My First $1 Million: Senior Manager, 52, Southeast Michigan
Looking back, "I would have chosen memories over material purchases. I'd have taken my parents on vacations with me instead of driving a new Jeep."
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 senior category manager in aluminum in Southeast Michigan. He's married and still working, making $175,000 after starting at $40,000 in 1996.
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.)
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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 learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They'd Known Before They Retired.
And 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?
Slow and steady wins the race! A small inheritance came at the same time as my first $1 million.
Shortly after getting married in 2004 — my wife became a U.S. citizen in 2006 — we created a will to assign her as beneficiary, and it was on that day, about 10 years after college graduation, that the lawyer looked us in the eyes, very impressed at the $112,000 in my 401(k), and he congratulated me on being a millionaire…
I was a bit confused, but he was the first, and not the last, to explain that money doubles on average every 10 years (Rule of 72).
So I learned that the $112,000 would be $1 million by the time I retire at 67. It was an eye-opening and rewarding experience — and the day when we took to budgeting more seriously.
What are you doing with the money?
Hired a financial adviser to give guidance and suggest new products.
The Fun Stuff
Did you do anything to celebrate?
A high-five in the kitchen, then we increased our 401(k) and Roth contributions and set a new goal to pursue $4 million net worth.
What is the best part of making $1 million?
Being able to relax about the strict budget, but not too much. Still, the goal is to live happy without debt.
Did your life change?
No. Not at all. We are halfway to our end goal of $4 million and probably have 10 years to go?
I'd be 62 and the wife 56, if all goes to plan, and we will then start a new chapter.
We plan to keep busy volunteering at local schools, church and nonprofit groups we support. Maybe we'll call it semiretired, but we'll be giving back time to our community.
Does anyone know you're a millionaire?
Our kids, but we don't really think about it, let alone talk about it.
We are the silent millionaires next door. Our neighbors' houses are just 15 feet away.
Any plans to retire early?
What's "early" mean? We are pursuing a $4 million net worth, and when the time comes, it comes.
Retirement is not an age to us — it's having a net worth with enough to leave behind a legacy.
Looking Back
Anything you would do differently?
I would have chosen memories over material purchases. I'd have taken my parents on vacations with me instead of driving a new Jeep.
What advice would you give to your younger self?
Don't go into debt just to look cool with friends. Friends who care about fancy cars don't matter, and those who matter won't care what you drive.
Also, learn how to DIY — with everything! Over time, I've learned how to do my own brake jobs, finished my own basement, remodeled my kitchen and bathrooms, repair my own car.
I had a 2012 Dodge Avenger with 100,000 miles (paid off early in 2016) that I gifted to my daughter for a college beater. Every week that she drives it instead of a new lease is a $100 bill back into her pocket — every week!
Then we accrued the monthly payments until my wife and I had cash to buy a new 2024 Chevy Trailblazer with no car payment.
Did you read any books that helped you on your journey?
Not really … maybe … likely. Nothing memorable, though.
I prefer the quick five-minute articles from Kiplinger, Money, Fidelity, Vanguard and Fortune.
Did you work with a financial adviser?
Yes. Bassem Moez at Fortress Financial.
Did anyone help you early on?
My dad. He was laid off in the '80s, and it was tough times. Having cheese and crackers was one of my favorite dinners.
Yet, through his hardship, the family of seven endured, and we all learned about saving money for a rainy day, having an emergency fund, working hard and putting in effort, avoiding debt — he was a guiding light to all of us kids.
He retired in the '90s with a full pension and a 401(k) that he was one of the first ever to have access to.
He took time at the dinner table to give all of us kids savings and other financial advice.
Looking Ahead
Plans for your next $1 million?
Using a financial adviser to accelerate investments in non-typical products that are low risk but offer after-tax Roth-like income streams that we can use first, before tapping our 401(k)s, when taxes will be due.
Any advice for others trying to make their first $1 million?
Create a budget and stick to it. Debt is enemy No. 1.
Consider community college for the first two years, then transfer credits, or consider joining the military to help pay for college, or find a profession, like being an electrician or a plumber, instead of getting a $100,000 degree.
I worked while attending college (engineering degree) and lived at home mostly, so it took me five years to finish a four-year degree, but I graduated with minimal school debt and nearly five years of experience, so I hit the ground running at a young age. No regrets there!
I find it sickening that younger generations rack up $100,000 in school loans just to say they graduated from a fancy college that most hiring managers don't care as much about as the three C's — compatibility, competence and commitment.
Do you have an estate plan?
Yes, the full package, everything. After closing my parents' estate, I quickly learned about estate planning and trusts and wealth preservation for beneficiaries.
I have five siblings — I'm the second youngest — and being the executor/personal representative for my parents' estate, I learned a lot and recommend everyone set up a trust.
What are you glad you know before you retire?
Life is short. Health and fitness matter much more than I'd admit when I was in my 30s and 40s raising kids. I let my body slip a bit.
At least I'm addressing it now in my 50s so I can hopefully live to my 90s and actually travel and enjoy my early retirement years while the joints are still flexible.
What do you wish you'd known …
When you first started saving? Planning a more diversified portfolio for tax planning in early retirement, having both 401(k) and Roth after-tax plans to optimize withdrawal strategy.
Maybe I'd have found some rental properties, but my budget would have only allowed me to buy into areas where the renters would be higher risk. I feared I'd spend more money on court evictions and repairs, so I avoided it.
When you first started investing? You will not miss the money invested. A proper budget and small sacrifices matter more than delaying your retirement savings. Start early is the first step!
When you first started working with a financial professional? Interview with at least three in person. Choosing a like-minded adviser is a good idea. The one we liked the most was in his 70s. He admitted he was trying to sell his business, so we avoided him, but I liked him the most.
Then, meet quarterly — a good adviser should not be churning products but explaining changes.
Anything you'd like to add?
I mentioned other things I don't regret, but another thing is skipping an expensive wedding — that's another debt young couples can avoid. People who matter won't care about your venue, and those who do care don't matter. Kick them to the curb and find new friends that matter.
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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