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10-02-2007, 07:32 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Personal Milestone !!
Yesterday, thanks to the stock market rally, my NW reached the $2M mark. Normally, I only calculate my NW about every couple of months, but I knew I was close, so I totaled it this morning. I was just as excited as when I passed the $1M. Now, if the market does not give back the gains today.... We'll see.
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10-02-2007, 09:34 AM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Congratulations.
Say, I'm a little short this week and I was wondering....... 
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10-02-2007, 09:56 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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David1961:
Is the $2M your investible assets, or does it include home equity ?
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10-02-2007, 10:20 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Well? Are you still working? LOL!
Audrey
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10-02-2007, 10:25 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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 Quote:
Originally Posted by MasterBlaster
David1961:
Is the $2M your investible assets, or does it include home equity ?
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It is just investments. I actually don't own a house. - looking back maybe that was a mistake, but my investments have been very good to me 
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10-02-2007, 10:28 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Quote:
Originally Posted by audreyh1
Well? Are you still working? LOL!
Audrey
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Yes I am. Sometimes I wonder why. In about 2 years, I will be eligible for health insurance if I can retire early. So the cost of health insurance is the main thing keeping me from FIRE-ing now. Longevity runs in my family - most of my ancestors lived to their late 80s to late 90s - so I may need the money to last a long time.
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10-02-2007, 10:31 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Posts: 1,891
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Congrats David!
Will you tell us how long it took to reach the $1 mill and now the $2 mill?
__________________
If i think of something clever to say, i'll put it here...
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10-02-2007, 10:32 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
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If you had 1.5 Million and free health insurance, would you retire now?
__________________
Al
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10-02-2007, 10:47 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Quote:
Originally Posted by bright eyed
Congrats David!
Will you tell us how long it took to reach the $1 mill and now the $2 mill?
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I reached the $1M mark in Nov. 1999. So it has doubled in a little less than 8 years. Not bad considering how the market has done over that time.
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10-02-2007, 10:49 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Quote:
Originally Posted by TromboneAl
If you had 1.5 Million and free health insurance, would you retire now?
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It's hard to say. At 4% withdrawal, that would allow me $60k to live off of. Might be do-able but I'd like to have a little more cushion. Plus, I want to be able to enjoy my life and travel more if I want to.
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10-02-2007, 10:53 AM
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#11
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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I'm willing to guess you adopted the LBYM lifestyle??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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10-02-2007, 11:10 AM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by David1961
Yes I am. Sometimes I wonder why. In about 2 years, I will be eligible for health insurance if I can retire early. So the cost of health insurance is the main thing keeping me from FIRE-ing now. Longevity runs in my family - most of my ancestors lived to their late 80s to late 90s - so I may need the money to last a long time.
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Well that's prudent. Health insurance is extremely valuable. 2 years is not so long.
Audrey
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10-02-2007, 11:38 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Quote:
Originally Posted by FinanceDude
I'm willing to guess you adopted the LBYM lifestyle??
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Yes, with an occasional splurge.
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10-02-2007, 07:02 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by audreyh1
Well that's prudent. Health insurance is extremely valuable. 2 years is not so long.
Audrey
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2 years is great. It's 5 years for us.
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10-02-2007, 08:51 PM
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#15
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Full time employment: Posting here.
Join Date: Aug 2006
Posts: 564
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If you don't mind me asking what is your asset allocation? I'm still struggling to get to the 1 mil mark. I think early 2008. I think it's taking me a while because
I'm around 35-40% equities. Health care is a concern.
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10-03-2007, 05:57 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 1,085
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Quote:
Originally Posted by mountaintosea
If you don't mind me asking what is your asset allocation? I'm still struggling to get to the 1 mil mark. I think early 2008. I think it's taking me a while because
I'm around 35-40% equities. Health care is a concern.
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I don't know it exactly, but it is approximately:
5% cash
20 % bonds (mostly bond mutual finds)
60 % equities (mostly mutual funds)
15 % international funds (mutual finds)
Most of my equities are in large cap. I'm trying to gradually put more in small and mid-cap funds and stocks. I'm also not one to buy and sell stocks and/or funds often. And I do periodically put money into my investments. In some ways, being 45, I think I may have too much in equities, but equities have done so well in the past 20 years it's hard to take that money out and put into bonds.
I'm not sure of your age, but 35-40% in equities seems low. Maybe others can chime in with their thoughts.
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10-03-2007, 04:09 PM
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#17
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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75% equities is aggressive, but if you can tolerate the volatility, it's a good ratio for long term portfolio survivability. Especially since you are currently working. You can always drop the ratio a little once you retire and need to draw on your portfolio.
35-40% in equities is indeed way too long for someone in their 40s who might be retired for a looooong time. 50% is probably a minimum.
Audrey
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10-04-2007, 02:12 AM
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#18
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Recycles dryer sheets
Join Date: Jul 2007
Location: East Bay CA/Long Island NY
Posts: 167
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Quote:
Originally Posted by David1961
I don't know it exactly, but it is approximately:
5% cash
20 % bonds (mostly bond mutual finds)
60 % equities (mostly mutual funds)
15 % international funds (mutual finds)
Most of my equities are in large cap. I'm trying to gradually put more in small and mid-cap funds and stocks. I'm also not one to buy and sell stocks and/or funds often. And I do periodically put money into my investments. In some ways, being 45, I think I may have too much in equities, but equities have done so well in the past 20 years it's hard to take that money out and put into bonds.
I'm not sure of your age, but 35-40% in equities seems low. Maybe others can chime in with their thoughts.
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A good rule of thumb that I've heard of is to subtract the age of the person from 100.
Since Mountaintosea is 52 years old, 100 - 52 = 48%.
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David, Is the 2m all in tax qualified acounts and
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10-04-2007, 06:34 AM
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#19
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Recycles dryer sheets
Join Date: Aug 2007
Location: Mt. Pleasant
Posts: 141
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David, Is the 2m all in tax qualified acounts and
when you said you would have 60k/yr with 4% withdrawal, was that after taxes - 4% of 2m is 80k.
Good luck, let the 2 yrs fly by and enjoy!
Larry
__________________
Retired early and loving it.
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10-04-2007, 08:26 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Quote:
A good rule of thumb that I've heard of is to subtract the age of the person from 100.
Since Mountaintosea is 52 years old, 100 - 52 = 48%.
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I don't know if I would call that a "good" rule of thumb. Some people subtract their age from 110 or 120 to get their bond allocation. The 100 rule is very conservative.
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