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Power of compounding...start sooner, save more often
Old 04-11-2016, 09:39 AM   #1
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Power of compounding...start sooner, save more often

The power of compounding is amazing. I am 34 now, wife is 33 and I have been investing in the market for 8+years (since 2008) when I first had access to a company sponsored 401k plan. Before then, I had no idea how to invest into the markets...and even then I had no clue what I was doing with a target date fund allocated to 50% bonds when I was 26years old. That mistake likely cost me a bit of opportunity.

Compare this now to my DH who had a Taxable TD Ameritrade brokerage her parents opened for her when grandma passed. This small amount of money grew quite a bit, allowed her to pay her college expenses, rent and even some graduate classes and a down payment on a car.

She finally took the remaining 4,000 out to help me pay off debt after being unemployed last year. This money lasted her a great while.

Now because of that help, she herself was able to save up enough in her retirement accounts where she actually has more shares of stocks and therefore a larger portfolio than me. I have been saving as much as I can, and this month I will finally surpass her in owning more shares and having a more valuable portfolio because of that.

Here’s the kicker, I earn 3x more than her, and have always earned at least 2x as much…known her for 10yrs. I have been saving as much as I could afford through the what I call real world problems, getting married, buying a house, having a kid… but yet it took me 9yrs of aggressive saving to match her portfolio.

If I could do it over, I would have opened a taxable brokerage account in high school and started saving sooner and more often. Probably a common statement. Learn from my mistake young jedis.
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AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, (Value/Growth/Blend): X/X/X% REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 04-11-2016, 09:57 AM   #2
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Originally Posted by kgtest View Post
If I could do it over, I would have opened a taxable brokerage account in high school and started saving sooner and more often. Probably a common statement. Learn from my mistake young jedis.
We can all say that, even here, hindsight is a wonderful thing.

Most people learn the lesson (much) later, some never do. So don't beat yourself up, it won't help, and you still have plenty of time to reach FI at a comfortable age.
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Old 04-12-2016, 04:11 PM   #3
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So you learned a valuable lesson early. Be glad you did. I should have never sold my first house but should have paid it off and rented it out. Big deal. I'm still on target to retire earlier than anyone I know in daily life. Keep educating yourself on personal finance and you will crush your goals soon enough. Good luck.
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Old 04-12-2016, 04:41 PM   #4
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Most people learn the lesson (much) later, some never do. So don't beat yourself up, it won't help, and you still have plenty of time to reach FI at a comfortable age.
+1 You still figured this out earlier than average so good for you.
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Old 04-13-2016, 02:36 PM   #5
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I would hardly call your experience a mistake.

Great job and congratulations on finding a wife who is on board with FIRE
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