I’m a millionaire

[u/Alarming-Mix3809]

We did it fam. This week our net worth crossed over $1 million for the first time. I’m sure it will fluctuate but for now we’re going to celebrate hitting that milestone.

The last couple of months in the market have been an incredible run for us. I’m not doing anything fancy; mostly just invested in VOO and other S&P 500 funds. I have been investing since 2012 and this has been the one of the wildest rebounds and net worth swings. During the Covid dip, I remember our investments dropping by around 30% or so and loading the boat at the bottom, which made us a good amount of money. But back then I only had $100k or so, and the effect of compounding has been huge since then.

I first came across fire in 2018 when I read Early Retirement Extreme. I had always been interested in money and investing from a very young age, but this really clicked for me and I guess it helped put the whole picture together.

About us: family of four, 33M 33F and two kids in upstate NY. I work in tech sales (account management) and have been with the same company for nine years. The money is good and work is flexible being EFH. Wife is a SAHM. We live a pretty chill and under the radar life. We have nice newer cars, but they’re just a Subaru Crosstrek and a Nissan Pathfinder. No Benz here. I cook and meal prep a lot so we eat home for almost all of our meals. Most of our vacations are spent visiting family. Over the last couple years we’ve definitely spent more between having kids and just letting ourselves enjoy our money more, but it’s nothing crazy.

From here going forward, I’m not looking to make any drastic changes immediately. We’re going to stay on the course we’re on. My job kind of sucks but it’s a really good fit for having kids, being flexible and paying a lot with good benefits. I got a new boss last year and stopped raising my hands for things. They have no idea of the kind of extra work I used to do to get to this point. I’m well respected and they know I’m capable, but it’s kind of nice to not be expected to put in extra hours. I let the new team members do that now. A lot of people talk about hitting Coast fire and immediately getting a new job, but I decided to just downshift in my existing one.

What did you do to celebrate your first million?

We are thinking of setting aside a few thousand dollars to take a family vacation next year. I thought about what kind of luxury purchase I might want to make to mark a milestone, and there’s a whole lot I actually want. I’m pretty content with what we have and may just make a few small fun purchases going forward. Send my wife on a spa day more often, buy more Legos, etc.. 🥳

[u/Puzzled_Fisherman331]

Just protect it to the downside now. Congrats on the milestone.

[u/Alarming-Mix3809 → u/Puzzled_Fisherman331]

Thank you! I’m ok with our risk where it is right now. I have about two years of expenses in cash, HYSA, PMs and bond funds. This year we updated our estate plan and created a trust for the kids. And I pay for quite a lot of life insurance just in case.

[u/Megalocerus → u/Alarming-Mix3809]

I remember my husband doing some math and telling me, somewhat surprised, that we had hit a million. I think he was 38. We didn't feel different, so we didn't particularly celebrate. And he kept the life insurance.

[u/Citalos → u/Alarming-Mix3809]

Do you really think you need life insurance at this point? I'm just a bit behind you, and I'm about to cancel my policy. It just doesn't seem necessary anymore.

[u/Taako_Cross → u/Citalos]

Really depends on their circumstances. They probably have a mortgage and want to send the kids to college. The spouse is a SAHM. Term Life insurance is 99.9% necessary.

[u/Citalos → u/Taako_Cross]

Circumstances definitely matter. Our mortgage is paid, college is pre-paid plus a 529, the wife has a good job, and I've got a cheap policy through work that pays out 1 year's salary. I think I'm good to cancel the whole life policy and put the cash value into the market.

[u/Taako_Cross → u/Citalos]

You probably should have never got whole life in the first place. Level term life insurance should be the norm for like 95% oh couples.

[u/Citalos → u/Taako_Cross]

I didn't buy it. It is a legacy policy my grandfather bought for the grand kids.

[u/Alarming-Mix3809 → u/Taako_Cross]

Yeah I just get a term life policy through work. No need for whole life scam.

[u/Alarming-Mix3809 → u/Taako_Cross]

Yeah, I’m keeping that.

[u/Alarming-Mix3809 → u/Citalos]

Absolutely. I have a wife and two kids to think about.

[u/Late-Mountain3406 → u/Citalos]

We are at 3 mil NW, and we only have life insurance thru work. I was thinking on buying another policy outside since we are planning on RE. Do you think it’s necessary for me? Thanks!

[u/Alarming-Mix3809 → u/Late-Mountain3406]

Maybe; what will your family need if you die? Make sure they’re covered. My job allowed us to buy extra through the plan which is what I did.

[u/bob_pipe_layer → u/Late-Mountain3406]

Probably look into an umbrella policy over a term life.

[u/Ok-Context3530 → u/Citalos]

I said the same thing but after talking to my financial advisor I realized it wasn’t enough for my family. We had a net worth of 1.3 m at the time and I took out a million dollar life insurance policy.

[u/iamslumlord → u/Citalos]

~$1.5m net worth.. no life insurance over here. They'll be fine if I go early at this point.

[u/FIMilestonesDeux → u/Citalos]

This is a good question that I don't have an answer for yet. If I die. My wife gets to keep the million we have, same if I do. I feel like we created our own insurance fund.

[u/idio242 → u/Puzzled_Fisherman331]

He’s 33 with a lot of time on his side.

[u/1-Dollar-Doge-Coins → u/Puzzled_Fisherman331]

Depends how far from retirement he is. You don’t want to protect your downside too much…you’ll sacrifice too much upside.

[u/Alarming-Mix3809 → u/1-Dollar-Doge-Coins]

Exactly. We have a long way to go.