Interim Retirement Nestegg Report – I broke $500,000

Interim Retirement Nestegg Report – I broke $500,000

Well it took a little longer than last time, but compound interest is still working its magic with my retirement nestegg. Today I officially broke through the $500,000 mark for the first time. This milestone came 14 months after the $400k milestone which was actually slower than it took to go from $300k to $400k, but this market is not exactly the magical market that existed in 2013.

The more I update those tables below the more I question why I used a stupid metric like the DOW as an indicator, I think the only reason I chose it was because of the nice symmetry for when I first broke through $100k and the DOW also being at exactly 10,000 – anyway you get the idea that my nestegg is growing faster than the ridiculously dumb and outdated DOW index 🙂

I also broke through another milestone this month – my wife and I had our 5th kid! While this certainly won’t help me financially I think it carries some weight to the fact that you can’t use kids as an excuse as to why you are not achieving your financial goals/dreams. 5 kids and 1 income have worked out just fine for me to reach $500k in retirement assets at age 35 – and I am hardly hardcore when it comes to being frugal – though I’m also not a moron generally when it comes to spending money either. So it’s been a nice balance I’ve been able to work out.

Taxable Account – $17,678.94
Traditional Rollover IRA – $37,561.08
My Roth IRA – $133,790.44
Wife Roth IRA – $77,432.67
Traditional 401k – $236,145.41

Total Retirement Nestegg – $502,617.54

$100,000 NestEgg Milestones

Date DOW Jones Value MFJ Nestegg
Oct 2008 10,000 $ 69,300
Oct 2009 10,000 (+0%) $100,000 (+44%)
Feb 2012 13,000 (+30%) $200,000 (+100%)
Jul 2013 15,423 (+19%) $300,000 (+50%)
Feb 2014 16,395.88 (+6.3%) $400,000 (+33%)
April 2015 18,084.48 (+10.30%) $500,000 (+25%)
  • Well done cracking that number! Its just another milestone, but its a big one. Keep going strong!

  • Stan Jones

    “I think it carries some weight to the fact that you can’t use kids as an excuse as to why you are not achieving your financial goals/dreams. 5 kids and 1 income have worked out just fine for me to reach $500k ”
    That statement lacks a bit of perspective, doesn’t it? I’m sure your total compensation package puts you above the 10% of all income earners in the country.

  • MFJ

    Hi Stan –

    I don’t know where I stand as far as compensation, but I doubt it puts me in the top 10%. Yes I make just over 6 figures now, but the vast majority of this nestegg was saved when I made less than $60k per year. I started out making $45k per year and 3 years later before I switched jobs I was making a whopping $47k. New job got me up to $57k and 3 years later I switched and got to $73k. Compare to most couples who likely have two incomes I am guessing this puts me more in the average compensation are vs top 10%.

    Where I am probably in the top 10% is in spending or lack there of. It’s not what you make, but what you save. Here is an example from 2006 that gives a good idea of where we allocated my income http://myfinancialjourney.com/archive/what-percentage-of-your-income-to-do-you-live-on

    Less than $8k of discretionary spending (food, diapers, etc) and over $33k of retirement savings.

  • MFJ

    Thanks!

  • Stan Jones

    I guess I’m having a difficult time reconciling your salary history with the hundreds of thousands needed to save for the home building and retirement. Your wife must have worked earlier and your employer must have a good bonus program that you are not including with your wage number.

  • MFJ

    My wife has worked one year as a teacher at $30k, my employer does have a good bonus program and I have probably averaged 15% bonuses over the years. So yes the last 8 years my base salary is probably understated by that amount

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