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Old 07-08-2014, 10:04 PM   #41
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Hey Senator. I wonder why you keep working, too. : ) You're set!
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Old 07-09-2014, 07:24 AM   #42
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I wonder why you keep working, too
I just started thinking about retiring recently, so it's still a new concept. I think by going until 2016, both me an my DGF of 24 years can leave at the same time.

She is a bit younger, by 12 years. But I am eyeing up 7/1 of next year too. And have been studying RVs and 5th wheels a bit already for some travel.

So, you never know. If I meet my savings goals for this year, I may have to re-assess. The goal is to save ~$175K in 2014. I had $106K saved as of 6/30, which includes my 401K (but not the match). So, it is looking like something could happen sooner.

I should have a higher savings rate the second part of the year too. No house payment, 401K already maxed, no tax payments, no $29K payment to my sister...
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Old 07-09-2014, 07:52 AM   #43
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I went through the other thread about millionaires and wanted to differentiate between dual incomes and inherited wealth.

How many became a millionaire with one income and no inheritance? Do not count a pension or real estate values. Did you become one by contributing the max to your 401K, TSP, 403b and Roth IRAs and LBYM? I would like to contribute to a Roth TSP but I am afraid of it since I will pay more taxes now and the balance does not seem to grow as fast as a regular TSP(used the calculators).
One income, not $1M yet but reasonably close (>$800k)

Traditional factors: LBYM, low taxes, well paying job for a few years, no children, index investing.

Virtually all my investments are after tax. Don't live in the US though.
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Old 07-09-2014, 11:40 AM   #44
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DW retired in her 30s. No inheritance. In fact, I have opposite problem of supporting my parents and other close family members with $$$. I work at Megacorp for a high paying position, did LBYM most of my life, saved good portion of my income every year & let it compound, did so-so with stock market (was too conservative early on, aggressive at the wrong time), had only 1 kid to take care of. With stock market hitting new highs as of this writing, we can call ourselves MMaires (barely).
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Old 07-09-2014, 12:56 PM   #45
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One income, not $1M yet but reasonably close (>$800k)
Had a couple of years (3.5 out of 7) with dual income, not at $1MM yet either, >$800. Wife ER'd and is home with our three kids. Hoping to hit $1MM next year sometime (while I'm 40).
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Old 07-10-2014, 09:32 AM   #46
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Do not count a pension or real estate values.
Why not?
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Old 07-10-2014, 09:43 AM   #47
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I think Nords posted a simple way to estimate present value of a pension based on I-bond yields.

I used it (but I don't "use it") and it seems very reasonable to me. My hesitation comes from uncertainty about pension futures.
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Old 07-10-2014, 09:46 AM   #48
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Why not?
<not a golfer> because sand trap/water hazard/trees? added layer of difficulty I imagine.
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Old 07-10-2014, 09:48 AM   #49
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I think Nords posted a simple way to estimate present value of a pension based on I-bond yields.

I used it (but I don't "use it") and it seems very reasonable to me. My hesitation comes from uncertainty about pension futures.
what uncertainty would that be?

if you want to approximate the value of a single life annuity, just calculate an annuity certain payable to the person's life expectancy. That's not the correct way to do it but it is a pretty good approximation.
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Old 07-10-2014, 10:30 AM   #50
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Married, one income, no appreciable inheritance, two kids, no silver spoon. All of a sudden I turned 59, realized that we were considered to be high net worth, got a golden handshake...and decided to call the game. Worked hard, acted on some opportunities, invested, and avoided all consumer debt. Our cars are/were 18 and 9 years old respectively-just prior to downsizing to one. People wonder where we get the money to travel since we lead a very unassuming life.

Not it's all our time. Time to travel, take advantage of travel offers, extended vacatons,etc. while we are healthy. The Med for seven weeks in Sept/Octbober and three months in Thailand, Malaysia, Australia, and Fiji over the winter. My thoughts have now shifted to what can I do to secure my children's retirement since I doubt that they will have the opportunities that I had/experienced.
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Old 07-10-2014, 02:32 PM   #51
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One income. NW about 2.3m. A couple pensions coming in the future - (enough to cover expenses) they go up about 8% each year not taken so gonna let them ride. SS and probable inheritance.
When I got my career job, I thought it was to good to be true. Surely they would figure out I was not worthy.....So I saved and invested about 50% of my income. Well the career last over 20 years and a couple by outs (mega pharma). Maxed my 401K when they became available and continued to save as much as I could - it's all about delayed gratification - to a point - you need to enjoy life but not live any where near your means if you want out early. Good thing I did this because I burned out fast after some new management took over. I would have croaked if I was in a position of having to stay on under the new circumstances.
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Old 07-10-2014, 10:22 PM   #52
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Why not?
Because I am gauging how hard it was for folks to reach $1M on a single million. I am vested in a military pension (Reserve) and I am not saying I am currently a millionaire at this time since I do not have it saved up. I read someone's posting on the net worth IQ web site boost their net worth to $1,000,000 through counting the future value of their pension. So, I am trying to avoid that in this thread.
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Old 07-11-2014, 06:53 PM   #53
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Married, prof. job now retired, lucky to have high income in 34 years of work. Live very frugally, one daughter. Early on Bought stocks of XOM, MMM, PEP, MCD, WAG, WFC,BIIB, AMGN, and others, and never met a mutual fund I didn't like.
I invested in Vanguard, T. Rowe Price, and Fidelity MFs ,and tons of cash positions.
NW= about 5.5M. invested asset.
I drive a 5 yr old Ford truck and my wife drives a 6 yrs old Honda.
We only spend about $60-70K / year.
The key is live below your means and invest the money.
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Old 07-11-2014, 08:26 PM   #54
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Single, 45, ER'd at 41, no kids, no inheritance, ~$3.9MM net worth including $1.7MM house paid off, rest in brokerage accounts.

I hardly ever put anything in retirement accounts, started a software business that failed, plus lived past my means so by age 30 I had a negative net worth of about $25K on high interest credit cards. I got serious about budgeting, lived cheaply for a couple years while paying off the cards (nothing to retirement accounts), then lived cheaply a couple more to save up for my next software business (still nothing to retirement accounts).

The business did really well (thanks to lessons learned from my previous failed one, and ironically amassing a credit card debt that I was never late with and gave me a really high credit score I needed for the new business). I sold it to a mega corp for a few million after taxes, then ER'd the next year.

Of course, my second business could have failed too and I'd be broke now at age 45 with no retirement savings. It's higher risk/return going the business route versus safe, steady saving and investing so I can't fault the latter route either.
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Old 07-11-2014, 08:57 PM   #55
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I am the breadwinner - wife has been a SAHM for over half of our marriage, and her total earnings are less than my best year of earnings at MegaCorp. Parents emphasized education, so good grades + Ivy League Math/Computer Science degree led to a very good IT technical sales/consulting/support job at Megacorp. We always banked all of DW earnings and only lived off of my salary. When my earnings started accelerating during the 90s we avoided the hype and got very serious about saving/investing, when Megacorp changed their pension rules we got even more serious. My compensation included a large bonus component (some years close to 50% of base) and our rule was to never spend more than 10% of the bonus.

Since we both came from modest backgrounds LBYM was easy to do on my income and still have a higher standard of living than we had growing up. This has also allowed us to cover our kids college expenses to avoid tuition debt.
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Old 07-11-2014, 09:45 PM   #56
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Single - 2 kids. One is 26, and the other is 13. They're fabulous and couldn't be happier with how they've turned out / are turning out - not much thanks to me, just lots of love, lots of independence and allowing them to make their own decisions and their own mistakes (plus consequences). Never been married, never lived with someone else other than the kids since circa 1987.

Went back to university when my oldest son was 3 months old. Fiddle faddled around for too many years in a "follow your PASSION! Do what you LOVE!" kind of haze before discovering Your Money or Your Life in about 2001 and got inspired to become FI. I had had a couple of uncles that ER'd in their mid 30's and didn't think it was possible unless some kind of lottery like they had had (sale of land with assistance from parents in the 70's) happened for me. Except that wasn't going to happen for me.

It clicked that I could do what I loved without having to earn money from it by saving a ton of money a la YMOYL. Learned the whole LBYM concept (read The Tightwad Gazette, Mary Hunt... and whatever kind of precursor there was to Mr. Money Mustache) and took it to a bit of an extreme (but not considering how much I made - top savings rate was about 85% on NI.) Turns out that now what I love is making money from the market - who woulda thunk?

Really focused though on maximizing my income since it kind of pains me to go below a certain threshold of spending. It feels neurotic and I become un-generous - to myself as well as others - so I don't like to do it. Just really love feeling abundant.

Didn't start investing hard core until I was in my late 30's and even then only in my taxable account. Left my RRSP's in the "professionals" hands until 2012 when I realized my returns had been freakishly higher than theirs. Had some luck in 08-09 - which I am grateful for - to run into the people (mostly traders) I have met in the workplace for guiding me to know what to do.

Just really grateful for all the learning and time it took to become what I hope I've become - a good steward of mine and my kids finances, pretty good employee, good manager.
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Old 07-11-2014, 10:05 PM   #57
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52, 1 son, divorced. 1.2 investable assets, not counting pension. Reached millionaire status in spite of being married. Ex was a weapon of wealth destruction.

Same old story, LBYM , started at 26. Maxed out the 401K for many years but just 15% now. Coasting a little and enjoying life.
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Old 07-12-2014, 09:01 AM   #58
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Single, 58 yrs old (retired @ 51). I didn't cross seven figures until well after retirement (not counting pension value). Retiring March 2008 with a bit over $500k and a pension that more than covers expenses, investable assets have more than doubled over the last six years. Soon after retirement at the 2009 market low, investable assets dropped as low as $320k. Some of the gain was savings from pension but most was from going heavier to equities during the market rebound.
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Old 07-12-2014, 06:33 PM   #59
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Because I am gauging how hard it was for folks to reach $1M on a single million. I am vested in a military pension (Reserve) and I am not saying I am currently a millionaire at this time since I do not have it saved up. I read someone's posting on the net worth IQ web site boost their net worth to $1,000,000 through counting the future value of their pension. So, I am trying to avoid that in this thread.
Edit: Because I am gauging how hard it was for folks to reach $1M on a single budget.
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Old 07-12-2014, 06:34 PM   #60
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Great stories! I am learning a lot.
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