My First $1 Million: Construction Industry Product Manager, 51, Northeast

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 51-year-old product manager in construction equipment manufacturing. He's a self-professed lifetime bachelor living in the Northeast, though he grew up in the Southwest.

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.)

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.

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These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.

THE BASICS

How did you make your first $1 million?

Prepare to be underwhelmed. My path to $1 million is probably the most boring story you will hear. It's a strategy you've read about many times. It's simple, really: I lived well below my means. I invested early — made my first investment at age 15 — and at a high rate, at times as much as 30% of my income, and then I ... did nothing. I just let it grow.

My first investment at 15 was not a high-return investment, but it was money I had earned with summer jobs. I bought some U.S. Savings Bonds that would mature in time for me to use the money to help with my first semester in college. It worked, and I was hooked on personal finance.

I was like most poor college kids for the first few semesters, just trying to survive. I had no financial assistance from my family, and initially, it was very difficult to get any financial aid due to the system assuming my family would pay.

After filing the appropriate paperwork, I was able to prove that I was not receiving assistance from my family, and then I was able to receive some Pell Grants and Stafford Loans.

I used the loan money to pay for college and any excess (plus what I was earning from bartending) to invest. I invested in low-cost index funds spread across large, medium and small cap, some international (developed and emerging), and then over time I bought a few sector funds that I felt would outperform the overall market (energy, financials, health care).

And then, I just kept buying. I intentionally kept myself cash-poor so that I would not squander my money on short-term gratification (new cars, boats, big house that I didn't need, etc.).

I followed my retirement account balances very closely as I approached $1 million. I still check my balance daily, but I don't keep track of the balance (as closely).

Here are my balances (not including real estate) over time:

• 7/29/2016: About $400,000
• 6/1/2017: About $450,000
• 1/5/2018: About $500,000
• 9/17/2019: About $600,000
• 8/4/2020: About $700,000
• 12/3/2020: About $800,000
• 4/9/2021: About $900,000
• 6/7/2021: $1 million
• 7/20/2025: About $1.6 million

There is nothing I did that others can't do as well. I didn't win the lottery, didn't inherit money, didn't come from a family with a high degree of financial literacy.

I was capable of this because I had a burning desire to be financially independent and a willingness to delay gratification in order to obtain that independence.

What are you doing with the money?

I am still investing. I hope to have $2 million when I turn 55 (42 months to go), then I will retire using the IRS Rule of 55.

It's likely, after taking a few years off, that I will return to the workforce in some capacity, but I hope for that to be my choice rather than being forced due to needing the money.

THE FUN STUFF

Did you do anything to celebrate?

I don't recall doing anything big. I probably went out for dinner and had a drink, or two.

Does anyone know you're a millionaire?

I prefer stealth wealth. There is nothing to gain and lots to lose in telling others your net worth.

What is the best part of making $1 million?

It was a great feeling of achievement that I was able to do this despite all the headwinds I faced. Also, the feeling of confidence that I will be able to live comfortably in retirement.

Did your life change?

Not really. It gives me a bit more confidence that I will live comfortably in retirement, but otherwise I have continued to live my life the same as before.

Any plans to retire early?

I plan to retire at 55 and live off real estate income (I own a short-term rental), and using the Rule of 55, I will make some withdrawals from my previous employer's 401(k).

I could continue to work and let my investments continue to grow to $3 million to $4 million, but why?

LOOKING BACK

Anything you would do differently?

I would probably be a little more aggressive and growth-oriented earlier, but otherwise I feel I've done pretty well.

Starting with no financial literacy and no one to teach me, $0 to start, inheriting $0, and now I have $1.6 million and am on my way to $2 million.

Did you work with a financial adviser?

I've never used an adviser and never solicited financial advice from anyone directly. Personal finance is my hobby.

I spent a lot of time researching and reading on the subject — not researching for "what stock to buy," but rather, for investment principles and strategies and methods of investing (traditional IRA vs Roth IRA vs 401(k), HSA, real estate, etc.).

LOOKING AHEAD

Any advice for others trying to make their first $1 million?

Everyone has a bank account. You can choose to put money or memories in your account. Both will gain value over time, but only one of those will pay the bills during your retirement.

I don't think poorly of people who put more memories than money in their accounts — that's a reasonable life choice. They just need to make sure they understand the consequences.

Do you have an estate plan?

I've started and stopped the process of creating an estate plan several times — I need to see this process through.

With $1.6 million in my accounts and another $500,000 or so in real estate — plus, I manage my mother's retirement account — if something happened to me tomorrow, it would be a mess for my nearest relatives to figure out.

What do you wish you'd known …

When you first started saving? I think I learned what I needed to learn at the right time. I knew what I needed to know when I first started saving and continued to learn what I needed to know as I progressed.

When you first started investing? I wish I knew a bit more about value vs growth, and I have more of a growth bias in my account. I did pretty well, but most of the index funds I got into are actually a blend of value and growth.

Anything you'd like to add?

I am a lifetime bachelor — never been married or had even a long-term relationship — and I have no children. This has had a significant impact on my retirement balance — I would guess half, if not more, of my retire account balance came from being a lifetime bachelor.

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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