21 years to reach the first million, 4 years to reach the second million, 3 years to reach the third million and 1.5 years to reach the fourth million!
This is a great analysis and write up. Thank you! I have a question about #4 where it mentions using additional savings where possible to start investing more in taxable brokerage accounts when retirement contributions are maxed out or where you want them to be. This seems to be where I’m at now, but I struggle to think about starting to dollar cost average into the market right now (say on a monthly basis) when we're right in it after yet another record setting bull run. I don't want to try to time the market but it's hard to face the fear this will just be regretted in a few years time at the next correction. Open to any suggestions about how to more optimistically view this, since I think it's a smart next move-- just has me worried about emotions when it inevitably dips.
1) Investing in after-tax accounts is important if you want to FI/RE. This is the money you will live on until age 59.5 before you get access to 401(k)/Roth IRA.
2) Yes, the market (S&P500 Index) has moved significantly in the last 6 months but only recently crossed the Dec 2021 levels. VOO is at $470 vs $437 peak in Dec 2021 so only 7.5% higher than where it was 2+ years ago. I wouldn't try and time the market. Everyone spends too much effort deciding what to buy and when to buy. Best advice is keep it simple and DCA into S&P index fund. Market returns are very lumpy in the short run (+/-10%, +/-20%) but returns average out over the decades (9-11%). S&P up 7.5% YTD. You should be equally worried about 2024 being a +20% year as a -20% year.
Thank you very much and I agree. I think your first point is one of the key takeaways I learned from this individual's journey since it really enabled their FI/RE pre-retirement age. And your second point addresses my concern pretty much in the way I imagined it might ;) which is, since this is a long game, to not worry on the bumps. Starting as early as possible with saving as much as possible seems to be the proven way. Thanks again!
The key lessons of how to get reasonably rich in America are captured here: Just start saving early, live below your means, minimize debt, keep plugging away (even through the market downturns) and eventually you will be in a good position. Almost anyone can do this if they have the discipline. I like how you broke down his progress visually; as well as showing how much quicker each million came. Great analysis!
This is a great analysis and write up. Thank you! I have a question about #4 where it mentions using additional savings where possible to start investing more in taxable brokerage accounts when retirement contributions are maxed out or where you want them to be. This seems to be where I’m at now, but I struggle to think about starting to dollar cost average into the market right now (say on a monthly basis) when we're right in it after yet another record setting bull run. I don't want to try to time the market but it's hard to face the fear this will just be regretted in a few years time at the next correction. Open to any suggestions about how to more optimistically view this, since I think it's a smart next move-- just has me worried about emotions when it inevitably dips.
2 things to consider:
1) Investing in after-tax accounts is important if you want to FI/RE. This is the money you will live on until age 59.5 before you get access to 401(k)/Roth IRA.
2) Yes, the market (S&P500 Index) has moved significantly in the last 6 months but only recently crossed the Dec 2021 levels. VOO is at $470 vs $437 peak in Dec 2021 so only 7.5% higher than where it was 2+ years ago. I wouldn't try and time the market. Everyone spends too much effort deciding what to buy and when to buy. Best advice is keep it simple and DCA into S&P index fund. Market returns are very lumpy in the short run (+/-10%, +/-20%) but returns average out over the decades (9-11%). S&P up 7.5% YTD. You should be equally worried about 2024 being a +20% year as a -20% year.
Thank you very much and I agree. I think your first point is one of the key takeaways I learned from this individual's journey since it really enabled their FI/RE pre-retirement age. And your second point addresses my concern pretty much in the way I imagined it might ;) which is, since this is a long game, to not worry on the bumps. Starting as early as possible with saving as much as possible seems to be the proven way. Thanks again!
The key lessons of how to get reasonably rich in America are captured here: Just start saving early, live below your means, minimize debt, keep plugging away (even through the market downturns) and eventually you will be in a good position. Almost anyone can do this if they have the discipline. I like how you broke down his progress visually; as well as showing how much quicker each million came. Great analysis!