Net Worth at age 55

[aneftp]

I didn't have $10 million by age 55 because of the lost decade which had low returns. But, in terms of 2024 dollars I did have 10 million at age 55 as inflation is more than 18% the past 2 years. Anyway, my point is a diversified portfolio helps weather the storm which can happen again.

View attachment 384778

Blade is correct. The peak Jan 1 2000 (AOL -Time Warner merger). So u young kids out there. That was the peak of the internet bubble.

The stock market subsequently went down 40% over the next 20 months (include the devasting 9/11 attacks sent stock market in another spiral)

While it rebounded slowly and kept going up to 2007. Than 2008 happened

Basically a lost decade of returns as blade mentions

That’s why I caution those who have only been in the market since 2016. U don’t know what a true market crash and slow climb is yet. It will happen again. We just don’t know when.

---

Members don't see this ad.

 

[GravelRider]

It's funny how this thread has evolved.
How many times have we read or indeed posted our disdain of boomers selling their nickle bought house for millions...

Well now here we are. S&P at all time high, great growth years, anything purchased in the early covid Era is up 30 to 40%. Highest income ever in our field and only going higher yearly with an enormous shortage of gas men and women and the population of old and infirm literally exploding, all needing hips, knees bypass etc etc etc

Is this last few years the greatest time ever to just buy and hold. 0.9% mortgage rate anyone? Will that ever happen again or before in the history of the world?

What will they call us in decades to come... covid boomer?

It’s not the highest income ever in our field. The current salaries for employed anesthesiologists have grown significantly compared the recent bad years of our specialty from 2010 to 2018. However, those salaries are still significantly less than the earning potential of a private practice anesthesiologist in the early 2000s. That doesn’t even account for the potential windfall for selling your practice to private equity. You were still better off starting your career in 2004 compared to 2024.

 

[aneftp]

It’s not the highest income ever in our field. The current salaries for employed anesthesiologists have grown significantly compared the recent bad years of our specialty from 2010 to 2018. However, those salaries are still significantly less than the earning potential of a private practice anesthesiologist in the early 2000s. That doesn’t even account for the potential windfall for selling your practice to private equity. You were still better off starting your career in 2004 compared to 2024.

Depends which area of the country in 2004.

Yes many practices in big cities still had 3-5 year partnership tracks available. But they quickly started to get stingy by 2007/2008. That’s when the corporations started by up practices.

However I disagree. 2024 is a great time to start ur practice. Guaranteed 500k in most practices for new grads with calls and call incentives. Most new grads started in 200/220k range in 2004 even adjusting for inflation. It’s better to start in 2024. Than 2004.

As in life. It’s all about timing

Those who got out between 2010-2018 didn’t have good job markets. I still have an old email from 2014 wanting me to do 5p-7am Friday night call.
7p-7am Saturday night call. 7p-7am Sunday night call for 240k! They wanted me to cover 20 weekends like that.

Fair enough. If that was just it. 240k I would think was decent.

But no.

For the same included 240k. They wanted me to still cover 40 more hours in the other 25 weeks 7-5 or 7-3

So I’m like. Let me get this straight. U want me to cover 40% of the entire weekends for the year overnight at busy ob place with more than 10k deliveries a year. Where there is zero sleep.

Than u want me to work more on top of that for another 25 more weeks.

That’s how ridiculous the buyout of practices became. The seniors parents who all
Made 2-3 million each were immediately trying to scam people to doing all the weekend work for them.

 

[GravelRider]

Blade is correct. The peak Jan 1 2000 (AOL -Time Warner merger). So u young kids out there. That was the peak of the internet bubble.

The stock market subsequently went down 40% over the next 20 months (include the devasting 9/11 attacks sent stock market in another spiral)

While it rebounded slowly and kept going up to 2007. Than 2008 happened

Basically a lost decade of returns as blade mentions

That’s why I caution those who have only been in the market since 2016. U don’t know what a true market crash and slow climb is yet. It will happen again. We just don’t know when.

“Lost decade” depends on your vantage point. There was record growth in the s&p 500 in the 1990s leading up to that “lost decade.” Sure, if you started investing in 1998, it seems like a “lost decade.” If you started before, it was barely a blip.

Most “boglehead-y” investing advice assumes a 30 year investing horizon where those “lost decades” shouldn’t matter. The advice to control your emotions and not sell when the market drops also applies to those emotions of exuberance when the market is climbing. Both are irrational and should be ignored.

TL;DR: Stop looking at your net worth and “portfolio.” Don’t pay any attention to market fluctuations. Create a plan and stick to it. Adjust annually.

 

[GravelRider]

Depends which area of the country in 2004.

Yes many practices in big cities still had 3-5 year partnership tracks available. But they quickly started to get stingy by 2007/2008. That’s when the corporations started by up practices.

However I disagree. 2024 is a great time to start ur practice. Guaranteed 500k in most practices for new grads with calls and call incentives. Most new grads started in 200/220k range in 2004 even adjusting for inflation. It’s better to start in 2024. Than 2004.

As in life. It’s all about timing

Those who got out between 2010-2018 didn’t have good job markets. I still have an old email from 2014 wanting me to do 5p-7am Friday night call.
7p-7am Saturday night call. 7p-7am Sunday night call for 240k! They wanted me to cover 20 weekends like that.

Fair enough. If that was just it. 240k I would think was decent.

But no.

For the same included 240k. They wanted me to still cover 40 more hours in the other 25 weeks 7-5 or 7-3

So I’m like. Let me get this straight. U want me to cover 40% of the entire weekends for the year overnight at busy ob place with more than 10k deliveries a year. Where there is zero sleep.

Than u want me to work more on top of that for another 25 more weeks.

That’s how ridiculous the buyout of practices became. The seniors parents who all
Made 2-3 million each were immediately trying to scam people to doing all the weekend work for them.

Northeast. The people who started practice in early 2000s may have started at $250k (in 2002 dollars), but had many years of $1M+ incomes after their 3 year partner track. They then either continued to make $1M+ while only hiring employees for $300k per year (in 2015 dollars) or they sold out and got a couple million in capital gains. Maybe other regions are different, but in the northeast it’s not even close. You were way better off starting your career in 2004 compared to 2024.

Since 2015, we’ve benefitted from CRNAs demanding more money and anesthesiologists trying to emulate the CRNAs more. What I mean by that is, anesthesiologists are demanding more of an hourly accountability in how we are paid. I don’t think there is a shortage. I think we were extremely underpaid for a multitude of reasons in the 2010-2020 era.

 

[DoctwoB]

“Lost decade” depends on your vantage point. There was record growth in the s&p 500 in the 1990s leading up to that “lost decade.” Sure, if you started investing in 1998, it seems like a “lost decade.” If you started before, it was barely a blip.

Most “boglehead-y” investing advice assumes a 30 year investing horizon where those “lost decades” shouldn’t matter. The advice to control your emotions and not sell when the market drops also applies to those emotions of exuberance when the market is climbing. Both are irrational and should be ignored.

TL;DR: Stop looking at your net worth and “portfolio.” Don’t pay any attention to market fluctuations. Create a plan and stick to it. Adjust annually.

It is also important to note a "lost decade" doesn't mean no returns even if the S&P is net 0% over that 10 year period.

If you are still working and investing every month, you lost money when the market fell, but also invested on the way down, at the bottom, and on the way back up. The dollars invested in 02 had an almost 100% return over 6 years. I don't have the numbers in front of me, but you can still net a decent return over the decade so long as you keep plugging money into the market.

Now if you are late career or retired, it hurts a lot more, and that is where sequence of returns risk comes in.

 

[aneftp]

“Lost decade” depends on your vantage point. There was record growth in the s&p 500 in the 1990s leading up to that “lost decade.” Sure, if you started investing in 1998, it seems like a “lost decade.” If you started before, it was barely a blip.

Most “boglehead-y” investing advice assumes a 30 year investing horizon where those “lost decades” shouldn’t matter. The advice to control your emotions and not sell when the market drops also applies to those emotions of exuberance when the market is climbing. Both are irrational and should be ignored.

TL;DR: Stop looking at your net worth and “portfolio.” Don’t pay any attention to market fluctuations. Create a plan and stick to it. Adjust annually.

Correct. I agree with u

But many of these posters are in their late 30s or early 40s. And haven’t felt a prolonged downturn in the market.

We had an incredible run in the mid 1990s-Jan 2000. For those fortunate to be involved in it.

 

[Splenda88]

I’ve already achieved my retirement goals yet I still like going to work on my terms. That means lots of time off and I make my own schedule.
I certainly understand those who don’t want to work another day in this field but honestly I like part time work and hope to stay at it another 5 years. I work with some surgeons whom I’ve know for 30 years and their net worth is 25 million+.

This is celebrity money. No wonder I heard someone said on youtube that a doctor is a mini celebrity. I Lol when that person said that.

It's amazing that there are some physicians out there that are saying medicine is not worth it financially when almost everyone that posts here is already a millionaire in their late 30s.

 

[anonperson]

This is celebrity money. No wonder I heard someone said on youtube that a doctor is a mini celebrity. I Lol when that person said that.

It's amazing that there are some physicians out there that are saying medicine is not worth it financially when almost everyone that posts here is already a millionaire in their late 30s.

There are some out of touch physicians who look at FAANG tech people with huge RSUs that lead to seven figure salaries. They think all IT people are making this kind of money.

Are there professions who make great money at an earlier age with less work? Sure, but those jobs are not easy to get and it's not that common.

Being a physician is still a reasonable return on investment and can make someone a millionaire relatively easily.

 

[GravelRider]

There are some out of touch physicians who look at FAANG tech people with huge RSUs that lead to seven figure salaries. They think all IT people are making this kind of money.

Are there professions who make great money at an earlier age with less work? Sure, but those jobs are not easy to get and it's not that common.

Being a physician is still a reasonable return on investment and can make someone a millionaire relatively easily.

True, but someone just maxing out a 401k and maybe saving a bit extra on top throughout their 20s and 30s should be a millionaire by age 40 as well. Becoming a millionaire is a pretty low bar, actually. Just maxing out a 401k for 30-40 years makes you a multimillionaire.

 

[pgg]

inflation is more than 18% the past 2 years

C'mon man.

Where are you getting 18% inflation for two years running?

 

[BLADEMDA]

C'mon man.

Where are you getting 18% inflation for two years running?

I was referring to the CPI from 2021 to present being 18%. I suspect your personal CPI was a bit higher.

CPI Inflation Calculator

 

[BLADEMDA]

“Lost decade” depends on your vantage point. There was record growth in the s&p 500 in the 1990s leading up to that “lost decade.” Sure, if you started investing in 1998, it seems like a “lost decade.” If you started before, it was barely a blip.

Most “boglehead-y” investing advice assumes a 30 year investing horizon where those “lost decades” shouldn’t matter. The advice to control your emotions and not sell when the market drops also applies to those emotions of exuberance when the market is climbing. Both are irrational and should be ignored.

TL;DR: Stop looking at your net worth and “portfolio.” Don’t pay any attention to market fluctuations. Create a plan and stick to it. Adjust annually.

Ridiculous post. If the market gives you the same return as the lost decade from 2024-2034 every single one of you will feel that pain in your portfolio.
None of us know how the huge long term national debt will influence bonds, interest rates and stocks going forward. It is quite possible that real returns will be in the 3% range and not 8% due to these factors. My point in posting the lost decade was to show that bad returns can and do happen over a long period of time. This will affect those seeking to retire early which many have on this board have indicated they would like to do. I was invested in that period of time, lost decade, and it definitely affected my retirement planning.

 

[BLADEMDA]

I don't understand how 5% of people anticipate < $2 million. I'm already there!

If you’ve got nothing saved for retirement, you’re not alone.

Nearly 30% of Americans have $0 saved for retirement, per recent data from personal finance website GOBankingRates. Another 33% have less than $50,000 saved.

66% of Americans have less than $50,000 saved.

 

[BLADEMDA]

 

[BLADEMDA]

Age	Median 401(k) account balance
Under 25	$1,948.
25 to 34	$11,357.
35 to 44	$28,318.
45 to 54	$48,301.
55 to 64	$71,168.
65 and older	$70,620.

The Average 401(k) Balance by Age - NerdWallet

For many, a 401(k) is the cornerstone of retirement. See how your balance stacks up to the average 401(k) balance by age, according to Vanguard.

www.nerdwallet.com

 

[GravelRider]

Ridiculous post. If the market gives you the same return as the lost decade from 2024-2034 every single one of you will feel that pain in your portfolio.
None of us know how the huge long term national debt will influence bonds, interest rates and stocks going forward. It is quite possible that real returns will be in the 3% range and not 8% due to these factors. My point in posting the lost decade was to show that bad returns can and do happen over a long period of time. This will affect those seeking to retire early which many have on this board have indicated they would like to do. I was invested in that period of time, lost decade, and it definitely affected my retirement planning.

Sounds super scary. More a reason not to pay attention to market fluctuations and keep investing. Make a plan and stick to it. The people who kept investing during that scary “lost decade” are sitting on enormous returns today. If the market returns -1% over a 30 year period then the world is in a lot more trouble than worrying about which retirement condo I can afford.

Make a plan and stick to it. Remove emotion from the equation and ignore hyperbolic headlines like “lost decade.”

 

[Splenda88]

True, but someone just maxing out a 401k and maybe saving a bit extra on top throughout their 20s and 30s should be a millionaire by age 40 as well. Becoming a millionaire is a pretty low bar, actually. Just maxing out a 401k for 30-40 years makes you a multimillionaire.

The issue is that in order to max out your 401k and invest extra, you gotta be making 100k+ per year. But only 17% of working individuals make 100k+.

 

[pgg]

I was referring to the CPI from 2021 to present being 18%. I suspect your personal CPI was a bit higher.

CPI Inflation Calculator

Gotcha

I thought you were suggesting that inflation has been 18% per year.

 

[sloh]

It's amazing that there are some physicians out there that are saying medicine is not worth it financially when almost everyone that posts here is already a millionaire in their late 30s.

We aren’t representative of most physicians though.

 

[Splenda88]

We aren’t representative of most physicians though.

I agree. Also, the physician FB group is even worst.

 

[sloh]

I agree. Also, the physician FB group is even worst.

The absolute worst lol. Hivemind of victimhood mentality

 

[BLADEMDA]

Why relatively few voting 8-10 M ? 🤔

Optimism that 10% returns will continue for the next decade when in fact 5-6% returns are what many financial Advisers use for retirement planning.

 

[BLADEMDA]

I didn't have $10 million by age 55 because of the lost decade which had low returns. But, in terms of 2024 dollars I did have 10 million at age 55 as inflation is more than 18% the past 2 years. Anyway, my point is a diversified portfolio helps weather the storm which can happen again.

View attachment 384778

Even with the lost decade those with diversified portfolios fared much better than 100% equities in tech or the S and P 500. The lesson is the same today in terms of making sure you are diversified across sectors and value with a touch of international exposure. It's a mistake to be 100% invested in large cap growth or tech even if those sectors have been the winners the past 2 years. I certainly have benefited from those areas in my portfolio but still remain committed to a diversified portfolio.

 

[BLADEMDA]

 

[BLADEMDA]

View attachment 384808

JP Morgan thinks you need $3-$4 million by age 50. I agree with them. $5 million by age 55 with retirement at age 65.

 

[BLADEMDA]

Get Your Retirement Score With This Retirement Planning Tool - Fidelity

Learn just how prepared for retirement you are by using Fidelity's retirement score tool, which assess your retirement savings and monthly contributions to help keep you on track to meet your financial goals.

www.fidelity.com

 

[triggermaster]

JP Morgan thinks you need $3-$4 million by age 50. I agree with them. $5 million by age 55 with retirement at age 65.

Based on what?

 

[caligas]

I think using a multiple of anticipated annual spending is better than a raw number. Say you expect to spend $250k/yr including tax after retirement at 60, maybe you use a multiple of 33 (conservative 3% withdrawal rate) for a nest egg of $8.3M.

Obviously there are other variables such as SS, other income sources, medical issues, variations in spending with different phases, but this is a good starting point.

 

[BLADEMDA]

I think using a multiple of anticipated annual spending is better than a raw number. Say you expect to spend $250k/yr including tax after retirement at 60, maybe you use a multiple of 33 (conservative 3% withdrawal rate) for a nest egg of $8.3M.

Obviously there are other variables such as SS, other income sources, medical issues, variations in spending with different phases, but this is a good starting point.

Lowering your SWR increases the size of the nest egg you need. For example, if you plan on 3% SWR, your nest egg will need to be 33x your annual expenses to retire. But you’re much less likely to deplete your portfolio than 4%.

Your time to retirement, then, is how long it will take for you to build your nest egg to sufficient size. As you can see, this will depend on a number of factors: your annual expenses and your planned SWR (these determine the size of the nest egg you will need), as well as your current nest egg size, your annual investment contributions, and your projected investment returns (these determine how quickly your nest egg will get there).

Time to retirement calculator — A Frugal Doctor

www.afrugaldoctor.com

 

[BLADEMDA]

https://images.squarespace-cdn.com/content/v1/5fd188387e2fb23e2b77c0ac/dea34e8b-b54c-48e9-8f68-c0020038e5f7/average+investor.png?format=2500w

 

[triggermaster]

https://images.squarespace-cdn.com/content/v1/5fd188387e2fb23e2b77c0ac/dea34e8b-b54c-48e9-8f68-c0020038e5f7/average+investor.png?format=2500w

Exactly.

 

[DoctwoB]

I think using a multiple of anticipated annual spending is better than a raw number. Say you expect to spend $250k/yr including tax after retirement at 60, maybe you use a multiple of 33 (conservative 3% withdrawal rate) for a nest egg of $8.3M.

Obviously there are other variables such as SS, other income sources, medical issues, variations in spending with different phases, but this is a good starting point.

We really do tend to ignore social security in the retirement talk, but it can be quite a huge boost. A dual working couple can get 9k/month in todays dollars for life if delaying SS to age 70.

Between SS and my wife's VA pension, we'd be looking at around 180-200k/year before dipping into savings at all.

 

[aneftp]

Younger motivated docs can easily pull 1 million on their income doing locums 80k a month is pretty reasonable with 8-10 weeks off.

So a young doc can hit 5 million in today’s market with net worth by age 40 if they do locums longer term. I don’t think the market is dying down.

So go grab the money. Make the money. Than let the money make more money for u (passive income). Than go spend the money is my motto.

 

[ERRES2288]

We need 5M liquid in todays dollars to be FI with 3.5% withdrawal rate. 35yo. Will be there in 7-10 years depending on market performance if keep up savings rate of 250k/yr. Wife also a doc.

Edit: to say “todays dollars”

 

[Splenda88]

2.5M plus a paid off home will be more than enough for me to retire.

Net worth right now is 1.1+ M. Hopefully, I will get there in 7-8 years. I am saving/investing 10k+/month.

 

[mandrew]

$600k in retirement and backdoor Roth, $600k in brokerage account, 80k misc liquid assets, 30k emergency fund, and 250k in equity for my house. Is that a reasonable financial place to be at for 40 years old?

You are doing quite well.

 

[aneftp]

2.5M plus a paid off home will be more than enough for me to retire.

Net worth right now is 1.1+ M. Hopefully, I will get there in 7-8 years. I am saving/investing 10k+/month.

Current or potential Kids and ex wives in the future could destroy things any savings

Who knows what the future holds.

My crna friend spends 75k a year on his kids (he’s divorce) private school and child support. No alimony.

 

[mandrew]

33 yo

$220k in Roth accounts
$180k in the bank, most of which is in a HYSA at 5% (higher liquidity than would usually need but have some likely big expenses soon)
$65k mutual funds
$30k crypto
$30k I-bonds (getting rid of these soon)
$20k 401k (not vested)
$10k stocks
$10k gold and silver
$300k equity in an $825k house
$750k income currently, expect to increase to higher 6 fig/just over 7 fig in the coming years (but never taking anything for granted)
Parents’ net worth about $25 mil, reasonable chance that goes up 3-4x in the next 5 years (and if so, this would be due to sale of a company I would make about $3 mil post CG from)
In-laws net worth probably about $5 mil
Spouse and I each have one sibling
We have a 4 year old, only have saved about $10k for college in 529 thus far.

Only liabilities are $500k remaining on mortgage, likely a new car for the wife soon, and probably $10k expenses within the next year-ish for a second (and final) kid
Current expenses about $5k a month mortgage and $2k month everything else.

My plan:
1. Aggressively pay off mortgage. I have 6% rate so no benefit from letting it linger. I have a 7+1 ARM but don’t want to roll the dice on waiting to see if rates go down significantly.
2. In the meantime, maximize 401k and backdoor Roth.
3. Need to start maximizing 529. I’ll be pissed at my kids if they don’t earn scholarships, but I’ve been out of college for a minute and I guess maybe merit-based scholarships are fading away. Used to be fairly easy.
4. Index investing. VOO baby

Goal is to retire at 55-60 with $10-15 mil, never have to touch my Roth accounts, and pass on an enormous chunk to my kids and grandkids

Why would you post all this info? Boast much?

 

[Splenda88]

Current or potential Kids and ex wives in the future could destroy things any savings

Who knows what the future holds.

My crna friend spends 75k a year on his kids (he’s divorce) private school and child support. No alimony.

I am just hoping my spouse won't leave me. I will be f... if that happens.

Your CRNA friend must be making > 300k to be spending that much.

 

[aneftp]

I am just hoping my spouse won't leave me. I will be f... if that happens.

Your CRNA friend must be making > 300k to be spending that much.

Yup. 400k 1099 income

Just saying if no divorce. No kids. Most should be able to retire (at this current income/job market) by age 45. And live comfortably. Assuming getting done with residency by age 30/31.

 

[triggermaster]

Yup. 400k 1099 income

Just saying if no divorce. No kids. Most should be able to retire (at this current income/job market) by age 45. And live comfortably. Assuming getting done with residency by age 30/31.

Divorce is okay if not alimony state. You save more in the future than you lose in divorce probably, plus your number needed to retire is probably 1/3 unless you plan to get an expensive replacement.

 

[Splenda88]

Yup. 400k 1099 income

Just saying if no divorce. No kids. Most should be able to retire (at this current income/job market) by age 45. And live comfortably. Assuming getting done with residency by age 30/31..

I guess it's financially better to be a CRNA than becoming an MD/DO. As a former RN, maybe I should I have gone to CRNA school. Nah... I am extremely satisfied being a MD

 

[GaseousClay]

$600k in retirement and backdoor Roth, $600k in brokerage account, 80k misc liquid assets, 30k emergency fund, and 250k in equity for my house. Is that a reasonable financial place to be at for 40 years old?

nice work so far

 

[Splenda88]

$600k in retirement and backdoor Roth, $600k in brokerage account, 80k misc liquid assets, 30k emergency fund, and 250k in equity for my house. Is that a reasonable financial place to be at for 40 years old?

It's great. Your net worth is 1.5+ M at 40. If the rule holds, your net worth will double every 7 years. By 55, you net worth will be 6M.

 

[anonperson]

Why would you post all this info? Boast much?

Purpose of this thread is to see everyone's different situation. Some people will be in a great situation. No reason to make them feel bad for posting. All information is good to see.

 

[sevo00]

Why would you post all this info? Boast much?

Found the poor guy in the thread

 

[pgg]

Based on what?

Based on what financial advisors and institutions (who earn a % off the funds they manage) want people to invest.

Might as well ask realtors how much house we need, Ford dealerships how much pickup truck we need, and the Chick Fil A board how much chiken we should eat.

 

[Gern Blansten]

Might as well ask... the Chik Fil A board how much chicken we should eat.

I think they have a pretty good idea. All of it.

 

[ucsfgaspain]

Have any of you guys set up a trust? If so, how much work is involved in transferring your assets into the trust? From my understanding, that seems to be one of the best ways to protect my son’s assets in the future, even if he winds up in a crappy marriage that leads to divorce.

So to circle back to the trust question. You should set up a trust to avoid probate. High level view on revocable trusts. Put house title, taxable trading accounts, checking accounts i.e. NON retirement accounts into trust. (reason is the tax requirements for disbursement from estate of retirement accounts upon tranfer). You can also set up trading account and checking accounts as TOD (transfer on death) if you don't want to put in trust just list out individual beneficiaries. So trust in california does not insulate from community property laws of my state.

Many employers will have a discounted fee benefit for setting up trusts. If not, the price is not too much for a simple trust. Just learned from my financial advisor, that I had overcomplicated my trust by stipulations for next gen about administiring the estate for disbursements to charity. Easier was is to utilize donor advised funds.