I'm 41 and I also passed $1M when I was 37. I'm now at $2.2M. I looked up the social security website and checked how much taxable income I've made since I started working, and it was $1.75M. Assuming I contributed about $300k in pre-tax retirement, this means I have made a little over $2M in my entire career. So, my net worth just passed the total income I've ever had. I'll probably retire soon and swim whenever I want.
Awesome. My wife and I are at $300k invested, debt free. I just turned 40. Our income will triple by the end of this year. Going from $120k to about $400k. We're living on $80k, investing $40k pre-tax, and will start investing $160k/year annually outside retirement. Targeting $1 million invested outside retirement by 45, if returns are good, we should be closer to $1.5 outside retirement and $800k in retirement accounts. In 7-10 years, hopefully, our investment income outside retirement will exceed our working income, and I'll retire from the 8-5 and monitize some of my hobbies for fun.
@@getinthespace7715 It's nice to have a partner who's working towards the same goal. I've been doing this alone and wish I can meet someone with similar mindset. My current salary is $140k which is the highest I've ever made. I have a little over $1m in taxable account and about $1.1m in retirement. I have $55k in IBonds, $20k in HSA, and some in HYSA for daily expenses. I live on $30k in a MCOL area. I started working when I was 23 with about $25k in student loan debt, and since then, I've only been stashing money into ETFs like VTI, VXUS, and BND (so, nothing crazy like crypto, tech stocks, etc). I'm naturally not a big spender since my hobbies are cheap (boardgaming, hiking, reading, cooking). I WFH full time as a programmer.
I remember when I hit 2.5 million. Felt like I was swimming on cloud nine. I let out a big sigh of relief. Once you make it past all the hurdles, you can rest easy knowing that you and your loved ones will be fine in this life. Insightful video. Quality content. Reaffirms lessons and teaches new ones. Kudos to you and your wife.
Just stumbled upon your channel recently. Very genuine & sound advice across the board from all your videos. Keep up the amazing content. Above all, just keep swimming!
Hey man I’m 28, my niece just graduated college and I’m really late to investing and so is she. This was great to watch, very inspiring and motivating to know there is hope. Just discovered your channel and production is excellent, very surprised you don’t have more views. Definitely subbed
First time seeing your content. Love the story and how it exemplified that y'all aren't/weren't high earners for at least the first half of the 11 years(Not 132 months...it's not a baby. 😅) it took. Small habit ,started early, and that grew over time. Simple and effective. This year was my first time being comfortable when it came time to unexpectedly spend large numbers. Had to repair a roof *and* replace an HVAC system all this month...and I'm finally to a point where I'm not stressing it. I'm 37 and wife is almost 44. We have 11 years to go til retirement with a net worth in the $750k range, about 50-55% in the home and neither of us has seen 6 figures income in a year.
We are on a path to retire 18years early as well. It's all about consistency and discipline! We've already hit Coast FIRE and now our target to hit full FIRE is 2028. Feels great to be in a position to walk away so early.
Great video. What percent of your net worth is your house vs. investments? And what kind of investments do you like? Do you guys keep a max funded HSA, FSA?
I’m 20 with 86k invested. Still in college but have no loans because of scholarships. I have been doing everything I can to get to 100k. Hope everything works out.🤞🏻
Great video. Here's my question though, I'm self-employed and have a Roth IRA. The max I can put in every year is 7 thousand dollars or so. I can put more into investments but if I can't put it into my Roth where do I put it into?
Yeah a taxable brokerage account has no limits and you should talk to your accountant about an SEP IRA. It’s an amazing option, just have to know how the math works to not over-contribute
17:17 damn 😧. The gains once you and your wife got together are HUUUUUGE. USA is just a different breed man. 40k/year puts you in the top 20% here in Spain. Average salary is around 22k/year
I can relate, went to emergency room in January for chest pain, they ran every test they could. Found out heart is good and they couldn’t tell me why I had chest pain. Hit my out of pocket for my health plan 7k. Good thing for savings.
Here’s a giant bill for you fire drill, thanks, see ya next time! Gah. Glad you’re also doing well. I’ve got one more test then I’ll have the final appointment to make 100% sure I’m clear for takeoff
Interested to see if you are able to negotiate the bill. Something I never knew was a thing and wish I did more often, but feel I was never taught to me. We go to the supermarket and we pay the price shown, so feel it is not talked about often.
@@DP2004 years ago I took my child to urgent care and after they weren't able to help because they didn't have the equipment to run the next tests they referred to the ER. Because they were still part of the same health system I later argued with them about the urgent care bill on the basis that based on the symptoms I told them on the phone before going in they should've been upfront and told me to only go to the ER knowing they wouldn't be able to assist since they knew they didn't have ability to run required test to make diagnosis for the symptoms. Luckily they agreed and waived the urgent care charges. So saved a few hundred dollars. Took being transferred and telling the story multiple times and waiting a couple days for a callback from a supervisor to also get approval from their manager. But they can definitely adjust and write off charges if they choose.
Hey man what does your 401k portfolio look like . Like what are your ratios ? Also what is a good investing account to start can you give me some examples ? I'm 28 I have a good job(commercial plumber).I make okay money, with a 401k and I'm barely wanting to invest because I have been undisciplined in the past partying/drugs/drinking and I'm tired of that life. I have no debt. No car payment. I want to make my money work for me in my sleep like you said. I would thank you immensely for the help . God bless . Thank you .
Brendan has a course that could be helpful but also tons of TH-cam videos. He just barely did one about Acorns which might be good for you to watch. Automation is usually best for most us so you choose in advance the amount from your paycheck that automatically goes to the investment account and that account has the rules setup to automatically deploy any funds to the investments. Similar to what happens with your 401k. I've personally never used Acorns but hear great stuff from those that do. M1 & Fidelity are what I use most. Since you are young it would probably be best to look at growth ETFs or index funds. SCHG comes to mind or the always popular QQQ. Much easier to avoid FOMO of all the hype around individual stocks. Lots of those funds include those stocks already so you'll still have exposure to it in a less volatile way.
Firstly thank you for sharing and this is great content. I wanted to touch on what I think is a small miss in the grand scheme of things just to enhance the content. And the way I see it…it doesn’t take away from the main theme and most details of your video here …Someone else correctly pointed out below…How much was your initial mortgage balance? Your net worth should have gone down by that much the moment you signed the bottom line. Graph was showing a jump from $134k to $210k. That would mean you would have had to fully paid your house off with cash that came out of nowhere plus made $80k in investments/earned interest or at least your investments for the year would had have to have been $80k-ish above and beyond the remaining balance of your mortgage after paying down a huge portion of your mortgage with money that poofed into existence. Seems implausible.
No you’re totally right, that year spoils have shown a big drop since we took in so much debt. Between appreciation and paying off the principal quickly it’s only a small dip but I didn’t show that properly! Thank you so much for pointing this out! Edit: re-did some math and it looks like 2014-2016 were negative net worth years!
Charles Munger rules, that really works, good theory, well it looks like you need two source of income to achieve that, mmm married for investment.. good idea
So if you had a net worth of 100k between your wife and yourself and purchased a home how is your net worth still positive in that year? If the house was worth any more than your net worth the difference would become negative net worth and i think that tells a better story of perseverance and diligence. I got the impression during your video that you were only counting assets and not liabilities. I tried to give the benefit of the doubt for student loans since education was definitely cheaper a decade ago but when you got to your housing you lost me because the math just isn’t plausible
Probably to be able to have an HSA. My deductible is $3000 but by choosing that option my employer puts $1500 into my HSA every year. Since my family rarely needs to go to the doctor it lets me use that extra money to invest and those gains are tax free. When the occasional medical expense happens I can also just pay for it from all the money accumulated in the HSA over the years.
Did you use the HSA to pay for the health issue expense? I hear you can use the funds in an HSA to pay for pet vet bills too! It is something I need to get worked out. Swim!
Bro, your emergency fund shouldn't be in cash. Most banks have high interest savings accounts that get you 3-5% annually and you can take the money out at any time.
I'm 41 and I also passed $1M when I was 37. I'm now at $2.2M. I looked up the social security website and checked how much taxable income I've made since I started working, and it was $1.75M. Assuming I contributed about $300k in pre-tax retirement, this means I have made a little over $2M in my entire career. So, my net worth just passed the total income I've ever had. I'll probably retire soon and swim whenever I want.
I love that kind of math! So awesome to see that kind of perspective.
I can't believe you're not swimming wherever you want right now.
Awesome. My wife and I are at $300k invested, debt free. I just turned 40. Our income will triple by the end of this year. Going from $120k to about $400k.
We're living on $80k, investing $40k pre-tax, and will start investing $160k/year annually outside retirement.
Targeting $1 million invested outside retirement by 45, if returns are good, we should be closer to $1.5 outside retirement and $800k in retirement accounts.
In 7-10 years, hopefully, our investment income outside retirement will exceed our working income, and I'll retire from the 8-5 and monitize some of my hobbies for fun.
@@getinthespace7715 It's nice to have a partner who's working towards the same goal. I've been doing this alone and wish I can meet someone with similar mindset. My current salary is $140k which is the highest I've ever made. I have a little over $1m in taxable account and about $1.1m in retirement. I have $55k in IBonds, $20k in HSA, and some in HYSA for daily expenses. I live on $30k in a MCOL area. I started working when I was 23 with about $25k in student loan debt, and since then, I've only been stashing money into ETFs like VTI, VXUS, and BND (so, nothing crazy like crypto, tech stocks, etc). I'm naturally not a big spender since my hobbies are cheap (boardgaming, hiking, reading, cooking). I WFH full time as a programmer.
I remember when I hit 2.5 million. Felt like I was swimming on cloud nine. I let out a big sigh of relief. Once you make it past all the hurdles, you can rest easy knowing that you and your loved ones will be fine in this life. Insightful video. Quality content. Reaffirms lessons and teaches new ones. Kudos to you and your wife.
28 with 447k net worth (360k invested). You inspire me to keep pushing
its always great seeing a normal guy make it. your story is very inspiring
Thank you!
A fresh perspective different than other financial channels, earned a sub.
At first I thought this was only his market investments. Once I realized he included his house it seems more realistic. Good job!
Just stumbled upon your channel recently. Very genuine & sound advice across the board from all your videos. Keep up the amazing content. Above all, just keep swimming!
Welcome aboard!
Hey man I’m 28, my niece just graduated college and I’m really late to investing and so is she. This was great to watch, very inspiring and motivating to know there is hope. Just discovered your channel and production is excellent, very surprised you don’t have more views. Definitely subbed
It's never too late! I didn't start until I was about 35.
28 is still young. Start the snowball
Dude, and you were way faster than me. I was net worth negative until 2016 at 37 due to student loan debt. Took until 2020 to hit $100k.
First time seeing your content. Love the story and how it exemplified that y'all aren't/weren't high earners for at least the first half of the 11 years(Not 132 months...it's not a baby. 😅) it took. Small habit ,started early, and that grew over time. Simple and effective.
This year was my first time being comfortable when it came time to unexpectedly spend large numbers. Had to repair a roof *and* replace an HVAC system all this month...and I'm finally to a point where I'm not stressing it. I'm 37 and wife is almost 44. We have 11 years to go til retirement with a net worth in the $750k range, about 50-55% in the home and neither of us has seen 6 figures income in a year.
We are on a path to retire 18years early as well. It's all about consistency and discipline! We've already hit Coast FIRE and now our target to hit full FIRE is 2028. Feels great to be in a position to walk away so early.
"best decision I've made" 😂 his wife is glaring at him
Thanks for the GREAT VID and swim.
Great video. What percent of your net worth is your house vs. investments? And what kind of investments do you like? Do you guys keep a max funded HSA, FSA?
Your doing awesome. I'm right behind you. I'm glad you share your numbers. I'm thinking about rental property, how do you feel about them?
Never too late to learn to swim! I didn't start in earnest until I was 35. I'm swimming up stream for sure, but making steady progress!
Great video I am gonna max out my Roth this month! 😂
your 5k is my 9 ive been stuck at 9k for a few months now just struggling to break it
I’m 20 with 86k invested. Still in college but have no loans because of scholarships. I have been doing everything I can to get to 100k. Hope everything works out.🤞🏻
Oh!! It’s working out 🎉🎉🎉 congratulations
I can't wait for you to retire at 30. Kudos.
I’m curious, how did you manage this (if you don’t mind me asking) and when do you plan on being able to retire? Thanks
that's awesome I'm 27 with 60k
@@alexl6741 let’s goo baby!!!!
Just keep SWIMming. Love the videos keep up the great work! :)
You you got lucky, 08 and 09 is probably the best time to start investing in history.
I am sorry to hear about your experience with the medical system. I am soo fortunate that my annual max out of pocket is $1400/yr
Definitely. Digging a deep hole is debt and there’s plenty of big shovels to do that!
Turning 33 next month and just hit 400k invested, hoping to hit 1m invested by 40 … let’s do this boys
I want to be a millionaire so I can be swimming in money.
Scrooge mcduck style
So your net worth includes your home? What is your liquid net worth (not including your home)?
Great video. Here's my question though, I'm self-employed and have a Roth IRA. The max I can put in every year is 7 thousand dollars or so. I can put more into investments but if I can't put it into my Roth where do I put it into?
Either a normal brokerage or have you looked into a SEP-401k? If you have some sort of sole-proprietorship you can contribute there.
Yeah a taxable brokerage account has no limits and you should talk to your accountant about an SEP IRA. It’s an amazing option, just have to know how the math works to not over-contribute
17:17 damn 😧. The gains once you and your wife got together are HUUUUUGE. USA is just a different breed man. 40k/year puts you in the top 20% here in Spain. Average salary is around 22k/year
I can relate, went to emergency room in January for chest pain, they ran every test they could. Found out heart is good and they couldn’t tell me why I had chest pain. Hit my out of pocket for my health plan 7k. Good thing for savings.
Here’s a giant bill for you fire drill, thanks, see ya next time!
Gah. Glad you’re also doing well.
I’ve got one more test then I’ll have the final appointment to make 100% sure I’m clear for takeoff
Interested to see if you are able to negotiate the bill. Something I never knew was a thing and wish I did more often, but feel I was never taught to me. We go to the supermarket and we pay the price shown, so feel it is not talked about often.
@@DP2004 years ago I took my child to urgent care and after they weren't able to help because they didn't have the equipment to run the next tests they referred to the ER. Because they were still part of the same health system I later argued with them about the urgent care bill on the basis that based on the symptoms I told them on the phone before going in they should've been upfront and told me to only go to the ER knowing they wouldn't be able to assist since they knew they didn't have ability to run required test to make diagnosis for the symptoms.
Luckily they agreed and waived the urgent care charges. So saved a few hundred dollars. Took being transferred and telling the story multiple times and waiting a couple days for a callback from a supervisor to also get approval from their manager. But they can definitely adjust and write off charges if they choose.
ohhh Focus RS 😍
Hey man what does your 401k portfolio look like . Like what are your ratios ? Also what is a good investing account to start can you give me some examples ? I'm 28 I have a good job(commercial plumber).I make okay money, with a 401k and I'm barely wanting to invest because I have been undisciplined in the past partying/drugs/drinking and I'm tired of that life. I have no debt. No car payment. I want to make my money work for me in my sleep like you said. I would thank you immensely for the help . God bless . Thank you .
Brendan has a course that could be helpful but also tons of TH-cam videos. He just barely did one about Acorns which might be good for you to watch.
Automation is usually best for most us so you choose in advance the amount from your paycheck that automatically goes to the investment account and that account has the rules setup to automatically deploy any funds to the investments. Similar to what happens with your 401k.
I've personally never used Acorns but hear great stuff from those that do. M1 & Fidelity are what I use most. Since you are young it would probably be best to look at growth ETFs or index funds. SCHG comes to mind or the always popular QQQ.
Much easier to avoid FOMO of all the hype around individual stocks. Lots of those funds include those stocks already so you'll still have exposure to it in a less volatile way.
Firstly thank you for sharing and this is great content. I wanted to touch on what I think is a small miss in the grand scheme of things just to enhance the content. And the way I see it…it doesn’t take away from the main theme and most details of your video here …Someone else correctly pointed out below…How much was your initial mortgage balance? Your net worth should have gone down by that much the moment you signed the bottom line. Graph was showing a jump from $134k to $210k. That would mean you would have had to fully paid your house off with cash that came out of nowhere plus made $80k in investments/earned interest or at least your investments for the year would had have to have been $80k-ish above and beyond the remaining balance of your mortgage after paying down a huge portion of your mortgage with money that poofed into existence. Seems implausible.
No you’re totally right, that year spoils have shown a big drop since we took in so much debt. Between appreciation and paying off the principal quickly it’s only a small dip but I didn’t show that properly! Thank you so much for pointing this out!
Edit: re-did some math and it looks like 2014-2016 were negative net worth years!
When investing in your future, you might have to swim upstream and do what others aren't willing to do.
Charles Munger rules, that really works, good theory, well it looks like you need two source of income to achieve that, mmm married for investment.. good idea
You ARE making this video after a mega bull run
@@Bobventk no doubt, to start investing in 2009 is one of the best accidental timing moments possible. The luck isn’t lost on me.
How come you didnt account for the debt in your net worth calculations
These numbers include our debt. That’s the definition of net worth.
@@BrendanEvan i am well aware, just wondering how student loans are magically paid off in a year and how a mortgage is
Not all the debt is paid off, the numbers in this video are the positive figures over and above what we still owe.
So if you had a net worth of 100k between your wife and yourself and purchased a home how is your net worth still positive in that year? If the house was worth any more than your net worth the difference would become negative net worth and i think that tells a better story of perseverance and diligence. I got the impression during your video that you were only counting assets and not liabilities. I tried to give the benefit of the doubt for student loans since education was definitely cheaper a decade ago but when you got to your housing you lost me because the math just isn’t plausible
"UNCOOL" decisions make you rich
Why do you have a $2500 deductible???
Probably to be able to have an HSA. My deductible is $3000 but by choosing that option my employer puts $1500 into my HSA every year. Since my family rarely needs to go to the doctor it lets me use that extra money to invest and those gains are tax free. When the occasional medical expense happens I can also just pay for it from all the money accumulated in the HSA over the years.
Did you use the HSA to pay for the health issue expense? I hear you can use the funds in an HSA to pay for pet vet bills too! It is something I need to get worked out. Swim!
Does the networth include your 401 K
Yessir! Thanks for watching!
Swim like Scrooge McDuck!
you should start a public discord (not paywall pls) would be cool :) swim
Swim
Bro, your emergency fund shouldn't be in cash. Most banks have high interest savings accounts that get you 3-5% annually and you can take the money out at any time.
That’s still cash. HYSA is not invested or otherwise locked up or in any security that’s risky, so it counts as cash
Technically you kept up with inflation. The moral of the story is get into the pyramid scheme of capitalism ASAP.
Swim
Swim