Looked up my historical data. It took me 19 years to go from 100k to 1 Mil. Second mil is looking like 7 years. Admit that when I hit the first 100k I was a former enlisted Captain with a family of wife and 3 kids. Didn't have a lot of money but I always saved. In 97 when I hit the 100k point, I was overseas getting cola and I saved every penny. Unlike many of my peers. Always lived with a budget. Life is good.
100K definitely makes a difference. As a dividend growth investor. I have noticed the snowball amassing larger after 100K. Even growing monthly/quarterly as I re-deploy dividends.
Been in my job for 17 years, and see no risk of job security. Alot has to do with the field and the choices you make. Some fields and companies are more stable then others.
I think your parents advice is still good. My wife and I saved 10% and never earned $100k combined but still accumulated $1M. Maybe not life on easy street but more than average and far more than median.
Wife and I were living on one salary and saving the other. Did this when we were in our mid 30s. This was 20 years ago and were making 150k a year between the both of us. That was good money back then, and unfortunately our industry has been in decline since. We first paid off our house and then invested in index funds and a rental house . After 15 years we were able to early retire. Everything paid for, no debt and no kids. We were very lucky to be earning the income we did then and glad we invested most of it.
It is sort of amazing how much we have to save and invest once we got our finances under control and made investing a priority. One million looked to me as impossible but it is almost a certainty in about 5 years.
I have my net worth spreadsheet open, so I can tell you my number. From $100K to $1 million: for me, 15 years. However, once you reach $1 million, and you continue to save at the same rate, you can get to $2 million much more quickly.
It took me about 8 years to hit 100k but from 100k to 1 mil, it took roughly 15 years maybe. No big paycheck during the 23 years journey and No 401k match after my first 5 years of career.
I don't think your chart at 7:08 is right, if we're talking total financial assets. Supposedly, about 3% of US households have financial assets greater than $5 million. I'll bet they looked only at official retirement accounts, as if a couple million $ in a regular brokerage account is not useful in retirement.
Now you tell me! Most of my 7 figures I have saved is my money. Not the growth. Just figured this all out a few yrs ago. I could have been sailing past 2 mil yrs ago. Most of my career I was only making 4% in the SARP.
In Denmark in a retirement fund and return of 8% before taxes, its 35 year. And if 10% before taxes it 28 year. But still its 10x and if you increase savings early in life, you can be pretty good off over 20-30 years time. Its not far off from my own retirement return and time span, which will cover my life.
My retirement investment account doubled from 2019-2024. So imagine: 1) $100,000 became $200,000 2) $500,000 became $1,000,000 Ours went $2,000,000 to $4,000,000 The rich do get richer.....I have to admit I see money a lot different now.
Question: I invest 6% of salary in employer Roth 401k, they match 6% dollar for dollar. Is it reasonable to say that’s 12% even though only 6% is mine? Or are we talking I should be doing 20% of mine, with the employer 6% just being bonus on top?
Any matching is free money, so you're already have a good start. Check the matching vesting period. I suspect your employer match is in traditional 401k funds unless the new option to get it in Roth 401k format under Secure 2.0 Act is available. In former leaves you with post/pre-tax situation so its a little complicated. You are responsible for the taxes on the Roth 401k match. What I did was stop at the full 6% match, build up a sizeable 6-12 month emergency funds, then open a personal Roth IRA and contribute up to the max $7,000 if you can. Roth IRA has a phase out limit of $158,000. After that, you can choose to max out Roth 401k at $23,000 or set up a regular brokerage account within the same institution as your Roth IRA. Good luck.
@@richlandzee8686 yup, thanks to videos like this: 1. Emergency fund 6 months, check, and I could cut expenses and make it even longer if really necessary 2. 6 years for 100% vest at my company, not great but I’m also not looking for a way out before then 3. I switched over to the Roth 401k… but I’m at an odd point because I want to retire well before 59.5 and I have to make it till then…. So I’m going to meet a fee only advisor and talk about scenarios and what a good strategy is. Best part about these videos is it really gets me to think and have more questions
