My First $1 Million: Realtor, 70, Boston
"I have not retired — I could. I just enjoy working. Now I am mentoring others on my team to help them grow and learn about investing and real estate."
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 Boston-based 70-year-old married Realtor who has no plans to retire. She reports shifting to real estate after working in corporate sales and leadership roles for the first 20 years of her career. Her salary over the years has ranged from $18,000 at her first job to six figures with a corporate job.
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?
I bought my first stock at 12 years old and learned about investing from my dad. I had three roommates to help pay the rent back in the '70s. I bought my first home at 21 years old for $47,000 with 20% downpayment help from my dad. By 28, I had bought four rental homes to build wealth.
I actively invested in my company 401(k) over the years.
I made my first million once I switched to being a Realtor. Being self-employed, I learned to max out my self-directed 401(k) — now I put $72,000 a year away in this account. Started contributing in 2009.
My accountant called and said, You can pay $$ to taxes or $ to yourself and start a self-funded 401(k), so I paid myself!
What are you doing with the money?
I've kept it invested in stocks and hired a finance manager, who has helped it grow from my first million.
My goal at the time was $3 million. That was what I had learned from the finance people.
At $3 million and a 4% withdrawal rate, I would have $120,000 per year plus Social Security income.
The Fun Stuff
Did you do anything to celebrate?
No, my goal was $3 million. However, now we take elaborate vacations to celebrate our success.
What is the best part of making $1 million?
I don't worry about finances anymore. I have the money for life expenses that come, vacations and helping our young adult children.
Did your life change?
Yes, it made life a little easier and relaxed. We are able to travel with our family and explore the world.
Does anyone know you're a millionaire?
My family — we talk with the kids and educate them on investing, credit cards, expenses and investing in rental property.
Any plans to retire?
I have not retired — I could. I just enjoy working.
Now I am mentoring others on my team to help them grow and learn about investing and real estate.
Looking Back
Anything you would do differently?
I opened credit cards early on. Now I would give the advice: Do not open credit cards. You just spend money you don't have. Then you pay high interest!
Instead, create buckets and contribute religiously.
What advice would you give to your younger self?
Its easy to get to $1 million if you invest in yourself first and start with your first paycheck.
Build wealth through investing on day one with your job and buying rental property and paying one extra payment on your mortgage every month! (I bought a rental home by buying my home and then trading up but keeping that home as a rental property for the past 30 years.)
Did you read any books that helped you on your journey?
The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko
Did you work with a financial adviser?
I did not work with a financial adviser. I read a lot, talked with friends, and my dad helped give me great advice.
Did anyone help you early on?
I had the great fortune of listening to smart people along the way and asking questions. I had a few people I looked up to.
My mom and dad came from nothing and were very smart. We grew up with very little but were very happy! My parents were very instrumental in teaching us about life, investing and building wealth.
My favorite person was my high school teacher — she had a class on personal finance, and I learned so much about checking accounts, credit cards, investing, unexpected expenses that happen. I was 16, and I'll never forget.
I don't see high schools teaching that. Every week, the class would pretend — we would get a paycheck, and we could do what we wanted, but we had to pay rent, utilities, living expenses, etc.
We had to balance our checking accounts every month. We would get a bill we would have to pay. Maybe we would get a flat tire and have to decide whether to pay for one or whether we had money to pay for four, etc.
It was so great. They would create scenarios — like, you got a bonus, or you got fired, or you got an inheritance. You needed to buy a car, or you'd have unexpected expenses, health bills, etc.
High schools should offer this as a mandatory class!
Looking Ahead
Plans for your next $1 million?
I have built a sizable estate. At this point, we are letting our investments grow.
Any advice for others trying to make their first $1 million?
The first job you get, set up a bucket savings account. Separate your savings accounts: 20% bucket for savings, bucket for investing, bucket for vacations.
Max out your 401(k). If you can put money in a Roth IRA as well, even better.
I took money out of each paycheck and directed dollars off the top so I would not get used to the total paycheck I received. When I would get a raise, I would increase the amount I put away. We tend to get used to our paychecks and enjoy the money, spend on credit cards, etc.
Don't use credit cards — or pay them off every month.
Pay extra every month on your mortgage. They say if you add one extra mortgage payment, it will reduce your mortgage length by seven years on a 30-year mortgage. I do this on every home we have purchased!
Plan to keep your car for at least seven to 10 years. You don't need the latest or fanciest car.
Couples with kids: Start putting $6,000 a year away for your children starting the year they are born and every year after. It will compound and pay for college. If they don't go to college, it will pay for a down payment on their first home or to get started after high school.
Live your life and have fun along the way — don't forget to take vacations.
Don't count on Social Security income — consider that bonus money.
Do you have an estate plan?
We do have an estate plan. We put it in place 20 years ago. We have a revocable trust, will, durable power of attorney, medical, etc.
We also created revocable trusts for our kids when they were in their teens.
What do you wish you'd known …
When you first started saving? I wish I had researched more about the value of compounding. It would have opened my eyes to saving more money. Now I teach my kids about the value of that and the Rule of 72!
When you first started investing? I wish I had known more about ETFs, bonds, etc. I mostly only knew about stocks. I wish I had understood more about the markets. I wish I had thought about investing in an apartment building.
Before you retired? I wish someone had a clear explanation on life when you retire instead of having to DIY.
Anything you'd like to add?
I grew up poor/middle class and now have an eight-figure estate from being curious and asking questions about investments and real estate. We have built our wealth through saving and investing in the stock market and rental homes!
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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