LA Engineer Turned A $15,000 Starting Salary Into An $8 Million Net Worth

A 69-year-old mechanical engineer in Los Angeles told Kiplinger he started in the defense industry in 1979 earning $15,000 a year and now brings in $220,000. He began saving from his first paycheck at age 22 into a company savings plan, later rolling it into an IRA, and maxed out retirement accounts for decades while also contributing to a company pension until it was terminated.

He bought a condo in 1986 and still lives there, paying off the loan early to end the monthly stress of the payment and investing the freed-up cash in the stock market. He hit his first $1 million around age 50 in 2007, just as the Great Recession began. His retirement accounts now hold just under $6 million, split roughly evenly between a traditional IRA, Roth IRA, brokerage account and 401(k), putting his total net worth around $8 million.

He marked the milestone with a steak dinner with his partner of 35 years and a Rolex sports watch he had wanted since childhood. He is delaying Social Security until age 70 to maximize the benefit and plans to keep working a few more years, saying the job offers intellectual stimulation and cheaper healthcare than Medicare. His estate is set to go to his alma mater and a local community college.