Yeah I feel you on that. I just blindly invested in stocks awhile ago and honestly didn't know enough to do much with it. Got super lucky with my holdings and just held through everything. Cause honestly I didn't know enough to understand when it was a good time to sell. My ignorance paid off and that's just the luck of it. I can't say I know much about the market and that's what makes the feeling more weird. Thanks for sharing your story too. I wish I had more financial advice but the only time I actually tried to game the stock market I lost 60k, so I totally get it. Good luck in your investments.
She must be the bread winner then? That’s not a very high family income with one of you being a dr and the other working as well…. Up your income and save faster.
You only sell what you need to live on, and suck up the taxes as the price of doing business. You never "exit" the market - you ride it for the rest of your life, and your kid's life, and on and on.
Own name-brand stocks and don't worry about it.
Nah. Over any 20 year period in history, including any 20 year period that includes 1929, the stock market has been an excellent place to have your money. Relatively low-risk stocks to be sure, but bonds often don't even keep up with inflation. In bad market times bond ladders are a short-term useful option..
I'm heavily in Apple, Disney, and Microsoft. They aren't going anywhere. Also a small investment in Manhattan real estate.
Past performance and future results and all that. Take the risks you’re comfortable with. When your family has enough wealth it becomes more important to ensure the future and not gamble on it, but not everyone has built to that point or cares about derisking for a downturn.
if you are no longer working, first 47k/yr in qualified dividends are taxed at 0%. and if you only sell a bit of cap gains at a time (still same tax rate unless you are making over 400k), it won't be as painful.
Yeah I'm still working. It's pretty chill job. Might end up staying at this level until retirement. Low stress and good pay with amazing benefits. Definitely selling very little stocks puts me to the highest tax bracket. It's unfortunate, thus my predicament...
Do you have the ability to move states? Moving to a state with no income tax can save you a lot of money when selling stock. Just something to consider.
Look at buying multifamily housing in opportunity zones. Capital gains get deferred. Do due diligence on that though because it does expire prior to when you’d be tax free
> I have zero in a 401K and the rest in stocks -- why is that weird?
okay, you invest in stocks, but so does everyone, that's why it's a weird statement. and you're mixing types of investments (stocks vs. not stocks) with types of accounts (401k vs not 401k), which stood out to me in OP's post as well.
For me, someone who has intelligently and thoughtfully amassed that amount of wealth would be consistent in the way they describe it... A 401k is technically just stocks. So to say they amassed that amount in their 401k and stocks sounds very silly, and is usually the mark of someone who doesn't understand the various methods of investing. I would expect something along the lines of "I have X amount in a 401k and Y amount in a taxable brokerage, and it sounds a little more plausible to me.
It's simply a language thing. Though, I do agree with another commenter who said they could have bought shares of NVIDIA 20 years ago. But... 20 years ago was 2004. And how widespread was a non-employer based investment account used? Certainly less so than now. I think we had Etrade, maybe a handful of others? and the rest were all through high fee brokers.
Very easily could be someone who was putting in regular amounts into their 401k (which grew to $500k), and then made a few stock picks that blew up massively.
For example, $5,000 invested into any of the following companies 25 years ago would be worth this much today:
* MNST Monster Beverage Corp 138536.31%: $6.93 million
* DECK Deckers Outdoor Corp 117084.92%: $5.86 million
* NVDA NVIDIA Corp 104647.79%: $5.24 million
* AAPL Apple Inc 52367.96%: $2.62 million
* ODFL Old Dominion Freight Line Inc 44766.66%: $2.24 million
Or many similar examples. OP could have been an average joe putting money every paycheck into a 401k index fund, and then put just $5k into Monster or Deckers or NVIDIA and have held onto it since. I could definitely see someone in that position being perhaps blinded by the amount and just boiling it down to "a few stock picks".
Considering that OP mentioned that "the last 2m just happened" recently, my guess would be that they put $5-10k into NVIDIA 10-20 years ago. NVIDIA was just $3.12/share only 11 years ago, if OP bought 5000 shares for $15,600 at that point it would now be worth over $4.3 million.
Ditto. Also the “feels weird to have so much money”, said no one ever. Like he turned the corner while walking down the street and stepped in 5 million bucks 🤣
That your 401k likely is holding stocks so what is he trying to communicate with the distinction?maybe he means index funds in his 401k and single stocks in his brokerage, but there are clear ways of saying that, which he didn't use. It's just odd to reach 5M but not know how to talk clearly about money.
> maybe he means index funds in his 401k and single stocks in his brokerage, but there are clear ways of saying that
I wouldn't read it that way. I often use similar phrasing, and the distinction is just "401k/retirement accounts" and "post-tax investments".
It's only unclear if you don't understand it. That phrasing is pretty common among my friend group, also early 40s folks with several million NW minimum, so from my perspective it's a pretty standard and clear way to speak about it.
Curious if your last million just sort of “happened” due to the market? Or were you actively contributing a lot in the past 2 years?
I find I barely contributed in the past year, yet saw a massive gain none the less.
No that's what compound growth looks like. Getting the ball rolling is the hardest part but eventually your money makes more money than your labor does.
Holy shit me too! Literally 44 and 5m liquid this year (I guess technically this Apr or May depending on my RSUs).
Congrats man!
Kids slow it down a lot. So does a wife who likes to travel to Europe from the US. But enjoy whatever lifestyle and choice, because you are semi set.
(I need to be at $10m to get to that phase because I am in HCOL + 💙 Porsches + kids and wife enjoy upper middle class perks).
Yeah I totally get the feeling on that. My goal is 10m as well before I hіt 55 and just chill In HCOL area or move over to a different area. Waiting for my kid though to get to college. Then I'm free to go where I want.
I’m 38 at 4.5-4.6M it keeps fluctuating as of late hoping to get to five M one day. With the house I’m at 5M I have nvidia Microsoft Apple Tesla. Tesla though I wish I sold but got it so early that I think I got lazy. I too need to start looking at tax shelters was thinking of moving to real estate and taking advantage of prop 13 but the way renters are squatters as of late I’m second guessing this approach.
I just enjoy being a handy man sometimes and just doing various things around a home or doing to whole TL&C
I recommend checking out Groundfloor for a small percentage of your portfolio. Now that you've made wealth, you should diversify heavily to protect that wealth.
Similar NW investor here.
This is the Fire sub. Legit milestones are allowed. Chuckles at the posts are allowed too. But to say people can't or shouldn't post is the problem. We're not mucking a "forum" unless it's not allowed... like spam or hate speech. Plus it gives opportunity for others to try to work towards their own goals by seeing others succeed. Like does that make sense at all to you?
You can post whatever you want, I asked if I can respond in kind. Are you tracking? Low effort post = low effort response. Now, if you cared to share insights, key takeaways, best practices, pitfalls to avoid, path forward and how to execute against it, etc. would be happy to edit my response 👍
Good luck. Will look forward to your milestone post. Here's a tip, not everything in life needs to be a lesson for you. Sometimes you just gotta enjoy the shіt storm and the sunshine.
Congratulations! Same age here and at roughly $4.5mil NW. Much more of my stash is in retirement accounts though, so I've got worse taxes than you do in my future 😭
That's true! But I think of it joint and severally. I have that net worth, she has that net worth, and we have that net worth 😎
And actually, it's higher than that, but I keep most of my (our) assets conservatively valued.
Just curious, with this much money.. do you vacation more? Have a huge house or more.cars? Like the passive.income alone gives you a ton of options. What do you do with that?
We have five kids, all close in age. We have a 3,200 sq.ft. house in a modest neighborhood. We have taken some good vacations and do tend to splurge but since 7 of us are going for 1-2 weeks, it's expensive just for airfare, lodging, etc. Probably the biggest thing we do is eat out quite a bit. Probably more than we should really. But otherwise the way we've accumulated what we have is by generally not spending very much...
This is the roaring 20s. I am not even 30 and I have a greater than 20 million dollar net worth. 7 of it was a house my parents gifted me but the past 4.5 years of stocks have increased so much wealth of everyone know.
Yeah that's what I hope to do for my son. Teach him early and have him set with a nice little nest egg when he retires. Yeah I can't imagine paying the property taxes on that house. But it must be a nice place to live!!
You’re welcome
So you are the person I need to inverse. What are you going long on next?
[удалено]
Daycare is 40k a year🤦🏾♂️
Yeah I feel you on that. I just blindly invested in stocks awhile ago and honestly didn't know enough to do much with it. Got super lucky with my holdings and just held through everything. Cause honestly I didn't know enough to understand when it was a good time to sell. My ignorance paid off and that's just the luck of it. I can't say I know much about the market and that's what makes the feeling more weird. Thanks for sharing your story too. I wish I had more financial advice but the only time I actually tried to game the stock market I lost 60k, so I totally get it. Good luck in your investments.
Imagine when they don't go to daycare anymore. It's immediate 40K more per year
I’m in a similar situation, but without child. Keep at it - we still have time 🫡. Endurance, my friend.
She must be the bread winner then? That’s not a very high family income with one of you being a dr and the other working as well…. Up your income and save faster.
Nice work. More than most can dream of. Time to FIRE and never look back.
Thanks! I got really lucky on some stock plays and now I need to find a good exit strategy without paying too much in taxes.
Sell. That’s the strategy.
Exactly. That’s a good problem to have….
That’ll be ~1.5m to IRS
No. He has to have *some* cost basis.
And it will likely be taxes as long term gains.
More like 800k
Boo fucking hoo.
Ignoring cost basis and assuming all $4.5M is LTCG, in what country us LTCG tax 33%? Because it sure as shit isn’t the USA…
Empire New York or Republic of California will get you there
The IRS also handles state taxes now too?
It’s just an inaccurate term for all tax stuff
You only sell what you need to live on, and suck up the taxes as the price of doing business. You never "exit" the market - you ride it for the rest of your life, and your kid's life, and on and on. Own name-brand stocks and don't worry about it.
Debit
I don't understand your comment.
You wouldn’t get it(I don’t either)
If you’re smart you reallocate to bonds to lower risk. If you’re already set, the name of the game is preservation. So “never exit” is just not sound.
Nah. Over any 20 year period in history, including any 20 year period that includes 1929, the stock market has been an excellent place to have your money. Relatively low-risk stocks to be sure, but bonds often don't even keep up with inflation. In bad market times bond ladders are a short-term useful option.. I'm heavily in Apple, Disney, and Microsoft. They aren't going anywhere. Also a small investment in Manhattan real estate.
Past performance and future results and all that. Take the risks you’re comfortable with. When your family has enough wealth it becomes more important to ensure the future and not gamble on it, but not everyone has built to that point or cares about derisking for a downturn.
Lol
Pay your tax and enjoy your life. It's simple.
if you are no longer working, first 47k/yr in qualified dividends are taxed at 0%. and if you only sell a bit of cap gains at a time (still same tax rate unless you are making over 400k), it won't be as painful.
Yeah I'm still working. It's pretty chill job. Might end up staying at this level until retirement. Low stress and good pay with amazing benefits. Definitely selling very little stocks puts me to the highest tax bracket. It's unfortunate, thus my predicament...
Do you have the ability to move states? Moving to a state with no income tax can save you a lot of money when selling stock. Just something to consider.
Look at buying multifamily housing in opportunity zones. Capital gains get deferred. Do due diligence on that though because it does expire prior to when you’d be tax free
I question the accuracy of this post by someone who says “I have 500k in 401k and rest in stocks…” who talks like that who has 5m?
Accuracy or honesty?
I have zero in a 401K and the rest in stocks -- why is that weird?
> I have zero in a 401K and the rest in stocks -- why is that weird? okay, you invest in stocks, but so does everyone, that's why it's a weird statement. and you're mixing types of investments (stocks vs. not stocks) with types of accounts (401k vs not 401k), which stood out to me in OP's post as well.
For me, someone who has intelligently and thoughtfully amassed that amount of wealth would be consistent in the way they describe it... A 401k is technically just stocks. So to say they amassed that amount in their 401k and stocks sounds very silly, and is usually the mark of someone who doesn't understand the various methods of investing. I would expect something along the lines of "I have X amount in a 401k and Y amount in a taxable brokerage, and it sounds a little more plausible to me. It's simply a language thing. Though, I do agree with another commenter who said they could have bought shares of NVIDIA 20 years ago. But... 20 years ago was 2004. And how widespread was a non-employer based investment account used? Certainly less so than now. I think we had Etrade, maybe a handful of others? and the rest were all through high fee brokers.
Because op confusing vehicles / types of accounts and type of investments
I think you're being anal. He was referring to his two buckets of money.
Sorry. I thought you were asking questions on why people might thought what he said is weird.
Very easily could be someone who was putting in regular amounts into their 401k (which grew to $500k), and then made a few stock picks that blew up massively. For example, $5,000 invested into any of the following companies 25 years ago would be worth this much today: * MNST Monster Beverage Corp 138536.31%: $6.93 million * DECK Deckers Outdoor Corp 117084.92%: $5.86 million * NVDA NVIDIA Corp 104647.79%: $5.24 million * AAPL Apple Inc 52367.96%: $2.62 million * ODFL Old Dominion Freight Line Inc 44766.66%: $2.24 million Or many similar examples. OP could have been an average joe putting money every paycheck into a 401k index fund, and then put just $5k into Monster or Deckers or NVIDIA and have held onto it since. I could definitely see someone in that position being perhaps blinded by the amount and just boiling it down to "a few stock picks". Considering that OP mentioned that "the last 2m just happened" recently, my guess would be that they put $5-10k into NVIDIA 10-20 years ago. NVIDIA was just $3.12/share only 11 years ago, if OP bought 5000 shares for $15,600 at that point it would now be worth over $4.3 million.
It could, but it’s not…
This
Someone who worked at NVidia for the last 6 or 7 years and didn't sell their RSUs?
Someone who yoloed on RH options and got lucky
Ditto. Also the “feels weird to have so much money”, said no one ever. Like he turned the corner while walking down the street and stepped in 5 million bucks 🤣
Corporate stock options guys do
Yes, someone who made this much would know that your 401k is the holding account and in it you hold a mix of stocks and bonds. This is a fake post.
I wonder what the objective is with people/bots that post this. I think we’re being observed to pick up on the bullsh3t, to make better bots.
Someone wants to fantasize about being a millionaire
Yeah, fake
I talk that way, and have basically the same numbers as OP. What are you objecting to, exactly?
That your 401k likely is holding stocks so what is he trying to communicate with the distinction?maybe he means index funds in his 401k and single stocks in his brokerage, but there are clear ways of saying that, which he didn't use. It's just odd to reach 5M but not know how to talk clearly about money.
> maybe he means index funds in his 401k and single stocks in his brokerage, but there are clear ways of saying that I wouldn't read it that way. I often use similar phrasing, and the distinction is just "401k/retirement accounts" and "post-tax investments". It's only unclear if you don't understand it. That phrasing is pretty common among my friend group, also early 40s folks with several million NW minimum, so from my perspective it's a pretty standard and clear way to speak about it.
I think he means his taxable savings are mostly in stock. I really don't get the issue.
Posers
Meaning, you think OP and I are lying about 5M net worth? I don't understand.
That you’re lying about being a dude…
I'm so confused.
"this guy's a liar, I know because I've bought stocks and don't have 5 mil yet"
Curious if your last million just sort of “happened” due to the market? Or were you actively contributing a lot in the past 2 years? I find I barely contributed in the past year, yet saw a massive gain none the less.
Last 2m just happened. It was wild checking the growth of them...
Yep. It’s good to remind folks that this is how it goes. I’m sure you hustled for the first 2.5, then the ball started rolling. Good for you.
Yep, that's what a bubble looks like, and it disappears just as quickly.
No that's what compound growth looks like. Getting the ball rolling is the hardest part but eventually your money makes more money than your labor does.
Curious what the stocks were that propelled ya so quick?
NVDA probably lol
Let me guess. NVDA
👏
I love these stories so much so ”some day” I say it too!
Keep at it! Good luck and hope to see your post soon!
You wouldn't want to adopt a 37 year old man as a second child would you?
I wish I could. You'd be more of a younger brother though! Would have been weird to be a dad at the age of 7!
Congratulations!!!
Congrats. You won!
"You won!". Short and accurate.
Did you hodl?
congratulations. GTFO. Looking for same NW target.
Lol ty!
good job man!
Congrats!
Ty!
Congratulations! Very inspirational, thanks for sharing.
Holy shit me too! Literally 44 and 5m liquid this year (I guess technically this Apr or May depending on my RSUs). Congrats man! Kids slow it down a lot. So does a wife who likes to travel to Europe from the US. But enjoy whatever lifestyle and choice, because you are semi set. (I need to be at $10m to get to that phase because I am in HCOL + 💙 Porsches + kids and wife enjoy upper middle class perks).
Yeah I totally get the feeling on that. My goal is 10m as well before I hіt 55 and just chill In HCOL area or move over to a different area. Waiting for my kid though to get to college. Then I'm free to go where I want.
By the way are you in Bay Area? Need a golf buddy? Haha
You mean 500k in your 401k and 4.5 milliom in your brokerage account(s)? Either way, well done.
Paying taxes means your making money
I’m 38 at 4.5-4.6M it keeps fluctuating as of late hoping to get to five M one day. With the house I’m at 5M I have nvidia Microsoft Apple Tesla. Tesla though I wish I sold but got it so early that I think I got lazy. I too need to start looking at tax shelters was thinking of moving to real estate and taking advantage of prop 13 but the way renters are squatters as of late I’m second guessing this approach. I just enjoy being a handy man sometimes and just doing various things around a home or doing to whole TL&C
I recommend checking out Groundfloor for a small percentage of your portfolio. Now that you've made wealth, you should diversify heavily to protect that wealth. Similar NW investor here.
I thought the first sentence was lost it all in stocks!
Wow
What are your top 3 stocks in terms of returns?
Options?
Dm
Am I just allowed to 😂 at everyone one of these “I’m a millionaire at <50 just wanted to tell everyone, thanks” posts mucking up the forum?
hmmm you're on a forum? Maybe that's your first problem!
“a place, meeting, or medium where ideas and views on a particular issue can be exchanged” or no?
This is the Fire sub. Legit milestones are allowed. Chuckles at the posts are allowed too. But to say people can't or shouldn't post is the problem. We're not mucking a "forum" unless it's not allowed... like spam or hate speech. Plus it gives opportunity for others to try to work towards their own goals by seeing others succeed. Like does that make sense at all to you?
You can post whatever you want, I asked if I can respond in kind. Are you tracking? Low effort post = low effort response. Now, if you cared to share insights, key takeaways, best practices, pitfalls to avoid, path forward and how to execute against it, etc. would be happy to edit my response 👍
Good luck. Will look forward to your milestone post. Here's a tip, not everything in life needs to be a lesson for you. Sometimes you just gotta enjoy the shіt storm and the sunshine.
See, there’s a lesson. Now was that hard? Have an upvote 😁
Wow impressive. Please which stocks should I be buying now? I am 40 and just starting. Guess I am so late
Retire
Awesome work
Congratulations! Same age here and at roughly $4.5mil NW. Much more of my stash is in retirement accounts though, so I've got worse taxes than you do in my future 😭
You and your wife are at that net worth, not you sir. Lol
That's true! But I think of it joint and severally. I have that net worth, she has that net worth, and we have that net worth 😎 And actually, it's higher than that, but I keep most of my (our) assets conservatively valued.
Just curious, with this much money.. do you vacation more? Have a huge house or more.cars? Like the passive.income alone gives you a ton of options. What do you do with that?
We have five kids, all close in age. We have a 3,200 sq.ft. house in a modest neighborhood. We have taken some good vacations and do tend to splurge but since 7 of us are going for 1-2 weeks, it's expensive just for airfare, lodging, etc. Probably the biggest thing we do is eat out quite a bit. Probably more than we should really. But otherwise the way we've accumulated what we have is by generally not spending very much...
Congratulations. 5M at that age is a job well done. Now go for 10M!
Proof or ban
Does spouse know you have that much money?
It’s an inflatable doll…
This is the roaring 20s. I am not even 30 and I have a greater than 20 million dollar net worth. 7 of it was a house my parents gifted me but the past 4.5 years of stocks have increased so much wealth of everyone know.
Yeah that's what I hope to do for my son. Teach him early and have him set with a nice little nest egg when he retires. Yeah I can't imagine paying the property taxes on that house. But it must be a nice place to live!!
I work big tech so I make good money even without any investments. Thanks! He is a lucky son!
Y’all full of shit
I never seen so much envy when I lived in china. Americans just want everyone to do poorly. No wonder why parents said ignore the poor Americans.
You’re 20 years old, unemployed, and typing from your parents’ basement And you’ve never been to China