Best advice I can give is to get started early. Time value of money is HUGE. Wife and I are nearin 30 and if we didn't make another contribution to retirement it would grow to over 1m by the time were 50. It's not like we're making an absorbent amount of money or live on nothing. We just started early and don't typically blow money on worthless stuff, in our mind. Automatic investments are key as well.

quote:

---

It's not like we're making an absorbent amount of money

---

Paper towels are supposed to be absorbent. Assuming you meant exorbitant I agree with your post. Starting early is huge.

comeon now that's a totally mute point

Your English is uphauling

English was always my worst subjet

What retirement account did you have that Mint no longer supports?

JP Morgan and Mercer Pension

WHO IN THE WORLD DOES NOT LIKE BLUE BELL?

We're not there yet, but at the pace we're going, we should get there pretty soon. When I graduated from my MBA program, my wife and I had a negative net worth of about <-50,000> . In eight years we've turned around our net worth by almost $725,000 with just me working. My wife stays at home with my three little girls, which is how we like it. I'm not a saavy investor, but we've had some very good fortune in our home purchases as well as good timing. The home we're in now could be sold for roughly $160/sq. ft., but we got in a short 3.5 years ago at about $85/sq. ft. We did the same on our first home purchase as well, and made a tidy sum of money off of it.

We also had some good fortune off of purchasing physical gold. We bought in under $900/oz. and then added to our position at just under $1,000/oz. We slowly sold some of our position off hundreds of dollars per ounce higher than what we paid. This helped.

We also took an expat assignment in Singapore which also made us a pretty tidy sum of money.

I disagree with the posters above that said that you won't get rich working for someone else. There are some of us who make very good salaries working for others. To say that you can't get there working for someone else is simply not correct.

We do have some struggles, however. I do like nice things. I have an extensive collection of firearms, etc., but for the most part, we live well beneath our means and we save roughly $70,000 per year, but if we micrmanaged our spending, could easily move this up to $80,000.

Right now we're sitting on a lot of cash and I'm trying to decide whether to invest it somewhere or just pay off my home.

Once again, we're not there yet, but we'll get there soon enough.

[This message has been edited by RightWingConspirator (edited 5/6/2014 8:17a).]

quote:

---

WHO IN THE WORLD DOES NOT LIKE BLUE BELL?

---

Me me me me me.

Since this is a financial thread, I'll put it this way: Blue Bell is not worth the money considering how little non-artificial ingredients are in it. No one should pay that much for a cold dessert made with ice milk, food coloring, and artificial flavors. They even use artificial vanilla!

Eat it only for Texas pride.

Agree with spicewood. If I buy ice cream it is turkey hill vanilla bean.

"I disagree with the posters above that said that you won't get rich working for someone else. There are some of us who make very good salaries working for others. To say that you can't get there working for someone else is simply not correct."

I agree that you can get there working for somebody else. You just have to treat the money you get from somebody else like you are running a business. Even if you are just putting it in 401ks, treat your income like a business treats its income.

Another poster who dislikes Blue Bell. When I eat ice cream, I don't waste it on artificial tasting vanilla.

Basically the key is to have the ability to save more money every year than most Americans earn in a year. Everywhere I have read about millionaires the common theme is they save way more than the average. This requires a high income to achieve by 35.

If you include real estate it kind skews things, I think the better assessment is liquid assets, guns, gold, cash, jewelry,AND stocks not in a retirement account. I'd add cars, especially collectible ones and art, but I have little value there.
I'd like to have a million in those areas before retirement. I am a bit more than half way there with about 15 years until retirement and excluding any real estate equity. I 'd sure love a spike in guns or hold or equities.....

Speaking of doable, my grandmother was a GS gov. employee 25 years. She was frugal, but they always had a nice house, car and an RV. She didn't invest in any stocks but she did have a Edwards Jones one fund Mutual (Mostly bonds) Fund and when she died at 88 she was worth almost 1.2 million. Not counting her two houses.

Every American should be a millionaire if they make it to old age, if you are not (Like me) it is only becuase of bad choices!

I agree with Agnzona to an extent. MOST Americans have the ability to retire as millionaires if they discipline themselves and save. The greatest generation were very good at this - you would not believe how many of my older clients live so frugally, yet their interest income tells me they have over a million in the bank....

Our generation is too worried about nice houses and cars to do it like they did. For every older couple with a million in the bank, I have a younger couple that makes over $200/yr yet has no investment income and a mortgage the size of Dallas.

Amen gigem

We'll all be millionaires in retirement because of inflation.

I agree a millionaire is not that hard to accomplish these days.

I grew up in a very middle-class neighborhood, very middle-class type of lifestyle. My parents & 3 kids, all involved in tons of activities, expensive club teams, took a vacation every year (maybe just camping though some years). My parents never had a household income of over $100K in a given year, & for most of it probably more in the $70K range. I am 24 so I'm also not talking 30 yrs ago time frame.

My parents always saved & invested even if it was only a little each year as well as being properly insured since my mom mainly stayed at home (sold real estate part time) so was heavily dependent on my dad.

Unfortunately, my dad at age 57 (who was in great shape, very healthy, did P90x every morning at 4:30am, & still played competitive softball w/ mainly 30 yr olds) randomly had a seizure at work one day & we found out he had stage 4 terminal brain cancer. He passed away 9 months later at age 58.

My mom, still sells some real estate from time to time, but spends more of her time in different groups (bowling league, golf league, different ladies nights with her friends, bridge club, grief groups) & spends a ton of time volunteering at the Hospice house my dad passed away at. She is sitting on a 7-digit portfolio & won't have to worry about working, she even told me she hopes to have enough left over to leave a decent inheritance to my brothers and I, even though I insisted that wasn't necessary.

Just goes to show how being properly insured is very important, especially for single income families, as well as just living below your means every year & saving/investing what you can, even if it is only a little.

I do know that one of my moms biggest regrets is them delaying their Italy trip they always planned on going on. Just a reminder that your entire life can turn upside down in a matter of seconds so you just have to find that balance.

Lots of people do very well for themselves working for other people.

A 22 year old chemical engineer can make $80K/yr right now. If that 22 year old doesn't waste his/her money on a BMW now and saves a bunch of that money they could easily have $500K by the time they are 30.

that sounds a little aggressive

Saving a million before 65 is not hard. My parents worked menial jobs on the assembly line and they prob have 600k in retirement raising 5 kids.

My goal is alittle more ambitious at 10Mil by 65. I would like to be able to retire just living off the dividends from my stocks and not touching the principal.

I would love to leave 3-5 mil to each of our 3 kids.

quote:

---

that sounds a little aggressive

---

You're probably right. But it is possible. By 35 it should be easy.

^
Not everyone came out of college with one of the highest paying bachelor degrees (Chem Eng). An 80k/year starting salary is probably in the top 10-20% of A&M new grad starting salaries, but that is purely a guess on my part.

I agree having $500k by 35 with an 80k/year starting salary should be easy...but for the average starting salary and above average investor $500k by 35 may be difficult but definitely doable [word?].

[This message has been edited by AgHunter2011 (edited 5/6/2014 12:40p).]

quote:

---

An 80k/year starting salary is probably in the top 10-20% of A&M new grad starting salaries

---

I'm guessing it's top 3%.

Great post POW. I'm sorry for your loss and that's great perspective.

Everyone has a different path but I think the foundational things that everyone needs to do are: 1. Live below your means. 2. Enjoy your life but also set goals and practice delayed gratification. 3. Invest your money in things that appreciate and/or produce more money. 4. Be frugal but not cheap. 5. Focus on increasing your skill set and/or investing in yourself from a career standpoint. 6. Don't idolize money. Money is a tool and if you idolize it you will never be truly rich

"Put first things first and second things get thrown in, put second things first and you lose both first and second"

My point is that you can earn plenty of money, top 3% money, working for other people.

Any engineer graduating from A&M or Texas will make no less than $55K/yr now. Every computer science grad - same thing. A finance degree can earn $50K without too much difficulty.

Healthcare - nursing and of course MDs make good money.

Got your degree in psychology or history? Not so promising. You shouldn't have chosen that field.

I agree with your initial premise Spice, with an amended age to 35. I do think we need be careful about saying things are "easy" though (not that you've said it, but others have).

If it was really "easy", everyone would be doing it.

quote:

---

My point is that you can earn plenty of money, top 3% money, working for other people.

---

Definitely. I work for a public company and make top 3% and I'm not even a Director yet. Direct, Sr. Director, about 5 levels of VP.....

80k chemEs are not as rare as they once were as many are going to work for E&P companies thus making 6 figures fresh out of school.

My goal is a million by age 30 but it will take something major that I cannot forsee yet for that to happen.I'm saving $30-40k/year, don't think that my current pace will get me there.

When I was a kid and discovered what a millionaire was, I wanted to be one. That would mean I was rich, I wouldn't have to work, and I could afford a lot of cool stuff. The problem is inflation. That was in 1981 or so. Counting for inflation, I would need about $4 million today to get to what my original understanding of what a millionaire was. So in my mind, I'm not there yet.

Another story - I happened to be in a very high end neighborhood recently. Houses in the $8 - 10 million range. At first I felt a little bad, because I knew that a house like that would never be a reality for me. But then I had an epiphany! If I could find a way to work for 160 years instead of my planned 40, I would someday be able to afford a house there if I saved and invested reasonably. So now my problem isn't money, its time.

With advances in modern medicine....... Hello Beverly Hills.

quote:

---

We also took an expat assignment in Singapore which also made us a pretty tidy sum of money.

---

Much like a military deployment, getting an expat gig is a very nice windfall. In addition to getting an expat pay bump, by getting an expat package that covers lodging, food, schools, transportation, etc you can eliminate all of those expenses off of the family budget.

My 23 year old ChemE brother took a job in Singapore years ago. He completely lived off his allowances, and put his entire paycheck in the bank. And he had a taste for good booze and expensive toys and lots of travel.

I'm definitely jealous of the opportunity he had.

One stat I recall is 80% of self made millionaires own a business. The other 20% compromised mostly of top sales people.

Can't say I agree with that. I know too many and few to none that were in sales and are very well off. I would be interested in seeing that data.