That was the subject line of a new email I just got ;)
For anyone unfamiliar with the “club”, it was a silly little thing I put together in year #1 of the blog to get people excited – and motivated – about hitting a million dollars, and in order to be added to it you had to share your list of things you’re planning to do to reach it.
#156 on the list was Gene Roberts who had pledged the following on May 20, 2015:
My current projections have me at $1,000,000 of retirement assets at age 52.2 (1/1/2023). Current retirement savings: $388K
Actual net worth of $1 mil with my equity should occur around mid-2021. We’ll see if the markets cooperate. Current net worth: $576K
Here’s what I’ll do to achieve my financial freedom:
– Max out Roth IRA (contributions are good source of emergency fund if needed).
– Max out my Health Savings Account (tax-free triple threat!).
– Save about 21.3% of my gross income towards retirement (includes employer contributions and Roth and HSA above). I invest the remainder in a brokerage account.
– I have switched the amount I was paying ahead on my mortgage and have it going into my brokerage account as well. In the long run this should gain me about $30-40K over paying the mortgage off early.
Pretty solid list, eh?
And then here’s his latest update as of this morning – along with that pretty little graph featured up top again:
I did a little mid-month NW update.
New high needed another comma, finally. :)
So for at least 1 day I’m a millionaire.
I know it is just a number, but it is sure nice seeing that added digit.
Now if I can just double that retirement balance number, I’ll be golden.
Woohoo! Way to go man! The power of The Club right there ;) $576k net worth 4 1/2 years ago, and now essentially doubled with plenty of opportunities to keep growing…
Always cool seeing these updates and what PERSISTENCE gets you over time. Saw this quote online the other day and it couldn’t be truer:
“Never give up on a dream just because of the time it will take to accomplish it. The time will pass anyway.” – Earl Nightingale
The time will pass anyway. Damnnnnn….. Nothing anyone can do to stop it either! So you might as well go All In on yourself!
Asked Gene here if he could explain the graph a little, and what the rest of his net worth looks like as well as how he calculates his “number”, and here’s what he passed back.
(Along with a MONSTER of a spreadsheet that I’ll also attach here for anyone interested in downloading/playing around with :))
In addition to the solid-colored parts labeled at the bottom of the chart (what I consider to be my “retirement” accounts), the NW red line includes: home equity, vehicles, checking and savings accounts, and a couple of accounts (money market and additional broker account) that I have earmarked towards paying off the remainder of my mortgage, ideally after they accumulate more (current mortgage is a 15yr fixed at 2.875%).
My “number” is pretty straight forward. I take my budget and pad it generously (like $1,200/month) for discretionary spending. That gives me a built-in ability to immediately cut 25% off my budget with no impact to my non-discretionary bills if the market goes down. This is one of two counter-measures I’m planning to address sequence-of-return risk. Then I apply the 25X (4% rule). That puts me in the vicinity of needing $1,250,000 in non-medical retirement accounts to be confident that my investments will out-live me no matter how long I can hang on.
Of course the 4% rule is just a guideline. It still has to survive my projection assumptions for drawdown. I’ve also run my plan through the Firecalc simulator where it gets about a 90 – 95% success rate.
His Monster Retirement Spreadsheet:
You can’t see all the sections here as it would take over your ENTIRE COMPUTER screen, but you can download and check it out here (which includes graphs!) –> Monster Retirement Spreadsheet
Here’s a list of all the sections:
- Projected – and Actual – Retirement Balances
- Non-Retirement Net Worth Accounts
- Credit Score tracking (of *six* reporting agencies)
- Net Worth minus The House
- Date and Age of Retirement
- Date and Ages money will run out
- Projected Growth Graph
- Retirement Drawdown Graph
- Total Monthly Expenses Graph
- Social Security Records (SSI Earnings / Med Earnings)
- Contribution History
- Projected Retirement Drawdown covering over a dozen accounts (!)
It’s pretty hardcore :)
Here are my two favorite parts of the spreadsheet (and anyone’s money for that matter!).
Gene’s Monthly Budget:
Love the “day” and “#per year” columns. Two parts that are often overlooked in budgets but are super helpful to know! Wouldn’t have thought to separate out the #per year category as I tend to just multiply or divide them appropriately in the main $$$ column which tends to confuse anyone who looks at it – i.e. my wife, and occasionally even me ;)
Gene’s Lifetime Earnings Report:
These are just fun to see overall :) And anyone can download these #’s super easily if you live in the U.S. by just going to the my Social Security portal.
(And then if you REALLY want to get nerdy with it – take it a step further and divide your *net worth* by your total lifetime earnings to get your Lifetime Wealth Ratio and see just how much of it you’ve saved over the years! It’s pretty wild!)
UPDATE: Didn’t catch that Gene tracks his LWR here too! The guy doesn’t miss a thing! (Second column from the right)
Main takeaway today: keep focusing day in and day out and eventually you’ll hit your Big Goals too! Use time to your advantage as it’ll continue to pass with or without you… :)
Big congrats again to Gene for hitting his epic milestone here, as well as always being so kind in allowing me to share his life on the blog as it’s always so helpful to see other perspectives. If you like his style, you might be interested in a few of the guest posts he’s written for us over the years:
- Zen and the Art of Couples Budgeting
- Why Work So Hard Building a Fortune and Not Protect It?
- Dream As If You’ll Live Forever, Live As If You’ll Die Today.
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!