Practical strats for ramping NW

iHeartMedia / Product
needthewlb

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PRE
Electronic Arts (EA), U.S. Army
 needthewlb
Nov 1, 2021 11 Comments

What are your practical strategies for really ramping up net worth?

Almost 30 and feel like I’m making 🥜, especially according to Blind. Calculating my FIRE number and I’m at about 2-2.5M 🥲

TC: 120
YoE: 3 in product; 2 in qa (not dev)

Current NW about 280k:
- 40k in 401k
- 20k in cash/fluid
- 10k in investments via Robinhood, E*Trade, and Acorns
- 10k in car
- 200k in house

#personalfinance #investments

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  • New
    TVSE42

    New

    TVSE42
    Contrary to what lot of ppl think, net worth is not highly correlated to TC. Ppl make $90k a year in average jobs and have net worth more than $1M after 10 years of starting work It's about consistent investment, dollar cost averaging and taking some high risk bets.

    Lot of ppl also think they are "investing" in house, but your primary residence is not really an investment. There are tonnes of maintainance costs, property taxes, HOA and hidden fees. The best investment is where you passively invest in digital assets and let it grow over time. Also keep reinvesting the dividends, . This strategy shouldn't change whether it's a bull or bear market
    Nov 1, 2021 3
  • That FIRE number is too low, have you looked at how you will cover medical without a job? Look at compound interest and FV formula. It comes sooner… hopefully… slow and steady index investing does it
    Nov 1, 2021 3
  • iHeartMedia / Product
    needthewlb

    Go to company page iHeartMedia Product

    PRE
    Electronic Arts (EA), U.S. Army
     needthewlb
    OP
    New to the idea of FIRE number so I looked up how to calculate. Two methods I saw were Annual Expenses*25, and Annual Expenses/.03.

    I rounded my monthly expenses up for buffer, and the high end of those calcs came to 2.2. Maybe I was still being a bit too conservative. At this point it seems all so far away the different between 2.2 and 3 is nothing.

    Also, I’m shooting more for FI than RE. I don’t think I’d be able to completely retire, so I’m sure I’ll have some sort of side thing going on, too.
    Nov 1, 2021 2
    • The annual expense *25 is for a 25-30 year retirement and is for a 65 year old!
      Nov 1, 2021
    • Max your 401k, then Roth, then a healthy amount of take home income into boring boring funds, maybe some into risky assets, and keep growing your TC. L

      If you’re only interested in FI and want to retire at 60~, then the annual expenses * 25 is probably a fair way to estimate. I think that targets people retiring at average retirement age like KLA said. But definitely aim to overshoot. Not sure if you’ve already factored it in, but with 2% inflation $100k in 2045 is like $60k today.
      Nov 1, 2021