Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million.
They’re sharing how they did it and what they’re doing with it. This time, we hear from a married 53-year-old transportation public affairs director and farmer in the Midwest.
See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)
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Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.
These features are intended to provide a window into how different people build their savings — they’re not intended to provide financial advice.
To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They’d Known Before They Retired.
And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:
The Basics
How did you make your first $1 million?
I have always been a saver. I started putting 15% to 20% of my paycheck away when I started working at age 24 (graduated law school) and encouraged my wife to do the same.
We achieved millionaire status when I was 41, but our big break came when I was 36.
(Image credit: Getty Images)
I grew up on a farm. My uncle called and told me there was a nearby farm for sale and encouraged me to buy it. It was $1,300 an acre — $104,000 for 80 acres. My mom gave us half the 20% down payment.
My dad told me it was too much money and that we had no idea what we were doing, but it was the best investment we ever made.
Four years later, the farm was worth around $300,000, and we borrowed against our equity to buy a second farm for $3,100 an acre. The appraiser told us we got a good deal.
Six years after we purchased our first farm, I was 41 years old, and my wife was 40. We owned $1 million worth of farmland with $700,000 equity plus $400,000 in investments.
(Image credit: Getty Images)
Buying that first farm was the best investment we ever made.
We have since acquired a third farm and bought a couple of rental duplexes, and I continue saving 15% to 20%.
What are you doing with the money?
Like a lot of farmers, we are “land rich” and “cash poor.” Almost all of our cash money — more than $1 million — is in 401(k)s and Roth IRAs.
We do have a six-month emergency savings fund.
We paid off our first farm, and I plan to pay off the second farm in the next five years, which will free up cash flow for another deal or reinvestment.
The Fun Stuff
Did you do anything to celebrate?
No, it didn’t seem real. I did recently take my wife and kids out to a nice dinner to celebrate a nice profit we made when selling a rental property.
(Image credit: Getty Images)
What is the best part of making $1 million?
It’s knowing I can get my kids through undergrad school debt-free.
It’s knowing I have the freedom and flexibility to help my kids and family if the need arises.
Did your life change?
I am much more confident and able to take on more risk/make calculated investments because I have a strong balance sheet.
Does anyone know you’re a millionaire?
I have a few close friends — all millionaires — who I talk with about stocks, investing, taxes and finance.
These are first-world problems most people don’t understand.
(Image credit: Getty Images)
Even my wife, who knows our assets and net worth, does not understand my obsession with optimizing our taxes.
Any plans to retire early?
No, I love what I do and need to have a reason to get up in the morning.
Looking Back
Anything you would do differently?
Yes, I would just keep buying and hold steady in the funds I had. I panicked during the 2000 dot.com bubble, the 2008 Global Financial Crisis and a little less during COVID.
My panicking during those three economic downturns easily cost us hundreds of thousands of dollars and likely more than $1 million.
What advice would you give to your younger self?
Don’t panic when the market drops 40% in a year. Just keep buying.
(Image credit: Getty Images)
Did you read any books that helped you on your journey?
I also listen to a lot of podcasts.
Did you work with a financial adviser?
No. When I was first starting out, I asked my dad about hiring a financial adviser. He said, “Nobody is ever going to handle your money better than you.”
I have been a do-it-yourselfer ever since.
Did anyone help you early on?
I feel like I got a lot better at investing when I started listening to Warren Buffett and Charlie Munger and stopped listening to a lot of the financial pornography that is out there.
Looking Ahead
Plans for your next $1 million?
Our net worth is 50% real estate and 50% equities. I want to keep growing both our real estate portfolio and our investments.
Any advice for others trying to make their first $1 million?
Marry the right spouse and stay married. Two incomes are much better than one when you’re starting out.
(Image credit: Getty Images)
Then, live beneath your means, save 20%, buy and hold diversified funds and just keep buying.
Do you have an estate plan?
I have a healthcare directive and springing durable power of attorney in the event anything happens to me.
All the real estate is JTWROS, etc., and all other accounts are joint or POD (pay on death).
However, I am considering a trust in the future.
What do you wish you’d known …
When you first started saving? The time-value of money. I should have put more money away earlier so it could compound.
(Image credit: Getty Images)
When you first started working with a financial professional? Beware of financial professionals who want to sell you life insurance and other services.
When you first started investing? The market always comes back. It can take time, but the market always comes back.
If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.
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