[USER]

Need some advice please!
I’m 49 and very late to the investment. I got two kids – 12 and 5. Make around $111K. Wife does not work. Started 401K this year and has $4000.

Roth IRA was also started this year and has $9000. Brokerage account has $60,000 and savings account has $45,000.

With these data – any thoughts can I ever hit the 1 million mark before I turn 58.

[David]

You can do this. You have a big advantage in that a stay at home wife is your super power. Get her on board with lots of exconomizing and you can trim those expenses way down.

I was super lucky to have a stay at home wife through my 30’s and we were able to stuff money away like crazy and I wasn’t making anywhere near six figures.

While, yes, time in the market is better than timing the market, start right now and you’ve got a good shot of making it.

Even if you don’t, you’ll be far better off than if you don’t try.

[Patrick]

You’ll have to save about $65k a year. That’s assuming 6.5% average annual return. Depending upon when you plan to retire, your portfolio might not be allocated to perform even quite that well over 10 years.

And the X-factor is that there’s no telling how the market will perform over a short 10 year period.

All you can do is try your best, and like Buffet said, never lose money.

[Ryan]

It’s a stretch but possible. The biggest thing to keep in mind in my opinion is that even if you happen to miss your mark is having “only” $750K at 58 REALLY that bad?

[Brad]

Unlikely. You’d need to invest $5k a month over the next 9 years, give or take. But anything is better than where you are now. So, ramp it up and see what happens.

[David]

All depends on how much you can save and what returns you get.
Why do you have that specific goal? You might want to redefine what you’re looking for.

I’ve certainly had to do that with my journey. My early FIRE path helped get me to where I’m at now, but I’m probably not going to FIRE.

[Jason]

How much can you / do you plan to contribute? Definitely possible… with planning

[Jenny]

If you are on the same trajectory with one income, it’s not likely you would go from $118k to $1 mil in 9 years.

Unless, you leverage your time and talent to earn and invest massively through business or real estate or some other ventures, pre-IPO stocks that hits it big or some other exponential growth securities like bitcoins at its infancy.

[Graham]

It’ll take some major changes. Maybe your wife could get a job and between the 2 of you, double the income and invest the entire difference.

It would take something of that magnitude

[Jodi]

You have school-aged children. Any chance your wife can substitute teach or get a teacher’s aide position?

It would keep her on their schedule and bring in extra money.

[Nicole]

This years annual Roth IRA contribution limit is 7k. Unless that other 2k is growth which would be impressive you may have over contributed.

[Jasmine]

Max contribution to an IRA for someone under 50 years is $7K for 2024. Has it really grown to $9K in the short time you’ve had it?

It’s certainly possible given how well the market has done this year (assuming you started in Jan), but just checking you haven’t exceeded the max contribution.

If you file taxes jointly with your spouse, she can also open an IRA in her own name and contribute $7K, or $8K if she’s 50+ years.

Usually one needs to have earned income to be eligible for an IRA, but there’s an exception for married couples who file jointly.

[Davey]

The best thing you could do is to find away to make an extra 100k a year!
Side hustle with your wife or a second job or high commission sales job.

Are there things that interest you or your passionate about? Could you get another or more high paying job?

You may find it easier to earn more than save more and if you can ..you can run to that one million dollar goal.

[Meme]

Took me about 10 years to hit $600k in my portfolio, I mean it’s doable but you gotta strap it down tie on them spendings, also helps id wife gets a job

[Author]

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