Meh at hitting a million

[laurence]

So I was on a walk the other night and one of the things I do is calculate account balances and sum up the ol' net worth, calculate when it will double between growth and contributions, etc. It probably makes me a freak but it's meditative in a way.

Anyhow I realized I had forgotten about some old pensions and quickly figured out their cash value and realized we had hit a million NW. Now that's combined and including the ~$200k in equity in our primary residence, which I know many don't count, but it was the first really big milestone I had set for ourselves. And you know what? It wasn't the cork-popping, celebratory moment I had dreamed of so long ago. It was like Voyager leaving the solar system, I knew I'd cross the line back and forth for a while, and I realized a million bucks wasn't as much as it used to be. Hopefully FIRE will be more exciting. Anyone else feel that "millionaire next door" moment was anti-climactic?

At least my wife is still only 40 (I turn 42 next month) so she can say, "million by 40".

 

[COcheesehead]

When I hit my first million at about the same age, I realized how fortunate I was.

 

[RobbieB]

Not once, it is something to celebrate for sure. Seven figures, 2 commas! Pop a cork!

And then it went away in the 07-09 crash. But then it came back with vigor -

Have fun!

 

[Bruceski44]

With inflation since "The Millionaire Next Door" was written, it's more like 1.5 million now. Considering that and our current near-zero interest rates $1M NW just doesn't seem to mean much anymore. But it is still a major milestone so good for you. The first million is the hardest!


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[nash031]

When you consider the NW of the vast, vast majority of Americans, yeah, it's something to celebrate, especially before 40, IMO. You don't have to feel like you've arrived nor are you finished necessarily, but there are tens of millions of Americans who would trade places with you in a heartbeat, so I say celebrate it!

DW and I did a ceremonial "yay" in the spirit of Monty Python when we crossed $1M NW (sans pension values). I think we'll at least pop a bottle when we cross $1M invested assets.

 

[Bestwifeever]

You and Mrs L are raising three little sweethearts and you still cracked the seven figures net worth by 42? You are wealthy beyond measure, Laurence! Congratulations!

 

[laurence]

You and Mrs L are raising three little sweethearts and you still cracked the seven figures net worth by 42? You are wealthy beyond measure, Laurence! Congratulations!

Thanks - and we are grateful! Don't get me wrong, it just didn't feel like I thought it would! On the plus side, that first million does seem like the hardest, with contributions I think we'll hit 2 in five years, after taking almost 20 to hit the first. Compounding for the win! Maybe that's when we'll light the cigar with a (fake) hundred dollar bill.

 

[CaliKid]

Congrats. It's all about hitting achievements. Now focus on #2!

 

[Amethyst]

Rest assured, a million by 40, or 42, is quite an achievement (unless one's parents gave one $2 million to start out with, LOL)

Just a thought: Do you tend to be critical of yourself in other ways? Sometimes, the personality that enables people to achieve milestones that most people never reach, is a self-critical one. "I'm never quite good enough." "It's never quite as good as I wanted/expected." "I only got a 95. Why couldn't I get a 99?"

Amethyst

 

[Geld ist Freiheit]

Congrats! You are winning the game.
All hail the power of compounding!

My experience was similar. I had just gotten home from work and was adding up the balances. Sure enough the second comma made an appearance. I just looked at the numbers as thought "huh. I'm officially a millionaire".
At $900,000 it was still "real money". At $950,000 it started to get a little abstract/surreal.
Now, it just seems like numbers.

Stay the course and 2M will be here before you know it.

-GIF


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[COcheesehead]

Congrats. It's all about hitting achievements. Now focus on #2!

Yes, now the fun begins. In my case the first million took about 40 years. The second happened about 6+ years later and the third, about four years after that. Working on the 4th now.

 

[aaronc879]

I will never know what it's like to reach the million $ mark because I won't work long enough to reach it. I keep my expenses low so I don't need that much money to retire. I've always lived on less than $20K/yr and don't mind living on that for the rest of my life if it means I don't have to work as long. Nothing wrong with working longer to have more to spend, it's just not what I want.

 

[Big_Hitter]

congrats!

 

[sanfanciscotreat]

Honestly do not remember when.

 

[dixonge]

Anyhow I realized I had forgotten about some old pensions and quickly figured out their cash value and realized we had hit a million NW. Now that's combined and including the ~$200k in equity in our primary residence, which I know many don't count, but it was the first really big milestone I had set for ourselves.

Was this a 'net present value' sort of pension calculation?

 

[Maenad]

We're on track to become members of the two-comma club at the end of this month when DH receives his bonus, and I know part of my brain is going to say, "Yep. That's a number." No fireworks, no balloons falling from the ceiling.

However, just because your brain didn't reflexively jump around like an idiot to celebrate doesn't mean you shouldn't take a step back, look at the big picture, and congratulate yourselves on the achievement. Acknowledge your good fortune and hard work. Take a few minutes with your wife, pop the cork on a bottle of your favorite beverage, and congratulate yourselves. Daydream about the future a little, whatever makes you feel good.

I think it's valuable to pause and reflect on the good things. We spend an awful lot of time pressuring ourselves, it's good to give ourselves kudos as well.

 

[DrRoy]

I also hit $1M at 40, counting just my investment portfolio. It is definitely a notable benchmark, but these days may not be a place to rest your laurels.

 

[NW-Bound]

Well, you've got to have your 1st $M before you get your 2nd, and so on. Congrats!

As far as a milestone, I remember crossing it a few times before it could be considered being safely in the rearview mirror (not really), just as any portfolio milestone. Of course if one still works and keeps pumping air in while the balloon is leaking, then the chance of keeping it inflated is better (of course I am not talking about a balloon that has busted to shreds with the like of dotcoms - nothing left to hold air). However, the higher you go, the more the market fluctuations swamp out your effort to pump, and it's tougher and tougher. Then, you say WTH, and give up thinking about it.

Oh well, it's still an occasion to celebrate. Sorry for the gloomy talk. At least get some nice steaks and a good bottle of wine for the weekend. One has got to use any chance to enjoy life, because it is shorter than he may realize.

 

[rodi]

Congratulations, Laurence!

 

[Chuckanut]

It's been quite a while since a million dollars was worth a million dollars in the same way it used to be. This show below would probably have to be a at least "The 10 millionaire today".

 

[Major Tom]

Congratulations, Laurence! I'm a little envious, because I got laid off, and entered ER, before I could sample the sweet joys of having a cool (or even an uncool) million. It's harder to get there now that I'm in the withdrawal phase, and not adding extra contributions. Seems like my portfolio has been hovering around the 750K mark for quite a while now. The highest it has ever been was around 780K. I've only been withdrawing $15,600 a year (though spending ~17K/year due to a little extra income), but I think it's going to be quite a long time before I hit the million mark. If and when I do, I suspect a million will be worth rather less than it is today.

Then yesterday, my dentist informed me that I need 2 root canals and 3 crowns, for which I only have partial coverage, so it looks like I'll be in the hole for around $4.5K. That's a big chunk out of my meager budget. Ouch! Even my close friend, who is very unsavvy about money, and usually just thinks of me as some rich guy, felt bad for me. She showed an unusual level of financial understanding yesterday when she said, "I'm sorry Tom, I get it. You're rich, but you're not that rich". She nailed it. I was actually feeling quite rich until the $4.5K dentist bill came along.

Anyway, congrats Laurence, and here's to the next million!

 

[Greencheese]

You've done something many can only dream of doing. Maybe it's not the finish line but it's still impressive!

 

[eryx]

Reaching $1M net worth is quite a milestone-- but I think a bigger one is hitting that value in just investments that you'd actually live off of. So not including real estate, present pension value, material stuff, and etc. Of course not all investments are immediately liquid at this age like 401K, Roth, and etc. Mentally though, having the pot of $$ is a big deal and this is where it really strikes me with the most impact.

As other posters have said though, a million isn't what it used to be so it's probably more like $1.5M where the real partying should be these days. Haha.












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[splitwdw]

Don't know how you can be that casual about reaching the million mark. I was thrilled when we hit a million in our investment accounts. Really hated when we dropped below a million. Now that we've been staying above the million mark I look forward to each hundred thousand we pass on our way to 2 million. We worked hard to save and get here.

 

[2017ish]

Objectively, it is a noteworthy accomplishment--and as many have noted, doing it at your ages with three kids makes it more so. Bravo!

Subjectively, if you are the type of person who gets there by long-term planning, LBYM, investing, etc. (i.e., the type way over-represented on this board!), it can easily be "ho hum," anticlimactic. For us, while the present NW number is objectively large, looking at the change over time on a quicken graph is really the only way to make it strike home.