finalpsychyear

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Nov 3, 2015
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99.9% would agree 10 million is way way more than enough. This question is hypothetical but I think isn't that far fetched. Say you have a specialist who begins making attending money at 29 and has no plans for kids ever or wife etc.

By the time he is 35 lets say he has accumulated 2 mill cash and is self employed. He doesn't want to work past 50 and plans to keep funding his taxable investment account at 150k per year. At the same time he opens a cash balance with 401k which based on his age he should be able to accumulate with just the cash balance and 401k around 2 mill after 10 years and this assumes that those amounts don't go up every few years because they usually do.

1. 2 mill taxable with 150k for next 10 years given 7% returns = 6 mill
2. cash balance plus 401k = 2 mill after 10 years.

Yes i know the 2 mill at 35 is unheard of but maybe some of it was gifted, he invested in college, lived like a resident for 5-6 years attending with specialist income all combined. This guy by the time he is 45 is already sitting on 8 million. I'm ignoring inflation and taxes for now but it is crazy that he could get so close. I ignored hsa, roth iras.

The point is if someone can get somewhere even close to 2 mill sometime before 40 they have a legit shot.
 

mark-ER

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Legit shot, yes. But that person would also have to get a bit lucky with investments / ride a high tide of a rising stock market. None of that is guaranteed.
 
Nov 19, 2019
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Of the many ways one can reach 10 million, this does sound like one of the safest bet for a specialist. However, it would be harder to reach this amount without good knowledge of what you're investing in and some overall market awareness.
 
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Lonestar

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Jul 12, 2002
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99.9% would agree 10 million is way way more than enough. This question is hypothetical but I think isn't that far fetched. Say you have a specialist who begins making attending money at 29 and has no plans for kids ever or wife etc.

By the time he is 35 lets say he has accumulated 2 mill cash and is self employed. He doesn't want to work past 50 and plans to keep funding his taxable investment account at 150k per year. At the same time he opens a cash balance with 401k which based on his age he should be able to accumulate with just the cash balance and 401k around 2 mill after 10 years and this assumes that those amounts don't go up every few years because they usually do.

1. 2 mill taxable with 150k for next 10 years given 7% returns = 6 mill
2. cash balance plus 401k = 2 mill after 10 years.

Yes i know the 2 mill at 35 is unheard of but maybe some of it was gifted, he invested in college, lived like a resident for 5-6 years attending with specialist income all combined. This guy by the time he is 45 is already sitting on 8 million. I'm ignoring inflation and taxes for now but it is crazy that he could get so close. I ignored hsa, roth iras.

The point is if someone can get somewhere even close to 2 mill sometime before 40 they have a legit shot.

This scenario is not feasible for most (>95% of specialists). Most dont make > 500k. You would need to makethat much or more to get to 8+ million by 50. And having 2 mil cash by 35 is unheard of. Lets just say you average 450k for 15 years and live nicely (125k expenses). You are looking at 3 mil by age 45 with 5% returns and house worth 600k. Under this scenario you can get to 5 mil by 50 if you are lucky.
 
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