Join Early Retirement Today
View Poll Results: Passed a new $MM mark
will or have in 2007 39 45.35%
Did in 2006 33 38.37%
Dif in 2005 18 20.93%
Multiple Choice Poll. Voters: 86. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 07-16-2007, 06:03 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
en - ga - neer 1966 big bucks 8k starting salary - no index funds , IRA, 401k, full commission broker - not a clue how to invest.

took a while. and people wonder why I'm so Curmudgeony.

heh heh heh - and opinionated too!
__________________

__________________
unclemick is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Slow and steady wins the race...
Old 07-18-2007, 01:10 AM   #62
Dryer sheet aficionado
 
Join Date: Feb 2006
Posts: 29
Slow and steady wins the race...

Quote:
Originally Posted by Sam View Post
I, for one, am convinced that 1MM is a large sum of money. To put it in context, consider a young college graduate today. This young engineer just got a job today, paying 50K a year. He wants to save 1MM in today's dollars. Here's his plan:

- Save 15% of his gross salary
- Increase his saving 5% a year. 7,500 this year; 7,875 next year...
- Inflation is 3%
- ROI is 11%

For those who think 1MM is not a lot of money, I challenge you to calculate the number of years it takes this engineer to reach his goal.

Employing the most conservative assumptions possible (savings accumulate only at the end of the calendar year and therefore draw interest only in following years, inflation begins at end of calendar year 1), it will take him in the ballpark of 30-31 years.

Nominal million comes in at 23-24 years.

More realistic temporal modeling cuts down those time frames.

Playing around with the inflation, even just a tad, is rather scary, however.

UVa
Attached Files
File Type: zip Millionaire.zip (7.4 KB, 7 views)
__________________

__________________
UVaOK is offline   Reply With Quote
Old 07-18-2007, 01:53 AM   #63
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Quote:
Originally Posted by Sam View Post
I, for one, am convinced that 1MM is a large sum of money. To put it in context, consider a young college graduate today. This young engineer just got a job today, paying 50K a year. He wants to save 1MM in today's dollars. Here's his plan:

- Save 15% of his gross salary
- Increase his saving 5% a year. 7,500 this year; 7,875 next year...
- Inflation is 3%
- ROI is 11%

For those who think 1MM is not a lot of money, I challenge you to calculate the number of years it takes this engineer to reach his goal.
Sam,
When you do the calcs, remember that our engineer is going to work hard, take risks, ask for more responsibility, learn his craft and therefore get raises over the years at more than just inflation rate. FIREes often (though of course not always) have worked harder than average to get ahead of the curve, thus boosting their earnings and savings.
__________________
ESRBob is offline   Reply With Quote
er'ing in a down market
Old 07-18-2007, 07:26 AM   #64
Full time employment: Posting here.
tightasadrum's Avatar
 
Join Date: Aug 2006
Location: athens
Posts: 802
er'ing in a down market

Quote:
Originally Posted by clifp View Post
I've been retired since May 99, so clearly in the withdrawal phase. I had a large safety margin (~ $1 million more than I needed) but it wasn't fun retiring at the top of the market.
clifp, That's what really shakes my tree about hanging in up soon. This market. I'm so tight about money, I'm afraid I would become phyically ill if the market tanked three months after ER. (I still believe my attitude about money grew out of the worst spanking I ever got the day I lost my piano lesson money.) By any reasonable measure I should be ready to ER, so I will soon. But sleeping at night will not be possible without a conservative, cash heavy allocation, even though intellectually I know it is false economy.
__________________
tightasadrum is offline   Reply With Quote
Old 07-18-2007, 07:44 AM   #65
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Quote:
Originally Posted by UVaOK View Post
Employing the most conservative assumptions possible (savings accumulate only at the end of the calendar year and therefore draw interest only in following years, inflation begins at end of calendar year 1), it will take him in the ballpark of 30-31 years.
Yes, it does take a loooong time, doesn't it.

What is "realistic temporal modeling"?


ESRBob
Quote:
When you do the calcs, remember that our engineer is going to work hard, take risks, ask for more responsibility, learn his craft and therefore get raises over the years at more than just inflation rate. FIREes often (though of course not always) have worked harder than average to get ahead of the curve, thus boosting their earnings and savings.
That's why our engineer was able to increase his saving 5% annually for 3 decades.

But I agree with you, some people are highly motivated and are able to shorten the required time significantly by saving more. Some young members here, for example, are saving 30%, 40%, even 50% of gross income.
__________________
Sam is offline   Reply With Quote
Old 07-18-2007, 03:11 PM   #66
Dryer sheet aficionado
 
Join Date: Feb 2006
Posts: 29
Quote:
Originally Posted by Sam View Post
Yes, it does take a loooong time, doesn't it.

What is "realistic temporal modeling"?
By "more realistic temporal" modeling, I meant that my "conservative" assumptions about timing (savings accumulate only on the final day of the year and therefore draw interest only in following years), are not true to life.

Presumably, the engineer is saving a a set percentage of each of his paychecks, and therefore receiving returns on that money immediately throughout the given year.
__________________
UVaOK is offline   Reply With Quote
Old 07-18-2007, 03:32 PM   #67
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Quote:
Originally Posted by UVaOK View Post
By "more realistic temporal" modeling, I meant that my "conservative" assumptions about timing (savings accumulate only on the final day of the year and therefore draw interest only in following years), are not true to life.

Presumably, the engineer is saving a a set percentage of each of his paychecks, and therefore receiving returns on that money immediately throughout the given year.
OK. Doing that would save at most half a year, but it's still around 30 years.
__________________
Sam is offline   Reply With Quote
Old 07-19-2007, 08:33 PM   #68
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by Meadbh View Post
Broke the $1m and $2m barriers in 2005. The year started out just over $900K and would have ended around $1.2m, but then I had an inheritance. Currently pushing $2.5m.
Made it to $2.5m. Next goal: $3m in 2010.
__________________
Meadbh is offline   Reply With Quote
Old 07-26-2007, 02:57 PM   #69
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Reached a new number today. Unfortunately it's less than it was a few days ago.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 07-26-2007, 08:22 PM   #70
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Hit 1 MM mark in 1999, XDW's lawyer convinced me I was only a half millionaire. I'm above that mark again now and ER.
__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Old 11-25-2007, 09:31 PM   #71
Dryer sheet aficionado
 
Join Date: Jul 2007
Posts: 42
Quote:
Originally Posted by yona View Post
Just reached my first Million few weeks ago. About 10 years earlier than planed.
The last 2-3 years were just too good to be true. All thanks to diverting my portfolio to very undervalued stocks.
I always thought I will celebrate this event, but it came so fast that I was not prepared for it (my net worth was only 600K at the beginning of the year)
Did anyone celebrate his first million? How?
Are you the guy from pfblog.com?
__________________
pj86 is offline   Reply With Quote
Old 11-26-2007, 05:34 AM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Hum I haven't quite fallen backward below another million mark, but if the market continues for a the rest of the year like it has the last few months....
__________________
clifp is offline   Reply With Quote
Old 11-26-2007, 05:59 AM   #73
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Broke 1MM in 2001, 2MM in 2005, would have thought 3MM was coming this year but it no longer seems likely. (all this excludes equity in primary residence of course)
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 11-26-2007, 06:02 AM   #74
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Actually, I probably broke 3MM at some point during this year, had I MTM'd my portfolio on a daily basis. As it is I only check it at month end and it got as high as $2.95. I suspect there were days intra-month where it might have peaked above 3MM.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 11-26-2007, 07:54 AM   #75
Dryer sheet aficionado
yona's Avatar
 
Join Date: Jun 2007
Posts: 45
Quote:
Originally Posted by pj86 View Post
Are you the guy from pfblog.com?
Not me. My portfolio is about 90% in Hong Kong stocks.

Thanks for the link though
__________________
Many people die at twenty five and aren't buried until they are seventy five.
Benjamin Franklin
yona is offline   Reply With Quote
Old 11-27-2007, 04:05 AM   #76
Moderator
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 9,337
1MM in 1998
2MM in 2005
3MM in 2006

3.4 and falling now
__________________
Ronstar is offline   Reply With Quote
Old 11-27-2007, 09:32 AM   #77
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,705
Send a message via Skype™ to kcowan
Just hit 2MM again but from the other direction...
__________________

__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
You retirees w/ 10+ years experience, what's next? Nords Life after FIRE 12 01-31-2010 03:43 PM
Mark Fuhrman: Grand Jury Should Probe Terri Schiavo Case Art Other topics 64 07-10-2005 11:08 PM
Retired Early for 6 years! arrete Life after FIRE 6 10-07-2004 11:48 AM
Building a short-term bond portfolio for 20+ years Nords FIRE and Money 3 02-12-2004 08:54 PM
$50 a day? No way! patnbj FIRE and Money 112 01-30-2004 09:21 PM

 

 
All times are GMT -6. The time now is 02:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.