# **Millionaire Interview Update: Insights from Millionaire #249**
The path to financial independence is filled with challenges and triumphs. After three years since his first ESI Money Millionaire Interview, Millionaire #249 is sharing an update. This article delves into his recent financial developments, significant life transitions, and the future of his journey toward financial independence.
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## **Overview**
At 38 years old, he and his wife have been together for 12 years, celebrating eight of those in marriage. Since their last appearance, they welcomed their first child in 2022 following some challenges with pregnancy. Their daughter, now 2, has become the center of their lives.
In 2020, they relocated from the Bay Area to a small rural town in the Northeast, and in 2021, they acquired their first home. Although they previously contemplated expanding their family, considerations around financial security, home size, and age have led them to rethink having a second child.
Although financially independent enough to entertain early retirement, he continues to work, eyeing a possible career shift into consulting within the next five years. His wife, a stay-at-home mom, is thinking about pursuing a nursing degree.
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## **Net Worth Growth**
### **Current Financial Standing**
As of October 31, 2024, their net worth has reached **$2.165 million**, an increase of nearly **$500,000** compared to their last interview at the end of 2020, where they reported a net worth of **$1.66 million**.
### **Key Changes Over Time**
– Their net worth hit a high of **$1.85 million** in 2021 before facing a downturn.
– In 2022, they experienced a **30% decline**, bringing their net worth down to **$1.25 million**, largely due to fluctuations in individual stocks and ETFs.
– Following the low point in 2022, their **net worth rebounded by 61%**, aligning closely with the S&P 500’s 60% recovery.
### **Asset Allocation**
– **Checking & Brokerage** – 59%
– **Retirement Accounts** – 35%
– **Real Estate Syndications** – 4%
– **Crypto Investments** – 2%
Focusing on their investments, he is now considering the advantages of **after-tax investing** over tax-deferred accounts for better liquidity in early retirement.
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## **Earning Power**
### **Current Employment**
He is currently a **VP of Operations** at a mid-sized consumer products firm.
### **Salary Progress**
His **annual salary rose from $150,000 to $190,000** since their last interview. Unfortunately, although a **20% bonus structure exists**, actual payouts have been unpredictable due to elevated corporate revenue targets. Over five years, his total bonus compensation has amounted to less than a complete year’s bonus goal.
### **Side Income Ventures**
– **Reselling Business:** Still generating about **$5,000 annually** from selling merchandise and gift cards.
– **Consulting:** No active projects for **2023-2024**.
– **Board Equity Stake:** Recently acquired a **board position in a private company**, offering the potential for **$250,000–$500,000** upsides in the coming years.
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## **Spending and Savings Strategy**
### **Spending Changes**
Post-move and home purchase, their spending has significantly changed:
– **2021:** Increased sharply to **$175,000** due to home and vehicle acquisitions.
– **2022:** Decreased to **$93,000**.
– **2023:** Further declined to **$76,000**.
– **2024:** Year-to-date spending is **$66,000**, with a goal of stabilizing annual spending at **$75,000 or less** in the long term.
### **Key Spending Factors**
– **Major home expenses ($32,000 total):** Included a new roof, driveway, oil tank, tree removal, and gutters.
– **Two Car Purchases:** Fully paid off within three years.
– **Child-Related Expenses:** Surprisingly low, thanks to employer-funded healthcare and family contributions.
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## **Investment Shifts**
### **Current Portfolio Strategy**
Following losses in 2022, he shifted his investment approach. Moving away from high-risk individual stock picks, the majority of his portfolio is now allocated to broad-based index funds.
– **70% invested in Vanguard Total Stock Market ETF (VTI).**
– **Remaining capital in older individual stocks.**
### **Investment Performance**
– Previously, reliance on **individual stocks resulted in poor returns**, leading to a shift toward **passive index fund investing**.
– The stocks he divested have yielded **40%** growth since 2022, while the **VTI investments have produced a return of 63%**.