Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Very Impressive
Old 03-09-2019, 05:25 PM   #1
Recycles dryer sheets
 
Join Date: May 2013
Posts: 418
Very Impressive

I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year. He's typically lives in CA...quite an expensive state. He's a challenging character and has been fired numerous times. (Not for a bad attitude...he's simply so slow at accomplishing things that I imagine it bothers his bosses.)

Anyway, about a week ago he asked if I'd review his portfolio and give advice. I was amazed to see he'd amassed about $400k, despite the fact that he doesn't spend much time thinking about finance or have much of a head for that kind of stuff.

It was really nice to get a reminder that whatever one's means, it's possible to live below them and save and invest.
__________________

__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
RenoJay 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!

Old 03-09-2019, 05:37 PM   #2
Thinks s/he gets paid by the post
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 1,367
I love hearing stories like this. And then there's R Kelly who couldn't post bail even though he's probably made, and spent, millions. I like your guy's approach better.
__________________

__________________
FIRE Class of 2018 @ 61
SumDay is offline   Reply With Quote
Old 03-09-2019, 05:52 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2011
Location: Placerville
Posts: 784
I wish I would have just invested and ignored performance at times. I'm sure I would be much wealthier today if I had.
skipro33 is offline   Reply With Quote
Old 03-09-2019, 08:04 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 9,562
I'd guess there is a backstory here somewhere such as inheritance, but who knows?
LOL! is offline   Reply With Quote
Old 03-09-2019, 08:21 PM   #5
Full time employment: Posting here.
UnrealizedPotential's Avatar
 
Join Date: May 2014
Posts: 881
Very nice accomplishment indeed! That's no small feat and it is easier said than done at his age. Of course this forum aside, the average investor I would say has no where near 400K in their mid 40's.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
UnrealizedPotential is offline   Reply With Quote
Old 03-09-2019, 08:39 PM   #6
Full time employment: Posting here.
Oz investor's Avatar
 
Join Date: Jun 2018
Location: Brisbane
Posts: 686
not spending the inheritance ( if there was one ) is a very good start

is he slow but does the job RIGHT ?? ( that makes a big difference to a clever boss , the rest aren't worth working for )

$400K and done without excessive stress , maybe some of his concepts will help you as well ( a nest egg AND well rested seems to be a nice compromise )
__________________
i hold the Australian listed versions of BHP , and JHG .

You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.

Samuel Levenson
Oz investor is offline   Reply With Quote
Old 03-10-2019, 04:58 AM   #7
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 2,515
Very impressive on that income.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 03-10-2019, 10:33 AM   #8
Recycles dryer sheets
 
Join Date: May 2013
Posts: 418
Quote:
Originally Posted by LOL! View Post
I'd guess there is a backstory here somewhere such as inheritance, but who knows?
I've known him since he was 5 and am friends with his whole family. I don't think there's much of a back story. College was covered by his parents, but beyond that, I don't believe there was even an inheritance. There may have been some gifts along the way, but I doubt if they totaled more than $25k.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
RenoJay is offline   Reply With Quote
Old 03-10-2019, 12:47 PM   #9
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 1,540
Quote:
Originally Posted by RenoJay View Post
He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year. He's typically lives in CA...quite an expensive state.
Is he married and if not, could I introduce him to my niece?
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is online now   Reply With Quote
Old 03-11-2019, 07:55 AM   #10
Full time employment: Posting here.
 
Join Date: Nov 2016
Location: Camas, WA
Posts: 662
Quote:
Originally Posted by RenoJay View Post
I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year... I was amazed to see he'd amassed about $400k
If true, that is some trick. He would have to save $900 per month with a steady 6% return for 20 years, to get close to 400K. That's almost $11K per year, or more than half of his income.

How do you live 20 years on only $9K per year?

The flip side is if he can still live on $9K per year, that 400K with a 6% return would easily last the rest of his life.
mountainsoft is offline   Reply With Quote
Old 03-14-2019, 06:19 AM   #11
Recycles dryer sheets
 
Join Date: Aug 2015
Posts: 399
Not that it amounts to too much, but maybe there js a corporate match? My stepson makes about that and knly saves enough for the match, and has about 4k there after 2 years. He is (not smart at all) at age 30, counting on an inheritance for his retirement. He already has a paid for house, paid by his grandmothers inheritance.
Perryinva is offline   Reply With Quote
Old 03-14-2019, 07:09 AM   #12
Recycles dryer sheets
Qs Laptop's Avatar
 
Join Date: Mar 2018
Posts: 209
Quote:
Originally Posted by RenoJay View Post
I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year.

Anyway, about a week ago he asked if I'd review his portfolio and give advice. I was amazed to see he'd amassed about $400k, despite the fact that he doesn't spend much time thinking about finance or have much of a head for that kind of stuff.
The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?
__________________
"Until I land a job that pays me to surf the internet I'm going to have to keep doing it at this one."
Qs Laptop is offline   Reply With Quote
Old 03-14-2019, 07:25 AM   #13
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 10,859
Quote:
Originally Posted by Qs Laptop View Post
The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?


I tend to agree. But if he invested $150k total during his 3 big pay years, invested $7k in each of the first 20 years, had a good company match, and invested in some lucrative investments, it could be possible. Who knows - maybe hes always been 100% in Apple stock.
__________________
The wilderness is calling and I must go.
Ronstar is offline   Reply With Quote
Old 03-14-2019, 09:35 AM   #14
Recycles dryer sheets
SnowBound's Avatar
 
Join Date: Dec 2017
Location: Wayside (rural) NY
Posts: 117
Quote:
Originally Posted by Qs Laptop View Post
The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?
So being a naive third party would guess: Slow and steady with some luck WINS THE RACE.

Once I had the chance to buy my employer company stock at a 10% discount verses the lower of the opening or closing quarter stock price. Think I (very?) foolishly signed for close to 10% of my gross pay. Then the crushing and despairing events of 9/11 hit. Ended up paying a lot of taxes when I sold the stock before I quit. Shook my head at the amount of gain, sadness at how much pain was involved in a completely unrealistic gain that happened.
__________________

SnowBound 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
My Ipod suddenly talks very, very fast haha Other topics 2 04-04-2012 10:54 PM
Impressive High School kids clifp Other topics 5 03-20-2010 07:16 PM
Advice for VERY Young Dreamers (16-21) BigMoneyJim Young Dreamers 40 12-10-2007 11:06 PM
Very Interesting...Math Whizzes Only.. Tommy_Dolitte FIRE and Money 2 09-16-2004 06:54 AM
Forced very early retirement? Whakamole FIRE and Money 7 08-26-2003 08:11 AM

» Quick Links

 
All times are GMT -6. The time now is 06:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.