City-Data Forum How did you make your first million? (student loan, attorney, dealership)
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02-27-2013, 02:29 PM
 Location: Ontario, NY 2,983 posts, read 6,693,874 times Reputation: 3228

Quote:
 Originally Posted by Tampaite Am nowhere near but here is a thought. Save \$100K a year and become a millionaire in 10 years & you'll be 34. Save \$50K a year and become a millionaire in 20 years & you'll be 44. Save \$25K a year and become a millionaire in 40 years & you'll be 64.
If you keep your money under your mattress this might be accurate. You need to make money to work for you. With 100k invested in the stock market, since 1929, the average rate of return on the stock market has been 8.8%. So it should really only take 8 years to get just over 1 million dollars. This is assuming he earns zero interest on the money 100k he earned that year and adds it to the money already invested in the stock market at the end of the year. Adding the money weekly to the market as he earns it, I would guess it be less than 7 years, but I really don't feel like doing the math on that.

02-27-2013, 04:47 PM
 1,139 posts, read 3,057,456 times Reputation: 794
Quote:
 Originally Posted by TechGromit If you keep your money under your mattress this might be accurate. You need to make money to work for you. With 100k invested in the stock market, since 1929, the average rate of return on the stock market has been 8.8%. So it should really only take 8 years to get just over 1 million dollars. This is assuming he earns zero interest on the money 100k he earned that year and adds it to the money already invested in the stock market at the end of the year. Adding the money weekly to the market as he earns it, I would guess it be less than 7 years, but I really don't feel like doing the math on that.
I didn't want to do the math.

Again, I don't know why everyone goes back to 1929...Going back 10 years is plenty enough.

02-27-2013, 07:25 PM
 1,858 posts, read 3,182,012 times Reputation: 2121
Wade Pfau pretty much destroys your line of reasoning.

Quote:
 Originally Posted by TechGromit If you keep your money under your mattress this might be accurate. You need to make money to work for you. With 100k invested in the stock market, since 1929, the average rate of return on the stock market has been 8.8%. So it should really only take 8 years to get just over 1 million dollars. This is assuming he earns zero interest on the money 100k he earned that year and adds it to the money already invested in the stock market at the end of the year. Adding the money weekly to the market as he earns it, I would guess it be less than 7 years, but I really don't feel like doing the math on that.

02-27-2013, 07:46 PM
 Location: Ontario, NY 2,983 posts, read 6,693,874 times Reputation: 3228
Quote:
 Originally Posted by stoutboy Wade Pfau pretty much destroys your line of reasoning.
I don't see how. The first poster was suggesting saving 1 million without investing it. Even if the return is only 2% as Wade D. Pfau suggests, it still gets you to 1 million dollars sooner than not saving at all.

02-27-2013, 07:50 PM
 1,858 posts, read 3,182,012 times Reputation: 2121
Of course it does. But he's arguing that everyone is WAY too optimistic about the real rate of return. So it would probably take a lot longer than what you were estimating.

Quote:
 Originally Posted by TechGromit Even if the return is only 2% as Wade D. Pfau suggests, it still gets you to 1 million dollars sooner than not saving at all.

03-03-2013, 11:11 PM
 20 posts, read 52,588 times Reputation: 18
Every time someone asks me this question they know what the answer is but they just don't want to hear it. Think about what you know how to do successfully and truly do not want to do, and go do it, at least for a few years until you make your first million. You probably know how to do some things if you're thinking about making a million - you're motivated. Probably something related to the field you went to school for would work. There's probably some well-paid aspect of the field where you work a ton of hours under unpleasant conditions for unappreciative people for a smaller firm where you do not even get any street cred for your job and the aggravation is barely even worth the money - that's the surest way to make your million. If your question is how to make your first million doing something you love, you should be able to sell like a pro or partner with someone who does and then work 100 hours a week to do a great job for the clients.

03-06-2013, 09:52 PM
 Location: Victoria TX 42,661 posts, read 77,878,237 times Reputation: 36311
Working as a greeter at WalMart. \$10 an hour from age 18 to 65 works out to just about an even Million. Live at home with mom and dad, and bank every paycheck.

03-07-2013, 09:20 AM
 1,610 posts, read 4,227,982 times Reputation: 714
There is no one here with a million

03-07-2013, 10:44 AM
 Location: Wisconsin 7,214 posts, read 8,378,483 times Reputation: 7754
Quote:
 Originally Posted by qlty There is no one here with a million
Many that pretend they do though. Everyone on the Internet is worth millions, has a black belt in at least one martial art, multiple luxury vehicles and married to a supermodel.

03-07-2013, 10:58 AM
 Location: Simmering in DFW 6,954 posts, read 20,534,585 times Reputation: 7227
Contributing to 401k to the max; paying off my house and selling it in 2002 at a big profit; buying real estate in low times and selling in high times; working at a career that paid well for 30 years and not wasting money; saving and investing.
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