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Decided to payoff my mortgage.
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Mentor
1 - Very few… but it’s not from a lack of trying… the math just doesn’t work… if you graduate at 22 and take a role paying $60K, you wouldn’t have even earned $1M by 30… if they are able to, they’re very high income, which is rare for someone under 30… and I wouldn’t consider being successful, if your 30, have $1M invested and live at home with mom & dad…
2 - All of your assets are considered a part of your net worth… you can omit certain things if you deem them to be worthless… most of my clients omit their cars unless they have a LaFerrari, that should be included… there’s no law thst says you can’t touch your retirement accounts before age 59.5… is there a penalty on the gains? Yes… but it’s manageable… and if you have Roth assets, you can take your contributions at any time tax free…
I’m sure there’s things that I’m missing, but quick thought…
You can also do a Roth conversion ladder to get access to 401ks earlier
I’m continually amazed at the amount of people in this bowl who don’t know how to access retirement funds penalty free prior to 59.
Or rule of 55, or 72(t)
Subject Expert
Approximately 4% of US households headed by someone between 30 and 34 have a net worth of over $1 million. It's not common at all. And many of those will be from inheritances.
Ages 40-44? 13%.
50-54? 23%.
60-64? 28%.
Where did you get these figures? Much lower if you look at retirement savings. So you live in a $600k home and your cars and savings give another $400k. That’s not going to fund a healthy retirement unless you are moving in with your kids!
Like 1% ?
Honestly I think a lot of people in their 20s are in survival mode. Trying to get out of debt, trying to learn personal finance that they were never taught in school. The amount of people who actually achieve $1,000,000 x 30 is pretty low, but I think a lot of people catch up in their 30s.
#1 is not impossible but you need a pretty high salary & savings rate, which is not always doable in your 20s - I hit $1M at 30 with avg salary of $350k/yr for a few years before that and post-tax savings rate of about 85%.
When you say liquid.. do you mean liquid or non-retirement?
We (married couple) justtt crossed $1m in my brokerage at 32 years old but have a 2.2M net worth overall (200k house, rest is retirement/cash)
Mentor
1. Maybe 0.5% ...I know I didn't but hit $2m before 40, and retired.
2. JFC. We are still talking about this
https://www.madfientist.com/how-to-access-retirement-funds-early/
My household did it at 33/36.
That’s not an estímate
Like 1% ?
I did at 31
0% of people who are me because it took me until 31 😭
I’d be curious on the stat also. I disagree with others that it’s only a few %. Anyone thinking about FIRE is likely already in the top % of earners & I’ve always heard 1M by 30 as a common goal for this circle. Acknowledge for the avg person this is very difficult, if you work in finance/consulting/tech for top companies it’s an achievable goal.
FYI back door Roth / conversion ladder allows you to access 401k and IRA funds early. No penalty
Can you explain how?? I am very curious.