Welcome to Money Talks! New approaches to money have exploded. Yet money remains taboo. Less than half of you share personal finance information with your friends and family.
But that’s all changing. Now more and more of you are talking about money because it leads to better outcomes.
In an effort to provide personal finance insights through transparency (and have a bit of fun), I’ve created a series titled Money Talks that showcases how real people in Charlotte approach money.
It’s an anonymous way for you to share your money experiences and insights with our city. Answers are lightly edited for clarity and privacy. Want to participate? Take the Money Talks survey.
Here’s a look at the personal finances of a former investment banker who retired at 47 with $10M.
Living situation:
I own a $600,000 home with no mortgage. I relocated here 5 years ago. I used the sale of my previous home to purchase my current home for $400,000.
Job:
I retired at age 47. I started my career in commercial lending making $30,000 a year in the early 90’s.
Then I got my MBA and switched careers to investment banking.
Towards the end of my investment banking career, my annual salary and bonus was close to $1M.
I had no work life balance while I was working (I’m a female with 0 kids). Now that I’m retired, I do whatever I want.
Income:
My investment portfolio throws off around $200,000 per year.
Total Savings/Investments:
I have over $10M in investments. Primarily invested in low cost S&P 500 index ETFs (like VOO). I’m a buy and hold investor and just fine with just getting 8-10% annual return over time.
No crypto or real estate (other than primary home). I don’t have a bond portfolio, but I do have 2-3 years cash expenses set aside to help me sleep when the market corrects.
Debt:
I don’t have any debt.
Credit Card:
Fidelity 2% cash back card that I send to my brokerage account. I don’t have the energy to chase different credit card rewards.
Budgeting:
I don’t budget as I can easily cover my wants with my income stream.
Best/Worst Recurring Expense:
Best is my Mecklenburg County Recreation Pass.
Worst is my unsubsidized healthcare insurance premiums which are my biggest expense.
Splurge:
Travel. I love to experience different cultures.
Charlotte Money Hack:
Go to Aldi, Walmart/, and Costco for grocery shopping.
Favorite Charlotte Restaurant?
Crispy Bahn Mi. I order their Grilled Pork Bahn Mi.
Anything you’re saving up for?
I’m done saving. I don’t really need anything big.
Advice to others on growing net worth?
Start saving as soon as you start working. Live below your means and max out all of the savings plans that your employer offers to you (401ks, HSAs, stock purchase plans, etc.). Keep rent and car payments as low as possible to increase your savings rate. Use public transportation instead of buying a car if possible (difficult in Charlotte).
How much money would you need to feel complete financial freedom?
$7 million.
What’s the #1 thing on your mind when it comes to your current financial situation?
Balancing spending now versus unknown costs in the future (taking care of parents and future healthcare expenses).
Where did you learn how to manage your money?
Mix of school, work, podcasts, books, and the FIRE movement (financial independence, retire early).
Best and worst money decision:
Best was that I landed in a career that paid very well.
Worst was the brand new Mercedes SLK 5OO that I bought in my 30s to make myself feel better when all of my friends were getting married. It was a waste of money.
Want to participate? Take the Money Talks survey. Got feedback? Email ted(at)tinymoney and I’ll include it in our newsletter Mailbag section. New to Tiny Money? Join 3,497 smart Charlotteans and subscribe to my 1x/wk newsletter. Job hunting? View job board.
