I celebrated my 42nd birthday this month and hit a Milestone!

[Aiming_4_55]

...then asked myself.... How many more of these do I have to have while maintaining a JOB!!! Actually, my job is ok, just don't love it so don't tell my boss.

As a milestone, I crossed the 1M mark with invested market assets. This does not include real estate investments or primary residence values, just taxable $$, 401k, Roth, and 529, not including emergency fund.

DW was surprised that I was so happy!

p.s. Thanks to the forum for always sharing, I feel more focused at climbing the non-corporate ladder.

 

[W2R]

Congratulations! What a wonderful accomplishment.

 

[Aiming_4_55]

Thanks W2R.

 

[Calgary_Girl]

Congratulations! We also crossed the $1 million mark between our retirement and taxable accounts and are approximately the same age (DH is 41, I'm 38).

However, I DON'T include the kids' RESP's (similar to 529) in the calculation but I do include our emergency fund.

I wonder how long it'll take to get to $1.5 million?

 

[Moemg]

Congratulations to both of you that is great !

 

[Jay_Gatsby]

Congratulations! We also crossed the $1 million mark between our retirement and taxable accounts and are approximately the same age (DH is 41, I'm 38).

However, I DON'T include the kids' RESP's (similar to 529) in the calculation but I do include our emergency fund.

I wonder how long it'll take to get to $1.5 million?

Seems like crossing the $1MM threshold occurs sometime in one's 40s, while crossing the $2MM occurs in one's late-40s or early-50s. ER'ing does put a stop to rapid acceleration, but compounding of seven figures will eventually take on a life of its own.

 

[Aiming_4_55]

Congratulations! We also crossed the $1 million mark between our retirement and taxable accounts and are approximately the same age (DH is 41, I'm 38).

However, I DON'T include the kids' RESP's (similar to 529) in the calculation but I do include our emergency fund.

I wonder how long it'll take to get to $1.5 million?

Congrats to u 2 Calgary Girl. Invested net worth can be viewed many ways. I didn't include emergency funds as I won't "invest" the $$, it's parked in MM/online savings/CDs. Perhaps I view 529 differently, as it is invested in the market and it's still a choice... if my kids attend college or not. Also, loans might be an option.. free ride issue w/kids.

$1.5M net worth might be reached at the end of the year when I include real estate investments without primary residence.

 

[Aiming_4_55]

Congratulations to both of you that is great !

Thanks Moemg.

 

[scrabbler1]

Congrats, Aiming_4_55. I first crossed the $1M mark about one year ago, just before the market took a tumble last May. I did not get back to $1M again until September and am now nearing $1.1M (not including my apartment which is worth around $100k).

As Jay_Gatsby wrote, ERing slows down one's $$ growth but simple compounding can make up for it.

 

[Aiming_4_55]

Congrats, Aiming_4_55. I first crossed the $1M mark about one year ago, just before the market took a tumble last May. I did not get back to $1M again until September and am now nearing $1.1M (not including my apartment which is worth around $100k).

As Jay_Gatsby wrote, ERing slows down one's $$ growth but simple compounding can make up for it.

Thanks Scrabbler and congrats to you 2. I'm hope compounding is my friend and no emergencies cause any unexpected withdraws.

 

[Jay_Gatsby]

Thanks Scrabbler and congrats to you 2. I'm hope compounding is my friend and no emergencies cause any unexpected withdraws.

Compounding is your friend, but is by no means consistent. This is why I believe that true FI occurs not when your passive income meets your expenses, but rather when it reaches at least 150% of your expenses. This gives you the cushion to continue DCA'ing into the market or taking advantage of significant dips in the market. This also allows you to splurge occasionally or cover unforeseen major expenses in retirement.

 

[Aiming_4_55]

Compounding is your friend, but is by no means consistent. This is why I believe that true FI occurs not when your passive income meets your expenses, but rather when it reaches at least 150% of your expenses. This gives you the cushion to continue DCA'ing into the market or taking advantage of significant dips in the market. This also allows you to splurge occasionally or cover unforeseen major expenses in retirement.

So would you recommend increasing "Spending" in FIRECalc to 150% and 100% success to be considered FI? I've played with spend of 125% of budget/taxes and no small pension & SS scenarios, but it's getting to the point of 200% of estimated retired spend with conservative scenarios! I still have a good 6 - 8 years before I'm seriously considering semi-early retirement or anything else which is earlier than I thought before joining the forum. Just have to stay the course and live below my means.

 

[scrabbler1]

I agree with the concept of building in a cushion or surplus into one's ER budget. I have done that because I expect to run some deficits in the years just before I can begin tapping into what I call "reinforcements" which are: (1) Tapping into my IRA, (2) Collecting SS, and (3) Collecting my frozen pension.

Having a surplus built into one's ER budget also allows for some unforeseen expenses without worrying about them busting a budget. My surplus now is nearly 50% of my expenses but will actually increase because I just changed to a less expensive individual HI policy.

 

[Andre1969]

Congratulations to our newly-minted millionaires!

I had a birthday in April as well, turned 41 on April 2. Also hit a new financial milestone, $675K. Still a bit of a ways from $1M, but I'm getting there!

 

[chinaco]

Congrats.

Many have crossed those milestones multiple times... to their delight and dismay... depending on the temperament of the market.

 

[Texas Proud]

Seems like crossing the $1MM threshold occurs sometime in one's 40s, while crossing the $2MM occurs in one's late-40s or early-50s. ER'ing does put a stop to rapid acceleration, but compounding of seven figures will eventually take on a life of its own.

I guess I am slow on this.... I did cross the $1 mill in my 40s... but then went under it a couple of years ago... then crossed it again recently... but not close to the $2 number even though early 50s... guess getting married with 2 kids has slowed the savings down a LOT.. (it has... more than I had anticipated)...

I figure that I will get there before 60 for sure... but think I need $2.5 to jump ship.... we will see...


To the OP... Congrats!!!! It is a great milestone to reach...

 

[Aiming_4_55]

Congratulations to our newly-minted millionaires!

I had a birthday in April as well, turned 41 on April 2. Also hit a new financial milestone, $675K. Still a bit of a ways from $1M, but I'm getting there!

Thanks Andre... hmmm u turned 41, but what is 1969 in your nick as I was born in 1969 and 42? Congrats to u on your milestone, it's a great feeling.

 

[Aiming_4_55]

Congrats.

Many have crossed those milestones multiple times... to their delight and dismay... depending on the temperament of the market.

Thanks Chinaco. My invested stockmarket holding might actually fall way below by 100k if I buy another rental property that I'm eyeing. If I do, it'll have a target of 10% return on cashflow. =)

 

[Aiming_4_55]

I guess I am slow on this.... I did cross the $1 mill in my 40s... but then went under it a couple of years ago... then crossed it again recently... but not close to the $2 number even though early 50s... guess getting married with 2 kids has slowed the savings down a LOT.. (it has... more than I had anticipated)...

I figure that I will get there before 60 for sure... but think I need $2.5 to jump ship.... we will see...


To the OP... Congrats!!!! It is a great milestone to reach...

Thanks Texas Proud. I potentially see my expenses going up as I have 2 little kids too, but my DW asked the other day if she should seek part time employment so that might balance out. I like the idea of DW working outside of the house as I would leverage her 401k/403b contribution and potential part time work offering healthcare benefits for future option if I leave megacrap behind. Plans are made to be changed!

 

[Texas Proud]

Thanks Texas Proud. I potentially see my expenses going up as I have 2 little kids too, but my DW asked the other day if she should seek part time employment so that might balance out. I like the idea of DW working outside of the house as I would leverage her 401k/403b contribution and potential part time work offering healthcare benefits for future option if I leave megacrap behind. Plans are made to be changed!

Good to see that she is willing to help in the savings... mine is also.. she is working on getting her teacher certificate and going to work... I see this as a big plus for medical etc. and as you say putting more away in tax advantaged accounts..

I do have to say that having the kids are a blessing that I will gladly work a few extra years so we can have a good lifestyle... and to send to college... lucky for me I do not hate my work....

 

[Aiming_4_55]

I do have to say that having the kids are a blessing that I will gladly work a few extra years so we can have a good lifestyle... and to send to college... lucky for me I do not hate my work....

Totally agree on the kids. I know and respect others on the forum for not having/desiring/pursuing kids, but for us it was a desire that we wanted/believed in.

Our kids were not cheap (wasn't a series of dates/drinks/love making) for us. It was a series of medical specialists, out of pocket $$ (think moderate sedan cars paid in cash), lost time from work, etc. for our first child. Then a few years later it was an international adoption which we completed last year. It probably added 5 years to the ER plan, but I should hit the target prior to 55. LBYM helped with our decision.

I don't hate my profession/work, it's just the cast of characters that I sometimes have to deal with.

 

[Andre1969]

Thanks Andre... hmmm u turned 41, but what is 1969 in your nick as I was born in 1969 and 42? Congrats to u on your milestone, it's a great feeling.

1969...year I was conceived.

 

[Aiming_4_55]

1969...year I was conceived.

Nice, are you asian? In some asian culture, conceived/conception date is very important. I'm asian, but not an expert of the culture, but I blame it on my LBYMs most of the time.

 

[Andre1969]

Nice, are you asian? In some asian culture, conceived/conception date is very important. I'm asian, but not an expert of the culture, but I blame it on my LBYMs most of the time.

No, not Asian, I just happen to think the '60's were cooler than the '70's!

 

[arebelspy]

As a milestone, I crossed the 1M mark with invested market assets. This does not include real estate investments or primary residence values, just taxable $$, 401k, Roth, and 529, not including emergency fund.

$1.5M net worth might be reached at the end of the year when I include real estate investments without primary residence.

With those two in mind, have you actually seriously asked yourself this question:

...then asked myself.... How many more of these do I have to have while maintaining a JOB!!!

That is, how much do you need before you retire? You're 42, screen name says you have another 13 years? Do you need to wait that long, or do you just not want to retire before that?

Just curious.