Net worth Today

[ut2sua]

The whole idea of FIRE is you are doing things on your own terms. That to me does not include worrying about how others do it.

+1

 

[Luvtoride]

Rest assured, just about anyone posting here is better off than most of the world.

I count my blessings and keep a healthy perspective. The whole idea of FIRE is you are doing things on your own terms. That to me does not include worrying about how others do it.

Very well said. I just found this community and I already agree with that statement.

The past two days we’ve had 2 different sets of long time good friends come visit us at our 2nd home…our beach condo. Although they are very supportive , I can’t help but feel a little self conscious about our “blessings” and what our friends might think about our good fortune. Then I remember that my wife and I have busted our asses all our lives to get what we have. No handouts from parents or large inheritance.

I really don’t compare ourselves to anyone else, but I am already appreciating the fact that I can discuss any wealth/ financial planning and other ER topics and our specific circumstances with others here without judgement. I will open up more and contribute as I get more familiar with the site and the topics.
Thanks for providing a great forum to gain valuable information and share our successes.

 

[Retch The Grate]

V
I really don’t compare ourselves to anyone else, but I am already appreciating the fact that I can discuss any wealth/ financial planning and other ER topics and our specific circumstances with others here without judgement. I will open up more and contribute as I get more familiar with the site and the topics.
Thanks for providing a great forum to gain valuable information and share our successes.

Without judgement may be a stretch. But at least it is judgement that doesn't matter.

 

[DrRoy]

We hit a milestone and officially entered multi millionaire status. I see tons of people on this forum who have 2-5X that and was wondering if others seeing higher net worth's make you feel somewhat of a bit of a failure?

When I see other posters who have a five or seven million dollar net worth and are truly concerned if they have enough to retire, it makes me wonder why I'm not worried with much less? Am I missing something?

It all comes down to what WR you need to be comfortable. We have hit a NW that I never expected, and can spend much more than we did before RE at a WR of 2.5%. I give no thought at all to those who have more.

 

[old medic]

Whenever one starts comparing themselves to others, it could be an easy way to feel like a failure.
What's in your bank account is all that matters.

I had this feeling when I 1st started looking around on here... and comparatively to many stories on here.... we seem to be poor. Our current NW is less than $500K. But thanks to the forum and great folks on here, We have be able to figure how to manage and make the best of what we have. I'm retiring this year at 58, DW in about 5 years at 57. We wont be buying brand new cars every other year or taking round the world cruises, but looks good at having more than enough to enjoy the rest of our lives fairly comfortably...
Thats a peace of mind that makes us feel....

 

[ShokWaveRider]

NW is relative.

+10 One could have ~$3m worth of stuff and $300 in the bank to support it.

 

[finnski1]

+10 One could have ~$3m worth of stuff and $300 in the bank to support it.

And I think there are more of those people out there than we think. The illusion of wealth is very important to many and they can go out and mortgaged to the hilt with big house, expensive cars etc. and many do.

 

[street]

And I think there are more of those people out there than we think. The illusion of wealth is very important to many and they can go out and mortgaged to the hilt with big house, expensive cars etc. and many do.

I think you are spot on!

That is why NW is something I don't use as a measuring tool. NW maybe relevant and closely related too but it always seems like a mirage to me. Just my 2¢.

 

[eytonxav]

If you are living a comfortable and happy life and can sustain that, what more do you need? There will always be people who are richer, better looking, more athletic, smarter, etc but it really does not effect me one bit.

 

[Koolau]

Net worth has been kinda fun to watch here lately, but "enough is enough." Heh, heh, if I envy anyone here, it's for your youth and health.

 

[Andre1969]

One of the happiest financial moments of my life happened around November/December of 2004. It wasn't a specific $ milestone, but rather a couple of events that helped bump me up, in general.

First, I had made the final payment on my 2000 Intrepid around that timeframe, so that was $347.66/mo I no longer had to pay. I had actually moved in late 2003, but held onto my old condo, fixing it up to sell. That was a slow process, but I lucked out because the value really shot up in the time the contractor delayed. Anyway, once that condo was sold, that was maybe another $1,000/mo off the books. And I think I cleared about $76,000 on the sale.

NW wise, I had slipped above the $100K mark at the beginning of 2004, and pretty much stayed there, I think. Selling the condo put me above the $200K mark, so I guess there's that threshold. But for me, the satisfaction was more about the peace of mind of having that condo sold, and freeing up around $1350/mo in cash flow.

Some of the other milestones that people might think of as major, such as $500K, $1M, and $2M, while nice, just didn't seem like that big of a deal. I think mental frame of reference, for lack of a better phrase, might be part of it. When you're young, and don't have much, the idea of $500K, $1M, $2M or whatever seems like a big deal, a lofty goal, and it's easy to think of it as life-changing. But, for most of us, we don't hit those milestones instantly. They take years, or even decades, of hard work, risk, sacrifice, patience, etc.

Looking back on my path to $1M, I hit it, briefly, in February 2015. And I hit it again in October 2015, and again in March 2016. Third time was a charm, and it finally held!

But, before that, I had hit $900K at the end of 2013, so at that point I was almost there. I came close, $970K in June of 2014, but then it kind of stalled out. I finished 2014 at $988K. So, when I finally DID hit $1M, instead of being over-joyed, my attitude was more like "It's about damn time!". Plus, at that point I had spent over a year being basically 90% of the way there, so it wasn't like some magic threshold.

Now, if I could go back to any point in my 30's, say, and suddenly enough money fell into my lap to push me above the $1M mark, it would have been life changing. But I guess when you get there more slowly, you just get acclimated to your financial standing, so it doesn't seem like as big of a deal.

Plus, once you get into higher $ amounts, and see how fast it can rise and fall with the market, it can also be a bit humbling!

 

[RxMan]

What I’ve learned as I’ve gotten older is to try and have the right perspective about money. I’ve realized a long time ago there will be plenty of people that have a lot more money than my wife and I.

That’s OK because money is a means to an end and not the end itself. We will use money to fund our retirement one day which will give us the freedom to spend our time on our terms.

I’ve been in a couple of running races in my day. Think like 10k runs. There were at least several hundred participants in each of those races.

Most of us had no chance of winning outside of a handful of competitors who were well trained athletes. But the great part of running was that the vast majority of participants were there to set personal goals like beating personal best times or simply being able to finish the race.

I could have been running by myself in those races for all I cared. It was about finishing the race and accomplishing the goal rather than any comparisons to other runners.

That’s how I view retirement and net worth: it’s about finishing the race and the journey that’s important. Once you view money as a tool and not an end product you’ll be less likely to compare your total to others.

That’s why my goal will be to retire when I think we have enough to comfortably live the rest of our lives and no more- because otherwise I’d be continuing to work simply to run up the score of a game that doesn’t matter anyway. Money is simply the road we take to get to our desired destination but it is not by itself the intended destination.

 

[Luvtoride]

Good analogy and well said. We all need to do what’s right and works for us.

 

[WD40 or duct tape]

... Money is simply the road we take to get to our desired destination but it is not by itself the intended destination.

That is a great statement RxMan!

 

[Koolau]

Money is simply the road we take to get to our desired destination but it is not by itself the intended destination.

It's easy to lose sight of the true goal (FI) and think in terms of the NW. I went through that early in my c*reer - long before I discovered this site and long before I thought of RE.

Over time, I slowly adjusted my thinking away from the number itself and more toward Financial Independence. Mid c*reer, I just wanted out. It was then I began a serious self-study on what it would take. I'm sure I was "wrong" looking back (I guessed that anywhere from 6% to 8% would be a reasonable SWR - boy was I green!)

Once I found this site and FIRECalc., I realized I had "enough" and could bail out any time I liked. FI made it possible to stay and "enjoy" my last several years. The second that changed, I left and never looked back. I realized by then that the NW was simply a means to an end. YMMV

 

[tmitchell]

My NW is around 2.75m now and I honestly can’t believe it. I spent so much of my life grinding away thinking I’d never “make it,” but thanks to these forums I have.

I also see people worried with $5+M and if I’m honest it often makes me worry. I still rent and it’s starting to look like I may never own a home in a place I want to live since the prices just keep climbing.

I’m on the verge of using my FI money to make a major change. Whether that will be RE or a new path to engage on I don’t know for sure. But clearly I have “enough” to enjoy a great life. I’m 54 btw.

 

[Markola]

My mental challenge since semi-retiring last year at 54 is watching the portfolio drift downward until SS and our planned downsize of the house at around age 70, i.e. our projections show that we’ll have the classic “smile shape” of many retiree portfolios over life expectancy.

Oh well, easy come, easy go. The new book “Die With Zero” made me feel better about using what we have while we have the health to enjoy it.

 

[Car-Guy]

I am 43 single and no kids and have $563,630. Hope to reach $2M by 60.

That's 17 years away. You should make that easy... The problem is, the way things are going, 2m in 17 years may only have the buying power of 1m today... Maybe even far less.

 

[ncbill]

My NW is around 2.75m now and I honestly can’t believe it. I spent so much of my life grinding away thinking I’d never “make it,” but thanks to these forums I have.

I also see people worried with $5+M and if I’m honest it often makes me worry. I still rent and it’s starting to look like I may never own a home in a place I want to live since the prices just keep climbing.

I’m on the verge of using my FI money to make a major change. Whether that will be RE or a new path to engage on I don’t know for sure. But clearly I have “enough” to enjoy a great life. I’m 54 btw.

Sure, you see plenty over on bogleheads like that who say they 'need' $20k+/month to retire.

Often they're in a HCOL area & so half of their retirement spending could be due to their multi-million dollar home.

I guess that's the "golden lawnmower" (like "golden handcuffs") price of staying there.

 

[RobbieB]

My mental challenge since semi-retiring last year at 54 is watching the portfolio drift downward until SS and our planned downsize of the house at around age 70

You may well see your portfolio grow instead. Mine grew 40% in seven years dispite a well over 4% burn rate.

 

[RetiredHappy]

The main thing is to not compare your net worth or life style with others. We feel that we are comfortable and can afford everything that we want. We also happen to live in a community where many people have much more than us. There is only so much food you can eat and clothes you need to wear, so it does not matter how much we have. Our retirement is secure and that is all that we need.

 

[RobLJ]

I have a handy Quicken chart with data that goes back to 1992, but I know that until 1988 we didn't have 401K/IRA money (Edit, actually we had about 4k in 1992).
It took us 22 years from 1988 to 2010 to get the first million in investments/savings. 7 years for the next one. The first is by far the hardest.


To chime in with Robbie, I semi-retired at 57 in 2015 and also expected a burn rate, particularly after encouraging DW to retire 3.5 years ago. Instead, it's up 40% over the last 6 years. Admittedly, we have had decent to good markets, with the exception of the COVID crash. I've only drawn from my account and it is even over the last 3 years of withdrawals, despite an average withdrawal rate of 7%. Meanwhile, DWs accounts have gone up steadily. This is way more than we need since even generous basic expenses are no more than 5k/month and I also send money for expenses to my 89 year old mother monthly. The rest is travel and other non-essentials. The house is paid off, however, and no debt.

I do not compare with others; my comparison is my childhood in rural Missouri (Ozarks) and Western Oklahoma, although I have learned to spend on some wishes over the last decade as the money kept piling up. For a while, I was buying a used fly rod or reel on the internet every year; I have used 3 of them the last 5 years, but two I haven't even used (I don't have a big enough line for the 7/8 switch rod, so I need to go to Cabelas but I dropped the reel in the garage and bent it). I don't normally fish big enough water to use a switch rod, but it's comforting it's here in my study looking at me and gathering dust.

Curious did it take a long time for your net worth to grow from $1M to $2M? What is the ratio of that growth between investment return.and the income saving?

I think most multi millionaires see the return from investment contributed to majority of NW growth than their income even before the retirement.

 

[teetee]

I have a handy Quicken chart with data that goes back to 1992, but I know that until 1988 we didn't have 401K/IRA money (Edit, actually we had about 4k in 1992).
It took us 22 years from 1988 to 2010 to get the first million in investments/savings. 7 years for the next one. The first is by far the hardest.


To chime in with Robbie, I semi-retired at 57 in 2015 and also expected a burn rate, particularly after encouraging DW to retire 3.5 years ago. Instead, it's up 40% over the last 6 years. Admittedly, we have had decent to good markets, with the exception of the COVID crash. I've only drawn from my account and it is even over the last 3 years of withdrawals, despite an average withdrawal rate of 7%. Meanwhile, DWs accounts have gone up steadily. This is way more than we need since even generous basic expenses are no more than 5k/month and I also send money for expenses to my 89 year old mother monthly. The rest is travel and other non-essentials. The house is paid off, however, and no debt.

I do not compare with others; my comparison is my childhood in rural Missouri (Ozarks) and Western Oklahoma, although I have learned to spend on some wishes over the last decade as the money kept piling up. For a while, I was buying a used fly rod or reel on the internet every year; I have used 3 of them the last 5 years, but two I haven't even used (I don't have a big enough line for the 7/8 switch rod, so I need to go to Cabelas but I dropped the reel in the garage and bent it). I don't normally fish big enough water to use a switch rod, but it's comforting it's here in my study looking at me.

Thanks for sharing your experience. I had a late start in my career so I tried to shorten my accumulation period. It took me 8yrs to get my first 1M and I am hoping it will take less than that to get the 2nd but I am not holding my breath for the economy to be as good as it has been in the last decade.

I got two non salt water cheapo telescope fishing rod from Amazon back in 2017 and they are in my bug-out bags with the accessories, never been used. It just seems to be a lot of hassle to start a hobby but I am sure it is just my COVID lockdown talking.

 

[teetee]

My NW is around 2.75m now and I honestly can’t believe it. I spent so much of my life grinding away thinking I’d never “make it,” but thanks to these forums I have.



I also see people worried with $5+M and if I’m honest it often makes me worry. I still rent and it’s starting to look like I may never own a home in a place I want to live since the prices just keep climbing.



I’m on the verge of using my FI money to make a major change. Whether that will be RE or a new path to engage on I don’t know for sure. But clearly I have “enough” to enjoy a great life. I’m 54 btw.

You can always sell your house to get the money back. Recessions like 2008-2009 that resulted in housing price drop does happen but not often, while rent goes up year after year consistently. It is the matter of removing the band-aid or being cooked by a slow boiling water.

Some people are happy to be a nomad in a camper van. Maybe that is something that fits your retirement life style?

 

[F.I.R.E User]

That's 17 years away. You should make that easy... The problem is, the way things are going, 2m in 17 years may only have the buying power of 1m today... Maybe even far less.

$568,706 now.

The issue is that I am still stocks but don’t know when to be in Bonds.

$2M can’t be $1M on past history of inflation. We haven’t even had many 3% inflation years. It also depends on what you are buying too. Inflation prices doesn’t effect all goods/services.