**Interview with a Millionaire: Perspectives from a $15.2 Million Path to Financial Freedom**
In this revealing interview, we engage with a 59-year-old woman who has amassed a net worth of $15.2 million. Currently savoring life in Lisbon, Portugal, she guides us through her experiences of professional development, disciplined savings, strategic investing, and conscientious spending. As always, we aim to glean insights from individuals who have attained remarkable financial success through the principles of earning, saving, and investing (ESI).
She divulges her unfiltered thoughts on what it took to achieve financial independence, how she managed her assets, and the valuable lessons she acquired throughout her journey. Conducted in June, this interview provides an authentic glimpse into the mindset of someone who has adeptly cultivated and sustained their wealth.
### **Overview**
**What is your age?**
I am a 59-year-old single woman with no children.
**Which city do you reside in?**
I reside in Lisbon, Portugal. I retired and relocated here from the United States after a lengthy career in the banking sector. The appealing aspects of Portugal include its safety, sunny weather, hospitable population, and robust healthcare system. Living in Lisbon affords me access to lively dining, entertainment, and travel options, all while allowing for a slower, more leisurely pace of life compared to my experience in the U.S.
**What is your current net worth?**
My net worth is approximately $15.2 million. The primary components of this wealth include:
– Taxable Investments: $12.66 million
– IRAs: $1.13 million
– Personal Real Estate: $1 million
– Deferred Compensation: $0.31 million
– Pensions (cash value): $0.27 million
– Health Savings Account (HSA): $50,000
I carry no debt, and my investment portfolio consists of roughly 75% in stocks and 25% in bonds/cash.
### **Earn**
**What was your profession, and when did you retire?**
I held an executive position at a mid-sized financial institution. I retired twice—initially in 2012 and eventually in 2018. My peak income reached $1.5 million annually due to salary, bonuses, and stock options.
**Can you describe your career and income trajectory?**
I started my career with a salary of $17,000 as an engineer for the federal government. Over seven years, my salary rose to $65,000. I transitioned into management consulting post-business school, ultimately entering the banking sector where my earnings increased steadily.
The 2008 financial crisis significantly impacted me, leading to burnout and health issues. I took a year off in 2012 with $3 million in savings. However, a captivating job offer lured me back into the field, boosting my income to $1.5 million before I ultimately retired again in 2018.
**What advice do you have for career advancement?**
Acquire as much diverse knowledge about various business functions as possible. Cultivate relationships with mentors and respected colleagues. These connections frequently yield unexpected career opportunities, as many of my major salary increases came from roles referred by previous coworkers.
**How does your income look now that you’re retired?**
Currently, my annual income is roughly $280,000. This income primarily stems from around $70,000-$80,000 in deferred compensation, with the remaining amount coming from dividends and capital gains in my taxable investment portfolio.
### **Save**
**What is your annual expenditure, and what are the main categories?**
I spend between $100,000 and $150,000 each year. My key expenses include:
– U.S. Federal Taxes: The bulk of my expenses due to my obligations as a U.S. citizen residing abroad.
– Travel: I allocate about $40,000 annually for travel, often staying in one location for 2-3 months.
– Dining and Entertainment: I spend around $1,250 monthly on food and cultural activities, including concerts and events.
– Healthcare: Health insurance in Portugal costs approximately $300 monthly, with out-of-pocket expenses around $25. However, prices for insurance are on the rise.
**Do you adhere to a budget?**
Yes, I create an annual budget and monitor my spending monthly. The budget establishes parameters, but I seldom reach the limits. Tracking my expenses became a routine I developed while repaying my student loans.
**What is your best saving tip?**
Live within your financial means and regard debt as a serious issue. Bonuses should not be used for indulgences—they should be allocated for future security. The essential strategy is to keep personal expenses minimal while saving rigorously. During my working years, I saved approximately 50% of my gross earnings, with taxes around 30% and living costs around 10-20%.
**How do you manage your spending?**
I employ a “need vs. want” strategy in my spending decisions. If I am tempted by a “want” that exceeds $1,000, I