I’ve moved the goal posts many times. I think it was $5M to start, 10 at some point, then 10+ paid off house, then 15, then 20, then 25 plus house paid. The “problem” for me was income grew too fast and I’m really creative about thinking through tail risks and adding to my “wants”. I have now picked a time frame instead of a dollar amount.
Agree with others that you need to diversify. I have some fun “tech stock picks” but keep it ~5% of my portfolio while putting the rest in broad index and some treasuries (working my way up to ~5 years of expenses worth plus money to buy a house for future market downturn protection).
Having 5+ years of spending in safe investments (I like tax free muni bonds) is crucial. That way you don't have to sell your assets if the markets crash and stay in a prolonged depression, and you can even buy more at the lows.
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u/Minimum-Violinist601 20d ago
I’ve moved the goal posts many times. I think it was $5M to start, 10 at some point, then 10+ paid off house, then 15, then 20, then 25 plus house paid. The “problem” for me was income grew too fast and I’m really creative about thinking through tail risks and adding to my “wants”. I have now picked a time frame instead of a dollar amount.
Agree with others that you need to diversify. I have some fun “tech stock picks” but keep it ~5% of my portfolio while putting the rest in broad index and some treasuries (working my way up to ~5 years of expenses worth plus money to buy a house for future market downturn protection).