You probably be wondering how easy is it to be a millionaire in the United States. If you have been on Reddit long enough, you would have been overwhelmed by new threads started on folks seeking help getting out of debt.
Its refreshing to find one that shares how folks build their net worth to more than a million dollars. You can read the thread and full comments here.
With a lax monetary policy, 1 mil is not a hard target. However, what you will notice is that many of them are very young.
They do have some commonality:
- They make less mistakes than most. You don’t have to be an exceptional player. Some of them don’t even invest. They just do less stupid things with their money
- They have a propensity to save
The frugal salesman
You don’t have to be a great investor to build crazy wealth. Sometimes you just have to be good at your job.
Diverting 100% of paycheck into stocks
This looks risky. Diverting an entire paycheck to his brokerage account. I doubt he can do it from the onset but he did achieve the million networth at age 35.
The clear record keeper
Here is a person who keeps such clear records (and spends some effort presenting it in this table, which I felt is hard to come up with)
A person who admits he is not a good active manager, but have successfully hedge his incompetence with index investing.
The young property man
This guy is just good that he bought the property at the best time in US. However, he got started with some help from an inheritance.
The welder with a worthy land
This kid (22 years old) works as a pipeline welder. That pays damn well! Even discounting the farmland, its still a lot of money for a 22 year old!
Oldest in the group
This is probably the guy with the longest running record (30 years). So what did he invest in?
Currently? I’m at Fidelity now. But I’ve used E*Trade and Vanguard directly, and had 401ks at various providers via work. Also used A.G. Edwards, but they are long gone. In 2010 there was a lump sump pension payout.
DAL – Delta Airlines
DTE – Detroit Edison
IVV – iShares Core S&P 500
IJJ – iShares S&P Mid Cap 400 Value
IJR – iShares S&P Small Cap
VGK -Vanguard FTSE Europe
XLV – Health Care Select Sector
FBALX – Fidelity Balanced
FTRNX – Fidelity Trend (large growth)
HRSVX – Heartland Select Value Fund Investor Class Shs (mid value)
JATTX – Janus Triton Fund T Shares (small growth)
NHFIX- Northern High Yield Fixed Income Fund (junk bonds)
OAKIX – Oakmark International Fund Cl I
PONDX – PIMCO Income Fund Class D
I’ve held probably 100+ stocks/funds over the years. 3-4 don’t even exist any more and 2 went bankrupt while I held positions. The kick start probably was Dell. I bought about 18 months after they went public and sold just before the dot.com bubble burst (adjusted cost was $6/shr, sold at $50+). That got my seed money going.
But I started saving in IRA the 2nd year they were available, and 401ks the very first year. Every time I got a raise 1/2 went to savings. For many years we were saving 50% of our pre-tax income.
I’ve not had a mortgage or car payments since 2006.
The engineer with much stock options
This is what being paid with options can get you. A lot of lottery chances, some failures some turned out really good.
The one whose wealth is much tied up in a business
Saturday 22nd of March 2014
Very interesting! I guess there would be many such people in SG too. Maybe by flipping properties lol.
Sunday 23rd of March 2014
Hi Jomel, definitely. Wonder if you encounter such cases in your social circle