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.

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
 

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 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?

 
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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

 

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.

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 came from a similar background and your story/plan is motivating asf. What was your career path out of UG?

 

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.
 

you son of a bitch. i'm in.

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.
 

thx amy winehouse

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.
 

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.

 
JVRE:
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.

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.

"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
 

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+.