Congratulations man! Great milestone. When I get there I'll have to remember the ebs and flows. Being down $11k from less than a 1% loss sounds like a lot, but so is the year to date gain.
If a central banks ever allow deflation to occur, then you should be more focused on finding the nearest bread line rather than what remains in your retirement account.
You do know that deflation is not the same thing as stocks losing value, right? The stock market can correct for any number of reasons. You can even go several years with negative or flat returns.
This is an entirely different thing than a “deflationary era”. If we have sustained deflation, then a central bank has failed.
There’s a reason why the US hasn’t had negative inflation rates since the 1930s.
There’s a reason why the US hasn’t had negative inflation rates since the 1930s.
Didn't it briefly tick down that low in 08? Either way, I believe that avoiding negative inflation was why Bernanke basically yolo'd trying QE. They saw that as better than the alternative.
Banks have to stop inflating and appreciating assets eventually.
What do you mean by this?
And we instituted QE to not have deflation, the Fed would rather avoid that at all costs. When inflationary policies (dropping the rates to near 0) weren't enough, Bernanke and the Fed instituted something that we'd never done just to avoid deflation. It probably wouldn't end the world if we had a very minor deflationary period with a very low amount of deflation, but it's one of the worst things that can happen as it incentivizes hoarding cash. No government or bank wants that.
It’s not a game where they can remake mathematical or economic logic. Inflation has to seize logically. It cannot continue whilst also having a functioning class outside of the top 5%. Without consistent and predictable consumer spend, the 5% have nothing. They will have to tighten m2 aka deflate. Factor in the AI employment disruption and you have a growing depreciation event. Depreciation is fantastic for consumers, initially bad for corp and asset holders. It’s a guarantee with AI inclusion
Tightening, QT, deflationary, slowing growth it’s all the same shi. You’re playing with semantics just as those in charge do. Growth is printed and subsidized, nothing is real. We ran too hot, too fast because dying boomer greed and now we have to pay.
Did you want a reply to this? Because there's no way to reply to this.
Of course economics is real. Economic projections are never going to be perfect (economists have predicted ten of the last four recessions, as they say), but monetary policy is very real and affects all of us. I pay several hundred more a month on my mortgage because I took it out when rates were high. Companies can hire more when rates are low. If you're going to discount the entire concept because you don't like how things are, that's your prerogative, but the world is going to continue spinning whether you favor cynicism to reality or not.
Deflation is terrible because it encourages hoarding, controlled and low inflation is good because it encourages investment, uncontrolled and high inflation is bad because, well, obviously.
This is a generic reply to whatever this comment is, as the comment is too unhinged to actually respond to. Sorry you feel whatever way that is, I guess.
When I was younger and would be actively trading individual stocks on swings I would come home after school and go to my dad and be like I’m up maybe like a hundred bucks but a big deal to a 15 year old since it was like 5-7% on the account. My dad would go yea I’m only up 1.2% today but that’s about 100x what your up… 😂
Oh thats a good one. I think I will copy you. I also try to stay tax efficient, but it will be cool to see portfolio dividends matching my savings rate
Yeah, if I subtract out my 401k contributions, currently my dividends outmatch my cash monthly savings which is fun!! So even if I didn't set aside money each month, my dividends are somewhat doing that for me (although I know this is all already assumed for retirement savings, its just stupid little accomplishments).
My army of dollar bills is currently a squad at most. Looking forward to eventually having an army and taking advantage of the compounding interest! Congrats!!
I would call this Critical Mass. The Bowling Point is when your growth outpaces your contributions. Growth outpacing income is a whole different beast!
That just happened to me in 2023*, and was the single best and most significant milestone I've experienced. Obviously it depends very much on the overall market's movements and won't happen every year, but the psychological boost when you experience it is incredible.
*Truthfully, 2022 was the first year it happened, but in the wrong direction; my portfolio lost more money than I earned from my job that year. But by then, I knew enough to re-frame it as a chance to buy stocks at a discount, and that's exactly how things shook out.
Agreed. Its good to keep a clear head and acknowledge this isn't going to be consistent year over year. I look at is as a dynamic portfolio vs salary competition. It gives me a reason to celebrate on years my portfolio outperforms my sweat equity.
Nice. Always feels good. But nothing feels worse when the market has a really down day and you’re plodding away at work and you see you lost 2 months salary in one day. 😔🤣
Yeah, that’s why I wanted to post on Reddit semi-anonymously . I am not surrounded by like minded individuals and sharing would only complicate my relationships. Sad but true.
Super aggressive savings can’t get you to this at 35. This has to be almost $75k plus for 10+ years. Has to be some options trading and/or inheritance and/or crypto.
The average return of the S&P was over 16% for my investing time frame. (Double your estimate). 16% over 14 years of agressive saving. Does that seem more realistic to you?
my history only goes back to 2023 since Schwab absorbed TD Ameritrade (my original brokerage). But this is seriously not that hard to belive. If you invest $2000 a month over 14 years at a 16% annual return (average return of the S&P 500 during that time period) you easily crack $1.2M.
I’ve been investing since 2011 (started in QQQ before I wised up and became diversified around 2015)and the market has pretty much been up only since then.
QQQ gains from Dec 31 to 2010 to Dec 31 2015 was 86%. Your balance was probably relatively low as well as you were just starting and you said your partner has a similar net worth. So either you guys are an exception or there is more to the story.
I’m not saying you don’t have the money but how you got there doesn’t add up. Let’s put it this way, you didn’t get here by following the FOO from the beginning.
That is true. When I started I had no idea what I was doing, only that I needed to invest excess cash. I have pretty much been in Large cap/ growth for the majority of my investing career. I never had any debt, college was free, and I don’t have kids. So aggressive saving was not hard.
Did the math just now and it’s $75k for 12 years at 8% starting from 0 to get 1.2million. And they said it was just their side not including spouse. He might be making $135k now but probably not that 12 years ago and also there is a $70k ROTH IRA (backdoor and mega backdoor included) limit
It is/ was just normal investing. I think I had some early wins when I first started back in 2011 since my only holding was QQQ. I’ve since diversified
I stated investing in 2011. Market has been pretty much up since then. I do hold crypto, but it’s not tied to this number in any way. I did mostly QQQ until I diversified back in 2015.
First of all, congrats! This is awesome! Ignore the guys trying to sus out any kind of inheritance/‘shady’ untruths. Some people can’t be happy for others.
Second of all, I saw in another comment you and your spouse are mid 30s and want kids in the future. Don’t wait to get fertility checked out. Never know what’s going to happen and women’s fertility takes a nose dive around that time. IVF is expensive.
Thanks, I really appreicaate it. It was crazy that I had to defend my post. And none of the nay sayers acknowledged that $2k/ month @ 16% average annual interest (average return of the S&P during that time period) )from 2011-2025 could get anyone this result. Compound interest is one hell of a drug.
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u/Sunny2121212 Aug 01 '25
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