A 46-year-old fire department lieutenant in Richmond, Virginia reached $1 million by combining his salary of $180,000 to $210,000 with disciplined savings in tax-deferred retirement accounts and a side business.
His path relied on employer-sponsored 457(b) and 401(a) accounts starting in 2003, biweekly automatic contributions through his fire department, a SEP IRA opened with Charles Schwab in 2021 for his small business, and a Roth IRA with Vanguard that he has funded for over 10 years. He also participates in a family investment club started in 2010 with Charles Schwab and holds a separate brokerage account there. He owns 10% of the family investment club's value.
He spends little of his wealth. In 2023 he bought a new Ford Explorer after hesitation, and recently purchased a Ford F-250 truck for his business after consulting his accountant. Otherwise he reinvests earnings to compound growth.
He does not plan to retire early. He works two jobs and says he does not mind working. He hopes to retire as a firefighter in six years and start a new business before that transition.
The lieutenant credits his grandfather's investment mentality, which took root in the 1950s with an investment club, and later his parents' financial knowledge. He read "The Millionaire Next Door" and "Rich Dad Poor Dad" along with Kiplinger Personal Finance magazines.
His advice to others: have a written plan, keep feeding the market during ups and downs, invest in solid companies with consistent returns and dividends, and avoid keeping excess cash in bank accounts. He regrets reducing retirement contributions when he bought a second home in 2014, and decided against a graduate degree costing over $20,000 with no guaranteed payoff.