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 58-year-old married tech CFO in Dallas who makes $450,000.
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 started saving for college and a car when I was 8 years old, with my first paper route. By the time I was 11, I had my first $1,000 saved and invested in a CD earning 13.5%.
When I was 16 and started working part-time at a grocery store, I had $5, and later $10, of every paycheck deposited in the grocery store chain’s credit union savings account.
Once I graduated from college, I started investing in the firm’s 401(k) and making sure I was getting the full company match, and then I started investing in mutual funds and stocks.
By the time I was 26, my combined investment portfolio was worth $100,000, and I had $10,000 invested in an UGMA for my first daughter’s college education (529 accounts were not available yet).
When I was 33, my company’s options were worth $750,000, and my investment portfolio was worth $250,000.
(Image credit: Getty Images)
The next year, the dot-com bubble burst, my options became worthless, and my investment portfolio dropped 45%.
My investment portfolio grew back up to (where it was before) the bubble burst in less than a year and a half.
The Fun Stuff
What is the best part of making $1 million?
Knowing that you can take care of your spouse and family for the long term … long after you’re gone.
If you’re doing it for any other reason, I think you’ve missed the point. We’re all here to do our best in using our talents to take care of each other.
Did your life change?
Simply put, less financial anxiety over:
- A, what happens when I’m gone
- B, feeling more comfortable with the ability to do the things I want to with my spouse and family
Does anyone know you’re a millionaire?
I used myself as an example with the Boy Scouts, and because we had two-deep leadership, other adults heard it. I always thought it was a good thing — because parents would start to take notes, as well.
(Image credit: Getty Images)
Any plans to retire early?
Not sure I’ll ever fully retire, health not withstanding. My plan is to make the top 1% before I pivot into more self-directed/part-time endeavors (teaching, blogging, board member, etc.).
Looking Back
Anything you would do differently?
A friend of mine had said, “There’s nothing wrong with taking money off the table and investing elsewhere,” when we were talking about my stock options. I thought about it a lot but didn’t take the advice. Where else was I going to get the phenomenal returns???
I decided that long-term value creation, excellent management and diversification matter more than the high-flying returns. That was the approach I took with my investment portfolio, and that was what I should have done every time my options were vested.
What advice would you give to your younger self?
- Don’t be as conservative in your investment decisions when you’re young.
- Don’t get married to any one investment
- Look out for the classic mutual fund pump-and-dump (lost a fair amount of money)
- Always key on strong management instead of industry
- You’re never going to be truly right, so if you start to get uncomfortable, there’s nothing wrong with selling and loading up on cash
Did you read any books that helped you on your journey?
Yes, but most were boring (or I was too impatient). I’ve heard that Rich Dad Poor Dad (by Robert Kiyosaki) was a good one for people in their 30s.
(Image credit: Getty Images)
I mostly intertwine things from several sources. Kiplinger’s is a good one to get ideas that you can continue with other sources.
When I was a kid, I thought The One Minute Manager (by Ken Blanchard) was a good one (the essential message was, knock the hard stuff out of the way first so you can enjoy the rest).
I think the source material should start with your own aptitude, and you build from there. For me, it starts with saving money, so if that’s where you are, that’s where you should start.
Read to get ideas on how to better ensure you’re saving as much as you can (either make more or spend less and ultimately do both).
Did you work with a financial adviser?
No. I talk with one investment firm’s broker and give him the harder stuff I don’t have time for (e.g. setting up the kids’ 529 accounts), but generally I like to do my own investment analysis and am a big fan of Morningstar — I get it for free through T. Rowe Price.
Did anyone help you early on?
My dad set me on the right path. He told me how he saved and what stocks provided, then casually left annual reports out where I could start looking at them at an early age.
(Image credit: Getty Images)
From there, it’s a collection of people, really.
Looking Ahead
Plans for your next $1 million?
My plan is to make the top 1%. That’s still several millions away, but a lot closer than it was.
Part of the drive is the challenge, the planning, the people you work with to get there.
Any advice for others trying to make their first $1 million?
I used to teach the Personal Management merit badge for my son’s Scouts troop. I would skip telling them about how I made my first million (the million I lost) and teach them about my second.
(Image credit: Getty Images)
It all starts with deciding:
- What kind of life do you want to have?
- What are you willing to do to have it? (What do you need to do to get the kind of job you want that pays the kind of money you’ll have to make to meet decision No. 1?)
- What are you going to save?
You have to put saving in front of everything else. What’s left over determines where you live (rent, then mortgage), what you drive, what you wear, etc.
Do you have an estate plan?
What do you wish you’d known …
When you first started saving? I was a good saver and had a decent grasp on interest rates. We didn’t have as many options and easy movements of cash via the internet then as we do now.
I was saving to pay my way through college and buy my first car, so there wasn’t a lot more I could have done to grow it faster before I turned 18.
When you first started investing? Gosh, all of it, really. You start small and learn along the way. I guess I wish I had known about the Rule of 72. That basic rule could have helped me steer away from some of the mutual funds that were too conservative, given my age at the time.
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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