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In 2009, I was still recovering from long term unemployment.... let alone 200k sitting in the bank. i had to liquidate most of my investments to make ends meet... That also meant taking losses. I was already re-employed in 2009 but earning less than I was as a student engineer in Texas (much lower COL). It took nearly a decade to from my first job loss catchup salary wise. By then, children....
I have a good amount in savings and investments now.... but far behind where i "could have" been. I'm ok with that I guess.. I known people worse off.
One thing though. I am far less likely to spend money today than my former self... I'm pretty frugal these days. Living in the same starter home I bought 6 months out of college and I have no intention of pulling a new mortgage; I'm just about 5 years away from being mortgage free and relatively little debt otherwise. No new cars. No unnecessary large expenses. Continue to save and invest. The flip side is that I'm probably too conservative when it comes to money... probably opportunity losses because I hesitate (that includes job as well).
If you had a paltry $210,000 in your account invested in the S&P 500 in 2009 and contributed just $500/month since then to now you would now have a MILLION dollars.
The market has essentially tripled in the last 10 years... most people should at least be half-millionaires if not outright millionaires by now.
It seem like every average Joe could've done this. Why aren't you one of them??
I'm not an average Joe, I'm a MENSA level nuclear engineer, and I never had kids, only marrying late in life to bring over my Ukrainian fiancee. But, yeah, I got more than a mil in my 401k. If you are over about 55 and you have had a steady job, with a 401k, and you contributed max, which is the only thing that makes sense if you have that opportunity - you are doing something wrong if you don't have 7 figures in that account.
Other stuff, the house has appreciated nicely, bought for 61K in 1991, it's worth at least 300K now.
But, yeah, you don't have to run your own business or do a lot of sophisticated investing to get to a million bucks. You just have to be patient and persistent. Which most people are not.
But, yeah, you don't have to run your own business or do a lot of sophisticated investing to get to a million bucks. You just have to be patient and persistent. Which most people are not.
and not have children or any other financial responsibilities but to yourself and future.
A person today buying your house would have to fork over $300k... not $61k + inflation. That person today would have a longer way to climb to get to a mil (ultimately paying a lot more in interest) My home has doubled in value as well. If I sold it, I wouldn't dare buy it back a year or so later at current direction of home values... I'd move and figure other options. That is the primary reason why we simply make our small starter home work for us today even though we had 3 children since purchase. Our monthly total payment towards housing is cheaper than even renting apartments.
I figure I'm a little younger than you... I'll hit a mil easily at that point in my life. However thats with the assumption my children can handle their own college costs (highly unlikely)...
How do you know who is and who is not??? Can't always tell by looking!!
Yep. I'm wearing old jeans, a sweater that belonged to my late DH with a few small holes in it, and a pair of 10-year old Justin boots that are a bit scuffed. Most people would assume my Rolex is fake. They would be wrong. I was 56 in 2009 so, yeah, I had decent investments back then and they've done well. I was still working and didn't panic at the drop- just kept throwing new money in.
If you had a paltry $210,000 in your account invested in the S&P 500 in 2009 and contributed just $500/month since then to now you would now have a MILLION dollars.
The market has essentially tripled in the last 10 years... most people should at least be half-millionaires if not outright millionaires by now.
It seem like every average Joe could've done this. Why aren't you one of them??
Well if you bought 1,000 bitcoins back in Feb-April 2011, when they were worth $1 each and sold them all when they were worth over $19,000 each, you would have had, before taxes, over $19 million!
Well if you bought 1,000 bitcoins back in Feb-April 2011, when they were worth $1 each and sold them all when they were worth over $19,000 each, you would have had, before taxes, over $19 million!
and not have children or any other financial responsibilities but to yourself and future.
A person today buying your house would have to fork over $300k... not $61k + inflation. That person today would have a longer way to climb to get to a mil (ultimately paying a lot more in interest) My home has doubled in value as well. If I sold it, I wouldn't dare buy it back a year or so later at current direction of home values... I'd move and figure other options. That is the primary reason why we simply make our small starter home work for us today even though we had 3 children since purchase. Our monthly total payment towards housing is cheaper than even renting apartments.
I figure I'm a little younger than you... I'll hit a mil easily at that point in my life. However thats with the assumption my children can handle their own college costs (highly unlikely)...
Well, this house is an interesting study. When I bought it, it was a dumpy little farmhouse in an undesirable school district, it didn't appraise and I had to bring extra money to closing to keep the loan to value ratio palatable to the lending bank.
When I re-financed it in about 93, (to get a substantially lower interest rate) it had somehow, in the eyes of real-estate appraisers and bankers, morphed into a "prestigious view property" and they would happily lend me considerably more than I owed. Whatever. It is and was a house that worked for me, privacy, able to shoot guns in my own yard (we all kind of have a gentleman's agreement to limit this to .22s and perhaps my own cast-bullet reduced power handloads in centerfires, to limit noise.) Although, legally, as long as the sun is up, I could shoot a .50 BMG rifle if I had one. Or host a Rolling Stones concert, so long as they quit before sundown. And room to add shops and a garage. I have 4 shops or sheds with electric power in them, and at least 2 more with no power (a flat roofed shed with concrete floor for my F-350 1975, and a small wood shed.
As to kids making their own way in college, if you set that as an expectation now, they may rise to the occasion. Too many parents cave in to "Well, Johnny's Dad is doing this for him..." Help them, sure, I helped my step daughter. But, said step daughter was making good grades, and working towards a degree in Accounting (as the economy was down when she graduated, I went along with getting a second degree in Finance). (She graduated at 10:00, that same day, by 2:00, she had her first job, so it was worth it. ) So, serious degree + good grades means I will help. Bad grades, or a fluff major, and "I'm out!" as the Sharks say. Remember:
Science graduates ask "Why does it work?"
Engineering graduates ask "How does it work?"
Business graduates ask "How much will it cost?"
Liberal studies graduates ask "Do you want fries with that?"
Why am I not a millionaire? Because although I saved money while I was working, I didn't save as much as I could have and should have. I was very uneducated and unsophisticated about money, and my husband and I spent a lot of it on dinners out, good wine, a great social life, and much very enjoyable travel.
I don't regret it, though. It was a great ride, and although I don't have a million dollars, I do have enough in savings to maintain a comfortable, if frugal, lifestyle. I adjusted my needs and wants down to where a million isn't necessary.
Everyone, it seems, has either heartwarming stories of overcoming adversity; or is seeking validation for a life well-lived. OK, great. But both themes miss the point: persons who already had substantial investment in the market 20 years ago, and were counting on strong portfolio-appreciation thenceforth, will have been disappointed. This is assuming "good" investor behavior, riding-out the the bear-markets and remaining invested at all times.
Let me ask a different question. To the people who have recovered from their various travails, and now are sitting on say $200K.... do you expect this $200K to become $400K in the year 2039? $1M? $10M? Scale accordingly, if you have $1M or whatever else.
Geniuses and gamblers aside, how well we do personally, depends mainly on how well the market does as an aggregate. Scary thought, isn't it?
Another humble brag thread. Humble brag police here.
Let me be the first before some humble brag complainers chip in.
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I was 56 in 2009 so, yeah, I had decent investments back then and they've done well. I was still working and didn't panic at the drop- just kept throwing new money in.
