Millionaire celebration!!

[GSMAN]

I don't remember celebrating it as it kind of snuck by me. Although I don't know why but when I realized I reached the million dollar milestone I did feel a little different about achieving this number. I came from a very modest background and never really thought it was acheivable. I should hit the $2m mark in a couple of years and that will be cause for celebration. Maybe I will buy me a new fishing shirt!!

 

[Palmtree]

Go ahead and get excited. Life should have some celebrations! Despite it being "not what it used to be" it is a major milestone!

We're not there yet but it's so close I can taste it. (Our investment accounts are at 975K today.) Just a push more and we are over the line. When it does, I plan on celebrating with DW by opening a $$ bottle of champagne then a nice dinner out. It's a small mental reward for years of a frugal lifestyle.

Actually, we are already way over the line. We also own two homes with no mortages (vacation and home) That adds 700K or more to our "real" net worth. But for my personal millionaire milestone, I only like to count the number Vanguard gives me in our investment accounts.

 

[LoneAspen]

For a few weeks after the startup I'm at IPO'd, the stock was approaching levels that would have made we worth about $2 million after-tax on paper. But the lockup hadn't yet expired, and I wasn't fully vested anyway, so it was just funny money.

The stock has since dropped to more "realistic" levels, and the lockup has expired. I'll be fully vested in Feb 2015, and if the stock remains at today's levels, I'll have about $1 million after-tax. If they can continue growing the business (and I believe they can) and the stock doubles, then I'll have the $2 million after-tax I'm really shooting for to truly FIRE.

I'm not going to bother celebrating for "only" $1 million because I can't really FIRE on that, it's not enough. But at $2 million after-tax, yeah I'd celebrate that. Probably with a nice 30 year old Bordeaux.

 

[Ronstar]

I didn't want to celebrate knowing that it could go below 1m the next day

 

[splitwdw]

I remember watching my accounts as I grew closer to the million mark in investable assets. That was exciting and almost said the "wh****" word when we crossed. Other than letting my husband know there was no celebration. Now I'm excited about the next monetary goal. It's fun!!!!

 

[slazenger]

For the millionaires, did you do anything special to celebrate when you realized you were a millionaire?

For those not yet there, do you have any plans for how you will celebrate?

The thing I'm trying to decide as I approach this, is should I celebrate being an augmented millionaire (Net worth millionaire) or wait until I have one million in investable assets. I'm leaning towards just celebrating both and predict the two will only be ~ 2-3 years apart!

 

[Floridatennisplayer]

I used to think having 1m would be amazing. Now that I've well passed that in 401k and Personal stocks......doesn't seem like near enough. Even with both houses paid off and no debt.....it seems like expenses keep escalating. I think 2million is the new 1 million.

 

[ejman]

What I've gathered from this thread is that there seem to be several ways to calculate this being a millionaire business. Three basic modes seem to jump out and I'm sure there are many more:

1) The original accounting NW calculation i.e assets minus liabilities. The asset side definition gets a little squishy sometimes as one includes the estimated value of real estate, vehicles, artwork, hobby and other personal assets. I've even seen estimated value of clothing in some of these calculations.

2) Financial assets (Investable assets) millionaire - i.e. all assets that have a readily ascertained value on a financial exchange and are tradable for cold hard cash.

3) The Dividend millionaire = A sufficient amount of Investable assets to generate an upper middle class comfortable lifestyle without touching principal for an undetermined length of time . Maybe $3-5 million under current conditions

Of course these are snapshots at one moment in time and the line can be crossed multiple times...

Then of course, definitions really get gummed up because there is the elephant in the room... the value of pensions and SS....

 

[Mulligan]

What I've gathered from this thread is that there seem to be several ways to calculate this being a millionaire business. Three basic modes seem to jump out and I'm sure there are many more:

1) The original accounting NW calculation i.e assets minus liabilities. The asset side definition gets a little squishy sometimes as one includes the estimated value of real estate, vehicles, artwork, hobby and other personal assets. I've even seen estimated value of clothing in some of these calculations.

2) Financial assets (Investable assets) millionaire - i.e. all assets that have a readily ascertained value on a financial exchange and are tradable for cold hard cash.

3) The Dividend millionaire = A sufficient amount of Investable assets to generate an upper middle class comfortable lifestyle without touching principal for an undetermined length of time . Maybe $3-5 million under current conditions

Of course these are snapshots at one moment in time and the line can be crossed multiple times...

Then of course, definitions really get gummed up because there is the elephant in the room... the value of pensions and SS....

Riding the elephant in the room is the only way I get to play in this thread. I checked mine at retirement to be worth a 2.5 million dollar annuity. So yes I am happy with my pension check, but I ain't buying the fact it's worth anything but the next months check. So I will just have to live vicariously through others posting here. And yes, I would think a million dollars is a lot of money!


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[stepford]

As I recall watching my NW rise over $1M in 2004 wasn't nearly as big a deal watching it go through $1M again (the wrong way) in 2009. I didn't take much note when it went back over 1M the same year, but I may breathe a tiny sigh of relief when it hits my goal of $2M later this year.

 

[eta2020]

Riding the elephant in the room is the only way I get to play in this thread. I checked mine at retirement to be worth a 2.5 million dollar annuity. So yes I am happy with my pension check, but I ain't buying the fact it's worth anything but the next months check. So I will just have to live vicariously through others posting here. And yes, I would think a million dollars is a lot of money!


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You can pass 2.5 million dollars equity portfolio to your child. You can not pass your pension to your kid. Also that portfolio will "most" likely grow much faster than your pension.

I read articles about pensions being worth millions...... But with above mentioned disadvantages.

SPY with 2.5 million dollars is also way safer than pension of Detroit

 

[Mulligan]

You can pass 2.5 million dollars equity portfolio to your child. You can not pass your pension to your kid. Also that portfolio will "most" likely grow much faster than your pension.

I read articles about pensions being worth millions...... But with above mentioned disadvantages.

SPY with 2.5 million dollars is also way safer than pension of Detroit

I certainly agree with you. About the only positive for me with it besides the COLA is the fact I can't manage the money. If I had no pension and just a big wad of cash I am scared I would be the idiot to try to "goose my returns" and live to regret it.


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[eta2020]

I certainly agree with you. About the only positive for me with it besides the COLA is the fact I can't manage the money. If I had no pension and just a big wad of cash I am scared I would be the idiot to try to "goose my returns" and live to regret it.


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Not to be rude to you... I was just trying to pint out this fundamental difference. I hope you have Federal Government Pension. That should be quite safe.

 

[REWahoo]

If I had no pension and just a big wad of cash I am scared I would be the idiot to try to "goose my returns" and live to regret it.

The other risk is to be ultra conservative and only go with "safe" investments and live to regret it.

As one with no pension I can tell you the "safe" option is far more difficult to resist pursuing than the "goose" option. Middle ground, middle ground...

 

[Mulligan]

Not to be rude to you... I was just trying to pint out this fundamental difference. I hope you have Federal Government Pension. That should be quite safe.

It should be pretty safe. In a separate trust fund always prefunded upfront with the contributions and has about 40 Billion in it. Though those pesky state legislatures occasionally try to create ways to mandate certain investments of the funds that always get shot down by the uproar. I don't need it last 100 years just 40 should be fine. If I had to manage your type of asset base, I think I would go crazy watching the daily change in value...I would be one of those widow and orphan investors wanting know where the hell did all the 6% CDs go too.


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[ikubak]

No big celebration here. Becoming a millionaire was very anticlimactic. It took years of LBYM and contributions to IRAs and 401Ks, and we still do the same things today. It's not like winning the lottery where one day you have nothing and the next day you have millions of dollars and lots of new friends and ahem...investment opportunities coming at you.

 

[scrabbler1]

We just reached them same milestone last year. I don't mean to be a buzz kill, but for me it really got me thinking and made me realize ER still seems hopeless.

So we have over a million invested, we also paid off the house last year as well which is around $425K in value. 42/43 years old with no debt, no kids at home and $120K annual income. Seems like reaching a million should make me feel closer to ER........but alas I realize that since the vast majority (850K) is in 401K and Roth IRA accounts we need way, way, way more in taxable accounts to bridge the gap between age 50 and 59.5 when we can get to our qualified accounts.

Part of my ER plan was to redo the allocation of my portfolio between taxable (non-retirement) accounts and retirement accounts because I knew I would be living solely off the former for about 15 years (age 45-59.5) until I could obtain unfettered access to the latter. At the time, I had about 1/3 of my portfolio in the latter but my plan was to cash out my company stock using NUA (Net Unrealized Appreciation) and pay relatively low taxes (LTCG) on nearly all of it. The company stock was about half of the retirement account so overall it was about 1/3 of my overall portfolio. Cashing it out basically reversed the overall ratio to 3/2 taxable and 1/3 retirement, something far more suitable to cover me from age 45 to age 59.5.

I have heard of this 72t rule to gain early access to one's IRA and it remains a Plan B or Plan C for me although as of now there is very little chance I will need to go that route. As I have seen mentioend elsewhere in this forum and in this thread, perhaps that can aid your access to cash to cover you until you turn age 59.5?

 

[Mo Money]

Damn the torpedoes: I pop the bubbly!

From the Sharpie scrawl written on the side of each cork, kept lovingly hidden far back on a top shelf of my curio cabinet, out of sight to all but me and my significant other:

12/31/04 $1.0MM net worth (Veuve Clicquot)
10/26/06 $1.0MM liquid net worth/HNWI (Veuve Clicquot)
06/01/07 $1.5MM net worth (Mumm)
12/16/10 $1.0MM liquid net worth beyond retirement plans (in portfolio) (Dom Perignon)
02/10/12 Paid off mortgage! (Veuve Clicquot)
08/08/12 $2.0MM liquid net worth (Perrier Jouet in its silly flowered bottle)
09/08/12 $2.5MM net worth (Mumm)
04/10/13 $2.5MM liquid net worth (Moet & Chandon - needed a bit of variety, & on sale!)
05/03/13 $3.0MM net worth (Veuve Clicquot)
10/30/13 $1.0MM in 401K (Mumm)
12/31/13 $3.0MM liquid net worth (Dom Perignon)
02/28/14 $3.5MM net worth (Veuve Clicquot)

(Hiccup!)

 

[nash031]

After parsing through this thread, I go back on what I said. I am going to celebrate $1MM when we hit it. It does t mean the same as it used to, but it still takes YEARS of discipline and is more than 95%+ of the country will ever accumulate. Life is about celebrating things like this.

 

[Van-Guard23]

No celebration for my wife and I when we hit 7 figures back in February 2012...we were both deployed in a combat zone and we both said a prayer to convey thanks and a prayer for our continued safety. To this day, we remain amazed that we've hit that number and continue to grow our nest egg...accidental millionaires who remain grateful.

 

[NW-Bound]

Damn the torpedoes: I pop the bubbly!

From the Sharpie scrawl written on the side of each cork, kept lovingly hidden far back on a top shelf of my curio cabinet, out of sight to all but me and my significant other:

12/31/04 $1.0MM net worth (Veuve Clicquot)
10/26/06 $1.0MM liquid net worth/HNWI (Veuve Clicquot)
06/01/07 $1.5MM net worth (Mumm)
12/16/10 $1.0MM liquid net worth beyond retirement plans (in portfolio) (Dom Perignon)
02/10/12 Paid off mortgage! (Veuve Clicquot)
08/08/12 $2.0MM liquid net worth (Perrier Jouet in its silly flowered bottle)
09/08/12 $2.5MM net worth (Mumm)
04/10/13 $2.5MM liquid net worth (Moet & Chandon - needed a bit of variety, & on sale!)
05/03/13 $3.0MM net worth (Veuve Clicquot)
10/30/13 $1.0MM in 401K (Mumm)
12/31/13 $3.0MM liquid net worth (Dom Perignon)
02/28/14 $3.5MM net worth (Veuve Clicquot)

(Hiccup!)

Man, that's a lot of drinking. Celebrating milestones for networth as well as investable portfolio?

I am going to do some Dom Perignon for my 60th birthday, but not any financial milestone. Life is more important than money (but I have posted that so many times).

PS. By the way, I do envy how your stash grows. A factor of 3X from 2006 to 2013? What the heck am I doing with my money? Darn it! Are you 100% in biotech too?

 

[LOL!]

PS. By the way, I do envy how your stash grows. A factor of 3X from 2006 to 2013? What the heck am I doing with my money? Darn it! Are you 100% in biotech too?

Clearly, Mo Money is simply following the "LOL!'s Market Timing Newsletter" along with maxing out retirement plan contributions.

To go from $0 to $1 miillion is an infinite increase, but to go from $1 to $2 is only a 100% increase and from $2 to $3 is only a 50% increase. And guess what from $3 to $4 is only a 33% increase. So it gets easier and easier.

 

[Mo Money]

NW-Bound: I look for every (reasonable) excuse I can get (hiccup).

DP is $150 a bottle -- 1/6666 of my liquid net worth on 12/16/10, and 1/20,000 on 12/31/13. So I did not feel it was too rash. Life is short; my personal philosophy is to quietly toast with the SO (and perhaps do a little happy dance).

I have no kids, the SO has a decent job, and other than the occasional champagne, I LBY(M?)M. I make a decent salary, and had a modest piece of a tech company that exited, long after having given me and my partners some stock in lieu of legal fees owed. (But that is one win among ten losers....) We just live modestly -- otherwise I'd be driven to drink (hiccup).

 

[NW-Bound]

I guess I have missed out on many chances to celebrate on my milestones, never celebrate a single one. But being of a somber nature, I would be more likely to commiserate the crossing of a milestone on the way down.

And one does not do the above with a bubbly of course. A drink of choice would be a good XO Cognac (substitute your own poison here like a good single malt). One needs a stiff drink to cry into.

And speaking of Cognac, I am going to pour myself a shot now, even though my portfolio just sets a new high today. It's been a while since I have a shot, and this just reminded me.

 

[jollystomper]

No celebration when we hit 1 million in stocks/bonds/cash (didn't count home equity) a few years ago, just quiet contentment. DW and I reflected a lot on where we came from... and were glad for our parents, who immigrated to the U.S. and sacrificed for a better life for their children. We are glad that they saw it happen for us. The more we gain the more we think about them.