Anyone wake up and say "How did I accumulate so much?"

[ls99]

The short answer is: set and forget about ten years ago.

 

[Golden sunsets]

It's actually the power of compounding coming to fruition, coupled with a Buy/Hold/Rebalance investment philosophy. It's delightful and comforting, but not that surprising if you followed the plan.

 

[gamboolman]

Anyone wake up and say "How did I accumulate so much?"

Yes we do - most everyday.

ms gamboolgal and I just retired 1-Feb-21 - So we are just starting the retired journey. So we're still abit nervous and look at the Portfolio regularly.

But as many others have said, Yes we do look at our Portfolio and we talk and laugh and shake our heads when we compare starting our marriage 40 year ago to now.

We were of the "Poor Man Has Poor Ways" and "Living on Love & Buying On Time" type of couple as I worked the Oilfields for 43 years...

Now in our early 60's - we are thankful and know we have been blessed. We do have regrets as most folks can't live and love a lifetime together without some hard and sad times..... Shoulda, Woulda, Coulda....

I imagine it always be abit difficult for us to really be comfortable as we're the kids of parents and grandparents who lived thru and right after the Depression - and that is just the way we are.
I remember my Grandfather straightening out bent nails on the Farm....

We're thrilled to have made it to this Next Chapter in our lives together....

gamboolman.....

Lifes A Dance And You Learn As You Go....

 

[srblanco7]

We have not ER'd as of yet, but am amazed when I look at the growth of our retirement savings. The combination of intentionality (LBYM), good fortune (was sitting on a large stockpile of cash when the covid drop hit, and was able to buy on the way down), and the miracle of compound interest have resulted in a steep increase in our net worth over the past decade.

I don't have friends that have the same focus on ER. In general, they are focused on the accumulation of things (e.g., cars, boats), rather than FI - so I really appreciate this forum as an outlet.

 

[unclemick]

Ballpark 60/40 in 2008 with no intention of going back to 'WORK!' A little sphincter tightening and a lot of worry on even Bogleheads and other forums.

"Stay the course' was a tad chewy but I made it with the appropriate 'chicken heartedness' on expenses.

Heh heh heh - hindsight allows one to brag.

 

[RunningBum]

Huh? If you sell high you get more dough even if you have more taxes.

I agree. It's so easy to get hung up on tax avoidance. Don't touch that Roth, but rather let it grow tax free. Only withdraw the required minimum from your tIRA. Hoard those taxable account holdings that have a large unrealized gain so that your heirs can get stepped up basis and nobody pays tax on the gains. Don't go over the ACA subsidy cliff or into the next IRMAA tier.

Some of us, including me, need to stop obsessing about all this and enjoy what that money can do for us. In most cases the taxes are only a small cut out of the money we take out of investments. Sure, watch out for the ACA cliff (if it comes back) and IRMAA tiers where a few $ too many can cost you more in taxes. Don't barely exceed those levels, but instead, when going over those barriers, blow through them enough so that again the taxes are only a portion of the money.

 

[Midpack]

I agree. It's so easy to get hung up on tax avoidance. Don't touch that Roth, but rather let it grow tax free. Only withdraw the required minimum from your tIRA. Hoard those taxable account holdings that have a large unrealized gain so that your heirs can get stepped up basis and nobody pays tax on the gains. Don't go over the ACA subsidy cliff or into the next IRMAA tier.

Some of us, including me, need to stop obsessing about all this and enjoy what that money can do for us. In most cases the taxes are only a small cut out of the money we take out of investments. Sure, watch out for the ACA cliff (if it comes back) and IRMAA tiers where a few $ too many can cost you more in taxes. Don't barely exceed those levels, but instead, when going over those barriers, blow through them enough so that again the taxes are only a portion of the money.

Me too. That's been my biggest shortcoming re: investing. I almost never "rebalanced" because I was continually plowing large amounts of new savings into investing I could rebalance without selling anything. As a result I am sitting on large capital gains and I delayed Roth conversions for longer than I should have. I've gotten better in my old age and ignoring taxes isn't the answer, but I still have to force myself to not let the tax tail wag the dog...

 

[Jerseytunahunter]

Totally agree with OP. Spent a lifetime investing in 401k, IRA, bought investment properties, built my business. We raised our kids to be good people and hard workers. If you asked them "would you like to win a million dollars or earn a million dollars" 10 times out of 10 they would say earn. There is no substitute the things you learn on your journey. Fast forward to 2021 and we're selling the business for eight figures and talking about giving the kids money. Life can be strange.

 

[targatom2019]

I did not realize my NW is on the way to hit 8 digit # until 2 years ago based on middle class income salary. Blessed, fugal wife, aggressive investment early, take some risks and LBYM.

 

[Austin704]

Anyone wake up and say "How did I accumulate so much?"

I wish the growth was grounded in economic fundamentals, not based on massive increases in federal debt.

I share your wish. When I think about the Buffett Indicator (Aggregate US Stock Values/GDP) standing at an historic all-time high at the end of 2021 I get nervous.

https://www.currentmarketvaluation.com/models/buffett-indicator.php

 

[Koolau]

I share your wish. When I think about the Buffett Indicator (Aggregate US Stock Values/GDP) standing at an historic all-time high at the end of 2021 I get nervous.

https://www.currentmarketvaluation.com/models/buffett-indicator.php

Probably another thread, but how do we manage for the eventual results? Not much else out there of a conventional nature that even keeps us close to inflation. I've got my crisis situations covered (I think) but not sure about long term inflation and bursting bubbles (or, shall I say it, stagflation?). As usual, YMMV.

 

[OverThinkMuch]

I've made more in 2020-2021 than the rest of my life combined. And I started with enough to retire, so I wound up with too much to ever spend.

OP - if selling your business will incur taxes, consider charitable donations in this final high income year. I donated ETF shares to a donor advised fund, so I didn't owe taxes on selling - and then got a tax deduction for the value of the shares. That would be my advice: contribute to a DAF in your highest income years.

 

[Koolau]

I've made more in 2020-2021 than the rest of my life combined. And I started with enough to retire, so I wound up with too much to ever spend.

OP - if selling your business will incur taxes, consider charitable donations in this final high income year. I donated ETF shares to a donor advised fund, so I didn't owe taxes on selling - and then got a tax deduction for the value of the shares. That would be my advice: contribute to a DAF in your highest income years.

Everyone wins (except the US Treasury) YMMV

 

[kgtest]

Totally agree with OP. Spent a lifetime investing in 401k, IRA, bought investment properties, built my business. We raised our kids to be good people and hard workers. If you asked them "would you like to win a million dollars or earn a million dollars" 10 times out of 10 they would say earn. There is no substitute the things you learn on your journey. Fast forward to 2021 and we're selling the business for eight figures and talking about giving the kids money. Life can be strange.

DF starting "giving" me money in the form of my yearly roth contribution. He can't take it with him. He realizes he has more than he will spend, and will be leaving me with a tax torpedo. Best to enjoy it on the topside before you are 6 feet under.

 

[luckydude]

Yeah, I find it kind of baffling. I retired two years ago, and my portfolio has grown considerably since then, despite my withdrawals. I never made six figures in my career, but I'm making a lot more than that in retirement -- by doing nothing.

I know a lot of the growth is because the government keeps goosing the economy like a dirty old man who's had too much Viagra, though. That part I'm not happy about. I wish the growth was grounded in economic fundamentals, not based on massive increases in federal debt.

I know a few younger folks who think that the market returns of the last decade are "normal" as they weren't around as investors during the Great Recession and earlier market downturns. They are counting on 10+% annual returns going forward to fund their FIRE dream.

Who knows, maybe they are right, and this time is indeed different. I certainly won't complain if that happens.

 

[Koolau]

DF starting "giving" me money in the form of my yearly roth contribution. He can't take it with him. He realizes he has more than he will spend, and will be leaving me with a tax torpedo. Best to enjoy it on the topside before you are 6 feet under.

We are doing the same for our kids. We have "extra" and the kids don't seem to yet understand the power of Roth IRAs - We're hoping they catch on before we are no longer able (as in dead) to assist them. YMMV

 

[DawgMan]

Wow! Didn't expect a post I started back in April to still have legs!

Fast forward to today, my part time work in 2021 (part of my master plan to start ramping down my business) unexpectedly produced 4 times the income I planned on! Combine that with the market returns and it is amazing to see the power of compounding along with fresh cash... and I am only in boring ETFs, no Bitcoin!!

Turn the page to 2022, and now my focus is on estate planning/tax efficient withdrawals/strategic gifting to kids/Gkids/charities, prioritized first by living a fulfilling life! In addition to finding some new endeavors (volunteer/other) that help me fulfill my A-personality, I need to start training myself to feel comfortable spending $$. For me, I find it to be more challenging than I thought, but am slowly getting there... DW is really good at it!
That said, I am taking my son to the Bama/Dawgs game in Indy... drive out around $5K! That is something I would NEVER have done earlier in my accumulation years, but you can't take it with you, right!