Post your 2021 Year in Review and 2022 Plans

[Tim]

2021 - Year two of covid consumption -
-Expanded Tesla family,
-New home built and occupied with subsequent jump of mortgage along with home value. This the highest level of liability we've held since primary house mortgage now 695k against 2.75M value.
-launched the youngest to college and
-restarted travel and Disney trips.

-Continued a conservative equity profile stance despite 10 years to retirement as passed FI and projected into FatFI with reduced savings. NW velocity faster than prior years -- 7.2M>8.8M which reflects the RE overperformance portion of the portfolio

2022 - hoping MBDR remains (looks like it thanks Manchin!).
-Continue to ramp spending back into travel as home furnishing is completed (pool and lanscape money pits)

Have you copyrighted the merchandise yet? "Lets go Manchin" on tshirts, cups, shot glasses, scubs, stationary, baby onesies, wine,vodka, beer?
10% of profits going to Joe's reelection funds, not for political reasons, just as a thank you to Joe.

[Nysoz]

These threads are depressing when you are -500k NW.

By far the majority of people with higher net worths are much further along in their careers. They saved a large portion of their salary and have been frugal over the years which allows compound interest to work. Instead of getting depressed about it, look at it as where you'll be in the future as long as you have a good plan in place and execute.

Physicians and other stable high earners are in an unique position where they're basically guaranteed a great retirement as long as they save a reasonable amount and invest appropriately.

[Dewangski1]

These threads are depressing when you are -500k NW.

Just remember- it takes money to make money. The S&P is up 25-ish % for the year. If you had 400k in the S&P, you now have 500k. However, if you had 4M, you got a 7 figure gain. In addition, keep in mind the rule of 72 with perspective of market gains over the last decade. It has been a good ride.

[White.Beard.Doc]

To give some of the younger folks on here perspective, it took us almost a decade to make it to our first million. Each subsequent million gets easier and easier.

It is that initial discipline to save and invest, to get you started on having a net worth of invested assets, separate and distinct from simply earning a good income, that builds progressive momentum over time.

And while I know that this is a financial forum, what I did not mention earlier is priceless... The new granddaughter that we welcomed into this world earlier this year.

[StarTrekDoc]

Here's our example of savings and multiplier for savings with investments. Note first three years post residency maintained broke until year 4 post residency.

[uksho]

Just remember- it takes money to make money. The S&P is up 25-ish % for the year. If you had 400k in the S&P, you now have 500k. However, if you had 4M, you got a 7 figure gain. In addition, keep in mind the rule of 72 with perspective of market gains over the last decade. It has been a good ride.

So true “ it takes money to make money “

[JBME]

These threads are depressing when you are -500k NW.

this is true, but in addition to what others have pointed out, with discipline it is not unreasonable for every doctor to set a goal of a NW of $1m by age 40. Assuming not late career. We did, and did so with -$220k in student debt while only earning in academic internal medicine

[Auric goldfinger]

Time and compounding are incredible antidotes to even the stupidest of mistakes.
I lost over 100K in investments in my first 2 years of practice to real estate loans that I made to my father’s partner prior to the RE crash in the late 80’s. I sold ALL of my wife’s IRA ( all Merck stock) and put it into Enron in late 90’s.
GE was my number one holding, other than my indexes, coming into the last decade.
I have sold most of my real estate holdings-2 homes and 3 condos for Absolute losses ( holding periods of 10-25 years). Florida real estate.
Nevertheless, we have always lived conservatively, and invested very heavily, mostly S&P.
At 66 and 61, we are in mid eight figures, which is a crazy number and was achievable on a salary that many here, even dentists, exceed. Just avoid the get rich quick options. Don’t buy the 911. Avoid the Crypto

[MPMD]

Just a note: You will obviously keep crushing it since you have a couple of big shovels. Very very well played.
Many in other threads ask when you know the time. Once you go through a down market and your NW stays even or then increases, you have a much stronger opinion of your financial base. You will be there if you are not close already. The only thing missing is a downturn and your life plan. With kids, the life plan is a "would you rather" than "we need to".
Sooooo impressed with how well you executed your plan. Enjoy.

yeah when i lecture, teach, or advise on PF i'm always quick to point out that we have 2 shovels and had 1 hole (mine).
we could have screwed it up (you can always screw it up), but our path was definitely easier than most.
we do live below our means, but we are lucky about how high on the hog that is.

[abds]

we do live below our means, but we are lucky about how high on the hog that is.

Not to digress on this thread too much, but what does it mean to live below one’s means? I will save over 70% gross and 40% net this year, same as 2019 and 2020, but I still live pretty extravagantly compared to many physicians, all my family members, and certainly my childhood. Am I living below my means because I’m still saving a lot? I’m high enough on the hog, as you put it, that it certainly doesn’t feel like it…

I know by definition I am living below my means, but with the amount of money I spend, much of it totally discretionary, it seems wrong to refer to it that way.

[StarTrekDoc]

High on the hog -- spending a lot of money on the same thing that would cost less -- eg: car is essential: decked out Maserati or Porsche -- high on the hog.

Live below one's mean - if one spends less below average typical same salary. Saving 40% net -- certainly below one's mean. -- at almost any salary.

[Panscan]

High on the hog -- spending a lot of money on the same thing that would cost less -- eg: car is essential: decked out Maserati or Porsche -- high on the hog.

Live below one's mean - if one spends less below average typical same salary. Saving 40% net -- certainly below one's mean. -- at almost any salary.

If you're a physician making double the average like a lot of these folks above, you can buy a decked out porsche and still save 40+%. Whats the point of saving all the money if you do nothing with it? Delayed gratification is important of course but lots of people end up saving to save which is not much better of an outcome than having too little. Moderation in all things

[TheDangerZone]

If you're a physician making double the average like a lot of these folks above, you can buy a decked out porsche and still save 40+%. Whats the point of saving all the money if you do nothing with it? Delayed gratification is important of course but lots of people end up saving to save which is not much better of an outcome than having too little. Moderation in all things

I agree, with a big shovel you can certainly save at a high level and have plenty left over to easily afford some (many?) nice things, just not *everything.*

[TheDangerZone]

Not to digress on this thread too much, but what does it mean to live below one’s means? I will save over 70% gross and 40% net this year, same as 2019 and 2020, but I still live pretty extravagantly compared to many physicians, all my family members, and certainly my childhood. Am I living below my means because I’m still saving a lot? I’m high enough on the hog, as you put it, that it certainly doesn’t feel like it…

I know by definition I am living below my means, but with the amount of money I spend, much of it totally discretionary, it seems wrong to refer to it that way.

I wouldn't pass judgment on any physician if they saved 20% of their income. To me, that's living below one's means and setting themselves up for comfortable retirement at traditional retirement age. For those who want to retire earlier.. save more/spend less. Titrate the savings as needed. Strong work on that savings rate, by the way.

[jfoxcpacfp]

If you're a physician making double the average like a lot of these folks above, you can buy a decked out porsche and still save 40+%. Whats the point of saving all the money if you do nothing with it? Delayed gratification is important of course but lots of people end up saving to save which is not much better of an outcome than having too little. Moderation in all things

For some people, the saving and living below means is with an early retirement in mind. By “lots of people end up saving to save”, do you mean savings becomes an end and not a means to an end? Something else? I was a little puzzled on that.