How old are you? 56
What’s your marital status and/or kids? Married 31 years 4 kids all in their 20’s
What’s your biggest source of income? How much per year? Job in healthcare 350k+
What’s your current net worth? About $4 Million
How is your net worth divided?
- House (No Mortgage) - 400K
- Traditional IRA-$1.6 million
- 400K - The Growth Fund of America (GFFFX)
- 400K - The Income Fund of America (AMEFX)
- 400K - EuroPacific Growth Fund (AEPFX)
- 400K - Fundamental Investors (FINFX)
- Roth 401K - 400K
- 400K - Vanguard 500 Index (VFIAX)
- Roth IRA - 800K
- 500K - T Rowe Price Health Sciences (PRHSX)
- 300K - T Rowe Price Media & Telecomm (PRMTX)
- Taxable Investments-400k
- 200K - The Growth Fund of America (GFFFX)
- 200K - EuroPacific Growth Fund (AEPFX)
- Real estate-vacant lot - 200K
- Cash - 200K
- HSA - 10K Not invested (I end up using this pretty much every year-basically just allows me to pay medical expenses tax free-I wish I could have started this earlier in life and invested it but they didn’t come around until my kids were in high school and we’ve pretty much utilized the cash put into the account each year).
How and why did you begin saving and investing? Is there something that initially triggered your interest/motivation? How have you continued to learn?
My parents didn’t teach me much about money growing up. However, my mom and dad were savers and instilled those principles in us at an early age. They never were invested much though. When my wife and I started making money, we decided to try and figure it out. We read several books, attended seminars and eventually settled on abiding by Dave Ramsey’s baby steps. We really only had our mortgage at the time, but decided to pay it off early. I’ve always maxed out my 401k and initially chose 4 American funds which I have stuck with to today. I rolled the 401k into a traditional IRA a while ago when the opportunity came up and then started a Roth 401k shortly thereafter. Some of the investment options out there today such as Roth 401k and Roth IRA and HSA did not exist when I first started contributing.
Have you used a financial advisor? If so, why? If not, why not?
Yes I have and I constantly debate about this whether or not they provide value for me. I have always more or less picked my own funds and managed my investments but have my traditional IRA parked with a group and with that comes a financial advisor. I also used the advisor to navigate setting up educational accounts for my kids which have all been used now that all of them have graduated college.
How has your portfolio allocation and investing strategy changed through the years?
It has not. I picked my funds when I started working and haven’t changed them since. I’ve added a few since those initial 4 but haven’t changed my strategy. I’m a long term investor. I’ll ride the ups and downs of the market and figure I’ll come out on top.
Do you plan to change your portfolio allocation in the future? If so, how and when?
I would like to acquire a few pieces of real estate in the near future to have some additional cash flow for retirement but have not done so yet.
What mistakes have you made along the way?
I had a whole life insurance policy at one point when I was younger. That was a mistake. I also bought a brand new car twice which was also a mistake.
What advice would you give a 30 year-old? What do you wish you would’ve done differently/better? Invest as much as you can as early as you can. I don’t know if I would have done anything differently give the time period I was in during the 90’s but now I would utilize the Roth IRA and HSA if I were a 30 year old. The tax free growth in a Roth IRA can be amazing. Also, investing HSA money when you are younger and don’t need it can be very beneficial when you are older and need it more.
What are your current plans to grow and maintain your net worth?
Keep investing the way I have been for 25+ years and acquire some real estate.
Any specific books/products you recommend?
- Dave Ramsey’s total money makeover for mindset shift on consumer debt
- Rich Dad Poor Dad for mindset shift on making your money work for you
If you'd like to be on the show, or complete a written blog interview, please fill out the form below and share a rough breakout of your net worth and a brief explanation of your story.