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Old 07-08-2016, 10:25 AM   #21
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Congratulations, Laurence! I'm a little envious, because I got laid off, and entered ER, before I could sample the sweet joys of having a cool (or even an uncool) million. It's harder to get there now that I'm in the withdrawal phase, and not adding extra contributions. Seems like my portfolio has been hovering around the 750K mark for quite a while now. The highest it has ever been was around 780K. I've only been withdrawing $15,600 a year (though spending ~17K/year due to a little extra income), but I think it's going to be quite a long time before I hit the million mark. If and when I do, I suspect a million will be worth rather less than it is today.

Then yesterday, my dentist informed me that I need 2 root canals and 3 crowns, for which I only have partial coverage, so it looks like I'll be in the hole for around $4.5K. That's a big chunk out of my meager budget. Ouch! Even my close friend, who is very unsavvy about money, and usually just thinks of me as some rich guy, felt bad for me. She showed an unusual level of financial understanding yesterday when she said, "I'm sorry Tom, I get it. You're rich, but you're not that rich". She nailed it. I was actually feeling quite rich until the $4.5K dentist bill came along.

Anyway, congrats Laurence, and here's to the next million!
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Old 07-08-2016, 10:26 AM   #22
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You've done something many can only dream of doing. Maybe it's not the finish line but it's still impressive!
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Old 07-08-2016, 11:58 AM   #23
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Reaching $1M net worth is quite a milestone-- but I think a bigger one is hitting that value in just investments that you'd actually live off of. So not including real estate, present pension value, material stuff, and etc. Of course not all investments are immediately liquid at this age like 401K, Roth, and etc. Mentally though, having the pot of $$ is a big deal and this is where it really strikes me with the most impact.

As other posters have said though, a million isn't what it used to be so it's probably more like $1.5M where the real partying should be these days. Haha.












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Old 07-08-2016, 11:58 AM   #24
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Don't know how you can be that casual about reaching the million mark. I was thrilled when we hit a million in our investment accounts. Really hated when we dropped below a million. Now that we've been staying above the million mark I look forward to each hundred thousand we pass on our way to 2 million. We worked hard to save and get here.
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Old 07-08-2016, 12:12 PM   #25
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Objectively, it is a noteworthy accomplishment--and as many have noted, doing it at your ages with three kids makes it more so. Bravo!

Subjectively, if you are the type of person who gets there by long-term planning, LBYM, investing, etc. (i.e., the type way over-represented on this board!), it can easily be "ho hum," anticlimactic. For us, while the present NW number is objectively large, looking at the change over time on a quicken graph is really the only way to make it strike home.
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Old 07-08-2016, 01:35 PM   #26
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Anyone else feel that "millionaire next door" moment was anti-climactic?
Congratulations Laurence, thats a great achievement (and a neat way to realize it).

It was a very anti-climactic epiphany for me too when I made the same discovery one day.

_B
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Old 07-08-2016, 01:44 PM   #27
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I've never celebrated milestones. It's easy to go online and find people who have done much better than me, and who would consider my milestone a terrible disappointment.
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Old 07-08-2016, 03:46 PM   #28
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I will never know what it's like to reach the million $ mark because I won't work long enough to reach it. I keep my expenses low so I don't need that much money to retire. I've always lived on less than $20K/yr and don't mind living on that for the rest of my life if it means I don't have to work as long. Nothing wrong with working longer to have more to spend, it's just not what I want.
Same here (well I will hit a million, but don't need to). I live on $28k but rent is $940 a month. If I bought a house I'm pretty sure I'd spend under $20k easy.

I figure my pension will be worth close to $1 million depending on how long I keep working and I think my investments will get there in the next 10 years, around 50.

Also to address the OP. Yeah I imagine my reaction will be similar. I thought I'd be real happy when I was able to bring in $20k per year from investments, which was a goal of mine, but then when I got there it was, "meh".
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Old 07-08-2016, 04:02 PM   #29
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Was this a 'net present value' sort of pension calculation?
Yeah they froze my pension a long time ago, so there is a lump sum option to roll over, all I did was add that.
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Old 07-08-2016, 04:04 PM   #30
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Reaching $1M net worth is quite a milestone-- but I think a bigger one is hitting that value in just investments that you'd actually live off of. So not including real estate, present pension value, material stuff, and etc. Of course not all investments are immediately liquid at this age like 401K, Roth, and etc. Mentally though, having the pot of $$ is a big deal and this is where it really strikes me with the most impact.

As other posters have said though, a million isn't what it used to be so it's probably more like $1.5M where the real partying should be these days. Haha.












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I think that's it, it's no change to our lifestyle, our freedoms, our options, it's just a number. It's great, I know I'm a lucky guy, I think I just can't wait to retire now and I'm getting impatient, and know that I need to plow on in a job I'm kind of burn out on...
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Old 07-08-2016, 04:13 PM   #31
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Congratulations and some celebrating are certainly warranted. As Nash said, the majority of people in USA are far behind where you are, even those that are saving toward retirement have not met the $1M milestone at your age. So keep up the good habits, your second $M will come along much faster.
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Old 07-08-2016, 04:26 PM   #32
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Congratulations, Laurence! I'm a little envious, because I got laid off, and entered ER, before I could sample the sweet joys of having a cool (or even an uncool) million. It's harder to get there now that I'm in the withdrawal phase, and not adding extra contributions. Seems like my portfolio has been hovering around the 750K mark for quite a while now. The highest it has ever been was around 780K. I've only been withdrawing $15,600 a year (though spending ~17K/year due to a little extra income), but I think it's going to be quite a long time before I hit the million mark. If and when I do, I suspect a million will be worth rather less than it is today.
Maybe you mentioned this in the past but how do you live on $17K/yr in SF.? Would I be correct to assume you have a paid off house or multiple roommates? I live on under $17K most years but I live in small town Wisconsin where I get a 2 bedroom, 1000 sq ft, top floor apartment for $560/mo.
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Old 07-08-2016, 04:38 PM   #33
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DW and I have noticed that we're not good at celebrating things, so I say celebrate this... because you only do this thing once!
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Old 07-08-2016, 04:42 PM   #34
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I agree.

Waiting for a mill and a half...c'mon

The next celebration comes at 2 mill, everyone knows this -
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Old 07-08-2016, 06:57 PM   #35
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When we hit $1m it was a bit of a "well what do you know?" moment. It made me smile but wasn't a huge deal even though I was 41.

I think that's because people who hit that at 41 and are FIRE-minded know that $1m is interesting but just a waypoint on the journey. After the smile, it just begs the question of how you get to the next waypoint.

DW and I hit waypoint #3 last month

Two more waypoints to go!
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Meh at hitting a million
Old 07-09-2016, 02:05 PM   #36
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Meh at hitting a million

I find it is a more satisfying threshold after a couple of years hindsight and regular savoring on my own neighborhood walks. In real life there is no trumpet fanfare, singing of angels and parting of clouds when $1 million NW is hit, nor would we probably want to post it on Facebook if we're a person who wants to keep his real friends, so we have to celebrate it quietly ourselves. I plan to have a nice dinner with DW every time we cross a $250k threshold because that represents another $10k in future ER income at a 4% SWR, which makes me want to celebrate! Congrats and Ta-Dah! (your trumpet fanfare)
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Old 07-10-2016, 05:42 PM   #37
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Congrats!!
Go ahead and pop the cork..I've still got our empty bottle and there's a space next to it for number two..
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Old 07-11-2016, 05:28 PM   #38
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"Anyone else feel that "millionaire next door" moment was anti-climactic?"

In my house, not only anti-climactic but completely un-noticed for several months. To my surprise, at the moment of realization, it was treated much like the Grand Canyon by Clark Griswold.

Nonetheless a tremendous accomplishment Laurence.
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Old 07-11-2016, 07:29 PM   #39
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Congratulations, Laurence. I did not celebrate either. We are retired now and our investing style is more conservative, so I am sure that we will not reach the next million. However, I think that I need to start celebrating more things. Hope you do also.
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Old 07-11-2016, 10:23 PM   #40
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We felt "meh" about it too. As a member of this forum, by the time you reach that 1st million you have a really clear understanding that it is not enough* to sustain a lasting freedom from work. Sad but true!

That said we landed upon a way to mark the occasion. We went out for a celebratory night with pizza and beer. It seemed fitting -- with only 1 million that would be level of "celebration" we could afford

When we finally reach FI plus a little, THAT will be time when we break out the champagne and steaks.

Congrats on achieving the 1 million mark! Celebrate it - even if in some small way.

--Linney

*living in not low COL area, being a couple/family not single, no pension, etc. etc. the usual caveats
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