How long to get from $2M to $3M

[Anonymous]

Want to know around how long it might take to get from $2M to $3M.

Contributions (including employer match and backdoor Roths) should be around $70k annually.

Will pay down $24,000 annually on mortgage principal. (We happen to count mortgage as part of net worth.)

Asset allocation is around 75% equity, 25% bonds/cash equivalents.

[Anonymous]

How much of your NW is equity in your home?

[Anonymous]

OP here. Home equity is about $500k.

And I was wrong on contributions - it will be more like $95k annually (and more each year as the limits go up).

[Anonymous]

I would just use an on-line calculator.

[Anonymous]

5 years max.

[Anonymous]

Anonymous wrote:I would just use an on-line calculator.

Which calculator for this specific question?

[Anonymous]

Anonymous wrote:Want to know around how long it might take to get from $2M to $3M.

Contributions (including employer match and backdoor Roths) should be around $70k annually.

Will pay down $24,000 annually on mortgage principal. (We happen to count mortgage as part of net worth.)

Asset allocation is around 75% equity, 25% bonds/cash equivalents.

Not sure what this means.

Are you not deducting the mortgage from your home value to determine your net worth? You should be.

Or did you misstate and meant to say you include your house value less mortgage in your net worth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Want to know around how long it might take to get from $2M to $3M.

Contributions (including employer match and backdoor Roths) should be around $70k annually.

Will pay down $24,000 annually on mortgage principal. (We happen to count mortgage as part of net worth.)

Asset allocation is around 75% equity, 25% bonds/cash equivalents.

Not sure what this means.

Are you not deducting the mortgage from your home value to determine your net worth? You should be.

Or did you misstate and meant to say you include your house value less mortgage in your net worth?

Mortgage is a liability, negative contribution to net worth. Property full value is an asset.

[Anonymous]

Anonymous wrote:Want to know around how long it might take to get from $2M to $3M.

Contributions (including employer match and backdoor Roths) should be around $70k annually.

Will pay down $24,000 annually on mortgage principal. (We happen to count mortgage as part of net worth.)

Asset allocation is around 75% equity, 25% bonds/cash equivalents.

It is unclear what you mean, OP. Could you please break down the $2m as follows:
- Invested assets
- Home equity (= home value - mortgage)

[Anonymous]

If your home equity is actually 500K and you have an annualized return of 6% while contributing 95K/year it would take about 5 years to get to 2.5M + your 500K equity. Maybe 4 years if your equity grows significantly.

Calculator.net has a simple investment calculator that you can play around with.

[Anonymous]

It took us 3 years to go from $2 mil to $3 mil net worth. Adjusted HHI was $225-240k during those years. My employer offered only a 3% match and no match for DH.

[Anonymous]

Anonymous wrote:It took us 3 years to go from $2 mil to $3 mil net worth. Adjusted HHI was $225-240k during those years. My employer offered only a 3% match and no match for DH.

Meant to add we were 100% equities during this time.

[Anonymous]

4.7 years

Present value - $2,000,000
Annual return - 6%
Annual contributions - $70,000
Future value in 4.7 years - $3,000,000

[Anonymous]

OP here. Apologies for the confusion over home equity/mortgage. Here's what we have:

$1,300,000 in retirement funds
$500,000 in home equity
$150,000 in cash (bank accounts, CDs, etc.)
$50,000 in vehicles/jewelry
Total: $2,000,000

We have 529 funds but don't count then in net worth.

Annual contributions:$95,000 (401(k) contributions, employer match, backdoor Roth)

Asset allocation for retirement funds: Asset allocation is around 75% equity, 25% bonds/cash equivalents.

Given the above, how long to get to $3,000,000?

[Anonymous]

Anonymous wrote:Want to know around how long it might take to get from $2M to $3M.

Contributions (including employer match and backdoor Roths) should be around $70k annually.

Will pay down $24,000 annually on mortgage principal. (We happen to count mortgage as part of net worth.)

Asset allocation is around 75% equity, 25% bonds/cash equivalents.

I've seen that money doubles every 7 years. So, in 7 years you'll be at $3M (if you were to exclude your home value).