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

[Anonymous]

Anonymous wrote: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?

I'd rough estimate 5ish years. Totally dependent on the market though.

I wouldn't bother including vehicles, but those will depreciate rather than grow.

[Anonymous]

Cfiresims is saying 4-14 years depending on how the Market performs.

[Anonymous]

Why do you count vehicles and jewelry but not 529s?

[Anonymous]

Anonymous wrote:Why do you count vehicles and jewelry but not 529s?

You can resell jewelry and vehicles, with depreciation.

529 is prepaid smoothing of future expenses.

[Anonymous]

Anonymous wrote:Cfiresims is saying 4-14 years depending on how the Market performs.

Or 20 years

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do you count vehicles and jewelry but not 529s?

You can resell jewelry and vehicles, with depreciation.

529 is prepaid smoothing of future expenses.

You could pull money out of 529 too if you encounter dire situations and have the kid go CC or get a loan.

[Anonymous]

2-3 weeks

[Anonymous]

Anonymous wrote:5 years max.

If the market does good.

[Anonymous]

Anonymous wrote:2-3 weeks

Maybe if invested in crypto 😀

[Anonymous]

Anonymous wrote:

Anonymous wrote:5 years max.

If the market does good.

If the market does well.

[Anonymous]

Net worth or income?

[Anonymous]

Anonymous wrote:Net worth or income?

Net worth. I wish I had $2m in income!

[Anonymous]

Wild that people don't include their 529s in net worth calculations. Of course that's part of your net worth! As is all $$ in savings pots that you may or may not spend.

[Anonymous]

Agree with PP who said not to count cars or jewelry. You won't be able to sell either of them for close to what you paid and you're still going to need something to drive.

[Anonymous]

Anonymous wrote:Wild that people don't include their 529s in net worth calculations. Of course that's part of your net worth! As is all $$ in savings pots that you may or may not spend.

Maybe because it's not really relevant when calculating how much you need to retire.