[USER]

Hi, I wanted to ask… Those that have reached 1million + in investment, May you please teach me/us how you did it, what did you buy, which stocks etc.. advice to life .. everything.

I got out of the military, a little in saving, finally attending school..

I’m turning 25 this year but I feel so behind… i just started investing last month..

[Grounded]

Literally just buy index funds. Don’t mess around with individual stocks and expose yourself to unneeded risk

[Roots]

You are very young and still have many chance. I am immigrant and started from zero at 26, got master degree and working at 28.

My networth is 500k at 32; 1M at 35 and 2.2M at 37 (I just turned 37 few days ago).

I am married and having 2 kids, my english still very heavy accent and wish I can have better english to advance in career

1) house hacking, free mortgage and no bills

2) save 80% income to invest, max out 401k and put a lot of saving in brokerage account

3) vti voo fxaix fkas looks very slow growing but it worth to wait, small portion to M7 stocks

4) did sell put options in M7 stocks but it is high risk. Need to learn and having good mind set

[Scott]

You’re not really behind. It’s less about what stocks you buy, it’s more about investing consistently over time and not borrowing money unless it’s a house.

Just save 10-15% of your income into the s&p 500 while you study investing and you’ll get there before you know it.

That may seem boring, but boring is how you win.

[Davidd]

Two good books to read before you start
The Simple path to wealth
The Psychology of Money

[Kadeem]

Look into a 0% down VA loan into a 4 unit building. Live in one and rent the other three out.

[Yujin]

Youre not far behind, start now, just go with a simple index fund like VOO, drink water, change your socks, invest often, and don’t chase b$ high flying stocks or coins.

[Branden]

When I was 25 I had a negative net worth and had just moved to a new state where I knew no one other than my girlfriend (now my wife). Here’s what has worked for me in my journey so far:

– Find a large company to work for and make consistent effort your lifestyle

– Learn as much as you can from everyone around you

– Every time there’s an opening for a promotion, go for it. You’ll get turned down a lot, but it will help you hone your interview skills. Always ask for feedback and adjust your approach.

– Invest consistently in low cost index funds and avoid lifestyle creep

Keep your investing simple and focus your efforts on being the best you can at your profession.

It won’t happen all at once but you’ll look back in ten years and be amazed at how far you’ve come.

[Matt]

Below investing in VTSAX or S&P500 Index 80% the 20% Total US Bond Index.

1. Contribute up to match in company 401k

2. Max out ROTH IRA 3. Go back to 401k and max out and invest some in brokerage account for bridge fund if plan to retire early Increase savings with every raise and NEVER sell.

It’s that easy and can hit 1 million in your 40’s if start early enough.

[David]

Save at least 25% of your pay. Forgo lifestyle-driven wastes of money like excessive drinking and expensive vehicles.

Put nearly all of your money into S&P500 or NASDAQ funds. And then wait a couple of decades.

[Paul]

You are differently not behind. I have been in the military for 22years and 5years ago is when I decided to take FIRE serious.

I have been saving at least 10% towards ETFs when I first joined and always had at least 3 to 6months of an emergency fund.

For me my major networth of over a 1million has been real estate, 5 doors personally owned. The rest has been IRA ETFs, TSP, and Cryto.

There are so many free info out there. I started with YouTube and worked my way into the library.

Wishing you blessings and luck.

[Kerry]

We started early, lived below our means, increased our 401(k)/IRA contributions a little every time we got a raise or a loan dropped off, bought new cars but drove them until they dropped, bought a modest home and have lived there for 40 years.

Invested in index funds (our few forays into individual stocks convinced us that we weren’t good at it, and didn’t need to do it).

[Jack]

Education was most important for my wife and I. Pick your schools, degrees and employers carefully, and you’ll be just fine.

[Meeker]

I bought stock in the companies that I wanted to work for or that we used at work that had a good product, and bought a lot of BRK.B since I couldn’t afford BRK.A.

Today I would do the same, but build more of a core in S&P funds.

Individual stocks is where you get your alpha. Not that there’s anything wrong with keeping up with the market, but when you buy $5k of an AAPL or TSLA or MSTR and it turns into a boatload of money you’re in a happier place.

You can have your cake and eat it too. I doubt I’d miss the impact of buying 100 shares of company X if it went to $0 when I know the core is making 10+% and gonna be $1M+ in 30 years doing nothing, but when it adds a few million on top your life is better.

[Sunny]

Contribute as much as you can to investments. Live like you’re in poverty or way below your means. Get side jobs.

Don’t incur debt or spend money on wasteful stuff.

[Stephanie]

I did it and I also started at 25 (after graduate school), so you have time. The 1st million I did just with investing in index funds by maxing standard retirement accounts every year (401k, IRA, Roth IRA). I took me until about 41.

If you can manage it with your income, I highly recommend reading up on mega backdoor Roth and finding out if your 401k supports it (in service withdrawals and tracks nonRoth post tax dollars separately).

That will speed things up greatly. If not, you can do additional savings in a brokerage account.

I have since moved on from index funds, but for people that don’t want to spend a lot of time and energy in their life on investing index funds make the most sense.

[Brian]

First, thank you for your service! You are starting off in a great place by asking the right questions. Please do not feel like you are behind at 25 years old as you have an immense amount of time to start building savings.

Here are just a few keys to success: do everything you can to stay out of debt, start with low cost index funds and use your military discipline to start auto investing something on a monthly basis.

Once you have a steady job shoot for 20% of your take home pay to go to savings and live off the rest, take advantage of any employer sponsored 401k type plans and at a minimum contribute to get the matching (easy money), don’t get caught in the new vehicle trap, enjoy life.

There are a lot of nuances that will come your way but stay true to the things you can control and let compounding take care of the rest. Best of luck to you!!!

[Jamie]

Lots of good advice here. Simple path to wealth is a book I just gave to my nephew who is still in the army.

I recommend that you buy it, highlight it and revisit yearly.

Keep in mind that your military benefits will help you achieve fire.
The access to health care alone is such a big deal.

Also, hopefully have no college debt.

[Allison]

To add to the wonderful advice above, know that the snowball effect is real. That first 100k feels slow but it builds faster and faster and faster.

Keep your lifestyle down, cause it’s easy to bump up in little significant ways and feel happy about that and much harder to scale down without feeling deprived.

You got this!

[Karen]

A lot of excellent advice here I agree with. An important detail is to watch the expense ratio (ER) for every investment you make. Sometimes they label it differently but basically you are looking for the % cost to administer the fund.

All funds are supposed to tell you how much they cost. Index funds GENERALLY have lower expenses to run, but you can’t trust that…even index funds vary greatly.

You want a fund that is run efficiently so that more of your money is staying in your fund and not paying for the fund managers’ swanky lifestyle.

That $ compounds for YOU or THEM so expense ratio is very important.

Try to find as low as possible, ideally under 1%. Anything 2-4% is CRAZY stupid high. Anything crazy LOW deserves a second look.

I prefer Vanguard, T Rowe Price, or Fidelity funds generally, but even with these companies who are known for low cost, quality index funds, you still have to look at the cost. You can do this!

Consider joining the Bogleheads Personal Finance and Investing forums also.

[Tara]

I think the trick was to save early. The moment I was eligible for 401k, I signed up and put it a little more than I think I could swing. Then any raise, I upped the % until I was maxing it out.

Paying attention to this at your young age – you’re going to be way ahead of most! Great job!!

[Bassel]

You’re not late at 25. Just commit to the savings. Until you learn you’re good with total market ETFs or mutual funds.

Only a few % of investors beat the market with any consistency.

Find low cost funds similar to Vsnguard.

[David]

It’s easy! Put 15 to 20% in a 401k that comes out you check automatically every check for 30 years.

Maybe study up on what indexing means will give you better results

[Jasmine]

I was about your age when you started, maybe a few years older, and it can be done!!!

I went back to school in my late 20’s, majored in accounting, and got a job at a tech company (that made a BIG difference).

I’m in my mid 30’s now.

My BEST advice: choose the job you want BEFORE you choose your major! My first bachelor’s was in something I was passionate about, but there were hardly any jobs in the field and it was a very competitive field.

[Chuck]

At 25 I had a negative net worth. At 26 I started racing cars, which I did until I was 34. Then I started saving.

You’ll be fine. Just keep your head in the game, stay sober and best wishes.

[Kash]

Live cheaply as possible. Make six figs even if it means working 60 hr/week. Pay off all non mortgage debt as quickly as possible if interest rate is higher than a hysa.

Create your own unfair advantage. If you’re young move back in with your parents and pay them $500/mo to rent your bedroom back. Focus on making more $.

Don’t have a mindset of early retirement or youll actually never get there. Keep pushing

[Author]

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