My First $1 Million: Retired Physician, 52, Chicago
"I was able to see that time freedom and financial freedom were within reach. It motivated me to work, save and invest more until I could reach financial independence."
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 52-year-old married and retired physician who lives in Chicago. She and her husband hit their first $1 million when he sold his business.
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.)
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.
To hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:
The Basics
How did you make your first $1 million?
Making $1 million was a joint venture with my husband. His company got bought out, and we got our first $1 million that way, though we were nearly millionaires before his company was bought.
We did not mean to do it at the time, but what happened was we lived on his income and we saved my income, which was a 30% to 40% savings rate.
That helped us retire in our 50s.
What are you doing with the money?
We paid off our mortgage, funded our kids' 529 plans and invested the rest.
We always donated regularly, so we were able to tithe more.
The Fun Stuff
Did you do anything to celebrate?
My husband bought a new car.
What is the best part of making $1 million?
It's a major milestone. After reaching the first million, the next few million come much easier as long as you keep the same disciplined approach to saving and investing.
Getting rid of debt is a huge relief. You can start piling all those debt and liability payments toward retirement savings instead.
That will really accelerate reaching your net worth goals.
Did your life change?
It changed my life because I was able to see that time freedom and financial freedom were within reach. It motivated me to work, save and invest more until I could reach financial independence.
Does anyone know you're a millionaire?
No, because I don't want to boast. And I don't want to make people feel less than I am.
Besides, there are probably many people who are already millionaires, but they just don't act like it. I love humble rich people!
Did you retire early?
Yes.
Looking Back
Anything you would do differently?
No.
What advice would you give to your younger self?
Start saving earlier and use tax-advantaged accounts like IRAs to save.
If your work offers a mega Roth option, do it! When I started saving, there were no Roth IRAs or Roth 401(k)s. It would have made a huge difference to start saving with those vehicles.
Did you work with a financial adviser?
No. I am a big fan of index investing and keeping it simple. I am not greedy — I just want average returns.
I had many bad experiences with investment advisers who were demeaning and led me to bad investments. So I decided to become financially literate on my own.
There are so many terrific resources to learn how to manage your finances on your own. Average returns will still get you to millionaire status.
Nothing wrong with a get-rich-slow plan.
Did you read any books that helped you on your journey?
Yes, books by David Bach, Suze Orman, Dave Ramsey. Also, Personal Finance for Dummies, Die With Zero, I Will Teach You to Be Rich, How to Retire by Christine Benz. I love all finance books!
Did anyone help you early on?
My father lent me money to buy my first home at age 25. I subsequently paid him back, but it was that seed money that helped me get started.
Looking Ahead
Plans for your next $1 million?
Charity to my church, alma mater and other worthy causes is so fun when you have a lot of money to give. Brings me much joy.
Any advice for others trying to make their first $1 million?
Start early. Save for retirement even in your teens.
The younger you are, the more aggressive you can be with your investment allocation. At first, it seems like you are not getting anywhere with your saving and investing, but then your net worth starts shooting up because of compound interest.
Do you have an estate plan?
Yes, we have an estate plan. There are definitely trusts involved. Marital bypassing trust, trusts for children to inherit. Plans for donations.
We like the die-with-zero concept. We want to spend as much as we can while we are alive, including supporting our children when they are cash-strapped and starting out in life, giving to our church and charities while we are still alive and we get to enjoy the fruits of donating, then leaving behind the estate tax exclusion for our state to our children.
What do you wish you'd known …
When you first started saving? Start early and use tax-advantaged accounts even as a teenager.
When you first started investing? Invest in index funds. Avoid expensive fees on investments. Just put all your money in a broad-based U.S. index fund, and you will do fine.
Before you retired? That retirement is incredibly fulfilling. Time abundance and freedom are priceless.
Anything you'd like to add?
The most important decision I made in my life was whom I married. It really helps to stay married to someone who truly loves you and shares your same values.
Talk about money goals with your future spouse before you get married. Make sure you know their financial situation, debt, habits, etc.
A supportive spouse will help you reach your goals so much faster and easier. And the fruits of your labor are that much more enjoyable together.
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.
Related Content
- You're 62 Years Old With $1 Million Saved: Can You Retire?
- Want to Earn $1 Million More Over Your Lifetime? Do This
- Do You Have at Least $1 Million in Tax-Deferred Investments?
- Are You Rich? U.S. Net Worth Percentiles Can Provide Answers
- Compare Your Net Worth by Age
