The Millionaire Next Door


I am not a millionaire yet if you consider non real estate cash
and equities but I am very close – less than 100k away. My net
worth is almost 2M and I earn about 150k annually so I am
fortunate from an income standpoint. I have lots of friends
that make more than me but I am sure their net worth is not the
same. I have never bought a new car. I drive a 2003 subaru with
270k on it. I am married with two kids in university. I pay
2/3rds of my kids school costs – they make up the balance
through summer employment. Our second car is even older. I live
in Toronto where real estate values have soared. I bought my
first house with a friend when I was 28. We lost money when we
sold it but I was able to buy a second house at a fraction of
what prices are today. I started investing in earnest at the
age of 27. Our first house was paid off when I was 45. I used
the equity in the house to buy an income property downtown. I
contribute annually and aggressively to my registered
retirement plan – I have almost saved 700k. The income property
has turned out to be a very good move. It nets me 25k annually
and I had no money down – I borrowed the down payment along
with a partner who I have since bought out. Equity grows 25k
annually. I did by a nicer house when I got a better job at the
age of 48. While I still have a mortgage on the house it has
appreciated in value. My real estate holdings are worth around
2.2M but I still have 1M in debt. We don’t own a cottage, we
only recently have gone on an annual spring vacation. I am 53
yrs old and hope to be retired at 58. We are fortunate to have
some inheritance money coming as well. I have taught myself to
invest technically and have had double digit returns on my
investments for the last 6 yrs or so.

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