How to go from HENRY to wealthy

Apple
tic mook

Go to company page Apple

tic mook
Oct 10, 2021 29 Comments

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.

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TOP 29 Comments
  • Chime
    ctjC46

    Go to company page Chime

    ctjC46
    why do you want $30m?
    Oct 10, 2021 2
    • Apple
      tic mook

      Go to company page Apple

      tic mook
      OP
      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.
      Oct 10, 2021
    • Tableau / Eng
      Avian

      Go to company page Tableau Eng

      Avian
      Think very carefully about how many challenges you handle for your children.
      Oct 10, 2021
  • New
    Fs0ziety

    New

    Fs0ziety
    You’re trying too hard imo. Literally just invest in high growth tech companies, maybe get a promo or two via switching companies and you’ll get there in no time. Don’t make 10 year stock forecasts. Use portfolio margin vs reg t. Leverage at least 20% on stocks
    Oct 10, 2021 3
    • New
      Fs0ziety

      New

      Fs0ziety
      You could copy my portfolio today, but that wouldn’t help you long term. You really need to treat investing as equal or greater to your career skills and put in the work.

      Here’s 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.
      Oct 15, 2021
    • New
      Fs0ziety

      New

      Fs0ziety
      I used to be in HW so yeah that sucks. I’d say focus on investing then for now, but don’t give up on ic6 don’t let someone else’s limitations on what you can achieve turn into your own. I read the wsj every day and I subscribe to seeking alpha. Pro tip don’t obsess over financial reports, real money is made understanding the long term business plan/growth/success. Pro tip for advanced investors. Understand the volatility of tickers and adjust to balance in a way to maximize leverage and returns
      Oct 15, 2021
  • New
    newToThis1

    New

    newToThis1
    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 I’m 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 “next level”
    Oct 10, 2021 7
    • Apple
      tic mook

      Go to company page Apple

      tic mook
      OP
      Hi, I'm interested in the syndications too, mind if I DM? How do the returns compare vs something like crowdfunding? I guess not having an intermediary to take a fat cut helps.

      For your online content, how did the returns vs time compare to your TC from a regular job? Online content/businesses etc. seem such crowded and low entry barrier fields, that it seems almost not worth doing it.

      For your startup gig, how did you vet this, and have you made bank already?
      Oct 10, 2021
    • New
      newToThis1

      New

      newToThis1
      My returns have been pretty good over the past 5 years (averaged 30% with a stddev of 10%) mainly attributed to stringent investment criteria and a great market. You should expect 12% return YoY after taxes and inflation.

      The online content was super time consuming (~1500 hrs over 4-5 months which meant I had to quit my job). Now it provides enough passive income for me to not have to work - though it’d take roughly 20 years not working to hit 20M when including real estate returns.

      Since I didn’t want a 20 year wait, I looked to startups. I vet them the same way I vet my investments (in fact, I wanted initially to invest in them but when they said no I decided to work for them instead). Basically I look at their integrity, annual recurring revenue, operational expenses, financing expenses, sales cycle, retention, pipeline value, runway, current investors, market size, and obviously a clear way for me to add substantial value. No exit yet, it should take a few years.
      Oct 10, 2021
  • You are both so lucky

    700k and a child wow

    I wish I had your life
    Oct 10, 2021 4
  • Google
    agunx

    Go to company page Google

    agunx
    3M isn't a nest egg, it was FU money 10 years ago. Agree with ^
    Oct 10, 2021 1