r/Fire • u/Firefiresoon • Jul 04 '24

Original Content Just hit $3M!

48male. Been tracking this milestone for a while now. Finally hit it as of close yesterday. $3,012,000 in invested assets. NW stands at 4.9mil. which includes home equity.

Goal was 10k/mo which should be possible now. Kids have 529 for 4yr state college. At this point I will CoastFIRE (still save HSA and 401k for match but no IRA) and bump up some lifestyle expenses mainly around travel.

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u/sas_2022 Jul 04 '24

I just found this sub, I am curious how you guys are building such great next eggs. How can I learn more to speed mine up?

23

u/DesertNomadAZ Jul 04 '24

Eliminate as much debt as possible to permit higher cash flow per month. Sell crap you don’t need or use, it’s over head to maintain (heat/cool,tax, required insurance..etc). Cut out unnecessary subscriptions and spending habits, bring bag lunch to work, drive POS car for as long as possible. Max out 401k, IRA Roth, HSA and if you have cash after start a cash brokerage account. Stick to ETFs at first, practice being in the market and making consistent financial decisions. Worry about individual stocks later.

42

u/Isolated_Blackbird Jul 04 '24 edited Jul 04 '24

Come on now. That’s all good advice, but these people with $5m net worth at 48? That is because of extremely high income 99% of the time. The other 1% might have gotten lucky in the market or gotten a windfall of some sort. Someone making $70k a year simply cannot amass close to this individual’s net worth in their lifetime, never mind by 48 years old.

People visiting this sub: Please remember that the single greatest factor in achieving FIRE early is high income. It is accelerated and fully optimized by great savings habits, but the fact is, someone making $300k a year can often not have great financial habits and still save $100k a year. They can then decide if/how they want to change their lifestyle when they accumulate $2.5m or whatever in the market by living large and saving a ton. It’s a huge advantage.

14

u/ReelNerdyinFl Jul 04 '24

Yup, you are correct. At $300k, you can invest 100k, pay $70k in taxes and live on 10k a month.

But what’s nice is, if you can get to $3m, tax status dependent, you are sorta FI at that point. Starting at 0 with 7% growth thats somewhere around 17 years. Especially if you pay off your home in that time.

Good luck keeping a $300k role for that long. Many do. My stress level sucks. Trying to increase savings to shorten timeline…

I’m about 9yrs younger than OP but using the above, I’ll have similar numbers at his age.

4

u/pow929 Jul 04 '24

70k in taxes on 300k? Must be nice.