Very Impressive

[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. 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.

 

[SumDay]

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.

 

[skipro33]

I wish I would have just invested and ignored performance at times. I'm sure I would be much wealthier today if I had.

 

[LOL!]

I'd guess there is a backstory here somewhere such as inheritance, but who knows?

 

[UnrealizedPotential]

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.

 

[Oz investor]

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 )

 

[DrRoy]

Very impressive on that income.

 

[RenoJay]

I'd guess there is a backstory here somewhere such as inheritance, but who knows?

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.

 

[Rianne]

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.

Is he married and if not, could I introduce him to my niece?

 

[mountainsoft]

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

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.

 

[Perryinva]

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.

 

[Qs Laptop]

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.

The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?

 

[Ronstar]

The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?

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.

 

[SnowBound]

The story and the numbers don't add up. And you didn't ask him how he accomplished this amazing feat?

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.