$1.0MM by 35 is my target...it becomes fairly easy to build from there (e.g., living on base salary and saving / investing 100% of annual bonus, maintaining an aggressive asset allocation of ~90% equities until mid-40s, maxing 401k contributions / employer match for tax advantages, generally living well below one’s available means, etc.).
Around the target for me - maybe 32-33, but same ballpark. Lot of big life events coming up (marriage, purchase of home, kids, etc.) so who knows how it'll eventually shake out.
Also same boat for me. My fiancée and I are saving up for a duplex to live in and rent out the other half. So long as we can do that 2-3 times over the next ~8ish years I’m happy. Beyond that we’ll see how it shakes out.
“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
At a couple million right now @ 26. It gets WAY easier once you have cash coming in on a regular basis to invest. The first $50K in "investable" funds is definitely the hardest to make...
read his AMA from 2018. entrepreneur. little seed capital, paid himself like shit for a few years, cold called his ass off, and now runs several businesses (scale). he is the unicorn for when I tell people to seek independence.
kudos to you m_1 , seeing a young buck like you absolutely crush it (and doing so the right way) is great. keep it up
i am shocked that this post got so much ms lol, we should not be HATERS - we should be CELEBRATORS, it is badass that there are people on the forum who are absolutely crushing it.
I just grinded and got to a point where I’m sitting on roughly 60k+ I am able to invest. Trying to set myself up well. What do you recommend? Any insights on how it got easier after 50k?
Currently 25 with a ton of student loan debt and a handful of real estate investments
Age 30 - student loans paid off with equity from real estate investments (or progressive socialist president cleans the slate)
Age 35 - $1M+ in gross real estate value - leveraged and cash flowing enough to cover majority of living expenses
Age 40 - $5M in gross real estate value - flexibility to walk away from my 9 - 5. Start raising capital from family and friends for larger residential/commercial deals
Age 50 - Re-evaluate meaning of life
25 - Paid off 150k in student loans and 20K in personal loansafter working 3 years in MF. Will have 10 - 20k to my name after it's done.
Net Worth: 15K
30 - Ideally working in either MF or UMM as a VP by now, putting away a couple hundred thousand. Should be able to start working on RE deals with friends and family. I'm lucky to have a strong network of U/HNW friends despite my lower middle class origins.
Net Worth: 500K
35 - Exit my first deal, probably in commercial (office or industrial). Hopefully will have saved $1.5M working as senior management in MM, and made another $700k from the RE deal. Slowly going down the AUM chain as I take higher positions an better hours. Will have kids around now as discussed with my fiancee. She will also have graduated medical school and working as a dermatologist or neurosurgeon (the current plan), decreasing my personal family expenses.
Net Worth: 2M
40 - Kids cost a lot of money, but I've been doing more and more deals as time goes on, exiting assets every 1-2 years as I have raised more capital from friends and family in the past 10 years. Start an angel investing side hustle, throwing chunks of 50k - 100k at startups, expecting all my money to go to waste.
Net Worth: 10M
45 - Things will go one of three ways. I either strike gold with a startup or deal, or at this point I've lost all the money I've invested in startups, or I cruise by with some decent GPreturns.
Net Worth Upside: 50M
Net Worth Base Case: 20M
Net Worth Downside: 5M
50 - Too far to think about. But a man can dream for 100M.
30 - 50 will be my golden years. Ideally I'll be buying a deal or two every year starting from the age of 30, growing my net worth exponentially. I've seen it happen with my fiancee's family friends who went from 5M to 100M in 10 years. Looking to replicate that model. I'm in a lucky spot. Grew up in a lower middle class family, having both my parents save approximate 20K total by the time I got into college. Took on all the student loans myself, but ended up in a good place to get those paid off while also sending thousand dollar checks back to my parents every month to keep them afloat as well. I never want to have to worry about money ever again--fear is a crazy motivator.
Real Estate Professional Network Discord Server: https://discord.gg/xxWQ2nC
I'm in a slightly different position than most as many of my close (extended family) network is in real estate already. They commonly invest in commercial real estate (offices, fringe products) and will continue doing that for the foreseeable future. I don't think it's far fetched to say I can get in on those deals as a GP if I start looking for deals in my late 20s and bringing my own capital in my early 30s.
Real Estate Professional Network Discord Server: https://discord.gg/xxWQ2nC
i'd like to employ the hendrix/cobain model of success.
25:
start music career.
net worth: $0
26:
blow the fuck up online and become major artist.
net worth ~$1M.
27:
die horribly.
net worth ~$1-2M
28+:
immortalised by fans. value of my estate increases several fold overnight.
net worth: tens to hundreds of millions.
Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.
Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.
Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.
Median retirement savings for a 55 y/o in USA is ~100k. Judging by the comments we have a remarkable sample set in either potential wealth or delusion.
That’s because most people don’t save. It’s fairly pathetic if you can only save 100k by the time you are 50. My grandmother only made about 40k a year and she has 500k in retirement
That’s because most people don’t save. It’s fairly pathetic if you can only save 100k by the time you are 50. My grandmother only made about 40k a year and she has 500k in retirement
Yeah but she was making 40k at a time when a bottle of coke and a candy bar was less than a quarter. That same combo is probably close to three dollars or more now a days. This isn’t even close to comparable. Also if she was making 40k back then, THATS A TON OF MONEY. For instance just as far back as 1970; 40K dollars a year would be equivalent to almost 250k now.
Just to add on to this, the national household savings rate of post-tax is about 8% currently. That is significantly weighted up by high-earning households, though, with the bottom 60% of HH retaining savings near zero in line with historical norms. Personal savings rate for finance people like us can be closer to 30-50% of post-tax income based on higher incomes yielding more discretionary income. Some people spend that discretionary income now, some save and invest and spend it later.
This forum is not made up of people who want to live in the realm of average. Overall that is what makes WSO such a valuable resource. There are people here from widely different backgrounds but we all want more than the status quo and we use the forum as place to gain knowledge that helps in that pursuit while having a few laughs along the way. That is what makes this place great.
This forum is not made up of people who want to live in the realm of average. Overall that is what makes WSO such a valuable resource. There are people here from widely different backgrounds but we all want more than the status quo and we use the forum as place to gain knowledge that helps in that pursuit while having a few laughs along the way. That is what makes this place great.
Sincerely the former. Most of us on this forum are quite young and possess more financial knowledge than prior generations. The wealth parity will continue to increase and most of us here will be the benefactors.
"Truth is like poetry. And most people fucking hate poetry."
How do people retire with $100k? Assuming they’ve got another 30 years to go, either you’ve got to be slumming it out in poverty, investing with more insider information than Steve Cohen, moving out of country to Mexico or Bali, or relying on your kids. I don’t see another alternative. Other than not retiring and working until your time is up.
“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
Retiring in Bali sounds dope, ngl...New plan - moving to Maldives for retirement (low COL), insider trading (non-extradition to US), and collecting remittances from kids I have yet to have!
Seriously though, it's not difficult to save 100k by your late 20's even if you aren't making six figures out of undergrad. People have problems in life and life is expensive in general, but people are also shit at saving.
I don't tend to think of things in a NW perspective.
Currently 26.
At 25 I wanted an emergency fund of ~9 months expenses and a downpayment on my house (check)
At 30 I want my retirement safety net to be fully funded. Assuming my house is paid off I want about $60k in todays dollars using a 4% withdrawl rate ($1,500,000 in 2020 dollars). Assuming I will work for another 30 years and my portfolio returns 7% net of inflation this means I need roughly 200k sitting in my 401k at age 30. Even if I never contribute another dollar I should be ok. Currently at 100k with 4 years to go. Should be no problem to hit it. I also want to have roughly 100k invested in real estate. Should be feasible with bonuses etc.
Beyond 30 tough to say as who knows what life will bring. If I have kids I will probably be more conservative and want more liquidity. Maybe I will want to risk it all and go the entrepreneurship route and try to hit 10MM by 40.
I wish you well but I think your targeted real (!) return of 7% is probably high by at least 200bps. We're 10 years into a bull market, PEs are high, and bond yields are low. Most market forecasters - who, I'll be the first to acknowledge, get it wrong at least as often as they get it right - are guiding investors to expect low/mid single digit nominal returns on equities and less than that on fixed income for the next decade+.
$1.0MM by 35 is my target...it becomes fairly easy to build from there (e.g., living on base salary and saving / investing 100% of annual bonus, maintaining an aggressive asset allocation of ~90% equities until mid-40s, maxing 401k contributions / employer match for tax advantages, generally living well below one’s available means, etc.).
Around the target for me - maybe 32-33, but same ballpark. Lot of big life events coming up (marriage, purchase of home, kids, etc.) so who knows how it'll eventually shake out.
Your username is great.
Also same boat for me. My fiancée and I are saving up for a duplex to live in and rent out the other half. So long as we can do that 2-3 times over the next ~8ish years I’m happy. Beyond that we’ll see how it shakes out.
Very informative!
$100MM by 35.
$10 by 40.
$15MM by 30
$50M by 40
$100M by 50
At a couple million right now @ 26. It gets WAY easier once you have cash coming in on a regular basis to invest. The first $50K in "investable" funds is definitely the hardest to make...
How did you make so much in real estate at a young age?
Also very interested in how they plan to go from $2MM in net worth to $15MM in 4 years
Derp. Used new posts not browse by forum to find this. In PE/entrepreneurship not RE.
Umm you inherit it from Daddy, duh.
His parents gave him a teeny tiny loan of $2MM, and he's rounding down to be humble.
How did you get to that point? Some inputs would be appreciated!
read his AMA from 2018. entrepreneur. little seed capital, paid himself like shit for a few years, cold called his ass off, and now runs several businesses (scale). he is the unicorn for when I tell people to seek independence.
kudos to you m_1 , seeing a young buck like you absolutely crush it (and doing so the right way) is great. keep it up
Very informative and motivating!
i am shocked that this post got so much ms lol, we should not be HATERS - we should be CELEBRATORS, it is badass that there are people on the forum who are absolutely crushing it.
I’ve been following m1 for a bit. He’s done a few leveraged buyouts of small businesses.
Good hustle, btw can I message you some time?
I just grinded and got to a point where I’m sitting on roughly 60k+ I am able to invest. Trying to set myself up well. What do you recommend? Any insights on how it got easier after 50k?
Currently 25 with a ton of student loan debt and a handful of real estate investments Age 30 - student loans paid off with equity from real estate investments (or progressive socialist president cleans the slate) Age 35 - $1M+ in gross real estate value - leveraged and cash flowing enough to cover majority of living expenses Age 40 - $5M in gross real estate value - flexibility to walk away from my 9 - 5. Start raising capital from family and friends for larger residential/commercial deals Age 50 - Re-evaluate meaning of life
this is a level headed one. thanks.
Good one! I started reevaluating the meaning of life after one to many happy hours and niw, guided by faith, it's a daily process!
Reasonable. Don't wait though; start re-evaluating life every year.
I think that comment was more satirical than anything...
get it king.
how are you planning to start on your r/e journey? just curious.
Meaning of life = red sports car with gf half your age
My real answer; currently 22. Net Worth: -170K
25 - Paid off 150k in student loans and 20K in personal loansafter working 3 years in MF. Will have 10 - 20k to my name after it's done. Net Worth: 15K
30 - Ideally working in either MF or UMM as a VP by now, putting away a couple hundred thousand. Should be able to start working on RE deals with friends and family. I'm lucky to have a strong network of U/HNW friends despite my lower middle class origins. Net Worth: 500K
35 - Exit my first deal, probably in commercial (office or industrial). Hopefully will have saved $1.5M working as senior management in MM, and made another $700k from the RE deal. Slowly going down the AUM chain as I take higher positions an better hours. Will have kids around now as discussed with my fiancee. She will also have graduated medical school and working as a dermatologist or neurosurgeon (the current plan), decreasing my personal family expenses. Net Worth: 2M
40 - Kids cost a lot of money, but I've been doing more and more deals as time goes on, exiting assets every 1-2 years as I have raised more capital from friends and family in the past 10 years. Start an angel investing side hustle, throwing chunks of 50k - 100k at startups, expecting all my money to go to waste. Net Worth: 10M
45 - Things will go one of three ways. I either strike gold with a startup or deal, or at this point I've lost all the money I've invested in startups, or I cruise by with some decent GPreturns. Net Worth Upside: 50M Net Worth Base Case: 20M Net Worth Downside: 5M
50 - Too far to think about. But a man can dream for 100M.
30 - 50 will be my golden years. Ideally I'll be buying a deal or two every year starting from the age of 30, growing my net worth exponentially. I've seen it happen with my fiancee's family friends who went from 5M to 100M in 10 years. Looking to replicate that model. I'm in a lucky spot. Grew up in a lower middle class family, having both my parents save approximate 20K total by the time I got into college. Took on all the student loans myself, but ended up in a good place to get those paid off while also sending thousand dollar checks back to my parents every month to keep them afloat as well. I never want to have to worry about money ever again--fear is a crazy motivator.
What do you mean bu “buying” a deal or two? You make it sound pretty easy lol
I'm in a slightly different position than most as many of my close (extended family) network is in real estate already. They commonly invest in commercial real estate (offices, fringe products) and will continue doing that for the foreseeable future. I don't think it's far fetched to say I can get in on those deals as a GP if I start looking for deals in my late 20s and bringing my own capital in my early 30s.
Dermatologist or neurosurgeon...whichever...lmao
I came from a similar background and your story/plan is motivating asf. What was your career path out of UG?
With student loans, I'm still trying to get my net worth to not have a negative sign in front of it.
lmao I love how very few factored this into their answer. Maybe people are getting through school w/o loans?
i'd like to employ the hendrix/cobain model of success.
25: start music career. net worth: $0
26: blow the fuck up online and become major artist. net worth ~$1M.
27: die horribly. net worth ~$1-2M
28+: immortalised by fans. value of my estate increases several fold overnight. net worth: tens to hundreds of millions.
I'll be your drummer.
you son of a bitch. i'm in.
That 27 club is real
thx amy winehouse
Median retirement savings for a 55 y/o in USA is ~100k. Judging by the comments we have a remarkable sample set in either potential wealth or delusion.
1st year associate's bonus in MF REPE is 100k by itself.
Median HH income in the U.S. is also like 40k sooooooooooo.....?
yeah if this was Walmart Staff Oasis then he'd have a valid point
That’s because most people don’t save. It’s fairly pathetic if you can only save 100k by the time you are 50. My grandmother only made about 40k a year and she has 500k in retirement
On point.
Yeah but she was making 40k at a time when a bottle of coke and a candy bar was less than a quarter. That same combo is probably close to three dollars or more now a days. This isn’t even close to comparable. Also if she was making 40k back then, THATS A TON OF MONEY. For instance just as far back as 1970; 40K dollars a year would be equivalent to almost 250k now.
Just to add on to this, the national household savings rate of post-tax is about 8% currently. That is significantly weighted up by high-earning households, though, with the bottom 60% of HH retaining savings near zero in line with historical norms. Personal savings rate for finance people like us can be closer to 30-50% of post-tax income based on higher incomes yielding more discretionary income. Some people spend that discretionary income now, some save and invest and spend it later.
Yes to both?
This forum is not made up of people who want to live in the realm of average. Overall that is what makes WSO such a valuable resource. There are people here from widely different backgrounds but we all want more than the status quo and we use the forum as place to gain knowledge that helps in that pursuit while having a few laughs along the way. That is what makes this place great.
well put. it's great that this community strives for the best as corny as it sounds.
Agreed.
Sincerely the former. Most of us on this forum are quite young and possess more financial knowledge than prior generations. The wealth parity will continue to increase and most of us here will be the benefactors.
How do people retire with $100k? Assuming they’ve got another 30 years to go, either you’ve got to be slumming it out in poverty, investing with more insider information than Steve Cohen, moving out of country to Mexico or Bali, or relying on your kids. I don’t see another alternative. Other than not retiring and working until your time is up.
Social Security + paid off house + extremely low cost of living town?
I don't know. I couldn't do it.
Retiring in Bali sounds dope, ngl...New plan - moving to Maldives for retirement (low COL), insider trading (non-extradition to US), and collecting remittances from kids I have yet to have!
This is WSO bro.
Seriously though, it's not difficult to save 100k by your late 20's even if you aren't making six figures out of undergrad. People have problems in life and life is expensive in general, but people are also shit at saving.
I don't tend to think of things in a NW perspective.
Currently 26.
At 25 I wanted an emergency fund of ~9 months expenses and a downpayment on my house (check)
At 30 I want my retirement safety net to be fully funded. Assuming my house is paid off I want about $60k in todays dollars using a 4% withdrawl rate ($1,500,000 in 2020 dollars). Assuming I will work for another 30 years and my portfolio returns 7% net of inflation this means I need roughly 200k sitting in my 401k at age 30. Even if I never contribute another dollar I should be ok. Currently at 100k with 4 years to go. Should be no problem to hit it. I also want to have roughly 100k invested in real estate. Should be feasible with bonuses etc.
Beyond 30 tough to say as who knows what life will bring. If I have kids I will probably be more conservative and want more liquidity. Maybe I will want to risk it all and go the entrepreneurship route and try to hit 10MM by 40.
I wish you well but I think your targeted real (!) return of 7% is probably high by at least 200bps. We're 10 years into a bull market, PEs are high, and bond yields are low. Most market forecasters - who, I'll be the first to acknowledge, get it wrong at least as often as they get it right - are guiding investors to expect low/mid single digit nominal returns on equities and less than that on fixed income for the next decade+.