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I will retire at 56 (7 years from now) from mid-tier firm and my projections have me with around $12 million net worth. I won’t have any debt, fully paid or funded college for 3 kids, and a mix of real estate, retirement funds/benefits, and brokerage assets. I started with no inheritance, a little college debt, and we have lived on 1 income since age 30 when we had our kids. Nothing extreme on savings or investing other than maxing 401k and early investing when I started work; I pay cash for everything except the mortgage, which is almost gone. I don’t consider that significant wealth at all, but comfortable and I expect others can do far better with more aggressive investing, 2 incomes, and/or working longer. Those are my numbers.
Did your firm recently sell out to PE? And no, they won’t do better because we’ve just lived through a once in a lifetime asset boom that will absolutely not repeat. Forecasted long term real returns are less than 2% in equities and housing has no where to go but sideways or inflation.
So much you don’t have to ask or worry but secretly love investments that generate passive income. But you just know you are comfortable.
I assume a lot of people in accounting are comfortable when they retire.
Numbers would help. “A lot of wealth” and “comfortable” could be very different or very similar, and very different for different people. If you have numbers or some other quantitative factor for what that means to you, maybe you could get a somewhat reasonable answer…
The only people that do are either partners or just people who live at home. The one commonality for any early retirement person is typically that they lived at home for about five years or bought a house before 2020. People like to make it sound more complicated, but that’s it.
Uhh what? 2020 was 5 years ago. There are many people who have bought houses since then who will retire early. There are also many people who didn’t ’live at home for about five years’ that will as well. Where did this comment come from ??
What do you consider a lot of wealth?
I have no idea how one defines a lot of wealth but with pension from a prior firm, large 401k (since rolled to an IRA), paid off home and reasonable but not extravagant lifestyle all models suggest that we should make it to our 90’s and have plenty leftover. Now that is no guarantee this will happen but I never envisioned this level of security even 10-15 years ago.
Again, it all depends on how you define wealth. My neighbors all have bigger homes and often a second one. But we do live nicely and it’s all because of being in this profession.
Tax cpa firms, but only a few. There’s this one guy that made millions giving tax advice via social media and he’s not even a cpa.
Accounting is never the answer if you want to make wealth or get rich. People here are for stability. You can afford to buy a co op in HCOL at 50 or close to retirement but you will never be able to drive a 911 turbo s or live in a big house in good HCOL neighborhoods