I’m 52 and never earned more than $350k but I’m pushing $10 million in the bank – here’s how I did it

A 52-year-old Redditor recently posted an inspiring success story in the Fat FIRE subreddit. He has a net worth that’sapproaching $10 million despite never earning more than $350k per year. The post shows the power of compound growth and having a long-term mentality. It’s filled with valuable lessons for anyone who is hustling and setting ambitious financial goals.

While speaking with a financial advisor can help with your investing, I’ll share some thoughts based on the Redditor’s post. 

The Redditor’s Portfolio

The 52-year-old man highlighted these parts of his net worth:

• Fully paid off home that’s worth $1.2 million
• Five fully paid-off cars
• $2.1 million in a 401(k)
• $2.4 million in a self-directed IRA
• $3.5 million in an investment account with a CFP
• $800k in an alt investment account (private equity)
• $150k in cash

The Redditor hasn’t bought real estate investments or crypto and primarily focuses on the NASDAQ stock exchange. 

How the Redditor Grew His Portfolio

The Redditor mentions that he has been investing since his mid-20s while being an aggressive saver. Some of thecompanies he worked for had equity-related incentive comp plans that helped him amass a net worth of $10 million. He’s endured layoffs but quickly found more work afterward. 

He lives frugally with his wife and children. Undergraduate tuition is already fully funded for his two college-age children. Growing a portfolio of that size requires getting the basics right and looking for new opportunities. He fully funded tax-deferred investments to minimize the tax bill and kept his investments in the stock market even when it got bad. 

The family goes on 1-2 vacations per year. He mentions that they usually go on a cruise or beach during their vacation and look like “normal middle-class people.”

Some of the Redditor’s Anxieties

Many Redditors congratulated him in the comments, mentioning that he demonstrates that the American Dream is alive. However, even with that type of money, the Redditor is still anxious about a few things.

Healthcare topped the list, as medical emergencies can get expensive. Making sure you have a good policy can minimize costs. Higher premiums may be worth it in this case since the Redditor has a net worth of $10 million that will likely grow over time.

A steady income stream is another top concern, but the Redditor can put himself in a position to make annual withdrawals. Living on 4% of your net worth each year can give you enough to live on while giving your portfolio room to grow. A 4% withdrawal on a $10 million net worth is $400k. That’s well above how much the Redditor spends (he mentioned spending $10k per month).

The final uncertainty is finding happiness with the uncertainty that Fat FIRE brings. A good way around this one is to get involved in local activities and groups. Having a sense of belonging can fill up your day while giving you more flexibility than a traditional job.

The Redditor has worked hard to put himself and his family in a good position. He plans to retire in 5-7 years after his youngest child gets their own health insurance, but he may also consider retiring in the next three years. He has plenty of options and enough financial flexibility to support himself and his family.