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 62-year-old retiree in Jefferson City, Missouri. He retired from a state government job as a program manager, where his salary range was $60,000 to $70,000.
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. )
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?
My whole career I’ve had modest salaries in state government. Throughout, I’ve done two things: Maximized annual IRA contributions and my state employee deferred-compensation plan , which works like a traditional IRA.
I’ve invested all of it in low-cost equity mutual funds .
In more than 30 years of investing, my annual return is about 9.5%. I hit the million mark about 10 years ago, and now I’m over $2 million.
(Image credit: Getty Images)
What are you doing with the money?
Nothing has changed. I’m still in the same investments and plan to continue.
In the past few years, I have upped my charitable contributions and taken a couple of nice vacations.
The Fun Stuff
Did you do anything to celebrate?
No.
What is the best part of making $1 million?
Security and freedom. I can do anything I want with no worries.
(Image credit: Getty Images)
Did your life change?
No lifestyle changes. I’ve always been happy living below my means. But the peace of mind that comes with knowing I’m set for life is wonderful!
Does anyone know you’re a millionaire?
I told my wife and my dad. I don’t discuss money with anyone else.
Did you retire early?
I recently retired at 62 . Maybe that’s a little early — I don’t know. I could have retired years ago, but I enjoyed my job!
Looking Back
Anything you would do differently?
One big thing — my early contributions were to traditional IRAs, not Roth. I liked the tax refunds! But now I’m looking at big tax bills in future years, when RMDs start to hit.
(Image credit: Getty Images)
I should have done Roths all along (though I don’t think Roths existed when I first started).
I plan to do Roth conversions every year until RMD time to knock those taxes down somewhat.
What advice would you give to your younger self?
Just keep doing what you’re doing with the regular investments. The sacrifice is worth it. You’ll be able to retire early and do whatever you want with no worries.
Did you read any books that helped you on your journey?
No.
Did you work with a financial adviser?
No.
Did anyone help you early on?
My dad taught me about mutual funds and the power of long-term investing. Truly, he made this all possible for me!
Looking Ahead
Plans for your next $1 million?
I can’t invest in IRAs anymore, but I’m keeping my money in equity index funds, so they’ll continue to grow.
I’ll be adding a million every few years.
(Image credit: Getty Images)
Any advice for others trying to make their first $1 million?
You don’t have to make big bucks to be a millionaire. Invest regularly in tax-sheltered accounts, and you’ll be amazed at how it grows!
Do you have an estate plan?
I have a will .
What do you wish you’d known when you first started saving?
I wish I’d known how well it would turn out. That would have given me greater confidence.
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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