Just surpassed $1m net worth

[Anonymous]

Anonymous wrote:Purely out of curiosity, those of you who don't count home equity, do you still count your mortgage against your net worth? Or do you just leave housing out altogether?

OP here. I leave out housing altogether. I know it's generally considered as part of one's net worth, but to me the appraised value of your house may or may not be accurate. so I just don't count it.

(we have about $300k in home equity, though.)

[Anonymous]

Five pages and it's hasn't turned political yet on who gets credit?

[Anonymous]

Anonymous wrote:Five pages and it's hasn't turned political yet on who gets credit?

someone posted "thanks trump!" earlier.

[Anonymous]

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Anonymous wrote:Me too. But I think a lot of us barely-millionaires are going to un-become millionaires in the impending market crash.

It's something while it lasts!

You know, you can take a short position if that's really what you believe...

I didn't get to a million trading puts and calls and it's not how I'm going to get the second million, either. Thanks though.

You could invest in any number of things other than stocks, or just hold cash, if you are convinced an impending market crash is about to destroy your wealth but are too lazy to figure out how to profit from a downturn.

Lazy has nothing to do with it and wealth that can be destroyed in a market crash isn't really wealth.

I'm not retiring for another 20 years and I'm informed enough to know that there is no timing the market. Good luck to you, too.

I think the PP was just calling the doomsday guy's bluff - the person who mentioned the "impending market crash." That's irrational. If they are so smart that they know the market is going to crash, then they ought to be smart enough to do something about it and not just sit back and watch themselves become "un-millionaires" as they said. The eye roll should have told you that.

LOL I am both the doomsday guy (/gal) and the subsequent two respondents you mention. When you make money in a booming market, it’s not because you’re “smart” or competent to use active management techniques to try to avoid risk in the inevitable down market that is coming.

To put it another way: past performance is no guarantee of future results. It IS fun while it lasts, but let’s not get too attached.

You've represented yourself as 1- smart and competent enough to know that a crash is coming and 2- unwilling to use any of the many tools available to you to mitigate the effect of said crash.

1 and 2 cannot simultaneously be true.

Sure they can, if the horizon is long enough. And it is! Namaste.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:Not to burst a bubble but your combined net worth just crossed $1 million. Your individual net worth is 1/2 of that. Still not bad but everything is easier in two player mode!

And way less if appreciated stocks or 401k assets as tax consequences when you sell.

You need at least 1.3 million in a 401k to have a million dollars as you have to account for taxes

Not necessarily true. I retired early and there are ways to reduce the tax consequences of retirement fund withdrawals if you do it right. I know this is true, because I'm doing it.

Harder to do in future. Now you don’t have to do RMD till 72. By that age will have 5 million in 401k. I would be pulling several hundred thousand a year out.

I certainly understand the concept of figuring your net worth on an after tax basis, but that is not the convention.

Having said that, if anyone can point to materials on how to reduce the tax consequences of retirement fund withdrawals, I would be very interested.

I have definitely been thinking about doing what the second PP is suggesting, which is to begin making largish withdrawals from my 401K and putting it into a Vanguard investment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:how do people have a HHI of 130k or less and $2 million in their early 40s?

Not one of the PPs, but I have a similar HHI and close to $1 million net worth including home equity (~$400k) and retirement (~$700k) and savings (no debt other than mortgage ~$200k). I started contributing the max to my 401k when I was young and single. It would be even higher if I hadn't had to pay off massive school loans.

Great, but the earlier poster claimed to have to have more than twice as much saved and also said that was not including home equity which is why people are questioning

[Anonymous]

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Anonymous wrote:We are a little over a million too in ours 40s but we don’t make as much as many of you guys. HHI of 130k

+1. This was us early 40’s but a little lower HHI. Now late 40’s/50 and just hit 150 HHI, and after reading this post, went to add up our Net Worth excluding House and we’re 50k shy of $2 million. Kind of feels good but in the back of my mind I know it’s not real until we cash out - which we won’t anytime soon. Congrats OP! We know how you feel.

Can you explain this please? Not counting your house you have $2 million in retirement and you're just now making 150k between the two of you?

Tell us what you're counting to come up with your net worth.

I started investing while I was in college in the late 80s after taking a personal finance class. My parents never went to college and had no idea about investing in the stock market. I worked a part-time job during the school year and full time in the summer, including funding IRAs at the time. I did not try to pay off student loans right away as I thought investing would be better in the long run - which it was. Worked a couple of years and then went to Law School and moved to DC. Those loans I did pay off as soon as possible as they were high interest rates, but saved everything else. I did not do the social scene, dinner party circuit, etc. so I saved a lot of money. Bought a town house almost immediately in the mid-90s and had roommates. Yes, this part was pure luck. I did work in Law for about 8 years which gave me a good savings and retirement foundation, but became a SAHM after first kid. So top salary back in early 00s was $150 - 170k (including bonus). DH coming off graduate degree when we married, so he did not have an income. He got a government job right after kid was born, so my salary was replaced by his salary at a lower level, but our housing costs were very little since the house cost very little when I purchased it - like $200k. Sold just a few years after that for $700k - very close in Arlington right as the housing bubble started to collapse.

Left the area for a few years and then moved back, so we put most of the proceeds in the market after the collapse. Just really good timing. We used some of that money to buy new house here further out, but kept most in the market. So, between my retirement accounts (Rollover IRA and Roth (which we fund every year), I have about $600K even though I haven't worked in probably 14 years and Husband's retirement accounts have about $500K (He didn't start saving for retirement until we married). The other $875 K is investments and housing profits turned into investments. Not saying someone could do the same today as we've benefited from a great housing market and a huge bull market. As I also mentioned in my first post, I don't count this money because it could all be halved or worse tomorrow if the market crashes. I just made the comment that it's nice to see when you do hit these milestones.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I can't really talk to anyone except DH about this, so here I am anonymously.

According to the personal capital app, our savings and investments just crossed over the $1m mark (and are at $1,009,671 at the moment).

Feels good. 41 years old, so maybe this isn't great for our age, but it feels good nonetheless!

Only in DCUM world would this be considered not great. Most of the population can only dream of having $1 million net worth, at any age.

Well, she’s in big law so it’s actually pretty crap. I work for a non profit and earned less than $100k until this past year. I surpassed $1m a few years ago at about the same age as PP. Why hasn’t she saved more already if at big law?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can't really talk to anyone except DH about this, so here I am anonymously.

According to the personal capital app, our savings and investments just crossed over the $1m mark (and are at $1,009,671 at the moment).

Feels good. 41 years old, so maybe this isn't great for our age, but it feels good nonetheless!

Only in DCUM world would this be considered not great. Most of the population can only dream of having $1 million net worth, at any age.

Well, she’s in big law so it’s actually pretty crap. I work for a non profit and earned less than $100k until this past year. I surpassed $1m a few years ago at about the same age as PP. Why hasn’t she saved more already if at big law?

+1 Honestly, most of these numbers are sucky considering the fact that many posters are bringing in well over 200k. But I suspect that many high net worth people on here are horrible/ignorant investors and got lucky by having an undiversified portfolio, or got lucky buying a house in a particular neighborhood.

[Anonymous]

a true pissing contest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can't really talk to anyone except DH about this, so here I am anonymously.

According to the personal capital app, our savings and investments just crossed over the $1m mark (and are at $1,009,671 at the moment).

Feels good. 41 years old, so maybe this isn't great for our age, but it feels good nonetheless!

Only in DCUM world would this be considered not great. Most of the population can only dream of having $1 million net worth, at any age.

Well, she’s in big law so it’s actually pretty crap. I work for a non profit and earned less than $100k until this past year. I surpassed $1m a few years ago at about the same age as PP. Why hasn’t she saved more already if at big law?

Lol at your garbage salary

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can't really talk to anyone except DH about this, so here I am anonymously.

According to the personal capital app, our savings and investments just crossed over the $1m mark (and are at $1,009,671 at the moment).

Feels good. 41 years old, so maybe this isn't great for our age, but it feels good nonetheless!

Only in DCUM world would this be considered not great. Most of the population can only dream of having $1 million net worth, at any age.

Well, she’s in big law so it’s actually pretty crap. I work for a non profit and earned less than $100k until this past year. I surpassed $1m a few years ago at about the same age as PP. Why hasn’t she saved more already if at big law?

Op here. I started off in “small law” and jumped to biglaw 4 years ago, so haven’t been making biglaw $$ for long.

In 2014, our net worth was $200k and no home equity. If that’s sucky, well I guess I suck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can't really talk to anyone except DH about this, so here I am anonymously.

According to the personal capital app, our savings and investments just crossed over the $1m mark (and are at $1,009,671 at the moment).

Feels good. 41 years old, so maybe this isn't great for our age, but it feels good nonetheless!

Only in DCUM world would this be considered not great. Most of the population can only dream of having $1 million net worth, at any age.

Well, she’s in big law so it’s actually pretty crap. I work for a non profit and earned less than $100k until this past year. I surpassed $1m a few years ago at about the same age as PP. Why hasn’t she saved more already if at big law?

Lol at your garbage salary

I’d assume that your salary is considerably lower given that you can’t string a coherent sentence together but thanks. Actually $100k is a pretty good salary for the non profit world.

[Anonymous]

Guys! This a thread that is intended to be encouraging and informative. Could we stop the back and forth insults?

[Anonymous]

Our 409k account is really going through the roof!! We are multi millionaires.