Major milestone reached

[gindie]

My wife and I are so proud of our accomplishment.

On December 7 (Pearl Harbor Day), we finally reached $1,000,000 in our retirement accounts. The journey started exactly 20 years ago with $0 saved when my previous employer started their 401K.

I feel so fortunate to have switched to a company 2 years later that has a superb 401K with many 4- and 5-star choices and a good company match. Our entire retirement stash consists of mutual funds in 401K's and various IRA's. We have no real estate beyond our modest house, and no pensions.

We have also funded 3+ years of a public university tuition for our 12-year-old son.

My goal is to retire in 8 years at 55, but health insurance is the big wildcard. But I think we are well on our way.

[crazy connie]

Congrats!!!! You 2 have made it to a major milestone! Feels good too hu h?

[uncledrz]

Quote:

Originally Posted by gindie My goal is to retire in 8 years at 55, but health insurance is the big wildcard. But I think we are well on our way.

Keep going and even though it will be expensive, you will be able to purchase your own health insurance if need be. FI will allow you to allocate resources in that way.

[Spanky]

Quote:

Originally Posted by gindie My goal is to retire in 8 years at 55, but health insurance is the big wildcard. But I think we are well on our way.

COBRA is good for 18 months after employment. Under Cobra the premium is slightly higher than cost to the employer. That means you might need coverage from 56.5 to 65 (about 8 years). The premium varies significantly based on the amount of deductible. For example, a $5000 deductible would cost about $300 per month while a $150 deductible would cost 1,011.66 per month (in today's dollars) for a couple.

[LOL!]

Congratulations. It is a big deal to break into 7-figures.

Just don't be disappointed if by March 2007, stock markets have gone down and you are back to $800,000.

[Rich_by_the_Bay]

Congratulations!

What's really fun as the numbers rise it to watch it grow by 6 figures a year as you just sit there. Well, some years .

[REWahoo]

Quote:

Originally Posted by LOL! Congratulations. It is a big deal to break into 7-figures. Just don't be disappointed if by March 2007, stock markets have gone down and you are back to $800,000.

Try to look at the above in a positive light: You're probably going to get to celebrate this milestone again, and maybe even a third time!

[rs0460a]

Quote:

Originally Posted by REWahoo! Try to look at the above in a positive light: You're probably going to get to celebrate this milestone again, and maybe even a third time!

Amen - done that (3 times, already since 1999). OK now (since I am still Wor*ing) but after '07, I'll be more concerned...

- Ron

[Outtahere]

Congratulations, as the other said something you'll celebrate a couple more times before it sticks.

[Spanky]

We are fortunate (knock on wood) that we crossed the threshold in 2003 and it still holds. Our target is $2 mil in three years based on an estimated return of 7%. Our asset allocation now is quite conservative - 40/50/10 (stocks/fixed-income/cash).

[OkieTexan]

Congrats! on the milestone.
We hit ours in 2002 ($1M) when the market was down. It really looks good now!
I bought some more equities when the Dow dipped (Oct. 2002). I can draw a 45 degree angle on the chart to where it is now!

[Nords]

I'm surprised no one has said it yet, so I will: "The first million is always the hardest."

And, to get you in the right frame of long-term mind:

"To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable."
-- Edgar Bronfman

[Patrick]

Quote:

Originally Posted by Nords ". . . To turn $100 million into $110 million is inevitable." -- Edgar Bronfman

I wonder if General Motors or Ford would agree with this?

[mickeyd]

Quote:

we finally reached $1,000,000 in our retirement accounts.

Nice going!!! Now you know what is meant by the old saying "The first million is the hardest to make". I hope that you will not be satisfied with only a million and will hardly notice when two million rolls by in a few years! 8)

[Nords]

Quote:

Originally Posted by Patrick I wonder if General Motors or Ford would agree with this?

Good point... which brings up another quote,

"Never underestimate the stupidity of large crowds."

I think I'll continue to manage my own money...

[perinova]

Quote:

Originally Posted by Nords I'm surprised no one has said it yet, so I will: "The first million is always the hardest." And, to get you in the right frame of long-term mind: "To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable." -- Edgar Bronfman

Congrats gindie.

Thanks for the optimism Nords. Hope it's true.
I just passed the same milestone this month myself. Hope this will hold. I am ahead of the curve drawn up in 1994 by now about 3 years. Close to this milestone investment income starts to become a significant portion of the whole.

from Wikipedia number of millionaires:
HNWIs (more than $1 million, in 2005)
Global: 8.7 million
Europe: 2.8
North America: 2.9
Asia-Pacific: 2.4
Latin America: 0.3
Middle East: 0.3
Africa: 0.1