Announcement

Collapse
No announcement yet.

Retirement Millionaire!

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • PhysicianOnFIRE
    replied




    That is really neat.  A buddy co-owns a distillery…although it sounds like a lot of fun to those of us on the outside, I get a sense he’d rather be a silent partner at 4%!
    Click to expand...


    Yeah, I hear that. The main co-owners who each own 30% of our brewery are retired, but they bought themselves darn-near full-time jobs!

    Leave a comment:


  • G
    replied
    That is really neat.  A buddy co-owns a distillery...although it sounds like a lot of fun to those of us on the outside, I get a sense he'd rather be a silent partner at 4%!

    Leave a comment:


  • SimpleDoc
    replied
    Impressive stuff here....very motivating!

    Leave a comment:


  • VagabondMD
    replied










    The 2 ways I now track my dollars are total net worth (which includes lowball property estimates on homes, two 529 accounts, and a small stake in a microbrewery
    Click to expand…


    I am intrigued by the microbrewery investment, and, in the context of this thread, how you value it. I personally would leave it off the net worth spreadsheet as I do with my small stake in some imaging centers, conservatively valued at $60,000. If I am able to recap it later, great–if not, it has not influenced my plan.
    Click to expand…


    It’s a lot of fun, although it was more fun when I lived nearby. I invested as a 4% shareholder in the town where I lived and had a “permanent” anesthesiologist position. The hospital went bankrupt, and we moved a couple states away, but we still have a small second home there where we spend time in the summer and on holidays (it’s close to my wife’s family).  When I’m there, I get to walk around like I own the place, chat up the brewmaster, drink free beer, and occasionally pour a beer for a paying customer.

    As far as the valuation, I just put it on the spreadsheet as the amount that I have invested. I am told that we will be seeing our first dividend check next month after five years and a number of “cash calls” for additional money to purchase needed equipment. It does seem that the brewery has turned the corner, and can expect to be profitable for the foreseeable future. If it all goes away, it’s only ~ 1.3% of my portfolio and shrinking as a percentage (as the portfolio grows).

    Cheers!

    -PoF

     
    Click to expand...


    Sounds more like a hobby, than an investment, and there is nothing wrong with that. I wish I had an opportunity like this!

    Cheers (and Beers)!

    Leave a comment:


  • PhysicianOnFIRE
    replied







    The 2 ways I now track my dollars are total net worth (which includes lowball property estimates on homes, two 529 accounts, and a small stake in a microbrewery
    Click to expand…


    I am intrigued by the microbrewery investment, and, in the context of this thread, how you value it. I personally would leave it off the net worth spreadsheet as I do with my small stake in some imaging centers, conservatively valued at $60,000. If I am able to recap it later, great–if not, it has not influenced my plan.
    Click to expand...


    It's a lot of fun, although it was more fun when I lived nearby. I invested as a 4% shareholder in the town where I lived and had a "permanent" anesthesiologist position. The hospital went bankrupt, and we moved a couple states away, but we still have a small second home there where we spend time in the summer and on holidays (it's close to my wife's family).  When I'm there, I get to walk around like I own the place, chat up the brewmaster, drink free beer, and occasionally pour a beer for a paying customer.

    As far as the valuation, I just put it on the spreadsheet as the amount that I have invested. I am told that we will be seeing our first dividend check next month after five years and a number of "cash calls" for additional money to purchase needed equipment. It does seem that the brewery has turned the corner, and can expect to be profitable for the foreseeable future. If it all goes away, it's only ~ 1.3% of my portfolio and shrinking as a percentage (as the portfolio grows).

    Cheers!

    -PoF

     

    Leave a comment:


  • VagabondMD
    replied




    Congratulations, Dr. Dahle!

    I wish I had kept track as well as you have in my 10 years. I might possibly be able go back and recreate much of it, but it would be a herculean task. I’m happy to know where I am today, though.

    Does the $1 million include a taxable account, or only tax deferred and Roth?

    The 2 ways I now track my dollars are total net worth (which includes lowball property estimates on homes, two 529 accounts, and a small stake in a microbrewery), and investment total (which obviously excludes the stuff in the first set of parentheses). A third number on the spreadsheet is the Donor Advised Fund total between 2 accounts, but that’s no longer my money.

    Cheers!

    -PoF

     
    Click to expand...


    I am intrigued by the microbrewery investment, and, in the context of this thread, how you value it. I personally would leave it off the net worth spreadsheet as I do with my small stake in some imaging centers, conservatively valued at $60,000. If I am able to recap it later, great--if not, it has not influenced my plan.

    Leave a comment:


  • docnews
    replied
    Awesome. Thanks for the numbers run down. If one maxs out a i401k ($53k/yr) and backdoor roth IRA with spouse ($11k/yr) and has 5% returns as well, they should reach the $1 million as well in 12 years. This is my plan at a minimum: saving $5333 per month in tax advantaged accounts.  I personally use 4% returns for my planning purposes and plan to save like this for 20 years which would leave me with $2 million for retirement which is a cool $80k/year pre-tax if you use a 4% withdrawal strategy. Thanks WCI as always.

    Leave a comment:


  • The White Coat Investor
    replied




    Thanks for posting this! I’m assuming you didn’t contribute the same amount every year, but if you average it out, that’s about 65k/year. We’re contributing a little bit more than that on a yearly basis, but it’s good to know that if we just stay the course, we’ll hit 1M in about the same time frame. Sometimes it all feels like pie in the sky. I actually refer to our retirement money as monopoly money, because it doesn’t seem real. It’s helpful to hear how people actually do it.
    Click to expand...


    Yea. You contribute early and often! 216 times apparently.

    Leave a comment:


  • YYjames
    replied
    https://www.youtube.com/watch?v=O_05qJTeNNI

    Leave a comment:


  • wideopenspaces
    replied
    Thanks for posting this! I'm assuming you didn't contribute the same amount every year, but if you average it out, that's about 65k/year. We're contributing a little bit more than that on a yearly basis, but it's good to know that if we just stay the course, we'll hit 1M in about the same time frame. Sometimes it all feels like pie in the sky. I actually refer to our retirement money as monopoly money, because it doesn't seem real. It's helpful to hear how people actually do it.

    Leave a comment:


  • TheGipper
    replied
    Congrats Jim!  I think we will join you next month.

    We have nominally reached it but I have the bulk of my retirement funds in traditional 401k.  I use tax adjustment factors of 0.8 to 401k, 0.9 to taxable account, and 1.0 to Roth and muni bonds, with a tax adjusted figure that is only a few thousand away!

    We frontloaded our 529s for our four kids (age 1-9) which have grown to an aggregate sum of 350k, so going forward we will stop/suspend and save more in taxable.

    I credit this website with educating me to the point where we now put away 188k/year in retirement accounts between my and spouse PSPs/457b/DCBP/backdoor Roths.  Thank you!

    Leave a comment:


  • Hatton
    replied
    Wow I wish that I had kept track of my money like WCI.  Welcome to the retirement millionaires club.  I pay more attention to net worth like POF mentioned.  I really think of 2 figures financial net worth and total net worth.  I really do not consider my retirement accounts separately.  I find the lazy way to do this is personal capital.  I like the graphics and it is easy.

    Leave a comment:


  • The White Coat Investor
    replied




     

    EDIT:  How did you get get nearly 300K in Roth funds?  Did you do a Roth 401k at some point (in residency?) or Roth conversions?

    I only have ~12% of my investments in a Roth IRA, and that decreases every year.
    Click to expand...


    Never did a Roth 401(k). I would have had it been available in the TSP when I was active duty. I did do a $24K Roth conversion in 2010, it was a SEP IRA I had funded moonlighting while in the military. The rest is pure annual Roth IRA contributions and the growth on them. It might be fun to calculate the growth on those accounts. It's probably actually 13 years of two Roth IRAs being maxed out, but even including the Roth conversion, that's probably only $150K in contributions, a much better ratio of earnings to contributions than the rest. Of the course, the rest is heavily influenced by me maxing out 2-3 401(k)s the last 2 years.

    Leave a comment:


  • Lithium
    replied
    Ah thanks... forgot about the Mega Backdoor Roth.  I wish I had a more flexible 401k.

    Leave a comment:


  • PhysicianOnFIRE
    replied




    EDIT:  How did you get get nearly 300K in Roth funds?  Did you do a Roth 401k at some point (in residency?) or Roth conversions?

    I only have ~12% of my investments in a Roth IRA, and that decreases every year.
    Click to expand...


    I can't answer for the WCI, but I did a Mega Roth conversion in 2010, instantly transforming 5 years of SEP-IRA money ($270,000) into Roth, as discussed in this thread. That money, of course, has grown nicely since then.

    Looking back, I'm not convinced it was a good idea, but the responses were more encouraging than I expected.

    Leave a comment:

Working...
X