Today I’m sharing an update following a previous millionaire interview. I’m allowing a three-year interval between initial interviews and updates, so if you have been interviewed, I will reach out. This update was provided in September and is actually the second update from this millionaire!
OVERVIEW
*How old are you?*
We are 57 years old. We have been married for 26 years. In terms of earning, spending, and investing, we nearly always agree. Thus, it has been straightforward to adhere to the ESI path.
*Do you have kids?*
Our twins completed their college education with STEM degrees from two prestigious universities a few years back. One secured a position in the energy sector immediately after graduation. The other gained entry into an MD/PhD program with a full scholarship.
We invested over $250k per child for their private college education. Both graduated without debt. We believe the investment in their education was worthwhile due to the career opportunities their degrees afforded.
*What area of the country do you live in (urban or rural)?*
We reside in an urban setting. Previously, we lived in a low-cost midwestern city, but after taking a severance, we relocated to the suburbs of an affluent East Coast city and purchased a home for our retirement.
*What was your original Millionaire Interview on ESI Money?*
I was Millionaire #12 in 2017 and provided an update in 2020.
*Is there anything else we should know about you?*
I’m an immigrant who arrived in the US with $500, a suitcase, and a full college scholarship. I hold a PhD and ascended to a Senior Director position in a Fortune 500 company.
NET WORTH
*What is your current net worth and how is that different than your original interview?*
Here’s our current situation compared to previous updates: [Image]
The growth in our accounts and net worth stems from consistent contributions. We received an IRA and some cash from a late relative. The sale of our house and my severance allowed us to purchase a more expensive, now fully paid-off, home with appreciated value.
*What happened along the way to make these changes?*
I transitioned to a new job with a salary increase and stock options, but we kept our strategy of maximizing contributions to various accounts and investing our take-home pay into Vanguard funds.
*What are you currently doing to maintain/grow your net worth?*
I intend to retire in three years but may have to do so earlier due to changes in the industry. Our portfolio can support our lifestyle with a 3% withdrawal rate.
EARN
*What is your job?*
I am an executive at a small tech firm. My wife works part-time as an educator, which has helped maintain our work-life balance.
*What is your annual income?*
My income is approximately $300K with a 30% cash bonus. The Employee Stock Purchase Program is generous, and I have maxed it out. I receive around 50k in stock options each year and plan to sell them after retirement for additional income.
*How has this changed since your last interview?*
I moved from a Fortune 500 company, took a severance, and initially received a 25% salary hike. My income has significantly increased over the past five years.
*Have you added, grown, or lost any additional sources of income besides your career?*
My income has consistently come from salary and investment returns. I steer clear of rental properties or businesses to preserve our quality of life.
SAVE
*What is your annual spending and how has it changed since your interview?*
We aim to live on half of our take-home salary, though we likely spend 60%. A portion of our bonus goes toward travel, and we haven’t utilized stock awards, benefiting from stock appreciation.
*What happened along the way to make these changes?*
We’ve adhered to our strategy, investing in low-cost index funds. This approach has minimized capital gains taxes when we rebalance our portfolio.
INVEST
*What are your current investments and how have they changed over the years?*
There have been no changes besides accumulating employer stock. We invest in low-cost index funds: Vanguard S&P500, Total International Index, Small Cap Index, REIT Index, GNMA, and Intermediate Bond Indexes. Our house, which is fully paid off, is valued at over $1M.
*What happened along the way to make these changes?*
Our investment strategy has remained stable, and we assisted our children with Roth IRAs while teaching them about financial literacy. We are contemplating wealth transfer within gifting limits.
MISCELLANEOUS
*What other financial challenges or opportunities have you faced since your last interview?*
Leaving a Fortune 500 company for a startup was challenging, but we had a safety net of investments to take that risk.
*Overall, what’s better and what’s worse since your last interview?*
We are financially prepared for retirement soon but need pursuits to fill post-retirement time. The move was difficult for making new acquaintances, made harder by the pandemic, but our social