Update on Millionaire Interview: Version 58

Update on Millionaire Interview: Version 58


### A Millionaire’s Journey: Reflections and Updates

Three years have elapsed since Millionaire 236 was featured on *ESI Money*, and much has evolved. Time has moved forward, lessons have been absorbed, and wealth has increased. This revised reflection offers valuable perspectives on the journey toward financial independence, alongside the obstacles and factors to consider in wealth preservation over time. From managing the intricacies of family life to navigating financial markets, here’s how life has transformed for this millionaire family.

#### **OVERVIEW**
**How old are you?**

“I’m now 50,” he states, observing that AARP invitations seem to arrive weekly—a not-so-subtle hint that time flies. Married for over 22 years, he playfully hesitates to disclose his wife’s age and recalls that during his first interview on *ESI Money* in 2021, he was merely a few days shy of his 47th year.

**Do you have kids?**

The response is affirmative—and with pride, he shares numerous family-centered achievements. Their 18-year-old daughter has just completed a challenging college application journey (including navigating FAFSA), and she will be heading off to college this fall. His 14-year-old middle child is following her sister’s lead, thriving at a local magnet high school focused on technology and science. Lastly, the youngest, just seven years old, is busy finishing first grade. The joy of witnessing his children’s growth and success is evident, although he attributes much of it to his wife for “doing a fantastic job raising them.”

**Where do you live?**

The family continues to call Northern Virginia home, a suburban area adjacent to Washington, DC.

**What was your original millionaire interview on *ESI Money*?**

Their inaugural interview was Millionaire 236, published on April 19, 2021.

#### **NET WORTH**
**What is your current net worth?**

Fast forward to today: as of May 26, 2024, their net worth has escalated to $7.6 million—a noteworthy increase from the $3.4 million reported in the first interview three years prior.

**What happened to increase your net worth?**

Several key milestones and decisions fueled this growth:

– **Mortgage Refinancing:** With foresight from his wife, they refinanced their mortgages at historically low-interest rates (under 3% for their primary residence; 3.5% for their rental property). He considers this “essentially free money,” a gift during a time of rising inflation that enables them to channel extra resources into increasing their wealth.

– **Investment Strategy Shift:** Various market realities prompted a more aggressive approach to investing. Worries regarding commercial real estate and regional banks led them to pull out from REITs and related stocks. Redirecting those funds into growth stocks has yielded positive results, although he expresses some caution and regrets about specific missteps (such as selling covered calls and put options, leading to unintended capital gains taxes).

– **Asset Liquidity:** They have equipped themselves with a substantial cash reserve in their accounts because of market fluctuations, granting them the ability to endure and potentially seize unexpected financial opportunities.

– **Real Estate Improvements:** They executed cash-out refinancing on their rental property, using the proceeds for upgrades and renovations. Although the income from this townhouse is a “wash” due to mortgage and related costs, real estate remains a vital (if moderate) element of their strategy.

#### **EARN**
**What is your job?**

Professionally, there has been a slight transition. He now serves as Director for a delivery team at a large multinational corporation, combining hands-on technical responsibilities with the management of client and corporate meetings. Previously, he held the position of VP of Technology and had a brief stint as CTO for a niche product firm.

**What has changed?**

His annual base salary currently stands at $225,000, a small raise from his prior position, yet he acknowledges that longer hours no longer ensure significant wage increases. Family priorities took precedence over the past year, especially with his eldest daughter’s college admission journey.

#### **SAVE**
**What is your current annual spending?**

The family’s expenditures have climbed to approximately $100,000 annually as they encounter the resumption of pre-pandemic costs, including travel and children’s activities. Notable factors contributing to this rise include increased property taxes, soaring insurance premiums, and inflation impacts, particularly in food and energy.

**Are there any notable changes in your savings strategy?**

While he remains committed to maximizing retirement contributions (especially now that he qualifies for catch-up contributions), family expenses have shifted the equilibrium. Tuition for college, children’s activities, and the escalating cost of living have reduced their annual savings rate, yet they remain assured that their financial future is stable.

#### **INVEST**
**What are your investments and how have they changed over the years?**

Their