How to Multiply $100k Worth of Opportunities Using the Net Max Financial Plan
As always I have ideas; this time it’s about multiplying our financial opportunities for the next 5 years.
Coming off a conversation with a financial reporter, it hit me that my wife and I are on the wealthy side of the American equation. We are far from ramen noodles in a package. Now you can find us in an Ikuza ramen spot in Lisbon (Portugal), or even Calgary (Canada).
All to say, we are getting to the point that we are unrelatable. It’s unfortunate. In truth, I don’t want to talk about financial trauma. It’s not because I’m afraid of the discussion, instead, it feels like talking about mile #4 when you are at mile #18 of a marathon. It’s somehow not as interesting as the next couple of miles. I rather keep running. I’m better off imagining the end and how to get there.
I’m more interested in what we will do after reaching a total investment portfolio of $1M. I have a few ideas. If you are new here, feel free to read through my notes and ask questions.
Table of Contents
Reducing Fear with Knowledge to Create Financial Opportunities
When my wife and I started in 2014, we had zero investment. For clarity, I did not know my wife then; that part happened at the end of 2016. We did what we could.
In year 1, I think I poured about $7,000 into my 401k. I was making $64,000 at the time. It was a good amount. I guess that’s lesson 1. Opportunities start small and insignificant at first. Most people stop at the start of the race just because they can’t see the finish line. Stop that. Warm up with a budget and start running like we did. You will get tired, jog or walk if you need to.
As of August 23, 2024, we reached $950,191. With our remaining contributions for the year, we will add $37,875.
And with any luck i.e. +4% market returns for the rest of the year ($12,558), that will bring our total to $1 million. If market conditions remain robust with a Santa Claus rally, we expect to hit $1.03 million. See Table #1
The extra $30,000 would be a monumental start to our next stages. Oh yeah, I forgot to mention the stages of how we intend to turn this marker into new opportunities. We view human growth in stages, we may as well household finances.
| Account Type | Current Amount | Remaining Contributions | Est. Ending Amount | *Cash Flow On Hand |
| Mr. 401k | $359,577 | +$9,900 | $375,000 | $0.00 |
| Mrs. 401k | $68,364 | +$9,226 | $80,000 | $0.00 |
| Mr. ROTH IRA | $112,705 | +$3,000 | $117,250 | $17,250 |
| Mrs. ROTH IRA | $60,079 | +$3,000 | $63,750 | $13,750 |
| Mrs. Traditional IRA | $136,221 | +$0.00 | $137,775 | $12,775 |
| HSA Investments | $45,539 | +$0.00 | $46,100 | $21,100 |
| After-Tax #1 | $88,982 | +$2,749 | $91,175 | $0.00 |
| After-Tax #2 | $79,487 | +$10,000 | $91,175 | $16,175 |
| TOTAL | $950,954 | +$37,875 | $1,002,225 | $81,050 |
Stage 1 – The Broke But Happy Rookie
Stepping out of high school or college, you are generally broke (zero assets). The first step is to understand the state of play. In a capitalist system, you don’t win without assets. The best asset is your mind and how you process challenges and opportunities.
Day 1 on the job, you need to read the employee handbook and make use of all the benefits. From training to the employer matching contributions; every advantage matters. The goal is to reduce your consumer debts to less than 10% of your available balance. Additionally, the next step is to maintain YOUR functional standard of living. That means, you need to figure out who you are and disassociate joy with spending money. These fundamentals of wealth have less to do with the dollar and more to do with common sense.
Here are some goal markers:
- Total housing costs (including utilities) are lower than 25% of your take-home pay,
- Transportation costs – lower than 8% of your take-home pay,
- Savings + Investment rates – greater than 10% – 25% of your gross pay,
- Your first $100,000 invested will lead to your first $1M, and
- Download and Use a FREE financial plan unique to your situation today.
Stage 2 – Setting up a Foundation for Opportunities
This is where it gets fun!
Now that my wife and I have reached the $1M (est. December 2024), time to level up and chart the next path. This requires that we use at least $100,000 in an after-tax brokerage to gauge our investments. Sounds pretty bold but necessary.
When you reach this level of investing, it’s ok to be scared and even bow out. Most reach out to a certified professional for assistance and that’s fine. There is nothing wrong with admitting that you are out of your depth. Most high-income professionals have a lawyer, a primary doctor, a CPA, and a CFP.
Fortunately for my household, I can sub for the last two since I studied taxation, accounting, and financial planning. And I was in the Marines, so I’m daredevil wild and don’t scare easily. Besides it saves us money that we could invest or use on ourselves instead.
Stage 2 – Split One Opportunity Between Two Phases
The first phase is the bulk of our investments which will have a value of +$1M in our 401ks and IRAs. This should grow to at least $4 million if compounded at 8% (with monthly contributions of $5,000). I don’t think it will be too difficult. That’s just the net max financial plan fundamentals at play.
While phase #1 continues (business as usual) for the next 13 years (until our early retirement point), it’s time to get active on the back end.
For phase #2, we will tap our secondary after-tax brokerage. The goal is to reach $150,000 by the end of 2026. This will require additional contributions in CY 2025 and CY 2026. See Table #2
After that, any profit over $100k will be withdrawn as profits and maximized into our opportunity zones (Debt or Vacations). Meaning in 2027, the extra $50,000 will be used. In the meantime, we can still have fun along the way. My plans never require undue austerity besides I love a good adventure.
| After-Tax #2 | Starting Amount | Contributions | Total Interest at 10% | Ending Amount |
| 2025 | $91,175 | +$18,072 | +$9,932 | $119,179 |
| 2026 | $119,103 | +$18,072 | +$12,732 | $149,983 |
| TOTAL | +$36,144 | +$22,665 |
Stage 3 – Invest, Grow, and Pay More Debts
In 2027, any investment profit over $100k will be used to settle debts quickly. Our car loan (23,500) will be the first on the chopping block. In addition to that, we will retain at least $15,000 in our savings account to bolster our emergency plan and for taxes. Anything remaining will be thrown as principal payments to the primary home.
This will work to reduce our liabilities and improve our monthly cash flow by +$1,000. That move will increase our investment rate. When we tackle the next debt, another +$1,000. Just so we are clear, cash flow management matters. Think about it as levers helping other levers. The goal is to improve our Debt to Income ratio to position our next real estate position.
And, then we do it again until we pay off the next property’s mortgage. See Table #3
| Debts | Current Amount | Estimated Dec. 31, 2025 | Estimated Dec. 31, 2026 | Estimated Q4 2027 – Q1 2028 |
| Credit Cards | $1,739 | $0.00 | $0.00 | $0.00 |
| Auto Loan | $44,431 | $32,803 | $23,533 | $0.00 |
| Primary Home Mortgage | $103,950 | $96,450 | $90,750 | $75,000 |
| Rental Home Loan | $51,600 | $41,500 | $32,500 | $0.00 |
| TOTAL | $201,720 | $170,753 | $146,783 | $75,000 |
Stage 4 – Invest, Grow, and Take Vacations
In 2029, any investment profit over $100k will be used for vacation, family reunion meals, etc. While it would be cool to keep investing and making money, I’d rather grow the wealth off to the side to fund our vacation. The goal is to use the profits and worry less about the expenses.
My wife and I do that part already with our own money. It would be much cooler to travel the world based on capital gains. Of course, we will keep the money for federal and state taxes, the rest is just for a great time.
So far, we’ve seen 26 countries and will continue at this pace. There is so much to see. Hotels and flights are expensive even with points. Some places are harder to access and I don’t want to be too old to enjoy the space.
Beyond that, we also intend to bring family along when possible. While we might not be able to cover the entire bill, we can at least grab the Air BnB and a few meals along the way. We expect to pay as much as $25,000 per year. It’s time to get active. See Table #4
| Vacation | 2019 | 2020 | 2021 | 2022 | 2023 | Est. 2024 |
| Total Costs | $12,739 | $3,693 | $5,111 | $25,250 | $24,566 | $12,500 |
| Highlights | 12 Countries | Pandemic | Florida Trips | Canada, Portugal and Spain | Mexico, Argentina and Brazil | Canada, and Texas |
That’s my Opportunity Economy for the next 5 years
Every election year, Americans fight other Americans along their party line of choice.
In the end, someone gets elected and someone else is unhappy. And then the first is due, so every American is back to contend with the horrible truth that their rent or mortgage is due. Feel how you want to feel about your candidate (of choice), but remember one truth.
Cast the first vote for your household’s financial health
Without it, you will be stuck in a cycle every four years while those on stage become wealthy. Budgeting is a vote with your first dollar that turns into wealth. That wealth ultimately buys back more time and opportunities for your family. And have fun with your funds along the way. And if that’s not enough, just know that your favorite political fav is living their best life. I rather not be on the spectator side of life. There is too much to see, eat, and experience.
Think of this as perspective. I grew up overseas and in poverty, and learned to never expect the government to do anything to change my material living standards. Especially in the US where you are one of over 440 million, you have to be mindful of your time and money. See Table #5
| Election Year | Net Worth | Change (+/-) In Dollars | Percentage Change | Total Investment Portfolio | Change (+/-) In Dollars | Percentage Change |
| 2012 | -$93,287 | +$0.00 | 0% | $0.00 | +$0.00 | 0% |
| 2016 | -$19,234 | +$74,053 | +79% | $65,931 | +$65,931 | +100% |
| 2020 | $430,421 | +$449,655 | +2,338% | $335,006 | +$269,075 | +408% |
| Est. 2024 | $1.6M | +$1.18M | +274% | $1M | +$669,438 | +200% |
| Est. 2028 | $2.99M | +$1.38M | +86% | $2M | +$1.03M | +102% |
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