Hit a milestone yesterday

[segfault]

I don't really have anywhere else to toot my own horn, but my investment accounts tipped over the $1M mark. My NW has been over that for a while, but it feels good to be a "big M" millionaire, as I've heard it referred to before.

I'll post a rough breakdown for anyone who might find it interesting or useful:
$102k HSAs
$3k taxable brokerage
$190k Roth IRA
$338k IRA
$217k Roth 401k
$152k 401k

Also am at about 29% LTV on my primary residence and 47% on a rental property.

My portfolio is now roughly half of what I'd need to replace 100% of my W-2 income, assuming a 4% withdrawal rate. I feel like I can relax and enjoy myself more since the primary driver of growth at this point is the earnings on what's already there and not how much I'm contributing.

 

[Dean56]

Congrats!!!

what are your plans for FIRE?

 

[Ronstar]

Congrats!

 

[segfault]

Congrats!!!

what are your plans for FIRE?

Thanks! That's a good question. I'm early 40s now. Retiring at 50 would be a stretch goal--would be more easily doable if I got a better paying job and didn't increase my standard of living. But, even if I stay where I am, 55 should be possible.

In the nearer term, I could do a better job of tracking expenses. I haven't attempted to do a budget in a long time, as my income and wealth have grown. Also, when I retire, I will go from paying almost nothing for health insurance (heavily subsidized by employer) to being 100% responsible, so that's another consideration.

 

[TheWizard]

It's easy to track expenses using a top down approach.
You have $100k income and put $25k in 401(k) + Roth IRA?
Then your expenses are $75k, including taxes.

Bigger question is: what is your Desired Income in retirement, allowing for extensive travel or whatever...

 

[Koolau]

Congratulations and thanks for sharing. Keep us posted on your progress. I'm guessing it will all go a lot faster than you think.

 

[FlaGator]

great job, agree earnings over time will be the driver

Unsolicited advice - as you think about the next 10-15 years, the more you have in taxable/brokerage, the easier your life will be when you ER. There will be expenses, and the more you have in liquid low-tax cost accounts, the less complicated your life will be. Good luck!

 

[Flieger]

Great job! That is a nice mix (Pre-tax, Roth). I wish I had the Roth option years ago, but alas....

Flieger

 

[street]

Great and exciting news!!!!

 

[Koolau]

Great job! That is a nice mix (Pre-tax, Roth). I wish I had the Roth option years ago, but alas....

Flieger

Yes, Roth is the best thing that ever happened to Early Retirement! Wish I could have done more "Rothing" and conversions. Still, it's amazing what I've been able to accomplish since ER. All my tIRAs are now Roth, so at least there's that.

 

[disneysteve]

Congrats! The first million is definitely the hardest and the most exciting. You’re absolutely right that going forward portfolio earnings become a major driver of growth. It’s amazing how quickly the numbers start increasing the larger the balance gets.

 

[NgineER]

Nice work! You remind me a lot of myself 8 years ago, at age 41. At that point we hit $1M, but with slightly higher taxable/cash. $200k brokerage, $390k Roth/HSA and $410k in tax deferred.
Since then, we spent down cash/brokerage positions buying rental properties. After the last rental property financing we have built up the taxable position a little again. $300k cash/brokerage, $1.1M Roth/HSA and $1M tax deferred. I will keep going to 55 most likely to pad our nest egg, pay for college and to buy another cabin perhaps.

Good luck - keep it going and it will keep growing!

 

[segfault]

Unsolicited advice - as you think about the next 10-15 years, the more you have in taxable/brokerage, the easier your life will be when you ER. There will be expenses, and the more you have in liquid low-tax cost accounts, the less complicated your life will be. Good luck!

That's definitely on my radar. I figure shoring up the taxable account can be done in the last 5-10 years before ER, along with paying off the primary residence. I'm considering relocating in retirement, which would likely generate a need for $100k or so to account for the difference in cost of a house, but no significant changes to other costs of living.

 

[frayne]

Good job, seven figures is a cool milestone, no matter how you cut it.

 

[Target2026]

Congratulation!!!! You will notice that the speed of growth only gets better. Way to go!