income this year and drawing from our savings every month to live on, year to date our portfolio is UP $400,000. We could potentially end the year up over half a million dollars. It’s crazy how quickly it builds as your balance increases.

[cypher1]

So true. Look at us. I officially retired in June but essentially stopped working in January. Despite having little to no work income this year and drawing from our savings every month to live on, year to date our portfolio is UP $400,000. We could potentially end the year up over half a million dollars. It’s crazy how quickly it builds as your balance increases.

Congrats on your retirement, DS! I'm late to the party for updates with forum members these past years.

[disneysteve]

Congrats on your retirement, DS! I'm late to the party for updates with forum members these past years.

Thanks. I dropped to per diem in 8/22 and mostly worked 8 hrs/wk through 2023. I cut down to 4 hrs/wk in January and quickly realized it was time to hang it up.

[LivingAlmostLarge]

congratulations! Great work

[Randomsaver]

Wow congrats cypher!

I'm 51 and only have $288K 401K Retirement Savings + $59K IRA Retirement Savings = $348K net worth (no more mortgage or any debt).

Shouldn't we add SS into our net worth?

[kork13]

Shouldn't we add SS into our net worth?

I think most would generally say "no" -- it's not a personally owned asset, it's just an income stream that you expect to have access to in retirement. Similarly, in most cases you wouldn't include the value of a pension in your net worth, because that money is not yours to hold & control. The money belongs to the company, you're just going to receive an income off of their money.

That said, you can (should) certainly consider SS or pension income in the decision of setting your "retirement number," figuring out what kind of net worth you need to retire. If you're getting a pension, it'll reduce the amount that you'll need to save up.

[james.hendrickson]

As of this afternoon, I reached my financial goal for net worth of 500K by age 40 (aka by March 2021). It looks like I'm at 509K after checking all my accounts and using conservative number for value on house vs the overvalue amount in Zillow.

Don't get me wrong, with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events. But I'm proud to say I hit that goal, even if it's temporarily.

I didn't start contributing to a 401K till age 27, bought a house at 28, found this forum at 29. Roths didn't start till 34, with more serious investing and upping contributions till I was 36. So it's been quite a ride within the last 12 years, but I still have a ways to go.

Thanks again for everyone on this forum! When I read others' accomplishments, it only encourages me to stay on track with goals (next one 1 million). I hope this inspires beginners as well, and to realize you just need to start small but remain consistent and focused.

Cypher - what is the next step for you here? Are you going to set another net worth goal?

[cypher1]

Cypher - what is the next step for you here? Are you going to set another net worth goal?

James, dunno how I overlooked this question months ago, but interestingly enough I've recently been reflecting on my next goals outside of financial. While it would be nice to hit 2M NW by age 50, I'm not as focused on the numbers as long as I can afford to annually max out my 401K, Roth, HSA, and Ibonds at a minimum.

But on a more personal level for some time I've been dealing with elderly parents with memory issues (assisted living memory care may be happening for both in less than 6 months), an adult sibling with special needs would need a group home at the same time, while juggling all three finances as their power of attorney successor agent. While all these moving components contribute to further family siblings drama, has definitely brought more stress, impatience, and anger from me. So my next goals is really about investing more in my mental health (working out everyday and sleeping good only goes so far), dealing with my anger management as I can recognize how it can over flow into professional and personal relationships. At the same time I'm grateful for my family and friends for support, but I understand there just some things in life we can't always solve on our own.

[LivingAlmostLarge]

James, dunno how I overlooked this question months ago, but interestingly enough I've recently been reflecting on my next goals outside of financial. While it would be nice to hit 2M NW by age 50, I'm not as focused on the numbers as long as I can afford to annually max out my 401K, Roth, HSA, and Ibonds at a minimum.

But on a more personal level for some time I've been dealing with elderly parents with memory issues (assisted living memory care may be happening for both in less than 6 months), an adult sibling with special needs would need a group home at the same time, while juggling all three finances as their power of attorney successor agent. While all these moving components contribute to further family siblings drama, has definitely brought more stress, impatience, and anger from me. So my next goals is really about investing more in my mental health (working out everyday and sleeping good only goes so far), dealing with my anger management as I can recognize how it can over flow into professional and personal relationships. At the same time I'm grateful for my family and friends for support, but I understand there just some things in life we can't always solve on our own.

Take life one step at a time. I feel like now in our 40s that savings and investments are on cruise control. It's harder to move the needle right now and for probably the next 10 years. So it's barely worth considering if you are a bogelhead (index) investor long term. I don't pull money out of our taxable account or retirement. So nothing changes except what goes in and returns.