Small milestone - $2M

[Spanky]

Congrats - it's not exactly a small milestone as others have pointed out.

[Koolau]

I still recall those heady days of reaching milestones. I thought I was rich when I had $30K in my 401(k). I think my favorite milestone (besides reaching FI) was when I made more per year from my investments than from salary. I appreciate that brokrken does not include home value in nest egg value. I know we've discussed that here several times so YMMV.

[DrRoy]

The second mil is easier than the first.

[brokrken]

Quote:

Originally Posted by Koolau I still recall those heady days of reaching milestones. I thought I was rich when I had $30K in my 401(k). I think my favorite milestone (besides reaching FI) was when I made more per year from my investments than from salary. I appreciate that brokrken does not include home value in nest egg value. I know we've discussed that here several times so YMMV.

I remember bragging to my wife that we had $35k in our savings account! As a young married couple that seemed like a million to me.

[brokrken]

Quote:

Originally Posted by DrRoy The second mil is easier than the first.

DrRoy, hopefully the 3rd is even easier!

[sengsational]

When my aunt died, she had quite a big estate and my uncle was the executor. Each of the neices and nephews got an equal share. It was before I pulled the plug. I was already well-versed in retirement financial planning, but he didn't know that...he just knew I was generally a saver. He took me aside and advised me that in the old days, you could retire with a million, but nowadays (2009), you need 2M. I think he was afraid the influx would get to an insufficient milestone, and I'd quit prematurely. I just said "I think you're right", and left it at that.

[aleabo]

Quote:

Originally Posted by Koolau I still recall those heady days of reaching milestones. I thought I was rich when I had $30K in my 401(k). I think my favorite milestone (besides reaching FI) was when I made more per year from my investments than from salary. I appreciate that brokrken does not include home value in nest egg value. I know we've discussed that here several times so YMMV.

Out of curiosity, can you define "made more per year from my investments than from salary"?
Do you mean that dividends/Capital gains exceed your salary ($100K salary - $120 Dividends/CG) or portfolio growth was more that your salary (Beginning of the year - $1M portfolio, $100K salary, End of the year $1.2M portfolio)?

[Koolau]

Quote:

Originally Posted by aleabo Out of curiosity, can you define "made more per year from my investments than from salary"? Do you mean that dividends/Capital gains exceed your salary ($100K salary - $120 Dividends/CG) or portfolio growth was more that your salary (Beginning of the year - $1M portfolio, $100K salary, End of the year $1.2M portfolio)?

Heh, heh, I was never "fussy" about where it came from. It was strictly an increase in NW year over year. That would include anything but increase in home value. The really good news was that for several years in a row, I experienced this exciting phenomenon.

My "take" on it was, "Hey, if I can make as much sitting at home as I do going to the cube every day, I must be able to FIRE!" In case you're wondering, yes, I was adding some of my salary to the NW, so there's that and YMMV.

[Andre1969]

Quote:

Originally Posted by Koolau I still recall those heady days of reaching milestones. I thought I was rich when I had $30K in my 401(k). I think my favorite milestone (besides reaching FI) was when I made more per year from my investments than from salary. I appreciate that brokrken does not include home value in nest egg value. I know we've discussed that here several times so YMMV.

I miss those good old days, when a milestone that today would seem like nothing, was such a big deal. I can definitely remember feeling on top of the world when I hit the $30K mark. It was back in late 1999. And then I broke $60K in late 2000. For some reason that one, in particular, made me feel like I was on top of the world.

Oh, and on the subject of investments making more in a year than my salary, I just added up my numbers, and as of yesterday's close, I'm there! Not quite to my salary for the entire year, but as of 10/12/2020, they've still "made" (dividends, capital gains, and appreciation in value) more than I have at my job! It's definitely a nice feeling.

And, as for the $2M milestone, I hit it yesterday, as well. This is my third time hitting it though. Last times were in February and August. Hopefully third time's a charm!

[Catawba Chuck]

And, as for the $2M milestone, I hit it yesterday, as well. This is my third time hitting it though. Last times were in February and August. Hopefully third time's a charm![/QUOTE]


Me too! February, August & October.

[brokrken]

Quote:

Originally Posted by Catawba Chuck And, as for the $2M milestone, I hit it yesterday, as well. This is my third time hitting it though. Last times were in February and August. Hopefully third time's a charm!

Me too! February, August & October.[/QUOTE]

Andre and Chuck, congrats!

[SloHan]

Not a small milestone at all. Congratulations!

[SlowlySaving]

Congratulations!! I would be curious what your asset allocation is?


I have to update my sig, my AA is now 70/30.

[brokrken]

Quote:

Originally Posted by SlowlySaving Congratulations!! I would be curious what your asset allocation is? I have to update my sig, my AA is now 70/30.

My AA is:

Equity - 83%
Fixed Income - 5%
Cash - 9%
Other - 3%

[Out-to-Lunch]

Congrats! I agree with the others that your 2nd is almost as important as your first, i.e., you are to be congratulated.

When I was having trouble sleeping last night, I realized I will likely never experience your milestone. I am close to your number, but I intend to "graduate" from working next May. Importantly, I intend to start on an aggressive program of Roth conversions after that. Although my real net worth won't change, I suspect I will never look at a balance sheet that starts "$2,xxx,xxx."

First-world problems!

[Finance Dave]

Congrats on the $2M!

I could not sleep well at night with 83% equities...but I'm sure your situation is much different than mine.

[brokrken]

Quote:

Originally Posted by Finance Dave Congrats on the $2M! I could not sleep well at night with 83% equities...but I'm sure your situation is much different than mine.

It gives me some pause, as well. And I can tell you back in March I was worried as hell. Two points that make me keep the current allocation.

1. This is what helped get me to where I am. So, sort of a dance with the girl you brought thing. And, if I want to RE in 4-5 years, this allocation/risk is gives me a better shot to get me to the number that I need.

2. My planned RE is 48 and I am planning/trying like hell to get there. But, if the market falls apart, I will still be young enough to w*rk a little longer if a recovery is needed.

As soon as I RE, I plan to move closer to 65/35.

[brokrken]

Quote:

Originally Posted by Out-to-Lunch I intend to "graduate" from working next May.

Nice!! I wish I was there with you, but I have some years to go. Need to get my daughter off to college first.

[Out-to-Lunch]

Quote:

Originally Posted by brokrken Nice!! I wish I was there with you, but I have some years to go. Need to get my daughter off to college first.

Thanks!

OTOH, my RE will be a lot less "E" than your RE!

Best of luck with launching your daughter.

[NW-Bound]

Congrats to the OP!

Quote:

Originally Posted by Koolau ... I think my favorite milestone (besides reaching FI) was when I made more per year from my investments than from salary...

Many years ago, I realized I needed to pay attention to my stash when I observed the same. I started to watch and log its value every day.

And of course, I then saw that I could lose the same as my annual earned income in a matter of a month. You could lose in a month what it took a year to gain. The market always drops faster than it climbs. That's how the market works. But the stash slowly rises and I now can lose my previous annual salary in a much shorter time than a month. Hey, that's progress.

I am still updating that diary which exists as a file on my laptop. The date of the first entry is 1999/12/13.