Millionaire Interview Update 76

Today I have an update for you from a previous millionaire interview.

I’m letting three years pass from the initial interviews to the updates, so if you’ve been interviewed, I’ll be in touch. 

This update was submitted in February.

As usual, my questions are in bold italics and their responses follow…

OVERVIEW

How old are you?

I am 55 years old (almost 56), unmarried, without children

What area of the country do you live in (and urban or rural)?

I still live in Henderson, NV, but will visit family in California.

What was your original Millionaire Interview on ESI Money?

NET WORTH

What is your current net worth and how is that different than your original interview?

My current net worth is probably about $30-35 million. Since my last interview, I sold my medical practice.

Since I owned the building with my sister, I 1031 exchanged the clinic building into 3 rental properties. I also purchased another home in a 55+ community, which will be my final home.

I’m currently renting it out until I decide what to do with my current house full of furniture. I figured I needed a one-story home when I get older and a community to join activities, as my family is in California.

In stocks, I have about $22.6 million, which includes retirement and 529 plans for my nieces/nephews. I have 18 homes by myself, 3 homes shared with my sister, and a 7-unit complex shared with my sister all free and clear.

What happened along the way to make these changes?

My parents lived with me, and unfortunately, they both passed away. Since then, my outlook has changed.

The person I was 3 years ago is now different. I was driven, but I’ve slowed down.

I inherited several of their rental homes as well as their retirement plan. I figure I have enough, and more “stuff” is not making me any happier.

I’ve donated to charities close to my dad’s heart. Most of their retirement stocks I inherited have been donated/promised to scholarships and a community center room.

What are you currently doing to maintain/grow your net worth?

I’ve decided I’ve had enough as I’ve mentioned. I will let the stock just grow, but unless there’s a major drop, I don’t think I’ll invest anymore except for the 529 plans.

I had an automatic monthly investment into stocks/mutual funds while I was working, but now that I’m not working full-time, I don’t have the money I had to invest.

EARN

What is your job?

I had my own medical practice but sold it and then retired from clinical medicine. I now just work in clinical research as a 1099 independent contractor.

I’m mostly at home, but when they need me to see a patient or speak with a sponsor, I will go into the office, but that is rare. There are some remote signings that I can do through the computer.

Other than that, I just manage the rental properties and will visit family when I can. During kitten season, I foster kittens, which has been a joy for me.

What is your annual income?

Previously, I just managed the rental properties without paying myself. Now, I take a portion out of the rent for property management.

My annual income (not including the rental income) is about $86K. It’s been a bit challenging to change my mindset.

Previously, I would not touch my investments, but in the next few years, I’ll probably run low on my savings and dip into my investments to live.

How has this changed since your last interview?

After I sold my practice, I worked for the purchasing company for 2 years. Some good and some bad.

It’s nice to get a paycheck and perks paid without having to manage the office. If there were any IT problems, it wasn’t my problem.

If an employee called in sick, it wasn’t my problem. Unfortunately, when it was my practice, I would squeeze patients in all the time so they were used to an appointment within 1-2 days.

When the company limited me to 20-25 patients a day and not squeezing in patients, I lost a lot of patients. I realize that squeezing patients in was part of my burnout.

The patients who had appointments would complain that I rushed them. I tried hiring other providers, but that didn’t work so I decided to sell.

Unfortunately, the company I sold to did not know how to manage money. I saw them spending and wondered how they survived.

Well, the company eventually filed for bankruptcy and sold to another company, and my friend that worked at the new company advised me not to sign the contract. I decided to retire from clinical medicine.

The other major loss was my parents. I lost both of them in 2022, which has been the hardest thing I’ve ever had to deal with.

Although I’m much better, I’m still in a bereavement group. Since then, my outlook on life has changed, which I addressed below.

Have you added, grown, or lost any additional sources of income besides your career?

My job was the biggest source of my income and it’s been challenging to not have a paycheck.

I would invest every month into mutual funds and when the market dropped, I would buy more.

Now that I don’t have the income, I don’t invest except for the 529 plans for my family.

SAVE

What is your annual spending and how has it changed since your interview? What happened along the way to make these changes?

My spending has remained the same, except perhaps more for food. When I worked in the clinic, we would see drug reps during lunch, and they would pay for food.

The leftovers would be dinner. I spend more on trips to California, but because I’m frugal, I just fly Spirit.

Because I’m not working, I don’t need any clothes, etc. It’s T-shirts and stretchy pants!

INVEST

What are your current investments and how have they changed over the years?

Most of my investments are in Vanguard ($18 million). $4.5 million is in Schwab, which I have a financial planner manage.

I see that he will buy and sell but I just keep my investments the same.

MISCELLANEOUS

What other financial challenges or opportunities have you faced since your last interview?

I’m very frugal…to the point that I would be embarrassed to post what I do…one person on this forum knows me. I’m trying to change my mindset.

My sister really loved this home, which was $4 million. I contributed $2 million to the house.

I figure I cannot outspend what I have, and if it would make her happy, I’m fine. My cousin is a school counselor and is hating her job.

I’m going to give her $100K to buy into her retirement so she can retire early. I don’t think I would have done these things before.

I gave another cousin $500K to build his house. Someone posted, it’s better to give to our loved ones while they are alive, and we can see what this money can do for them versus when we die.

I’m embarrassed to say that I don’t think I would have donated so much previously. My mindset was that I worked hard for this money, and my family is going to get this.

I now think my family has enough, and I feel it is important that they earn their own money instead of inheriting it. For me, it’s easier to spend someone else’s money than my own.

Although it’s still hard, I’m going to try to donate more.

Although I will never be a spender, I’m trying to take baby steps and spend on things I would not spend on previously on myself.

Overall, what’s better and what’s worse since your last interview?

I’ve been listening to podcasts and lectures, reading books for self-improvement, and journaling. What’s interesting is several of the same themes come up.

I was going to post something on this but not sure why I didn’t. I’ll take the opportunity to write it now. These were from 2 podcasts:

James Doty, MD:

All of these external material things that so many people in our society think they need. They think somehow if you get this stuff, that’s going to fill the void all of us have, and of course, it doesn’t.

But society, is oriented unfortunately toward seeking external affirmation with the belief that if you fulfill the societal narrative of success, which is money, power, position, that will then translate into happiness.

And of course, this is a story that’s been told over and over and over again, and it does not. And I’m sure you know many, many extraordinarily “successful people” who are actually miserable.

I became a neurosurgeon, a professor at Stanford. I have all this material success. I’m a successful entrepreneur.

I have millions and millions of dollars. I have a home overlooking the Bay and Newport Beach. I have a villa in Florence.

I have an island…Yes, and I was single at the time, and I was dating all these attractive women. All my friends said, “God, your life is so great. Man, look at you.”

Yet, I was never more miserable in my entire life because I kept expecting, okay, I’m going to climb this mountain, and then I’m going to feel good about myself. Then, I’m going to climb the next mountain.

I’m going to feel good about myself. I never felt good about myself. None of that stuff made me feel good about myself.

Lewis Howes:

I chased achievement and for whatever reason, within minutes, hours of accomplishing these massive goals that I would set for myself, it’s almost like I was more frustrated, more angry, more upset than I was before accomplishing it.

And I realized that these accomplishments, money, followers, status, I was doing them to feel validated by other people instead of doing them because it was something that brought me a lot of self-pride, self-joy, because it was out of passion, because it was out of a desire to achieve something for me where I could impact other people as well.

I was doing it to prove people wrong, who made fun of me. I was better than. It was doing it to try to seek approval that when I accomplished this, then people will like me finally.

Then, maybe people will love me. Then, I’ll feel worthy enough when I accomplish this thing.

But that did not work. I remember when I hit 30, I realized that none of this fulfilled the emptiness inside of me.

I’ve been self-reflecting. Was I accumulating all these assets for approval of my parents, others (although only very close friends know a portion of my net worth), or to myself?

Is my lack of drive due to mourning of my parents or was I trying to make my parents happy and now that they are gone, I don’t need to prove anything? Was I trying to prove to those “high school students” that I am enough?

I resonated with the feeling of emptiness after each accomplishment. I wouldn’t say I’m “miserable,” but something is missing.

Or perhaps, I thought I would be happier…Still trying to figure this out.

What are your plans for the future?

My future is up in the air. I will remain in Nevada and eventually sell or rent my primary home and move to the retirement home.

Currently, I have 4 BR full of furniture, and I’m here by myself. I just need to get rid of stuff.

Given that you have a bit more wisdom and experience, what advice do you have these days for ESI Money readers?

I read all these posts on MMM, and I feel like everyone is smarter than me. I’m embarrassed to even contribute any knowledge because I feel like I cannot.

Everyone is so analytical. But even someone like me, made money.

Just automatically contribute to SP500 every month or total stock market fund and it will grow. If the market drops, buy a little more, even if it’s $100.

I also wonder how my life would be different if I had kids. I would have less money and assets.

We all want money but what price are you willing to pay for it? Would you trade one of your children for $5 million?

So, if you do have kids, spend time with them. You don’t want your kids thinking that money is more important than them.

Hustling is good, but there’s only so many hours in a day. How are you going to spend your remaining time on this Earth?

Suzi Orman ended every show with: People first, then money, then things.