$1 Million Net Worth... Now What?Yup, you read that correctly… we now have a net worth of just over $1 million.

I logged into Quicken today, updated all my accounts, and was excited to see this:

$1 Million Net Worth... Now What?

Holy schnikes, a million dollar net worth!  It seems so surreal to think that we’ve reached such a big milestone.

I’m really proud of how far we’ve come in our journey to financial independence.

By keeping our expenses low, saving and investing as much as we can, and creating additional wealth through side hustles and real estate, we’ve really made some major strides in our financial future.

Initially, we cut back on just a few things and saved the difference.  But over time, we’ve found that as we eliminate a lot of the material crap in our lives, the happier we’ve become.

We’re far from minimalists, but we have gained a better understanding of what actually satisfies our desires in life.  And that tends to be experiences more than possessions.

So we’re still taking our cruises and other vacations.  We’re still camping and spending time doing fun things together.  But we’re generally not buying the latest and greatest cell phones, cars, or whatever it is.

And, the best part is that it seems to be a big catalyst for growing our assets.  It’s funny how wealth continues to build upon itself in a snowball effect.

With that said, it’s time to get some of this out of my system…

YES!!!  AWESOME!!  GO TEAM!!  Um, woo-hoo!  Uh, yay…

Ok, yeah, well, that was about as much fun as it looked.  Onto more important things…

 

So what does a $1 million net worth mean for us?

$1 Million Net Worth... Now What?
Yes, I’m in the U.S. and this picture shows a Euro in the background, but there was no way I could pass up this picture! Classic!

Really, not as much as you might think.

Don’t get me wrong – this is a very exciting number for us to see, but we’re not where we need to be yet.  This number simply tells us we’re on track and we’re definitely going in the right direction, but that’s about it.

First off, our net worth includes some things that need to be cleared up before we can call it quits.  We still have a mortgage on our residence that we’re aiming to pay off close to or around the time I quit my job.  That should be gone by 2027 at the very latest and is important to the success of our plan.

Second, if you’ve looked at our game plan before, you know that we need to build up our savings and taxable investment accounts more to be able to get us through the first five years of our Roth IRA conversion ladder.

Another part of that plan includes picking up two or three more duplexes… and banks no-likey if you don’t have a W2 income when trying to get a loan!

Finally, don’t forget, this number can change on a dime.  In fact, it’s possible that right after I finish writing this, the stock market could easily take a swing downward and knock $15,000 off our net worth.  Who knows?!

And to be honest… I hope it does.  I’m excited to have reached the $1 million net worth because it is like a big ol’ pat on the back – a milestone that a lot of people shoot for.  However, I actually am hoping for the market to tank right now.

I would much rather be buying low while we’re not drawing from it.  Yes, I’ll temporarily lose that double comma club status.  However, that would give us an opportunity to get more bang for our buck while we’re investing.

Once we’re ready to start withdrawing, then I would much prefer a resounding comeback!  If you can figure out a way to guarantee that to happen, please tell me your secret! 🙂

 

The numbers are now out there on the Internet!

$1 Million Net Worth... Now What?
This photo was the best I could do to represent uploading my numbers to the Internet… how pathetic.

I contemplated for quite a while if I was going to share our numbers with everyone.  There’s always the fear that some people will be displeased for one reason or another…

You only have a million dollar net worth at age 41?!

or the other end of the spectrum…

You must be getting paid too much at work to pull that off!

Then there are always the concerns that the few friends or family that read this might have some strong feelings one way or another on it.

But, the fact is, the pros seem to outweigh the cons.  I want others that might not be as far along on the path to financial independence to know that it is possible to make this happen.

Although I work full time and make a pretty good (but not fantastic!) salary, Mrs. R2R is only part-time at a non-profit, and we have a daughter in the mix as well.  In other words, the excuses about kids or needing high-salary jobs to make early retirement possible are complete crap.

If you truly focus and follow the Steps to Wealth, you’ll be well on your way to reaching financial freedom before you know it!

 

So now what?

$1 Million Net Worth... Now What?
I wish my boss was actually mean and really looked like this… then you’d have no choice but to feel bad for me.

We just keep going.

Most of you already know that I am so done with working the 9-5 it’s almost laughable.  So, it’s not that I’m continuing to work just to work.

As soon as we get to the point along the way where I can jump ship… I’m out!

In the meantime, there’s also room for expediting the path to freedom.  Our trip to Panama will help give us a better idea if we want to move out of the country and, in effect, speed up our path to retirement quite a bit.

If we come back from Panama and decide that it’s not our cup of tea, we then might look at other ways to get out of the rat race sooner.  One idea might be downsizing to a smaller house in our neighborhood… we’ll see!

Then, of course, there’s a big unknown – health care.  Although there will always be some unknowns after leaving a career, this one’s a doozy.  What the current administration does with health care can affect early retirees dramatically.

Regardless, for the time being, we just keep on trucking.  We’ll continue to live a semi-frugal lifestyle, save and invest a ton of dough, and try to enjoy the present without too much angst of not being retired yet.

 

High five with myself on the net worth milestone, but it’s time to get back to work and make the dream happen!

 

Thanks for reading!!

— Jim

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$1 Million Net Worth… Now What?

46 thoughts on “$1 Million Net Worth… Now What?

  • April 4, 2017 at 7:28 am
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    Congrats on this milestone. Can I copy and paste your post a few months from now? 😉
    You have the right attitude because it doesn’t sound like just reaching a million was your goal. Your number goes beyond that but it’s good to celebrate the milestones.

    We’re planning to retire in 2019 and are building our cash allocation to buy a house while continuing to max out our retirement accounts.

    Reply
    • April 4, 2017 at 9:10 am
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      Haha, sounds like I’ll be returning the congrats to you soon! Good luck on your game plan!

      — Jim

      Reply
  • April 4, 2017 at 7:29 am
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    Welcome to the two comma club. Grab your top hat and monacle on the way in. In all seriousness it’s quite an accomplishment to reach a million, but for most people as you pointed out it’s not enough. Is home equity included in the number of are you now an accredited investor?

    Reply
    • April 4, 2017 at 9:23 am
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      Thanks, FTF – home equity of my house and rentals is included in my number, which is another reason why the million isn’t substantial enough for me to call it quits just yet.

      — Jim

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    • April 4, 2017 at 9:25 am
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      The pot does seem to be growing faster, but 2 mill is probably a way’s away for the time being!

      — Jim

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  • April 4, 2017 at 10:43 am
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    Congrats!!!!!!

    I’ve heard the first million is that hardest. 😉

    (Not that I would be even close to knowing. Not even close.)

    Reply
    • April 4, 2017 at 10:56 am
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      Haha, that’s awesome, but thanks, Derek. You’re a hustler though, so I know I’ll be reading your post like this before long! 🙂

      — Jim

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    • April 4, 2017 at 11:14 am
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      Gracias, Gwen! We’ll keep on truckin’ along so we can get out of this rat race!

      — Jim

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  • April 4, 2017 at 2:32 pm
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    Congrats, Woohoo and all that jazz, Jim! We aren’t there yet so I enjoy seeing others who’ve made it! Thanks for sharing.

    I’m curious why Panama? – Sorry if you’ve explained this already…perhaps you’ve got a post to point me too? 🙂

    Reply
      • April 4, 2017 at 3:09 pm
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        Thanks, Amy – glad you found my posts on Panama! Everything we’ve done so far is just by whittling down by what we were looking for, which brought us to Panama. Then we started digging into it more and talking to people that live (or have lived) there. So the next step is to actually go and check it out and see if everything we’ve researched is a bunch of hooey or if it turns out to be what we’re hoping for.

        That’s the easy part… I think actually taking the step to do it will be the hard part (at least for Mrs. R2R!).

        — Jim

        Reply
  • April 4, 2017 at 2:39 pm
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    Congratulations Jim! That’s so awesome. Big milestone. I can see why you are continuing to build the pile but $1 million would go pretty far if you just leave it alone and cover your living expenses for the next 20 years.

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    • April 4, 2017 at 3:15 pm
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      Thanks, Biglaw – it would definitely be able to cover our expenses if it was all money was in our retirement accounts. However, our number includes the equity in our house and our rental properties, so the actual amount of our net worth that we’ll be living off of is less than the full million.

      So, for the time being… I’m stuck continuing to make the donuts for the next few years. **sigh** 🙂

      — Jim

      Reply
  • April 4, 2017 at 3:46 pm
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    That’s awesome Jim, well done!

    Celebrate the small wins (and the big ones). It might have taken 41 years to chalk up the first one, but I bet the second one takes less than 10.

    If your experience is anything like mine has been, things will snowball from here.

    Your outgoings likely won’t change all that much, however the amount of surplus cash thrown off by your portfolio will likely grow ever faster.

    As money makes money, the interval between property purchases will likely reduce with each addition. This in turn lets the magic money making machine you are constructing go even faster.

    Good luck with the second million!

    Reply
    • April 4, 2017 at 4:43 pm
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      Thanks, Slow Dad – I do already see some of that snowball affect. I don’t need a full second million to be able to retire with, but I wouldn’t complain about it either! 🙂

      — Jim

      Reply
  • April 4, 2017 at 3:58 pm
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    Wow that’s an awesome milestone! But like you said, a million bucks just ain’t what it used to be. I feel like $5 million is the new “millionaire”. Just gotta keep working at it. 🙂

    Reply
    • April 4, 2017 at 4:45 pm
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      5 mill would be overkill for me – in fact, 2 mill would be more than I would need, but I’ll take what I can get! 🙂

      — Jim

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  • April 4, 2017 at 4:31 pm
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    Congrats on the million Jim! It feels pretty good doesn’t it?

    Reply
    • April 4, 2017 at 4:46 pm
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      Haha, you’re damn right it does! I just need to keep working my way up to reach baller status like you now! 😉

      — Jim

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  • April 5, 2017 at 4:00 pm
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    Congratulations! Now just keep doing what you’re doing. 🙂
    I felt great when our net worth crossed the million bucks mark too. It’s awesome no matter what the party poopers say.

    Reply
  • April 6, 2017 at 4:23 pm
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    Congrats on the awesome milestone! How cool is that! I hope to one day get to that number as well. We are working hard to get there ourselves and may one day be able to write the same post! Thanks for sharing and inspiring!

    Reply
  • April 10, 2017 at 5:46 pm
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    One million is a great milestone. Congrats.

    But, but, it is kind of true that a million isn’t what it used to be.

    Two million would get us to ~$55k in “income” which would come pretty close to covering expenses with some part time work.

    Getting from one to two is when things will get interesting. 2.5 would be “shangri-la”. 🙂

    Reply
    • April 10, 2017 at 7:42 pm
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      Thanks, Wade – definitely true that a million isn’t what it used to be. However, I’ve found that in our case, we’ll only need around $3,500/month to cover our expenses and actually keep our current lifestyle (including health care). We’ve found that the more we save today, the less we’re actually living on, which is awesome. So, even though we have a mill for our net worth, we just need to get our drawable income up to around a mill and we should be good.

      Good luck to you on the $2-2.5 mill – hitting those numbers would definitely be icing on the cake! 🙂

      — Jim

      Reply
      • April 10, 2017 at 8:05 pm
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        We have ~$1.1 at Vanguard in a 60/40 index fund portfolio. With current yields/rates it spins off about $26k. Stock index funds spin off about 2% (a bit more for international). Int-Term bond funds yield just over 2%.

        So $1 million won’t generate won’t spin off $42k + tax money. You can sell off some of your funds each year (2-3%) is pretty safe. Everything works when stocks are going up. Harder during those 3-4 bear markets.

        The good thing is you have to get to $1 million to get to $2 million. You can also work a little to bridge the gap. Spending is the key. But you also don’t want to be too thrifty. Lots to think about.

        Reply
        • April 10, 2017 at 8:51 pm
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          Wow, those are some awesome numbers you’ve got going, Wade! What really helps to make our plan worthwhile is the rental properties. We have 3 units so far (1 house and 1 duplex) with a plan to add 4 more units (2 more duplexes) over the next 2-3 years. That should help us handle the bear markets a little better.

          You’ve got a great point about being too thrifty. We tend to be naturally frugal on material things, but we focus our money more on experiences like vacations and cruises, camping, and other fun times. The good thing is that we never feel like we’re missing anything, so I think we should be in good shape with our game plan. The bonus is that as our properties get paid off in retirement, the income will increase even more.

          — Jim

          Reply
  • April 11, 2017 at 1:03 pm
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    $1M net worth is amazing! it’s a huge milestone. From this point on, an increase of 10% in your networth is $100K, and it gets easier and easier to earn $100K. LOL 🙂

    Cheers to many more millions to come!

    Reply
    • April 11, 2017 at 2:25 pm
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      Thanks, Vivivanne – now I just need to keep trying to build it up a little more so I can get the heck out of my 9-5! I’m going to follow your lead on making some monumental 10% increases! 🙂

      — Jim

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  • April 11, 2017 at 6:57 pm
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    Congrats on the 1M net worth, that’s an amazing milestone. They say the first 1M is the hardest to make, now time to get to 2M. 🙂

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    • April 17, 2017 at 11:41 am
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      Haha, thanks Michael – with the cost of living being so cheap down there, maybe we’ll feel like multi-millionaires! 😉

      — Jim

      Reply
  • May 27, 2017 at 3:38 am
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    Hi Jim,

    Cograts on reaching this milestone. Does this networth also include your wife as well?

    Ben

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    • May 27, 2017 at 9:15 am
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      Thanks, Ben – great question! Yes, the net worth does include my wife’s finances as well. Definitely another reason why we need to keep going and building up everything further before calling it quits.

      — Jim

      Reply
  • May 30, 2017 at 10:46 pm
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    Congrats on your milestone man!
    We also have 2 rental properties that now cover our monthly expenses. We are $190K shy of hitting that Million mark. After Fincon 16, I started sharing our journey as well with my blog http://www.frugalsafari.com
    Can’t wait to read your Panama trip, as we will spend our early retirement slow traveling overseas…

    Patrick

    Reply
    • May 31, 2017 at 7:55 am
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      Thanks, Patrick – that’s fantastic that your rentals are bringing in enough money to cover your expenses! If our return was that good on the couple we currently have, I’d be calling it quits right now! 🙂 That’s the big reason we’re going to pick up a couple more (as soon as we can find a good deal).

      Panama’s coming up fast, so I’ll share with everyone in the next few weeks! Thanks for coming by!

      — Jim

      Reply
  • June 1, 2017 at 5:00 pm
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    Congrats! That is a great milestone. I like the double comma club, sounds fancy haha. Keep up the good work!

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    • June 1, 2017 at 9:29 pm
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      Thanks, Dividend Daze! It does sound fancy, but all it really does is tell me I’m the right track and to keep moving forward. 🙂

      — Jim

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  • September 3, 2017 at 8:27 am
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    Congratulations!!! Can I just ask you how much money would it be enough for you to fully retire? Sometimes I think I am overoptimistic about my need for money in the future. My goal (for me and my family – husband + 1 son) is actually 900k. But who knows, maybe when I reach it, I double think the fully retirement.. 🙂

    https://piggy-banking.com/

    Reply
    • September 3, 2017 at 9:49 am
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      For us, the $1 mill would probably work just fine, but our plan works without our mortgage in the way. Once we get that paid off (a few more years), we’re home free. 🙂

      — Jim

      Reply

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