Over the past few years, thanks to good spending habits, career progression, RSU apperication and the Fed printer, we've managed to save a decent sized nest egg of about $3M. At the same time, the techniques we used to get here are fundamentally no different from regular wage earners (before someone calls me ungrateful/entitled, I do appericate how incredibly lucky/privileged I am). Currently most of our assets are in a mix of RSUs/ETFs/equity in our home/crypto/401k. I feel to 10x in the next decade from here, the same techniques wouldn't work (as the chances of realistically getting to something like VP don't seem great, plus stocks may not keep up the gains from the past decade). What are some ways to move the needle significantly from here? The only things which come to my mind are joining/investing in a startup (perhaps starting something of my own, but I'm not sure if that's my calling), using leverage to build a real estate portfolio (I'm probably to poor to do this in a top markets like Bay Area, but can get something decent in LCOL markets). But using leverage in this late stage of the economic cycle seems risky too. What are some other ways to achieve this kind of growth? Not looking for WSB yolo kind of ideas (I have too much of an average luck to have my meme stonk pick 100x). TC: Me 400k, wife 300k NW: 3M Age: 29, 29, and 1yo kid EDIT: 30M is a ball park number, I really mean an order of magnitude increase from where I am, rationale in comments below.
why do you want $30m?
30M is just a ballpark, mean an order of magnitude increase from here. Primarily to have the freedom to do whatever I want and pursue a good lifestyle, while still not compromising my kid's access to excellent resources and ability to pursue whatever they wish. Don't want kids to be riddled with student debt and be wage slaves like me thinking about money. Plan to have 1 more, maybe 2 more kids. 3M isn't much with 2-3 kids. 3M also doesn't feel much when you fly 10+ hours in coach on long duration flights, and business class fares are a non-trivial fraction of your NW.
Think very carefully about how many challenges you handle for your children.
3M isn't a nest egg, it was FU money 10 years ago. Agree with ^
Please see my reply to the comment above. 3M isn't FU money anymore I think.
You are both so lucky 700k and a child wow I wish I had your life
Thank you! I have been incredibly blessed to be in the right place at the right time, both in career and personal life đ That also makes me a bit insecure and want to step up the game as luck may run out...
Just keep saving! Donât live like a rich king if you can. Good luck.
I did a few things: 1) got into real estate syndications (great tax benefits, reduced risk, increased diversification, almost no work) about 5 years ago, now Iâm in over a dozen properties across the world. This pays for new investments. 2) Created online content and partnered with someone who knows how to market. This buys my lifestyle. 3) With investments and lifestyle taken care of, I jumped off the faang ship and got into an early stage startup that has enterprise clients, distinguished investors, a clear technical problem inhibiting their growth (that I can solve), and a clear value add that a 5 yo could explain to me in a few sentences. This is a risk with the potential of reaching the ânext levelâ
Where do you find these real estate investments
I met a civil engineer for Seattle and he told me he was moving to Hawaii to retire. I was surprised since he couldnât have been 35 yet. Turns out he was into real estate and I begged him to mentor me. From those deals, I met more and more people - now Iâm at 15 total deals.
You may have a good rationale for 30M, but if it's just a number really sit down and think about what you actually need. Don't waste your prime years in a high stress startup unless that's what you want to do for the love of the challenge.
Why? Isn't DB doing great? I heard people there are working with stress but it will pay off soon
Be a HENRY for many years, then you will be HER
In 'many years' due to Fed printing, a few million won't be rich anymore.
With 400k TC, how much were you able to save in 4 yrs ? it will give others ideas on how long it will take to reach 3 M.
They have a 700k household TC.
Our NW has mostly increased from 2019. We hit a million in early/mid 2019. I didn't sell most of my AAPL so the stellar returns on that have helped. My wife's TC was lower, around 170k, she hopped job recently so the TC increase. The first million was the hardest and the longest, subsequent have been easy (in no small part due to the game being rigged by the Fed in the last couple of years)
Youâre trying too hard imo. Literally just invest in high growth tech companies, maybe get a promo or two via switching companies and youâll get there in no time. Donât make 10 year stock forecasts. Use portfolio margin vs reg t. Leverage at least 20% on stocks
1) How do you find/screen these tech companies? pre-IPO or public? What if tech lags, given the outsized returns in the last decade? 2) Reading up on portfolio margin now, I don't know what it is. I am like at 5% margin right now, hesitant to go in more. When you margin up on stock, does that mean you keep zero cash (except maybe 10-20k for immediate expenses) Otherwise doesn't make sense to keep cash and pay margin fees. 3) Career/TC growth seems difficult, I'm in HW and already at Staff/ICT5 at Apple (and am told ICT6 is a unicorn). Guess I need to step up the management game and jump somewhere else as a director after being manager for few years at Apple. Seems like a 5-10y project. Wife is still non-senior/L4 and in SW, so probably has more upside in the career game then me.
You could copy my portfolio today, but that wouldnât help you long term. You really need to treat investing as equal or greater to your career skills and put in the work. Hereâs some of my top tickers to inspire your journey that alone should be enough to enjoy above qqq returns. Amzn. Nvidia, Vicr. Shop. Se. Ma. Cdns. V. Msft. Adbe.