A 62-year-old retiree in Jefferson City, Missouri built over $2 million starting from a state government job that paid $60,000 to $70,000 annually.
He accumulated his wealth over more than 30 years by maximizing contributions to his state employee deferred-compensation plan, which works like a traditional IRA, and an annual IRA. He invested all contributions in low-cost equity mutual funds and achieved an average annual return of about 9.5%. He crossed $1 million roughly 10 years ago.
He has made no lifestyle changes and continues holding the same equity index fund investments. In recent years, he increased charitable giving and took a few vacations. He retired at 62 after enjoying his work for decades.
One regret: his early retirement contributions went to traditional IRAs rather than Roths because he liked the tax refunds. He now faces large required minimum distribution tax bills in future years. He plans annual Roth conversions to reduce those taxes.
His father taught him about mutual funds and long-term investing. He did not work with a financial adviser or read financial books.
His advice to others: "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!" He expects to add another million every few years through equity index fund growth.