[quote=dumbrenter]I’m gonna hit that number in 2 months… about a year late, thanks to an investment decision that cut my IRA in half. This is with $0 in real estate as my name indicates. With some help from capital gains, stock options and in being a good w-2 slave.
It is simple math, but if you are age 25 and in the tech business, it is very easy to hit a 7-digit net worth before your 40th birthday in addition to raising a family; in San Diego; on a single income. But that requires you to have a savings goal which is at least 40% of your income… i.e. no expensive vacations, no ‘nice’ cars in return for ability to retire early. And you can still have a good life.
But I can already feel that this is still middle class number… getting to an 8 digit net worth might feel good.[/quote]
Congrats, dumbrenter! I guess you haven’t been so “dumb” renting all these years! Owning their personal residence isn’t ideal for everyone, due to property taxes, maintenance costs, higher utilities and the illiquid nature of home equity. Also, some homeowners have too low of an income to take advantage of a tax write-off of all or part of their annual mortgage interest (MID). A soon-to-be-retiree also has to gauge the correct time to sell their primary residence for the maximum price if they want to relocate and the amount they can recover from that sale at any given time is contingent upon many variables of which they have no control over. In short, homeowners can’t always relocate for retirement purposes at precisely the time they want to.
It sounds like you have handled your household income very wisely thus far, dumbrenter. How far away are your kid(s) from attending college?
