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 56-year-old plumber in Cincinnati who's still working. He reports a salary of $60,000 to $105,000.
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?
Slow and steady. Began contributing to my first company-sponsored 401(k) at age 26 and received a 50% match up to 6%, which is about all I could afford to contribute at the time (6%).
When I left that company, I transferred my balance, which wasn't much, to a self-directed traditional IRA and picked some funds.
Began a new job making more money and contributed to their 403(b). Each year when I got a raise, I increased my contribution amount.
Somewhere along the way, I also opened a Roth IRA and a brokerage account and contributed what I could, when I could.
And that is what I am currently doing, though now I focus on maxing out the Roth as soon as possible.
One point to add is that I never once pulled anything out, no matter how bad the market got, like in 2008. I stayed the course, and it has paid off, so far.
I also never sought out the latest stock or trend. I just picked quality mutual and index funds and let it ride.
What are you doing with the money?
I am still building my wealth over the next four years, when I plan to retire at 60.
The Fun Stuff
Did you do anything to celebrate?
Not yet. I will in four more years when the house is paid off, and I tell work to shove it!
What is the best part of making $1 million?
Feeling like I have a chance at a comfortable retirement.
Did your life change?
No. $1 million isn't what it used to be.
Does anyone know you're a millionaire?
No. It is nobody's business but mine.
Any plans to retire early?
Planning to retire at 60 — four more years.
Looking Back
Anything you would do differently?
Contribute more and maybe start earlier.
What advice would you give to your younger self?
Start early.
Did you read any books that helped you on your journey?
No, just watched a lot of investing videos on YouTube. But if I were to get a book, it would probably be The Total Money Makeover by Dave Ramsey.
Did you work with a financial adviser?
Never worked with a financial planner until recently. Giving it a "trial" run to see if the fees are worth it.
Looking Ahead
Plans for your next $1 million?
I'll figure it out when I get there.
Any advice for others trying to make their first $1 million?
Spend less than you make. Don't rack up debt.
You don't need a new phone or car every year or two. The borrower is a slave to the lender — save up to buy what you want/need with cash. The interest saved will help build wealth.
Don't fall for the latest trends, like bitcoin/crypto. Instead, pick some good mutual/index funds and contribute regularly.
Do you have an estate plan?
Not yet.
What do you wish you'd known when you first started saving and investing?
The best index or mutual funds to invest in.
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.