Net worth $10.2 million plus $350K pension at age 81. Not bad, or could have been better?

[wamcp]

https://www.marshall.senate.gov/wp-content/uploads/Anthony-Fauci-Financial-Disclosures-for-2020-and-2019.pdf

Fauci and his wife reported combined salaries of $668,312 in 2020. Fauci earned $434K alone.

Also, if Fauci retires, he will receive $350K a year as pension. So that alone could be worth $9 million if it were private investment nest egg (about 4% withdrawal rate).

Fauci completed fellowship training and has been “an attending” level status since 1971. So that’s about 50 years of career at a “real” salary.

In 2008 he made $335K (Many U.S. Health Officials Outearn Cabinet Secretaries)

So maybe we estimate an average 300K salary for his entire career.

If you worked 50 years and at that double income level, plus raise 3 kids like Fauci, would you have comfortably amassed the same fortune?

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[IMGASMD]

Probably not.

Obviously the guy is very smart, or does something right. You don’t become the head of an US governmental agency, because you’re dumb….. wait.. there has been someone recently who isn’t that bright.

Even for that guy, he can market the shlt out of anything…. he certainly talk to the ‘Merican people better than some others.

 

[TraderDoc]

Starting with $0, if Dr. Fauci contributed $1K every month to an index fund with 10% yearly returns -> over 50 years that would be roughly $14M. He's worked for the US government for essentially 55 years. So $10M with compounding over 55 years isn't crazy to me. But he is a great example of passive investing and compounding your profits over multiple decades.

 

[thumbz]

Starting with $0, if Dr. Fauci contributed $1K every month to an index fund with 10% yearly returns -> over 50 years that would be roughly $14M. He's worked for the US government for essentially 55 years. So $10M with compounding over 55 years isn't crazy to me. But he is a great example of passive investing and compounding your profits over multiple decades.

One million thumbs up here. Throw it into FIRECalc.com - shoot for saving $1000/month for 55 years in a stocks only portfolio. The calculator pretends to invest in 1930 and runs forward 55 years. It then does it if you started in 1931, etc. For a 55 year time period it can run the data from 24 starting years and with this you average out to $18,000,000 in your portfolio at the end of the 55 years.

It's not about savings, it's about time in the market.

 

[FutureInternist]

https://www.marshall.senate.gov/wp-content/uploads/Anthony-Fauci-Financial-Disclosures-for-2020-and-2019.pdf

Fauci and his wife reported combined salaries of $668,312 in 2020. Fauci earned $434K alone.

Also, if Fauci retires, he will receive $350K a year as pension. So that alone could be worth $9 million if it were private investment nest egg (about 4% withdrawal rate).

Fauci completed fellowship training and has been “an attending” level status since 1971. So that’s about 50 years of career at a “real” salary.

In 2008 he made $335K (Many U.S. Health Officials Outearn Cabinet Secretaries)

So maybe we estimate an average 300K salary for his entire career.

If you worked 50 years and at that double income level, plus raise 3 kids like Fauci, would you have comfortably amassed the same fortune?

Should get hazard pay for the last 4 years.

 

[wamcp]

Starting with $0, if Dr. Fauci contributed $1K every month to an index fund with 10% yearly returns -> over 50 years that would be roughly $14M. He's worked for the US government for essentially 55 years. So $10M with compounding over 55 years isn't crazy to me. But he is a great example of passive investing and compounding your profits over multiple decades.

So he could have done way better, in theory.

Could be 44 million if he started contributing more at 10 years AFTER starting attending pay. 0 worth 40 yr ago, then 8000 a month flat on their double income for 40 yr will yield $44 million

 

[TraderDoc]

So he could have done way better, in theory.

Could be 44 million if he started contributing more at 10 years AFTER starting attending pay. 0 worth 40 yr ago, then 8000 a month flat on their double income for 40 yr will yield $44 million

In theory yes, he could have been just a little bit more aggressive investing passively and I think $20M easily attainable for him over 5 decades. But I get the sense that for Dr.Fauci, $10M at 81 was exactly what his goal was. He seems very level headed, frugal, someone who focuses on family and relationships far more than monetary goals. Have respected him since I was in college and nothing has changed.

 

[Mman]

Have respected him since I was in college and nothing has changed.

going to be honest never recall hearing his name once until covid hit 2 years ago

 

[kelminak]

going to be honest never recall hearing his name once until covid hit 2 years ago

I think he's an author of Harrison's which is why some might have known him prior.

 

[Mman]

Starting with $0, if Dr. Fauci contributed $1K every month to an index fund with 10% yearly returns -> over 50 years that would be roughly $14M. He's worked for the US government for essentially 55 years. So $10M with compounding over 55 years isn't crazy to me. But he is a great example of passive investing and compounding your profits over multiple decades.

while that is mathematically true, you have to at least consider inflation over the years. $1,000 a month today is more like $8,000 a month in 1967. It's not like you could invest the present day value of $1,000 a month for 55 years and expect to have anything remotely close to the present day value of $14M. It'd be more like $1.5-$2M. inflation no big deal over short term, but when you start looking out 40+ years it becomes massive as all those grandparents remembering buying candy bars for a nickel will tell you.

 

[TravelingMedicine]

10M by 81yo is definitely doable if you invest. If you do not invest then I do not believe so. To put into perspective if you save $75k a year (if you account for the tax cut, living expenses etc) in 50 years you will only save 3.75M at the end of 5 decades (this does not account for a 3% inflation rate as well) Like others have said if you invest it that grow becomes exponentially higher and even more so if you have tax advantaged accounts/start earlier.

 

[TravelingMedicine]

while that is mathematically true, you have to at least consider inflation over the years. $1,000 a month today is more like $8,000 a month in 1967. It's not like you could invest the present day value of $1,000 a month for 55 years and expect to have anything remotely close to the present day value of $14M. It'd be more like $1.5-$2M. inflation no big deal over short term, but when you start looking out 40+ years it becomes massive as all those grandparents remembering buying candy bars for a nickel will tell you.

yes but 1K a month is absolutely the lowest people should be investing if they are making 300K a year even after all expenses are accounted for. so if you start to increase the contribution from 1K to 2k at the end of 50 years it becomes 7.1M, 3k --> 10.7M, 4K --> 14.3M so on and so forth. As time passes your dividend stocks will start to compound exponentially hence how warren buffet gets paid like 700M from one investment alone. Now imagine that being passed onto your children. This and real estate is how generational wealth is made

 

[Mman]

yes but 1K a month is absolutely the lowest people should be investing if they are making 300K a year even after all expenses are accounted for. so if you start to increase the contribution from 1K to 2k at the end of 50 years it becomes 7.1M, 3k --> 10.7M, 4K --> 14.3M so on and so forth. As time passes your dividend stocks will start to compound exponentially hence how warren buffet gets paid like 700M from one investment alone. Now imagine that being passed onto your children. This and real estate is how generational wealth is made

I'm not commenting on what people should be saving, I'm talking about math and inflation. Ignoring inflation over a 50 year time frame makes numbers like $7.1M or $14.3M sound a lot bigger today than they will be in 50 years.

 

[Splenda88]

Most physicians should be able to have a net worth of 4+ million after retirement if they work for 30+ years. If you've been thru divorce(s), that is a different story.

The average S&P 500 return has been close to 10% for the past 30 yrs, and if you invest 2k/month, which most docs should be able to do, that will equal a net worth ~4 millions

 

[Mman]

The average S&P 500 return has been close to 10% for the past 30 yrs, and if you invest 2k/month, which most docs should be able to do, that will equal a net worth ~4 millions

again, inflation factors in. If historical stock returns are 10% per year, that's also with 3% inflation per year so actual real return is more like 7%. $2,000 per month for 30 years would yield about $2.4M in real terms (which is all you care about).

When you mentally think about having $4M 30 years from now, you really need to adjust it down to current day purchasing power of $2.4M. I mean it's still a lot of money, but nearly 40% less than you would be expecting if you did not account for inflation.

 

[jamaica jan sun princess]

When financial analysts calculate the future value of an investment, it's typically calculated in today's dollars. You don't have to reduce the final sum for inflation. Investment vehicles like the 401K have their limit upped regularly to keep up with inflation.

 

[Mman]

When financial analysts calculate the future value of an investment, it's typically calculated in today's dollars. You don't have to reduce the final sum for inflation. Investment vehicles like the 401K have their limit upped regularly to keep up with inflation.

sure, but the post I was referring to referenced a 10% annual return for stocks. That is not calculated in "today's dollars" accounting for inflation. Hence my statement that if you got that historical return it would be 40% less total money once you account for inflation.