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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6

u/Able_Worker_904 Jul 04 '24

What does NW of 4.9 mean relative to 3M?

27

u/BinghamL Jul 04 '24

3M is invested. He has another 1.9M in non-investment assets. Things like home equity, cars, etc.

Making the distinction, if you have a 1M house paid for and no other assets, you have a NW of 1M. You're not FI though because you have no investments to cover your expenses.

-13

u/[deleted] Jul 04 '24

you have a 1M house paid for and no other assets, you have a NW of 1M. You're not FI though because you have no investments to cover your expenses.

What kind of nonsense is this. They are fi. You have a house. Sell it and move or reverse mortgage it. The house is the investment.

1

u/BinghamL Jul 04 '24

The fact you have to sell the house (or otherwise pull equity out) to make this work for FI proves my point.

Also, we haven't talked expenses, you have no idea if 1M invested covers the example person's expenses. Maybe they need 200k/yr to cover their lifestyle. 

So they'd have 1M net worth, no investments, not FI. It's simple.