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03-09-2019, 05:25 PM
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#1
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Full time employment: Posting here.
Join Date: May 2013
Posts: 609
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Very Impressive
I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year. He's typically lives in CA...quite an expensive state. He's a challenging character and has been fired numerous times. (Not for a bad attitude...he's simply so slow at accomplishing things that I imagine it bothers his bosses.)
Anyway, about a week ago he asked if I'd review his portfolio and give advice. I was amazed to see he'd amassed about $400k, despite the fact that he doesn't spend much time thinking about finance or have much of a head for that kind of stuff.
It was really nice to get a reminder that whatever one's means, it's possible to live below them and save and invest.
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Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
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03-09-2019, 05:37 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,862
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I love hearing stories like this. And then there's R Kelly who couldn't post bail even though he's probably made, and spent, millions. I like your guy's approach better.
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FIRE Class of 2018 @ 61
Old men and women sit in the shade of trees they planted long ago
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03-09-2019, 05:52 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Sep 2011
Location: Placerville
Posts: 1,788
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I wish I would have just invested and ignored performance at times. I'm sure I would be much wealthier today if I had.
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03-09-2019, 08:04 PM
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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: Jun 2005
Posts: 10,252
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I'd guess there is a backstory here somewhere such as inheritance, but who knows?
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03-09-2019, 08:21 PM
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#5
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Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,390
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Very nice accomplishment indeed! That's no small feat and it is easier said than done at his age. Of course this forum aside, the average investor I would say has no where near 400K in their mid 40's.
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Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
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03-09-2019, 08:39 PM
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#6
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Full time employment: Posting here.
Join Date: Jun 2018
Location: Brisbane
Posts: 855
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not spending the inheritance ( if there was one ) is a very good start
is he slow but does the job RIGHT ?? ( that makes a big difference to a clever boss , the rest aren't worth working for )
$400K and done without excessive stress , maybe some of his concepts will help you as well ( a nest egg AND well rested seems to be a nice compromise )
__________________
i hold the Australian listed versions of AU ( Anglo Ashanti ) , BHP , and JHG .
You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.
Samuel Levenson
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03-10-2019, 04:58 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2015
Location: Michigan
Posts: 5,003
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Very impressive on that income.
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"The mountains are calling, and I must go." John Muir
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03-10-2019, 10:33 AM
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#8
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Full time employment: Posting here.
Join Date: May 2013
Posts: 609
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Quote:
Originally Posted by LOL!
I'd guess there is a backstory here somewhere such as inheritance, but who knows?
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I've known him since he was 5 and am friends with his whole family. I don't think there's much of a back story. College was covered by his parents, but beyond that, I don't believe there was even an inheritance. There may have been some gifts along the way, but I doubt if they totaled more than $25k.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
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03-10-2019, 12:47 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Location: Champaign
Posts: 4,726
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Quote:
Originally Posted by RenoJay
He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year. He's typically lives in CA...quite an expensive state.
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Is he married and if not, could I introduce him to my niece?
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."
Ralph Waldo Emerson
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03-11-2019, 07:55 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Washington State
Posts: 2,359
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Quote:
Originally Posted by RenoJay
I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year... I was amazed to see he'd amassed about $400k
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If true, that is some trick. He would have to save $900 per month with a steady 6% return for 20 years, to get close to 400K. That's almost $11K per year, or more than half of his income.
How do you live 20 years on only $9K per year?
The flip side is if he can still live on $9K per year, that 400K with a 6% return would easily last the rest of his life.
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03-14-2019, 06:19 AM
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#11
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Full time employment: Posting here.
Join Date: Aug 2015
Posts: 987
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Not that it amounts to too much, but maybe there js a corporate match? My stepson makes about that and knly saves enough for the match, and has about 4k there after 2 years. He is (not smart at all) at age 30, counting on an inheritance for his retirement. He already has a paid for house, paid by his grandmothers inheritance.
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03-14-2019, 07:09 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Mar 2018
Posts: 3,506
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Quote:
Originally Posted by RenoJay
I have a buddy who is in his mid 40's. He's well educated in a field that pays very little. He told me that for most of his career he's earned around $20k/year, and only in the last 2-3 years did he get a big bump to around $72k/year.
Anyway, about a week ago he asked if I'd review his portfolio and give advice. I was amazed to see he'd amassed about $400k, despite the fact that he doesn't spend much time thinking about finance or have much of a head for that kind of stuff.
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The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?
__________________
Age is a very high price to pay for maturity.
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03-14-2019, 07:25 AM
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#13
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,600
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Quote:
Originally Posted by Qs Laptop
The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?
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I tend to agree. But if he invested $150k total during his 3 big pay years, invested $7k in each of the first 20 years, had a good company match, and invested in some lucrative investments, it could be possible. Who knows - maybe he’s always been 100% in Apple stock.
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03-14-2019, 09:35 AM
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#14
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Recycles dryer sheets
Join Date: Dec 2017
Location: CarUpOnBlocks NY
Posts: 178
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Quote:
Originally Posted by Qs Laptop
The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?
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So being a naive third party would guess: Slow and steady with some luck WINS THE RACE.
Once I had the chance to buy my employer company stock at a 10% discount verses the lower of the opening or closing quarter stock price. Think I (very?) foolishly signed for close to 10% of my gross pay. Then the crushing and despairing events of 9/11 hit. Ended up paying a lot of taxes when I sold the stock before I quit. Shook my head at the amount of gain, sadness at how much pain was involved in a completely unrealistic gain that happened.
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