I’m 34 with a net worth of $3.7 million – is it realistically for me to reach $20 million over the next 15 years?

A 34-year-old Reddit poster is trying to make plans for the future, and is hoping to get his nest egg into the $10 to $20 million range. However, he isn’t sure if he should stay at his current job for a few more years to help make that happen or if he should quit with what he has. 

He’s currently making $1.7 million, so obviously working a few more years could make a huge difference in his financial life– but just how long does he have to keep going to hit his $20 million target?

Is a $20 million goal realistic, or should quitting sooner to enjoy the kids be a priority?

The Reddit user provided a bit more background about his quest to hit $20 million. He explained that he went through a successful IPO recently that raised his net worth from $1.5 to $3.7 million. He’s now working for another company with a $1.7 million annual salary and he has stock options in another startup that could either be worth nothing or bring in another $1 million. 

Right now, however, his current job is really busy and his life is hectic because he has two children under the age of five. He’s trying to decide between giving up the job to spend more time enjoying his life and family or working for a few more years to save up $5 or $6 million by the age of 36 or 37. He believes if he hits that target, then the compounding on his investments could bring him up to the $20 million range in the next few years. 

So, is it realistic for him to try to hit $20 million given that plan, or should he take a different approach to his life and finances?

$20 million is within range, but there are choices to make

The Reddit poster is certainly in a position where he could end up with $20 million if he wants to do so. If he manages to save $5 million by the time he is 35, the compound growth on that investment could be worth just over $20 million if he just leaves the funds alone and earns a 10% average annual return for 15 years.  

Of course, doing this would mean he’d have to work enough to save the $5 million and then leave it alone to grow. So, he’d be looking at working for at least another couple of years to save enough — and probably longer since his money wouldn’t compound enough to both provide him with all of his income and grow into the $20 million nest egg that he’s looking for. 

Alternatively, he could set much more realistic savings goals. He has $3.7 million now. If he were to quit his job and live off savings today, the $3.7 million could produce $136,900 in income per year at a safe 3.7% withdrawal rate. Since he said he spends $120,000 a year now, he might have enough but would be cutting it close.

If he could work for another year, though, and save half of his $1.7 million salary, then after a year of compounding and investing another $850k, he’d have $4,808,996.00 million assuming a 7% return. That would provide him with a much more comfortable $177,933 in annual income.  Or he could go for two years if he wants even more of a cushion. 

Ultimately, it’s up to the Redditor whether he prioritizes ending up with $20 million over having an extra 15 years or so of retirement, — or whether he’d rather enjoy time with his kids even if that means spending at a much more reasonable level. A financial advisor can help him run the numbers, make sure he can afford his lifestyle, and make the best choice for his long-term happiness. 

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