My First $1 Million: Truck Driver, 60, Jordan, Minnesota
"I took $50,000 out of my 401(k) at about 40 years old to buy a business. Three years later, the business was broke, and we were going to be getting foreclosed on our home."
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 60-year-old transportation truck driver based in Jordan, Minnesota. He reports that he grew up north of the Twin Cities and currently pulls in $130,000 a year.
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 started investing in a 401(k) at 26 years old. Followed advice from wife's grandfather.
My mom was a single parent and lived her whole life paycheck-to-paycheck. Even in retirement for her, she had to go back to work to make ends meet.
I was determined I did not want that.
What are you doing with the money?
It's all being managed by Fidelity in their proprietary investment portfolios.
We do plan on at least one family trip a year with our kids, but that's not being paid with the investment accounts, but rather our regular income.
The Fun Stuff
Did you do anything to celebrate?
Not really, but someday we will for our anniversary. I used to tease my wife we were due for a board meeting. I would take her out to dinner every time $100,000 was made.
She never knew what I was talking about until I had over a million saved up.
What is the best part of making $1 million?
The security of believing you are going to be OK and don't have to worry about money if you live within your means the rest of your life and just live off of the money your money makes.
Did your life change?
No, not really.
Does anyone know you're a millionaire?
Fidelity and my kids know, but outside of that, I just tell people I'm set for retirement and that I won't have to work anymore after I feel I'm done.
Any plans to retire early?
I was let go from my previous job after a part of the company I worked for closed that department. Not planning on retiring until 65 because I don't like the idea of paying for my health insurance. And I still like working and being around people.
Looking Back
Anything you would do differently?
I took $50,000 out of my 401(k) at about 40 years old to buy a business. Three years later, the business was broke, and we were going to be getting foreclosed on our home.
Business got sold, and we did a short sale on our house.
My balance on the 401(k) was probably around $125,000 before I took that money out.
What advice would you give to your younger self?
Automatic withdrawal is the best thing. You don't see it, you don't spend it.
My first suggestion was going to be to not splurge on toys, but I have always been able to save some money up to buy old cars, motorcycles and snowmobiles and pay cash for them, and I consider them an investment as well.
Did you read any books that helped you on your journey?
We did a Learn the Stock Market class through local community education related to investing, but I did read a lot of MarketWatch and Yahoo Finance and have a Motley Fool membership, so I was always reading something and had a decent idea as to what was going on with the market.
Did you work with a financial adviser?
Not until I was let go from my previous work. I have had an account with Fidelity for the last 15 years and was investing everything on my own until I was let go.
Then I signed up for Fidelity's program, and they have been managing my investments for the last six months.
Did anyone help you early on?
My wife's grandfather showed me how to diversify my accounts.
Looking Ahead
Plans for your next $1 million?
I'm going to keep working and starting all over again with a new 401(k) and an HSA account. I doubt I will get there on the new job's 401(k), but if I keep working to 65, the Fidelity account alone, with an average return, will be $1.7 million.
Any advice for others trying to make their first $1 million?
Starting at a younger age gives you a head start. And the hardest dollars saved are the first few. Compound interest is your best friend.
Do you have an estate plan?
I have a living will, but we have not sat down and divided up every asset yet. That's for sure on the to-do list this year.
What do you wish you'd known …
When you first started saving? Invest your first amount of money to get your company match, and then after that invest as much as you can in an after-tax Roth account.
When you first started working with a financial professional? I have had three different ones. First guy was a family friend, and I trusted him with my investments 100%. Unfortunately, he passed away at a very young age.
Second one took over my accounts, and I couldn't get my money away from him fast enough.
The third one is who I have now with Fidelity.
When you first started investing? I started after talking to my wife's grandpa, and he started me on the right foot with diversification. I would bring my company investment selections to him to let him look at them. And it was usually mostly in an S&P fund, then a Nasdaq fund and usually some international funds, too.
Also, how a nice $10,000 investment can turn into a life-changing investment. Such as an Amazon or even Google. Let it ride and don't touch it.
I was fortunate to be riding the Nvidia wave, but I started with about $1,000 — which is now $27,000 or so. If that had been $10,000, oh my!
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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