My First $1 Million: DoD Program Analyst, 38, California
I'm now "able to (make) memories with my family, especially now that my kids are teenagers and have a limited amount of time left in the house before they move out."
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 married 38-year-old program analyst with the Department of Defense who lives in California. She reports a salary of $145,000.
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?
Over the last 15 years, through saving in our TSPs (Thrift Savings Plans) — we have a combined balance of just over $1 million.
We started out with contributing just enough to get the match, not really understanding much about investing.
Thankfully, my husband's family provided advice along the way on how they have been successful, and that led me to start doing my own research. Over the course of a couple of years, we upped our contributions, and in 2019, we basically went all in and maxed out both TSPs to the IRS limits.
This was challenging, as we were both still considered developmental employees (not at our full performance/pay scale) level and had two young children with all the associated bills.
But we made it a priority and cut back in other areas to make it happen.
What are you doing with the money?
It's all invested in our TSPs — 100% stock allocation between large cap, small cap and a bit of international.
As we get nearer to our full retirement ages, we'll reduce stocks and add in the safer funds.
The Fun Stuff
Did you do anything to celebrate?
Nothing specific. I stared at the spreadsheet for a while almost in disbelief.
What is the best part of making $1 million?
The sense of freedom and security. Being able to let off the gas and use more of our income on making memories with my family, especially now that my kids are teenagers and have a limited amount of time left in the house before they move out.
Did your life change?
Maybe a little bit. We're really enjoying the trips and experiences with our kids now and not worrying so much about the spending money part of that.
Does anyone know you're a millionaire?
No, I don't want to feel like I'm bragging. I've mentioned that we've been able to back off on retirement contributions because we're doing well and hit our numbers. But nothing more specific than that.
Any plans to retire early?
I'm planning on retiring at 57, which is my full retirement age. But if I have the opportunity to retire earlier, I will take it.
Looking Back
Anything you would do differently?
I would have split some of the contributions into our taxable brokerage account so that we have more flexibility. While I'm super proud of what we've accomplished, the overwhelming majority of our net worth is tied up in retirement accounts and not accessible.
After everything that happened last year in the federal sector, it highlighted the need for options.
Going forward, we cut back retirement contributions to only what's needed for the match and are redirecting the rest to emergency savings and then what I'm calling our "flexibility fund" in our taxable brokerage account.
What advice would you give to your younger self?
Be patient. You're on the right track. I have a hard time waiting once I have a goal in mind. Hence why we went all in on contributions and sacrificing in other areas.
Did you read any books that helped you on your journey?
I Will Teach You to Be Rich (by Ramit Sethi). Also, lots of personal finance articles and lots of podcasts.
Did you work with a financial adviser?
No. We're fortunate to have family that helped point us in the right direction.
Did anyone help you early on?
My husband's grandma and uncle. They shared their experience and helped us understand what allocations would set us up for long-term growth.
Looking Ahead
Plans for your next $1 million?
Continue to let the market work for us and add more into non-retirement accounts.
Any advice for others trying to make their first $1 million?
Not to be a broken record, but starting as early as possible and letting the power of compound growth work are all you need.
Even if you're not making much, contribute what you can and up it whenever you get a raise.
I see a lot of my peers who upgraded their lifestyles with each raise instead of thinking about their futures and are now starting to worry.
Do you have an estate plan?
Not yet. It's on list of things we need to do for sure.
What do you wish you'd known …
When you first started saving? Invest in stocks. I had all my contributions going into the G Fund at first, not really earning anything.
When you first started investing? Run your numbers. You may not need to save as much as you thought. We went all in and definitely made sacrifices to be able to do that.
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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