In the latest installment of Kiplinger's "My First $1 Million" series, we hear from a 58-year-old former aerospace senior manager who retired at the age of 57 with a seven-figure net worth. What this really means is that the road to becoming a millionaire is not always a straight shot, but can involve strategic career moves, disciplined saving, and a bit of good fortune.
Investing in the Company and Yourself
After graduating with an engineering degree, our subject joined a major aerospace manufacturer in Denver and quickly rose through the ranks, taking on increasingly senior roles over the course of his 30-year career. According to the Bureau of Labor Statistics, aerospace engineers like him earn a median salary of over $100,000 per year, providing ample opportunity to save and invest.
"I was always very interested in personal finance and read publications like Kiplinger to learn about investing in things like 401(k)s, stocks, and real estate," he explains. "I started maxing out my 401(k) contributions from my very first paycheck and never looked back."
Timing and Luck Play a Role
In addition to his disciplined saving, the former exec also benefited from the rapid growth and profitability of the aerospace industry during his tenure. Reuters reports that the U.S. aerospace industry saw record sales in 2022, bolstered by the rebound in commercial aviation following the COVID-19 pandemic.
"The company I worked for was doing incredibly well, which allowed me to get promotions and pay increases over the years," he notes. "I also timed my retirement well, leaving just before some of the recent economic headwinds hit the industry."
A Balanced Approach to Retirement
Now 58 and retired for the past year, the former aerospace exec is enjoying the fruits of his labor. He and his wife have paid off their home and are living comfortably on a mix of investment income, pension benefits, and Social Security.
"The key is to live below your means and keep your expenses low," he advises. "We're not living lavishly, but we're able to travel, spend time with family, and pursue our hobbies without worrying about money." The bigger picture here is that reaching the millionaire milestone is often less about striking it rich and more about steady, disciplined saving over the long term.