option 3 is work for a private company with the opportunity to acquire equitydrill4oil78 said:ThisDan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
millionaires
484,220 Views |
2083 Replies |
Last: 1 mo ago by jamey
I'm at roughly $1.5MM of liquid investments at 32 (stocks, 401k, cash) and a few pieces of land that would push to $4MM+. My 401K/IRAs are roughly 30% of this amount with most future contributions through employer sponsored plans.
My goal is to find a way to monetize one track of land roughly $500K into multiple rental properties over the coming 2-3 years to start generating income. The other larger piece of land has a cattle operation that hopefully I'm able to generate a certain level of yearly income from (or at the least cover the cost of cars etc).
I plan on living below our means until I'm 45 at which time I'm hopefully in a position to leave the corporate world. That is dependent on my ability to continue to receive bonuses and stock options which play into my mid-term savings program.
My goal will be to pull 40-50K to supplement lifestyle etc while reinvesting the balance.
My goal is to find a way to monetize one track of land roughly $500K into multiple rental properties over the coming 2-3 years to start generating income. The other larger piece of land has a cattle operation that hopefully I'm able to generate a certain level of yearly income from (or at the least cover the cost of cars etc).
I plan on living below our means until I'm 45 at which time I'm hopefully in a position to leave the corporate world. That is dependent on my ability to continue to receive bonuses and stock options which play into my mid-term savings program.
My goal will be to pull 40-50K to supplement lifestyle etc while reinvesting the balance.
How did you go about acquiring that amount of land at the age of 32?
Separate question for everyone else Would $2 mil technically be considered a multi millionaire?
Separate question for everyone else Would $2 mil technically be considered a multi millionaire?
My wife inherited the land.
Call Me The Realist said:
Separate question for everyone else Would $2 mil technically be considered a multi millionaire?
$3mil is the new $1 million. Just a BS number but when I hear multimillionaire I think of somebody with 20+mil. At a minimum, 10mil. Anything less than 10 and you are still kinda part of the regular Joes.
My goal is 2mil by age 44 and 3mil by age 50. Don't really care what it's called and really don't desire to ever be part of the "elite".
This. Whether private or public, getting in with a start-up with a nice equity stake is a great way to go. Of course it is not without significant risk based on the possibility that the company fails. YMMV.Ragoo said:option 3 is work for a private company with the opportunity to acquire equitydrill4oil78 said:ThisDan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
To the comment above about not being able to be a millionaire by working for someone else, that is simply not true. I work in the oil industry and all of my old bosses/coworkers have retired as multi-millionaires with generous pensions and 401k balances. I'm almost halfway there at 32 years old. Also, tell that to folks who work at the big tech companies who make huge salaries and stock options right out of school.
It may be pretty difficult to achieve HIGH net worth status at 10MM+ by working for a corporation, but I think 3-5MM is pretty doable as long as you live below your means and work for companies with generous bonuses and pensions/retirement.
It may be pretty difficult to achieve HIGH net worth status at 10MM+ by working for a corporation, but I think 3-5MM is pretty doable as long as you live below your means and work for companies with generous bonuses and pensions/retirement.
You can make it work if you get lucky along the way and get in early at a good company.
Conversely, I've had multiple friends go from $1-2MM in company stock at 30 to zero over the last 3 years during oil crash.
Conversely, I've had multiple friends go from $1-2MM in company stock at 30 to zero over the last 3 years during oil crash.
I get the point you are trying to make but I have a hard time calling somebody with a $7-9 mil net worth a "regular joe"
My FIL (a few weeks after the wedding) told me "You can marry more in 5 minutes than you can make in a lifetime".Cyp0111 said:
My wife inherited the land.
Counting equity in our home, we crossed the threshold last month.
Real estate market is insane in Denver. I'd sell to realize my gains but then I'd just have to pay someone else's inflated asking price.
We are a 1.5 income family. I'll go back to full time work or volunteer once my youngest starts full time school in a year.
Real estate market is insane in Denver. I'd sell to realize my gains but then I'd just have to pay someone else's inflated asking price.
We are a 1.5 income family. I'll go back to full time work or volunteer once my youngest starts full time school in a year.
Yep, you can get there pretty easily if you are DINKs.The Original AG 76 said:drill4oil78 said:ThisDan Scott said:
FEverybody I know that has become a MULTImillionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
Modified it a bit so as to be accurate. You can be a salaryman and via hard work , sound spending and a bit of common sense still end up with a few million . You don't have to own the hog farm
Ragoo said:option 3 is work for a private company with the opportunity to acquire equitydrill4oil78 said:ThisDan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
This.
My dad works for Talos energy, and this:
http://m.chron.com/business/energy/article/Houston-s-Talos-Energy-makes-significant-find-11283088.php#photo-5385525
Is surely going to get the buyout the company is looking for, and my dad owns enough stock to receive a 10 figure payday.
He's just a measly facilities engineer
Your Dad is going to be a billionaire?62strat said:Ragoo said:option 3 is work for a private company with the opportunity to acquire equitydrill4oil78 said:ThisDan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
This.
My dad works for Talos energy, and this:
http://m.chron.com/business/energy/article/Houston-s-Talos-Energy-makes-significant-find-11283088.php#photo-5385525
Is surely going to get the buyout the company is looking for, and my dad owns enough stock to receive a 10 figure payday.
He's just a measly facilities engineer
Can we be friends?
Your Dad will make one dollar for every barrel produced? Does he own the ocean?
Lol
Are you counting the two "cents" spots to the right of the decimal when you claim 10 figures?
and the $ sign, decimal point and perhaps a few commas ?Stive said:
Are you counting the two "cents" spots to the right of the decimal when you claim 10 figures?
Of course.. don't we always?Stive said:
Are you counting the two "cents" spots to the right of the decimal when you claim 10 figures?
12,345,678.90
So I got a little excited.. we'll call it 8 figures to appease the purists in here.
I built a model I play around with for my own situation but thought I would post what i would consider to be a very reasonable scenario here and see what people think.
Married couple at age 30 have $100K invested in retirement accounts. They make combined $150K/yr and annually contribute $30K per year to retirement accounts. Early stages of career so incomes are expected to continue to rise for a while longer. They plan to increase that contribution by $2K per year until they reach $60K annual contribution - then hold that constant going forward. Assume 6% return over the entire investing timeframe.
Age 30: $100K
Age 35: $324K
Age 40: $681K
Age 50: $2M
Age 55: $3M
Age 60: $4.3M
Age 65: $6.1M
Bump that to 7% return:
Age 30: $100K
Age 35: $334K
Age 40: $720K
Age 50: $2.2M
Age 55: $3.4M
Age 60: $5.1M
Age 65: $7.6M
Of course, if this couple were more aggressive with savings they could invest a lot more and faster and these numbers go up a lot more. Add in a couple windfalls or inheritance and pretty easy to see how someone could amass a very nice portfolio while working only 40-50 hrs a week for the man.
Married couple at age 30 have $100K invested in retirement accounts. They make combined $150K/yr and annually contribute $30K per year to retirement accounts. Early stages of career so incomes are expected to continue to rise for a while longer. They plan to increase that contribution by $2K per year until they reach $60K annual contribution - then hold that constant going forward. Assume 6% return over the entire investing timeframe.
Age 30: $100K
Age 35: $324K
Age 40: $681K
Age 50: $2M
Age 55: $3M
Age 60: $4.3M
Age 65: $6.1M
Bump that to 7% return:
Age 30: $100K
Age 35: $334K
Age 40: $720K
Age 50: $2.2M
Age 55: $3.4M
Age 60: $5.1M
Age 65: $7.6M
Of course, if this couple were more aggressive with savings they could invest a lot more and faster and these numbers go up a lot more. Add in a couple windfalls or inheritance and pretty easy to see how someone could amass a very nice portfolio while working only 40-50 hrs a week for the man.
Assuming your math is correct, that seems plausible. However, you'll be living like a lolpoor until you retire a millionaire.
Wife is an Aggie said:
I built a model I play around with for my own situation but thought I would post what i would consider to be a very reasonable scenario here and see what people think.
Married couple at age 30 have $100K invested in retirement accounts. They make combined $150K/yr and annually contribute $30K per year to retirement accounts. Early stages of career so incomes are expected to continue to rise for a while longer. They plan to increase that contribution by $2K per year until they reach $60K annual contribution - then hold that constant going forward. Assume 6% return over the entire investing timeframe.
Age 30: $100K
Age 35: $324K
Age 40: $681K
Age 50: $2M
Age 55: $3M
Age 60: $4.3M
Age 65: $6.1M
Bump that to 7% return:
Age 30: $100K
Age 35: $334K
Age 40: $720K
Age 50: $2.2M
Age 55: $3.4M
Age 60: $5.1M
Age 65: $7.6M
Of course, if this couple were more aggressive with savings they could invest a lot more and faster and these numbers go up a lot more. Add in a couple windfalls or inheritance and pretty easy to see how someone could amass a very nice portfolio while working only 40-50 hrs a week for the man.
That's great and all, but two kids in the picture drastically changes it. You have 5-6 years of daycare, or one salary.
We could be saving $30k a year now, but it all goes to daycare.
My aunt and uncle are both highly educated, no kids and both retired after working only 30 years for the man and if I had to Guess they have $4-5mm net worth. They just sold a paid off house for $700k (without buying anything else) and have flipped two condos in Vail with amazing luck netting $750k between the two, now live in a third condo that's probably $750k and paid off. That's just the couple of real estate holdings they had.
I disagree. Wife and I are in our mid/late 20's, income is close but slightly less than my example above, investments are slightly higher than I noted above, and have two kids in daycare for a total of $24K/yr.62strat said:
That's great and all, but two kids in the picture drastically changes it. You have 5-6 years of daycare, or one salary.
We could be saving $30k a year now, but it all goes to daycare.
My aunt and uncle are both highly educated, no kids and both retired after working only 30 years for the man and if I had to Guess they have $4-5mm net worth. They just sold a paid off house for $700k (without buying anything else) and have flipped two condos in Vail with amazing luck netting $750k between the two, now live in a third condo that's probably $750k and paid off. That's just the couple of real estate holdings they had.
Of course not the full daycare expense is tax deductible but you still have slightly less than ~$100K to live off of after daycare & investments.
I don't know if I would say living like an lolpoor but I guess that is all relative... You are starting off with only a 20% savings rate. 15 yrs down the road household income grows to the $175-$200K range you are now only at a 30-35% savings rate.lead said:
Assuming your math is correct, that seems plausible. However, you'll be living like a lolpoor until you retire a millionaire.
Income tax, or is your 150K net pay?Wife is an Aggie said:I disagree. Wife and I are in our mid/late 20's, income is close but slightly less than my example above, investments are slightly higher than I noted above, and have two kids in daycare for a total of $24K/yr.62strat said:
That's great and all, but two kids in the picture drastically changes it. You have 5-6 years of daycare, or one salary.
We could be saving $30k a year now, but it all goes to daycare.
My aunt and uncle are both highly educated, no kids and both retired after working only 30 years for the man and if I had to Guess they have $4-5mm net worth. They just sold a paid off house for $700k (without buying anything else) and have flipped two condos in Vail with amazing luck netting $750k between the two, now live in a third condo that's probably $750k and paid off. That's just the couple of real estate holdings they had.
Of course not the full daycare expense is tax deductible but you still have slightly less than ~$100K to live off of after daycare & investments.
150 is gross. I figured after I posted everyone would dissect the numbers to tell me I am wrong but it basically follows the boglehead approach - live below your means, start early, invest regularly & stay the course.
Of course where you live, whether both spouses work, & how many kids you have can greatly impact this scenario.
Of course where you live, whether both spouses work, & how many kids you have can greatly impact this scenario.
there are many things that affect the scenario, but I think most importantly when you have kids affects the most.Wife is an Aggie said:
150 is gross. I figured after I posted everyone would dissect the numbers to tell me I am wrong but it basically follows the boglehead approach - live below your means, start early, invest regularly & stay the course.
Of course where you live, whether both spouses work, & how many kids you have can greatly impact this scenario.
The purpose of these posts were to refute the blanket statement that a working stiff " working for the man" can't retire in style as a millionaire not to build exception after exception to the many scenarios where it IS possible.62strat said:Wife is an Aggie said:
I built a model I play around with for my own situation but thought I would post what i would consider to be a very reasonable scenario here and see what people think.
Married couple at age 30 have $100K invested in retirement accounts. They make combined $150K/yr and annually contribute $30K per year to retirement accounts. Early stages of career so incomes are expected to continue to rise for a while longer. They plan to increase that contribution by $2K per year until they reach $60K annual contribution - then hold that constant going forward. Assume 6% return over the entire investing timeframe.
Age 30: $100K
Age 35: $324K
Age 40: $681K
Age 50: $2M
Age 55: $3M
Age 60: $4.3M
Age 65: $6.1M
Bump that to 7% return:
Age 30: $100K
Age 35: $334K
Age 40: $720K
Age 50: $2.2M
Age 55: $3.4M
Age 60: $5.1M
Age 65: $7.6M
Of course, if this couple were more aggressive with savings they could invest a lot more and faster and these numbers go up a lot more. Add in a couple windfalls or inheritance and pretty easy to see how someone could amass a very nice portfolio while working only 40-50 hrs a week for the man.
That's great and all, but two kids in the picture drastically changes it. You have 5-6 years of daycare, or one salary.
We could be saving $30k a year now, but it all goes to daycare.
My aunt and uncle are both highly educated, no kids and both retired after working only 30 years for the man and if I had to Guess they have $4-5mm net worth. They just sold a paid off house for $700k (without buying anything else) and have flipped two condos in Vail with amazing luck netting $750k between the two, now live in a third condo that's probably $750k and paid off. That's just the couple of real estate holdings they had.
I can easily show where a guy who owns a thriving bidness bringing in over a million a year wont have a pot to piss in at 65 due to his insane spending habits on and on ..We are simply saying that any working stiff with a decent income who lives a sane lifestyle, spends wisely , has kids and doesn't live in one of foolish living expense areas of the country ( Calif or NYC) can retire with a few million and in comfort.
I'll play, since I like the way this was asked. A few thoughts:
I'm way past that in net worth, and I was born into a family with a net negative net worth (my parents were not educated or good planners). I won the lucky sperm club by virtue of the values my parents and grandparents thought me, not by their assets or education. I also was fortunate to have other people enter my life I could learn from.
Guiding principles in this regard are hard work, delayed gradification, focused on just a few things (kids, job, health and some sports), used education and hard jobs to increase my value to employers /markets.
Not quite 40, income well over 7 digits, with contract terms that protect my assets, etc
Yet my spending habits have trailed my job and income by at least one phase. When I was a manager I lived like an analyst. When I became an executive I spent like a Director. Today I pay 35% of gross income to taxes, I live off less than 15% and I save over half every year.
I worked my ass off to put experiences and brands on my resume that are attractive. A&M, Arthur Anderson, Stanford MBA, etc, etc. - this meant a lot of 80 hour weeks while most of my 20-29 y.o. peers had a lot more free time to enjoy.
I've taken on 2-3 pretty stressful jobs in organizations in crisis becuase I feel you can learn more and grow much faster under duress. You can also prove your value by accomplishing hard things.
As an investor I'm passive (don't have the time to gather the info) but aggressive in asset allocation and moderate in leverage.
Financial goal has been consistent since the beginning. Want to "go perpetual" before my kids get out of high school. For me that means an invested value where 3-4% spinoff is 2-3X my current total cost of living. I'm slightly ahead of pace.
So, I'm a ****ty golfer, there are a lot of places on earth I've not seen, I have a few great friends but don't even try to stay close to tons, I don't watch TV, the trade offs are real. L
But on the other hand my kids have a dad that makes them THE priority and they get to be proud of what Dad does for a job. And they don't have to pick a profession based off income like I did.
I'm way past that in net worth, and I was born into a family with a net negative net worth (my parents were not educated or good planners). I won the lucky sperm club by virtue of the values my parents and grandparents thought me, not by their assets or education. I also was fortunate to have other people enter my life I could learn from.
Guiding principles in this regard are hard work, delayed gradification, focused on just a few things (kids, job, health and some sports), used education and hard jobs to increase my value to employers /markets.
Not quite 40, income well over 7 digits, with contract terms that protect my assets, etc
Yet my spending habits have trailed my job and income by at least one phase. When I was a manager I lived like an analyst. When I became an executive I spent like a Director. Today I pay 35% of gross income to taxes, I live off less than 15% and I save over half every year.
I worked my ass off to put experiences and brands on my resume that are attractive. A&M, Arthur Anderson, Stanford MBA, etc, etc. - this meant a lot of 80 hour weeks while most of my 20-29 y.o. peers had a lot more free time to enjoy.
I've taken on 2-3 pretty stressful jobs in organizations in crisis becuase I feel you can learn more and grow much faster under duress. You can also prove your value by accomplishing hard things.
As an investor I'm passive (don't have the time to gather the info) but aggressive in asset allocation and moderate in leverage.
Financial goal has been consistent since the beginning. Want to "go perpetual" before my kids get out of high school. For me that means an invested value where 3-4% spinoff is 2-3X my current total cost of living. I'm slightly ahead of pace.
So, I'm a ****ty golfer, there are a lot of places on earth I've not seen, I have a few great friends but don't even try to stay close to tons, I don't watch TV, the trade offs are real. L
But on the other hand my kids have a dad that makes them THE priority and they get to be proud of what Dad does for a job. And they don't have to pick a profession based off income like I did.
FrioAg 00 said:
I'll play, since I like the way this was asked. A few thoughts:
I'm way past that in net worth, and I was born into a family with a net negative net worth (my parents were not educated or good planners). I won the lucky sperm club by virtue of the values my parents and grandparents thought me, not by their assets or education. I also was fortunate to have other people enter my life I could learn from.
Guiding principles in this regard are hard work, delayed gradification, focused on just a few things (kids, job, health and some sports), used education and hard jobs to increase my value to employers /markets.
Not quite 40, income well over 7 digits, with contract terms that protect my assets, etc
Yet my spending habits have trailed my job and income by at least one phase. When I was a manager I lived like an analyst. When I became an executive I spent like a Director. Today I pay 35% of gross income to taxes, I live off less than 15% and I save over half every year.
I worked my ass off to put experiences and brands on my resume that are attractive. A&M, Arthur Anderson, Stanford MBA, etc, etc. - this meant a lot of 80 hour weeks while most of my 20-29 y.o. peers had a lot more free time to enjoy.
I've taken on 2-3 pretty stressful jobs in organizations in crisis becuase I feel you can learn more and grow much faster under duress. You can also prove your value by accomplishing hard things.
As an investor I'm passive (don't have the time to gather the info) but aggressive in asset allocation and moderate in leverage.
Financial goal has been consistent since the beginning. Want to "go perpetual" before my kids get out of high school. For me that means an invested value where 3-4% spinoff is 2-3X my current total cost of living. I'm slightly ahead of pace.
So, I'm a ****ty golfer, there are a lot of places on earth I've not seen, I have a few great friends but don't even try to stay close to tons, I don't watch TV, the trade offs are real. L
But on the other hand my kids have a dad that makes them THE priority and they get to be proud of what Dad does for a job. And they don't have to pick a profession based off income like I did.
Close to exactly my formula. Left the corporate world at 44 yo. Able to enjoy kids growing, scouts, HS years and college.
Now I'm a good golfer!! Enjoy brother!!
This is the position I recently took by launching a new division for the company. I get a percentage off the top on all sales through the division.Ragoo said:option 3 is work for a private company with the opportunity to acquire equitydrill4oil78 said:ThisDan Scott said:
Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.
Sooo, you could be saving $54k a year right now.. but your two kids drastically changes that.Wife is an Aggie said:I disagree. Wife and I are in our mid/late 20's, income is close but slightly less than my example above, investments are slightly higher than I noted above, and have two kids in daycare for a total of $24K/yr.62strat said:
That's great and all, but two kids in the picture drastically changes it. You have 5-6 years of daycare, or one salary.
We could be saving $30k a year now, but it all goes to daycare.
My aunt and uncle are both highly educated, no kids and both retired after working only 30 years for the man and if I had to Guess they have $4-5mm net worth. They just sold a paid off house for $700k (without buying anything else) and have flipped two condos in Vail with amazing luck netting $750k between the two, now live in a third condo that's probably $750k and paid off. That's just the couple of real estate holdings they had.
Of course not the full daycare expense is tax deductible but you still have slightly less than ~$100K to live off of after daycare & investments.
That's what I'm saying.
Income well over 7 digits. Well done.
Bogleheads is fine. However, your savings targets are pretty extreme for a $150K combined salary which is good but not all that much in a big city.
This is my goal as well.
I'm going a different route on some items but ultimate goal is to be ready in 12 years to have 3x my annual spend at 2-3% investment return.
I'm going a different route on some items but ultimate goal is to be ready in 12 years to have 3x my annual spend at 2-3% investment return.
Featured Stories
See All
19:50
22h ago
4.9k
Donors can now earn priority points by giving to Texas Aggies United
by Texas Aggies United
5 Thoughts: No. 23 Texas A&M 78, No. 21 Ohio State 64
by Luke Evangelist
A&M's approach remains the same with NMSU coming to Aggieland
by Olin Buchanan
116:42
2h ago
679
27:22
12h ago
3.9k