Liquid Net Worth Goals at 40 Yo

[finalpsychyear]

Since the previous thread was moved I thought let's restart one with a focus on liquid NW at ages that are more of a checkpoint than an endpoint so there is still plenty of time to course correct. Instead of focusing on just age for some it may be more helpful on where they hope to be at year 10 of being an attending.

For those that are older it could be helpful if you could add maybe what your liquid NW was at this age or at the 10 year attending mark with inflation adjusted amounts in your favor.

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[okayplayer]

Bit under 10 years out. NW 3.1m today, or up a total of 3.9m from when I finished residency.

 

[finalpsychyear]

Bit under 10 years out. NW 3.1m today, or up a total of 3.9m from when I finished residency.

You are Ballin. In 5-7 years you will be in the 6-7 liquid nw territory and possibly part time?

 

[thinkorswim]

If the previous thread was moved, presumably for some good reason, then why immediately start another one that probably won’t add much additional value or discussion?

This forum isn’t meant to be a dumping ground for financial vaunting and political diatribes. Sure, the occasional sidetrack thread is appreciated, but it seems to be getting a little out of hand these days.

 

[deleted1183938]

If the previous thread was moved, presumably for some good reason, then why immediately start another one that probably won’t add much additional value or discussion?

This forum isn’t meant to be a dumping ground for financial vaunting and political diatribes. Sure, the occasional sidetrack thread is appreciated, but it seems to be getting a little out of hand these days.

Haha. This forum is full of politics and financial diatribes. Hello!!! Are we on the same forum???

 

[finalpsychyear]

The whole purpose of this thread is to inspire others to push themselves or even at age 40 or older have plenty of time to turn things around.

Money and finances are programmed into doctors not to be discussed and it's why we ended up with the scraps in the entire field relatively to the other players. Medical school and residency teach so much but interestingly "forget" to teach anything related to financial management because they want to keep the hamsters on the wheel as long as possible.

We all deserve to be FI as early as possible and THEN also practice for the pure joy of whatever field you are in. I feel everyone has earned that and this topic needs to be discussed at NAUSEUM for all that brainwashing or feeling bad about talking about money is eventually balanced out.

Also, i am happy to hear the success of my hard working MDs who have dedicated their lives to reach financial milestones and spread that wisdom to others.

 

[Iso4ane]

34/35. Had help with school loans. Just finished my fourth year as an attending. Academics.

With the recent stock market run, I’m at approximately 600K in brokerage. 250K in Roth, and 500K in retirement accounts through my institution (2/3s which are Roth; hopefully that plays out right in 20years).

Sometimes it helps being unattractive, no ex-wife to lose money too.

 

[abolt18]

If the previous thread was moved, presumably for some good reason, then why immediately start another one that probably won’t add much additional value or discussion?

This forum isn’t meant to be a dumping ground for financial vaunting and political diatribes. Sure, the occasional sidetrack thread is appreciated, but it seems to be getting a little out of hand these days.

Other thread got yeeted (as my kids would say) because it was sooooo far off track, talking about politics and nonsense. It started out strong, however!

 

[deleted1183938]

34/35. Had help with school loans. Just finished my fourth year as an attending. Academics.

With the recent stock market run, I’m at approximately 600K in brokerage. 250K in Roth, and 500K in retirement accounts through my institution (2/3s which are Roth; hopefully that plays out right in 20years).

Sometimes it helps being unattractive, no ex-wife to lose money too.

I have seen plenty of Ugly men with wives. Nice looking ones too. Even if you are unattractive the fact that you are a doc who earns mid six figures pushes you up a few notches in the attractive point game.

 

[JoelJoel84]

34/35. Had help with school loans. Just finished my fourth year as an attending. Academics.

With the recent stock market run, I’m at approximately 600K in brokerage. 250K in Roth, and 500K in retirement accounts through my institution (2/3s which are Roth; hopefully that plays out right in 20years).

Sometimes it helps being unattractive, no ex-wife to lose money too.

4 years out, and roughly at $8k/yr into Roth (or $32k), and you turned that into $250k?
Congratulations, that's spectacular.

 

[chessknt]

Other thread got yeeted (as my kids would say) because it was sooooo far off track, talking about politics and nonsense. It started out strong, however!

If I recall it was talking about women as if they're were this money burning monolith available for purchase if you had enough money in the WASPiest good old boys thread in SDN history.

On topic--its a tough question to answer because it's based on where you start. I expect to be around 1.5-2 mm depending on the markets but started with a family. If you're flying solo with no debt it should be a lot higher.

 

[deleted1183938]

If I recall it was talking about women as if they're were this money burning monolith available for purchase if you had enough money in the WASPiest good old boys thread in SDN history.

On topic--its a tough question to answer because it's based on where you start. I expect to be around 1.5-2 mm depending on the markets but started with a family. If you're flying solo with no debt it should be a lot higher.

That first line is a perfect description of what went down. Thank you for making me laugh!!! Of course I was called Angry.
Thank you for being a gentleman.

 

[GravelRider]

Sometimes these net worth numbers become like status symbols, not unlike Rolexes or Birkin bags. A single number in a vacuum is pretty meaningless. Someone may be able to live off $1 million for over 30 years and another person may feel like $10 million is barely enough to get by in retirement. I think a more interesting question is if we define X as annual expenses, what multiple of X have you saved/invested at year 10 of practice? To take it further, at what multiple of X would you consider cutting workload (no call, part time, per diem, etc.)? That’s sort of how you define financial independence anyway…can my investment portfolio and other financial resources cover my expenses without me having to get paid for my labor until I die?

 

[aneftp]

Anyone under 40 has only known good times. Good for you. Job opportunities plus stock market and real estate boom.

I’ve been through two big stock market corrections (2000-2001) and 2008.

I’ve been through two big housing losses 2005/2009 purchases. Plus a depressed job market mid 2010s.

It’s a long life.

Ride it while you can. Don’t panic (I did in 2008 stock market crash) not putting more new money into the stock market crash

That’s why I leaned not to panic in April 2020 as stock market went down 30% from Feb 2020 highs. Many people pulled out in Jan 2022 as well and congratulated themselves sitting on the sidelines as the stock market went down 23% for the year.

 

[finalpsychyear]

Sometimes these net worth numbers become like status symbols, not unlike Rolexes or Birkin bags. A single number in a vacuum is pretty meaningless. Someone may be able to live off $1 million for over 30 years and another person may feel like $10 million is barely enough to get by in retirement. I think a more interesting question is if we define X as annual expenses, what multiple of X have you saved/invested at year 10 of practice? To take it further, at what multiple of X would you consider cutting workload (no call, part time, per diem, etc.)? That’s sort of how you define financial independence anyway…can my investment portfolio and other financial resources cover my expenses without me having to get paid for my labor until I die?

This is great if you probably have reached a steady state of expenses by that point in your life such as married, kids, have a mortgage.

Since i am married and renting with the hopes of 2 kids, nanny, and a future house it's arguable that whatever my expenses are now could easily increase 50-100% from what everyone says with those things all at the same time. Say my multiple is 30x right now without those but if i add those it could easily be 15x if they happened tomorrow.

I base a lot on the 3% rule so 33x but the x would probably need to be double what it is now for me to go PT. Still kinda a ways to go.

Also like the aneftp says if there is a dot com like crash around the corner we are all going to basically go sideways for several years and you almost have to consider thats going to be there as a natural flow in the financial cycle.

 

[GravelRider]

This is great if you probably have reached a steady state of expenses by that point in your life such as married, kids, have a mortgage.

Since i am married and renting with the hopes of 2 kids, nanny, and a future house it's arguable that whatever my expenses are now could easily increase 50-100% from what everyone says with those things all at the same time. Say my multiple is 30x right now without those but if i add those it could easily be 15x if they happened tomorrow.

I base a lot on the 3% rule so 33x but the x would probably need to be double what it is now for me to go PT. Still kinda a ways to go.

Also like the aneftp says if there is a dot com like crash around the corner we are all going to basically go sideways for several years and you almost have to consider thats going to be there as a natural flow in the financial cycle.

Well then how would posting a specific number be any more or less helpful or insightful? Other than as a way to display a status symbol (net worth), I really don’t feel like this exercise is either interesting or useful. What is more useful or interesting (at least to me) is a discussion about how people view their finances in relation to things like expenses, budget, working timeline, leisure time, etc. Having people posting a bunch of humblebrag numbers is about as interesting as people posting pictures of their Rolexes. Even as @aneftp sort of alludes to, the number is kind of meaningless until you’ve made some major commitments towards walking away from work. You could lose 20% of your liquid net worth tomorrow.

 

[rick roller pump]

Not to criticize this thread but there is probably a high amount of selection bias. Those who are big savers are probably more likely to respond, or even open this thread in the first place. It would be interesting to know the actual averages as it is probably much lower than what is reflected in the survey. Personally hoping to be 2-3m, and I save more than basically anyone I know.

 

[nimbus]

This may belong here. When your employees are too wealthy to work hard but can’t quit until they vest.

Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In 'Semi-Retirement'

Nvidia (NASDAQ:NVDA) has seen incredible growth in recent years. Since the beginning of 2024, the company’s stock has jumped 167%. Over the past five years, it has surged by an impressive 3,450%. Given these figures, it’s easy to see why many NVIDIA employees who joined the company five or more...

finance.yahoo.com

 

[finalpsychyear]

This may belong here. When your employees are too wealthy to work hard but can’t quit until they vest.

Employees Who Joined Nvidia 5 Years Ago Now Millionaires And Coasting In 'Semi-Retirement'

Nvidia (NASDAQ:NVDA) has seen incredible growth in recent years. Since the beginning of 2024, the company’s stock has jumped 167%. Over the past five years, it has surged by an impressive 3,450%. Given these figures, it’s easy to see why many NVIDIA employees who joined the company five or more...

finance.yahoo.com

There's no reason with the right financial info that a lot of docs couldn't be very close or go pt by the time they're 50. That would be massively bad for the hamster wheel.

 

[Iso4ane]

4 years out, and roughly at $8k/yr into Roth (or $32k), and you turned that into $250k?
Congratulations, that's spectacular.

Oh no, I should've been clearer, I've have this Roth for years. I been contributing to it since I was 18. It was probably at 150K-175K five years ago.

 

[finalpsychyear]

Anyone under 40 has only known good times. Good for you. Job opportunities plus stock market and real estate boom.

I’ve been through two big stock market corrections (2000-2001) and 2008.

I’ve been through two big housing losses 2005/2009 purchases. Plus a depressed job market mid 2010s.

It’s a long life.

Ride it while you can. Don’t panic (I did in 2008 stock market crash) not putting more new money into the stock market crash

That’s why I leaned not to panic in April 2020 as stock market went down 30% from Feb 2020 highs. Many people pulled out in Jan 2022 as well and congratulated themselves sitting on the sidelines as the stock market went down 23% for the year.

Help me out here. I ran scenarios of a 5m liquid nest egg with a 3.5% SWR with a 2 year delay once you achieved this in a 75/25 allocation and not only was it 100% successful but the lowest ending portfolio was about 1.7m up to 33m with an avg of 13m at the end of 30 years.

FIRECalc: A different kind of retirement calculator

www.firecalc.com

I'm guessing this takes into account SORR but doesn't take in account we will all have some type of SS and its looking rather bulletproof provided 175k/yr has you covered and if not you just need 1m more to the nest egg and you are now at 210k. Am i missing something here?

 

[nimbus]

Not to criticize this thread but there is probably a high amount of selection bias. Those who are big savers are probably more likely to respond, or even open this thread in the first place. It would be interesting to know the actual averages as it is probably much lower than what is reflected in the survey. Personally hoping to be 2-3m, and I save more than basically anyone I know.

These threads tend to pop up when the market is hot and people are feeling good.

 

[aneftp]

Help me out here. I ran scenarios of a 5m liquid nest egg with a 3.5% SWR with a 2 year delay once you achieved this in a 75/25 allocation and not only was it 100% successful but the lowest ending portfolio was about 1.7m up to 33m with an avg of 13m at the end of 30 years.

FIRECalc: A different kind of retirement calculator

www.firecalc.com

I'm guessing this takes into account SORR but doesn't take in account we will all have some type of SS and its looking rather bulletproof provided 175k/yr has you covered and if not you just need 1m more to the nest egg and you are now at 210k. Am i missing something here?

U sound like my sister who’s worth like 18.2 million now. And she’s only 56.

Don’t make it too complicated.

You will know when it’s time to retire

Your biggest bet is ur health.

The second biggest factor is divorce/death of second earner spouse.

 

[finalpsychyear]

U sound like my sister who’s worth like 18.2 million now. And she’s only 56.

Don’t make it too complicated.

You will know when it’s time to retire

Your biggest bet is ur health.

The second biggest factor is divorce/death of second earner spouse.

I would retire tomorrow if i had the money to do such. I used to enjoy medicine but now its just a countdown to securing financial security. 8 years working 2 FTE maybe is to blame and this is with the ability to do half of my 50-55 hours per week from home.

 

[nimbus]

$843k at age 34 even with a divorce. Not 8 figures like some young Nvidia engineers but not bad.

https://www.cnbc.com/2024/06/24/six-figure-salary-millennial-marketing-manager-at-tiktok.html