The first million takes the longest to achieve

[Gumby]

Gumby, You retired in 2019 but have not touched your portfolio? How do you do that, please?

A (mostly) COLA'd pension for each of us, plus my social security taken at 62, covers all our expenses. We have no mortgage or other debt, so it's just day to day living, plus occasional travel. During 2020 and 2021 when we couldn't travel due to Covid, we actually had a small negative withdrawal rate. We will fly business class to Japan this fall, which will require a very small portfolio draw. If we toughed it out in coach, it wouldn't.

 

[TheWizard]

I don't document my numbers precisely but I'm pretty much there now (an additional $1M), eleven years into retirement.
When I retired in 2013, around 98% of my Investible assets were in my tax-deferred 403(b) account, with only a small amount in my Roth IRA and essentially zero taxable account.

At this point, I have a decently large Roth IRA and a growing taxable account of a few hundred K$.
For purposes of totaling my Investible assets, I simply use the nominal values of each account which, of course, does not account for the significant tax liability in my tax-deferred ones.

And unlike the OP, I've been putting excess retirement income into my my taxable account most months, especially after starting SS at age 70 a few years ago.

As to when I might be up another million, I have no idea. I'm heavily into stock index funds so it will depend...

 

[Markola]

A (mostly) COLA'd pension for each of us, plus my social security taken at 62, covers all our expenses. We have no mortgage or other debt, so it's just day to day living, plus occasional travel. During 2020 and 2021 when we couldn't travel due to Covid, we actually had a small negative withdrawal rate. We will fly business class to Japan this fall, which will require a very small portfolio draw. If we toughed it out in coach, it wouldn't.

Awesome. Before you explained that, you were starting to inspire me to go into the forum moderation business.

 

[Markola]

That is very interesting Markola!!! I would not have guessed that, Thanks!!

Here’s an 80/20 portfolio of $10,000 with annual rebalancing and one with no rebalancing. Samesies! Actually, not rebalancing was a little more volatile but ended up slightly ahead.

 

[street]

Here’s an 80/20 portfolio of $10,000 with annual rebalancing and one with no rebalancing. Samesies! Actually, not rebalancing was a little more volatile but ended up slightly ahead.

That is interesting and thanks for the carts/graphs. So, maybe I'm not so dumb after all. LOL

Interestingly enough through >40 years my AA was up and down but has stayed relatively close to that 80% equity.

 

[folivier]

You guys need to spend more time on the BTD thread.
I've never hit the second, got close a couple times, but having too much fun to worry about it.

 

[Time2]

It took us 29, 6 and 5. which I consider very good. as our average earnings were about 10% about the median US income.This includes our home, which I don't normally do. Without, 30 6 and not quite there. On the other hand we gifted away about $420k to the kids, for education and house.

 

[Evee]

Here’s an 80/20 portfolio of $10,000 with annual rebalancing and one with no rebalancing. Samesies! Actually, not rebalancing was a little more volatile but ended up slightly ahead.

Could you do a graph for a 60/40?

 

[Gumby]

It took us 29, 6 and 5. which I consider very good. as our average earnings were about 10% about the median US income.This includes our home, which I don't normally do. Without, 30 6 and not quite there. On the other hand we gifted away about $420k to the kids, for education and house.

I never count the house.

 

[Car-Guy]

I never count the house.

Now that's the first time I've ever heard that around here!

 

[Car-Guy]

You guys need to spend more time on the BTD thread.

+1

I may even start a thread titled, "How long did it take you to blow a million (or more) ".

 

[TheWizard]

Now that's the first time I've ever heard that around here!

We have different discussions around here.
Some are about Net Worth but this one asked about Portfolio, meaning Investible Assets...

 

[frayne]

You guys need to spend more time on the BTD thread.
I've never hit the second, got close a couple times, but having too much fun to worry about it.

+1

 

[Car-Guy]

We have different discussions around here.
Some are about Net Worth but this one asked about Portfolio, meaning Investible Assets...

My point was, should you include your house in your NW calculation or not. Comes up in a lot of related discussions. And the title of this thread is : The first million takes the longest to achieve. Regardless, many people include their house as an investment, especially those that have home(s) that have appreciated outrageously..

 

[karen1972]

The first million took 19 years, the second million took 9 year and most of that I was no longer adding to but actually drawing down. I'm really hoping the trend continues and the next million only takes 5.

Its only been a month since I hit 2 and I'm 6% of the way to 3.

 

[Closet_Gamer]

18 yrs
2 yrs
2 yrs
1 yr ...

Yes, compounding is amazing, particularly if you also have growing income but avoid lifestyle creep.

 

[scrabbler1]

I reached my first million (investible assets only) in 2010, at age 47. That was 25 years after I started working but also 2 years after I stopped working (and ERed). I haven't yet reached my second million, just piercing the $1.9M mark earlier this month. That's only 13 years, and without working, just market gains minus my living expenses (which will drop this year due to qualifying for a cheaper HI plan). So, maybe I get to $2M next year?

 

[Markola]

Could you do a graph for a 60/40?

Sure. And you can do all kinds of backtesting for free at Portfolio Visualizer.

The one with the high final balance has no rebalancing. To be sure, there’s been a lot of allocation drift since 1987 and current allocation is 90/10, hence the higher volatility and higher returns. But if we have a very major correction in stocks, the allocation and current balances could snap back to around 60/40 quickly. Not everyone can ignore that noise to end up in the same place periodically, like street can.

 

[PlayinwithFIRE]

memory is fuzzy but I believe I started "contributing" around 2000 not max'ing out or anything but starting.

I didn't start seriously contributing/tracking until 2014 where my graph begins.

So that 1st M took about 20-21 yrs i think.

I'll let ya know when then 2nd one comes along-but definitely its happening
faster

 

[Surewhitey]

+1

I may even start a tread titled, "How long did it take you to blow a million (or more) ".

Interestingly, I put a current annual expense of 2023 & multiplied it by our 27 years married and called it inflation adjusted... Close to $2 mil. So I'm guessing my future 27 years are more than accounted for since it's working for me now...

 

[brett]

Increasing income. No consumer debt-ever. No lifestyle creep.

Suddenly we were financially independent and retired early.

 

[Ronstar]

Yep, not contributing and done playing the game makes it longer between them for sure.

I have enough cash/liquid accounts I haven't had to touch any of my portfolio so that does help.

If I remember you also haven't had to touch investments either. Thanks Ronstar.

No I haven't touched IRA / 401k or taxable accounts. I did get an annuity about 25 years per the advice of my accountant at the time. I did annuitize that money a few years ago so that I get a couple k per month to live on along with ss.

The annuity will run out about the same time I need to take RMD's, but I don't see withdrawing until then.

The speed in which folks on this thread are incrementing millions is incredible.

 

[calmloki]

Looks like back 2000 there was some confusion in my accounting, then in 2001 we popped over a million. Crept along for a few years, then in 2006 our NW more than doubled. Can attribute that to pro-grade landlording and maybe a liiitttle bit to deciding that rather than use the purchase price of our properties in NW figuring we would use what the property tax man called "real market or true cash value". For instance, after buying a place in 1985 for $12k it did seem to change our NW when I told Quicken it was suddenly worth $110k in 2006. Since then we've had a pretty steady curve upward in the NW graph, with a single NW decrease in 2022.

 

[tutan]

The power of compounding. But also a million becomes a smaller percentage as your total gets bigger. It is 50% of 2 millions but just 10% of 10 millions. Of course it’s as easy to drop to 9 too.

 

[HenryD]

30, 4
Details... NW, not investments but we don't own a house we live in right now, so what's the difference, really. The first milestone would have been hit by 25 were it not for the big D. The second milestone was basically this month, so, yeah the first was the hardest!