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

[Anonymous]

Anonymous wrote:

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.

Neither is jewelry.

[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.

Who cares, though? Calculating your net worth doesn't matter for ... anything except bragging rights? If you're thinking about it in terms of long-term financial planning, the 529s are probably best left out anyway, that money will be spent by the time many people retire. I don't see any harm in underestimating your total assets.

[Anonymous]

Impossible to predict

[Anonymous]

Anonymous wrote:

Anonymous wrote:2-3 weeks

Maybe if invested in crypto 😀

I actually just did from $2M to $4M in less than two months with NVIDIA 2x ETF.

[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?

You’ll be at $3m in about 6 years. Keep on keeping on, OP!

[Anonymous]

What is your income?

[Anonymous]

These calculations are all way off because they are assuming all OP's line items will grow at 6%. Cash, vehicles, and jewelry won't grow at that rate. Housing equity may not either. The 6% growth rate should be for invested assets only.

[Anonymous]

Anonymous wrote:These calculations are all way off because they are assuming all OP's line items will grow at 6%. Cash, vehicles, and jewelry won't grow at that rate. Housing equity may not either. The 6% growth rate should be for invested assets only.

So, ten years.

[Anonymous]

1.5 years. Most people return like 37% in a good year so about 2 of those give or take

[Anonymous]

Anonymous wrote:These calculations are all way off because they are assuming all OP's line items will grow at 6%. Cash, vehicles, and jewelry won't grow at that rate. Housing equity may not either. The 6% growth rate should be for invested assets only.

No, I was an earlier person who estimated 5 years. With updated information that OP gave they have 1.3m in invested assets with 95k annual contributions to those.
That would be 2.3m in 5 years with a 6% estimate.

They add 24k to their 500k mortgage annually, assume a conservative 3% growth that's about 710k.

So even without other assets, it's reasonable to predict 5 years. That said, the market could go down 30% and all bets are off--can't really predict this kind of short term growth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:These calculations are all way off because they are assuming all OP's line items will grow at 6%. Cash, vehicles, and jewelry won't grow at that rate. Housing equity may not either. The 6% growth rate should be for invested assets only.

No, I was an earlier person who estimated 5 years. With updated information that OP gave they have 1.3m in invested assets with 95k annual contributions to those.
That would be 2.3m in 5 years with a 6% estimate.

They add 24k to their 500k mortgage annually, assume a conservative 3% growth that's about 710k.

So even without other assets, it's reasonable to predict 5 years. That said, the market could go down 30% and all bets are off--can't really predict this kind of short term growth.

Editing to clarify--they add 24k to their mortgage principal and have 500k equity.

[Anonymous]

To calculate the answer to this type of question, I use the calculator at investor.gov and firecalc.

[Anonymous]

Anonymous wrote: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).

If your annual rate of return is 10.25%, yes. That's based on the "rule of 72".

[Anonymous]

How old are you. OP?

We went from $2 to $3 in 5 years. We turned 45. Rather old for this area I know.

[Anonymous]

I was coincidentally thinking about the same thing. We went from $2 to $2.3 over the last 6 months. But the market has been excellent so I don’t expect the same rate of return going forward. This is retirement/long term savings funds only, about 80% equities. Excludes 529s, home equity, etc.