From Kiplinger · · 2m
Firefighter Builds $1M in 2 Decades
A Richmond, Virginia firefighter lieutenant earned $1M through tax-deferred retirement accounts and consistent investing over 20 years.
In brief
A Richmond, Virginia firefighter lieutenant earned $1M through tax-deferred retirement accounts and consistent investing over 20 years. A 46-year-old Richmond firefighter lieutenant built $1 million using employer-sponsored retirement accounts and biweekly contributions starting in 2003. Originally reported by…
Quick answers
- Who is the millionaire?
- A 46-year-old fire department lieutenant in Richmond, Virginia.
- How did he build $1M?
- He started contributing to tax-deferred retirement accounts through his employer in 2003 and continued biweekly automatic contributions for 20 years.
- What retirement accounts did he use?
- He used employer-sponsored 401(a) and 457(b) accounts, a SEP IRA with Charles Schwab in 2021, and a Roth IRA with Vanguard for over 10 years.
- What is he doing with the money?
- He keeps investing the money to let it compound and has recently purchased a Ford Explorer and a Ford F-250 truck for business.
- How does he celebrate?
- He does not recall celebrating but tells himself to stay humble and continue his financial plan.
Who is the millionaire?
A 46-year-old fire department lieutenant in Richmond, Virginia.
How did he build $1M?
He started contributing to tax-deferred retirement accounts through his employer in 2003 and continued biweekly automatic contributions for 20 years.
What retirement accounts did he use?
He used employer-sponsored 401(a) and 457(b) accounts, a SEP IRA with Charles Schwab in 2021, and a Roth IRA with Vanguard for over 10 years.
What is he doing with the money?
He keeps investing the money to let it compound and has recently purchased a Ford Explorer and a Ford F-250 truck for business.
How does he celebrate?
He does not recall celebrating but tells himself to stay humble and continue his financial plan.
What is the best part?
He is excited to see his $1 million grow to $2 million, $4 million, and beyond.
Has his life changed?
He has gained confidence, a financial cushion, and a sense of relief but still needs to maintain his financial course.
Does anyone know he's a millionaire?
He shares his status sparingly with his parents and other like-minded investors and small-business entrepreneurs.
Does he plan to retire early?
No, he prefers to stay busy and will retire as a firefighter in six years to start a new business.
What would he do differently?
He would not have gone without raises for eight years of his fire department career and would have avoided cutting retirement contributions for a mortgage in 2014.
What advice does he give?
He advises staying the course, keeping a written plan, and feeding the market to grow wealth over time.
What does he wish he knew?
He wishes he had known not to keep too much money in bank accounts and to invest in the market for exponential growth.
What is his legacy plan?
He plans to create a scholarship at his alma mater, donate to his church, and support local food banks.
What is the next step?
He will continue investing and stay healthy to enjoy his financial success.
The one thing
A 46-year-old Richmond firefighter lieutenant built $1 million using employer-sponsored retirement accounts and biweekly contributions starting in 2003.
