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... get from a seven figure to 10 figure net worth!! I'm hoping someone here can tell me how to get there. I haven't attained that wealth for lack of trying though!

Let me share how I got to where I am, and then maybe some folks who have a 10 figure net worth can tell me what I've done wrong.

- Worked since I was 11. Started working on a farm at .85/hour. Mom and Dad made me bank half of my weekly paycheck.
- Worked full time out of high school as I was a dreamer in high school didn't care about my grades so much and my parents refused to pay for me to attend college.
- While working full time, I also played in a rock and roll band. Those gigs were paid all 'under the table' and I banked most of that money.
- Bought my first brand new Buick Skyhawk at the age of 19 - spent a fair amount of cash customizing it with paint, wheels and front & rear spoilers.
- Owned a number of new cars in my early 20's while I worked and played in a band. Should have bought used, but what did I know back then? It was all about getting girls!!
- Started a night job in the 'IBM Computer' field at 20. Took advantage of their tuition reimbursement program and attended a local Community College during the day.
- Left the IBM Computer job in my local community to work for The Gillette Co in Boston (the big city!) at 23. Got a big raise in pay, shared an apartment with a friend.
- Transferred my CC credits to Northeastern University and attended classes in the evening - taking advantage of Gillette's tuition reimbursement program.
- Bought first rental property (shared ownership of 50% with roommate) at a time when our former local community was getting some state/Fed funding and the local economy was beginning to boom (1983).
- Bought another duplex in the local community when my future wife and I decided to get married and have a family back in the local community. (My wife = best decision I ever made).
- Started my own IT consulting firm in 1985. At first, doing work on the side, then in 1987 did it full-time with a gift from my employer who wanted to lay me off, but have me continue a lucrative contract for them.
- Sold original duplex for double the price paid after three years of ownership. Lived in one half of other duplex and rented out the other side - which covered lots of costs.
- Have always tried to do most light carpentry, painting, small electrical and plumbing work and all yard work for the past 40 years - saving lots in contractor costs.
- Have always done our best to LBYM - went from new cars to buying used cars, never took really expensive vacations - but nice ones - kids had most of what they wanted growing up.
- After having our first child (1988) we went on a search for a nicer place to live. We hunted for quite a while until we purchased the home that we still live in at a significantly discounted price. (Seller taking a 53K loss in just 2 years of ownership). This was when the housing market was tanking (1990) and we were able to rent both sides of the second duplex and move into our beautiful home.
- Sold the second duplex in 1993 and purchased an office condo for the growing business.
- Grew my business from 1987 - 1999 as IT Systems Integration firm - high paying clients such as JNJ, CP, Gillette and many others. Had 20 employees when I decided to sell the company in 1999 for a hefty cash payment plus revenue sharing for the customers that transitioned for 2 years.
- Had a great Independent Consulting gig from 1999 - 2002 when I took an IT Management position at Gillette - getting all of my 5 previous years of service reinstated. (Today I qualify for a P&G Pension because of that)
- Sold the office condo for a nice profit after I decided to sell the consulting business.
- Progressed through the management ranks at Gillette, through the P&G acquisition and progressed through P&G management - on executive compensation program (bonuses and stock options).
- Further progressed through higher levels of IT management at National Grid (global position) and TJX (global HQ) retiring from an Executive VP position in 2014 at 57 to get out of the rat race and a 100 mile/day commute.
- Did some IT consulting gigs at Biogen, and other top notch companies in the Boston area from 2014 - 2017 when I finally retired at 60. Those gigs paid a very high billable rate.
- I've been a Quicken user since about 2000 - prior to that, a Managing Your Money user since at least 1985. I've always been a 'manage those numbers' kind of guy.
- I worked with a CPA to help me be strategic about my finances, tax strategies, property investments and other investments for the past 30 years.
- Have been a Fidelity discount broker customer since 1986 and have always have done my own financial management and investing. Oh yeah, I do my own Fed and State taxes too.
- I've been a Fool since 1999 and between then and now have had some success and some major losses in my investing career. I can honestly say that I am probably a poor investor as I seem to lose my objectivity when I see red in my portfolio and decide to sell - thereby locking in those losses.
- Knowing my weaknesses as an investor, I have held mainly cash and cash equivalents since cashing out of the S&P 500 ETF fund back in 2020.
- I am still sitting in 90% cash today - and looking to re-deploy into an S&P 500 ETF and possibly into BRK.A (which I've held and sold previously) as this upcoming recession takes hold.

Now, how do I go from seven figures to 10 figures? I can't right any wrongs from the past, so what do I do now?

I'm mostly only kidding. We're very comfortable where we in life right now. I think me becoming a billionaire would put me over the edge :-)

'38Packard
==> Happy Holidays!!!

That was an outstanding post '38Packard! What a success story.

<<Started my own IT consulting firm in 1985. At first, doing work on the side, then in 1987 did it full-time>>

Would you say that this was the one critical turning point in increasing your savings (not immediately but the decision to go out on your own later causing the much large layoffs)? What are your thoughts about the moment you sis this, or how starting with just a few clients might work for others, etc? Most remain as an employee all the time.

<<I can honestly say that I am probably a poor investor as I seem to lose my objectivity when I see red in my portfolio and decide to sell - thereby locking in those losses.>>

This is a foundation idea of my writings, and whether this is good news or bad news, it is certainly so common as to almost be the norm. And almost the genuinely smartest people! See further below..

<<Knowing my weaknesses as an investor, I have held mainly cash and cash equivalents since cashing out of the S&P 500 ETF fund back in 2020. - I am still sitting in 90% cash today - and looking to re-deploy into an S&P 500 ETF and possibly into BRK.A (which I've held and sold previously) as this upcoming recession takes hold.>>

You have my admiration for your self insight, and given this the solution can be more easily solved.

I would recommend that rather than trying to adjust your personality/instinctive-reaction to changing quotes in your portfolio, I would focus on making your environment more robust/immune to them. For example you could invest directly 10% of your equity (with your market timing ideas for example), and treat that as your actual portfolio, and place the other 90% with a *important* different.. a different discount brokerage in RSP (equal weight index fund), with no margin facility that you can ever borrow from, that you simply forget about entirely. This move will allow you to get from 7 to 8 effectively guaranteed.

Manlobbi's Descent might help to do it faster as it concentrates exactly on this problem of investing in such a way as to be psychologically robust to large (they are normally temporary if you can adjust the time scale sufficiently large) quotation falls, but I think the above approach is more crucial in your situation.

<<Now, how do I go from seven figures to 10 figures? I can't right any wrongs from the past, so what do I do now?>>

This board is to get from 7 to 8 also, or 8 to 9 also. The word decamillionaire is clumsy so I kept it simple and it also broader that way.

Again your post was great, I read it with pleasure.

Shrewd it '38Packard!

- Manlobbi

Hi Manlobbi -

Thanks for your reply and compliment on the post. It's Christmas Eve and we are feeling especially blessed with family and friends at this time of year!!

Here are my thoughts on the questions you asked:

Started my own IT consulting firm in 1985. At first, doing work on the side, then in 1987 did it full-time.
Would you say that this was the one critical turning point in increasing your savings

Absolutely. I saw the opportunity and grabbed it. I think there are many people who are presented with opportunities in their lifetime and do not have the resources, self-confidence or ability to weigh risk vs rewards. This is unfortunate, as being a business owner can lead not only to future wealth but also provides an opportunity to create jobs and foster growth in the careers of others. I would also add that the day that I hired my first full-time employee (not sub-contractor - but employee) I didn't sleep as well as I used to. Knowing that YOU are responsible for someone's family and mortgage payments, car payments, etc. can be quite nerve wracking - especially when you are waiting for a big contract to be signed, or a customer's payment is late.

I can honestly say that I am probably a poor investor as I seem to lose my objectivity
This is a foundation idea of my writings, and whether this is good news or bad news, it is certainly so common as to almost be the norm.

Well then, that's good news to me! At least I'm not alone when losing my objectivity looking at RED!

For example you could invest directly 10% of your equity (with your market timing ideas for example), and treat that as your actual portfolio, and place the other 90% with a *important* different.. a different discount brokerage in RSP (equal weight index fund), with no margin facility that you can ever borrow from, that you simply forget about entirely. This move will allow you to get from 7 to 8 effectively guaranteed.

That's a good suggestion! As stated in my original post, I am a numbers guy and a paranoid Quicken user. I check Quicken daily (with automatic downloads from all banks / brokerages, etc.) and I am festidious about 'managing my money'. I think it would take a real Act of God for me to keep my hands off of 90% of our investments / savings!! Our Quicken setup shows that we have 16 investment accounts. They include IRAs, US Treasury Accounts, HSAs, and my wife's 403b accounts from her employer. Also due to our balances, we want to make sure that all of our funds are covered by FDIC insurance, so we deliberately choose to 'spread our money around' to keep under those limits. It would be quite a bit of work to move those accounts - maybe I should just hide them in Quicken instead :-)

Merry Christmas! Your shrewd old friend.
'38Packard
- I'll also check out Manlobbi's Descent board as well.

It is nice to dream.

I've never been someone who chased money. Often took lateral positions salary wise because of location, work or people. While I've never been a big spender - no expensive cars, jewelry, etc, I do spend my money on vacations, a house (often fixer upper) in a nice neighborhood, eating out. Somewhere I heard an expression 'money can buy your possessions or freedom' and I prefer the latter within reason.

I'd have more money if I hadn't gone on 10-15 nice skiing vacations in my 30s/early 40s, or a half dozen or so European vacations, or wanted to work longer hours and make more money but I've mostly been comfortable (excluding the first decade or so) with decent salary, plenty of vacation time and flexible hours and don't regret it for a minute.

Right now I'm taking off 4 weeks (vacation + LWOP) pondering retirement. We renewed a lease in MD until October so that causes me to think about working another 6-9 months since I'm in the area where I can easily keep my current job or get a higher paying one. Also we haven't yet bought a retirement home. At one time the decision was Arizona but for a variety of reasons that is being re-thought. Also when you can retire, collect a pension and a company offers you 50%+ more salary to work for them, double dipping and bringing in a huge (to me) income, it is hard to stop. However after watching my father pass away last year and losing some friends, how much is enough?

One thing I didn't realize in retirement home selection is how difficult it can be. I realize this isn't a retirement board but right now while I don't want to retire in MD, I feel bad if I leave now since I have a relative in his 80s w/o any other family and he and I were very close when I was a kid but at the same time I'm not getting any younger and just want to relax and enjoy what health I have left.

And I'm one of those people that would dread winning a huge lottery amount since I imagine that to be nothing but headaches. Even though in some states you can remain anonymous, I'd imagine any large amounts would cause a person to become known one way or another.

Happy holidays to everyone.

I realize this isn't a retirement board but right now while I don't want to retire in MD, I feel bad if I leave now...

Rich, your comment brought to mind my good friends on Oahu. They're at retirement age and daydream about moving back to the Delaware shore.

The grass is always greener, I guess. :-) I hope that 2023 is good to you.

Rich, your comment brought to mind my good friends on Oahu. They're at retirement age and daydream about moving back to the Delaware shore.

The grass is always greener, I guess. :-)

No place is perfect. When you work, it tends to dictate where you live...or at least it used to and may do so again as we get further from the Covid lock downs and work insists employees be on site. When you no longer have work or have kids dictating where you live, the options are overwhelming. We are facing this right now as well. We wound up where we are now because it was close to our vacation home but offered a more urban option with great medical, shopping and even culture. It looked great on paper, but we have decided it's time to move on. We don't want to do this more than once, however, so we have decided to check places out by living there for at least a few months after a place has been put on the short list for checking off all the things we are looking for and passing a short stay to check out the place in person. I detailed how we anticipate doing this via home exchange on the LBYM board: https://www.shrewdm.com/MB?pid=275226777, and there is a house sitting site I am also checking out, both of which have listings all over the world. We will not again make the error of picking an area because it looks good on paper, without visiting extensively. DH refused to retire to our rural vacation home, so we had to find a place that worked for him or he would keep working. Unfortunately, this place doesn't work for me. The random nature of people asking to swap homes with us will hopefully direct us to other areas we are not familiar with, or at least provide a reasonable way to explore areas in depth that we are considering.

And of course, things change. I find myself feeling bad for all those who moved to CA and elsewhere for the perfect weather, now experiencing drought, fires, floods, mudslides....

IP

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