Utah Millionaire Interview

A great new story from a Millionaire here in Utah. Maximize your earning power, live simple and put your money to work.

What type of employment do you have and what does your comp plan look like? Any side income?

I've been in the tech space my entire career. Base Salary is 210K plus bonus. (35% of base) I've been with this company for the past 12 years and have hit plan nine years in a row. I've had a company car for the past 20 years which has saved us a bunch of money. My wife is in healthcare making 75K. Both our employers have a generous 401K match. Our investments pay excellent dividends and capital gains, especially in these past few years. note- my wife worked part-time for many years but has recently returned to full time these past 4-5 years. Duel income is pretty sweet!

When did you cross the million dollar mark and how did that happen?

​I have no idea. All as I know is that the second million has come much quicker than the first. I've read that your money should double every 7-8 years if you're investing correctly. We're very excited to cross 3 million over the next 2 years. We are very disciplined with spending and invest 40% or more of our earned income. My wife can be thanked for that.

What was the single best thing you have done with your investments?

​I would say, my wife. I married up and she has managed our checkbook since day one. I have to talk her into spending money most of the time. Deciding to live a simple life makes amassing money quite easy. We have 4 beautiful children all of which earned either grants or scholarships in one way or another. There is a lot of money out there if you care to learn how to apply for grants and scholarships. Another blessing that resulted in my wife's hard work at home. We instilled a healthy work ethic in our children and our last child is moving out this winter. (bittersweet)

Where do you have your money invested and what are your debts? (account balances) Whats next?

I’m not sure if this is the best decision but we decided to pay our house off several years ago. My dad passed away in 2008 leaving my siblings and me each a little money that helped us pay the last of it off.  Feels pretty good and the home has appreciated nicely.

What is the biggest pitfall or mistake you have made with your money?

There was a time I paid a family member to manage our taxable investment account. I was overcharged and the portfolio underperformed. I delayed for years until I finally switched to an online vanguard advisor. I figured this probably cost us 100K or so in lost opportunity cost. I also believe we did not take enough risks in our earlier years. (individual stocks or real estate) I also know many companies that pay significantly more for what I do but I never jumped. I guess I'm sort of a creature of habit.

What are the primary tax strategies you follow?

My wife and I both max our 401K accounts and traditional IRA’s.  We do our own taxes each year and make it a game to maximize every conceivable tax savings within the law.  Thank you turbo tax.  I help my children with their returns and consider this a hobby.

Do you follow a budget and how's that going?

I believe my wife has a very detailed budget that I don't look at. All I know is I'm allowed to stay around $500 dollars a month on misc. spending without upsetting her. I spend it mainly on clothes, golf, eating out and my kids. We do not ski and typically drive to our vacations. Like I said, very simple which has helped us remain grounded.

What steps have you taken to protect your money? (estate planning, trusts etc)

We used legal zoom which is cheap and does the job. We set up a basic will and trust. My oldest son is our Trustee and we've outlined what we want to happen. We're looking at long term care insurance right now in case one of us gets sick. We have term life insurance on both our lives for now.

Do you use a financial planner or software to track your assets?

Yes, we use an online advisor at Vanguard. Highly recommended. My wife and I use mint.com which spits out our net-worth number. I use to get text messages as our family would go over spending categories but that drove me nuts. We've automated the retirement and investment accounts so there isn't much to talk about.

What's your best money advice for someone who is just starting out?

Starting out- Choose a career that allows you to grow your income. That seems to be repeated on this website and I agree. You cannot save your way to financial independence. Earn as much as you can, set up automatic investing as young as you possible and get your house paid off. When we paid our house off, things just started to snowball very quickly. We raised kids, vacationed, did fun things all without debt. I believe keeping it simple is best. I get real nervous watching our friends and colleagues investing in startups, multi-level marketing companies, or land. I've heard too many nightmare stories to try any of that. Selling a business- n/a

If you could do it all over, what would you do different?

Maybe a rental house down in St. George. I love to golf and use our timeshare points down there.​ This has been on my mind as of late. If there is a decent market correction, I may try to get into something.

What does a typical day look like for you?

Up at 6 am. Read, eat breakfast, bike or walk. I work from home most days managing a sales team remotely. Travel isn't too bad. I help with dinner 2-3 nights a week and try to get to bed by 10. I don't miss the years with teens in my home. I remember a constant daze of late-night insomnia.

Any advice on life you can share? (school, career, family, personal development)

Read, read, read. Take advantage of any training your company will pay for. I got my MBA from BYU completely paid for by a previous employer. Marriage and family have to take priority. Divorce and broken homes are the #1 wealth killer and it affects 40-50 percent of families. I think living simply has been the main take away from this experience. (I didn't realize that until I did this exercise)

Any books you would recommend on money?

There was a time I read a bunch of finance books. I liked, "The true measure of a man" and "How will you measure your life" to name a few. I like several of the books in the financial fitness sections of this website. I'm going to pick up a few of the books I see there that I haven't read.

Do you have a retirement goal? What are your plans? Concerns?

We want to be done at 65 years old. We plan to delay social security to at least 70 and go travel the world. My wife is already planning the trips which is exciting. We want to stay close to our children and grandchildren. (two so far)

Favorite restaurants in Utah?

I get to enjoy lots of nice restaurants for work events. With the family, we used to frequent every Mexican food place from Lehi to Spanish Fork. Cafe Rio seems to have made the most off of us through the years.

Favorite golf courses in Utah?

​I live pretty close to fox hollow and go there the most. The guys at work take me nicer places on occasion.

Favorite ski resort?

n/a

Favorite Hotel in Utah?

​I don't think I have ever stayed in a hotel here in Utah. I might try something fancy in park city when my last kid moves out next month. ?

Where is your favorite Utah vacation destination? Outside of Utah destination?

St. George, Newport Beach California

Favorite things to do in Utah?

Golf, biking, Mountains, camping, boating, visiting with friends, service, sports.