Hey everyone, time for another performance update. And yowsers, the time is a-flyin! First though, thank you for all of your comments earlier this week. There were some pretty great thoughts there. I’ve been doing a lot of thinking and I’ll have more to say on Monday. In the meantime, thanks for the free therapy!
One other thing which may be of reader interest is that I didn’t tell the Mrs. that I was writing this. She texted me yesterday stating that she read it, but we haven’t had a chance to talk about it yet. I’m currently in Las Vegas with the kids and she’s home in Colorado. We’ll have a big conversation soon…
On with the show!
My main goal is to build a portfolio of $1,120,000 in 1500 days*, starting from 1/1/2013 and ending in February of 2017. Every month, I provide an update on my status. It’s time to take a look at March. First, I must tell you about fancy cars and my P90xing.
I have a confession. I’m not as enlightened as I’d like to be. I still have stupid male urges. Usually, they revolve around things with engines and wheels. At the top of that list is a silly sports car, the Acura NSX. My obsession with this car goes back to my teenage years. Let’s take a little trip down memory lane. Queue the WABAC Machine.
High School Dreams and Facebook Schemes
When I was in high school, the perfect car was introduced to the world. It was the Acura NSX. I loved the philosophy behind the car; fast, lightweight, simple and beautiful. I knew I’d never have one, but it was fun to think about. Here is a picture of one in case you don’t know what the hell I’m talking about:
I never forgot about the NSX. In 2012, when facebook IPO’d at $42, I bought 1,000 shares. When the stock subsequently crashed. I had the following conversation with Mrs. 1500:
- Me: Facebook stock is crashing, but I still believe in the company.
- Mrs. 1500: Well, if you still believe in it, buy more.
- Mr. 1500: OK. When it hits $100/share, I’m buying an NSX.
- Mrs. 1500: Yeah, whatever.
I wasn’t joking about the NSX. I wasn’t joking about Facebook either. I bought another 1,000 shares. My thesis was when CEO Zuck’ turned the monetization screws, the money would start flowing in. That’s exactly what happened.
Here are some of my stock trades to show you that I carried through with the plan. The part I’ve circled is share count and price paid:
Fast forward to today:
I can make good on my NSX threat and I almost did. A lovely example of one popped up for sale in my backyard. Here it is again:
It was a beautiful. It had been well maintained and was almost all stock. I took it for a test drive and it was spectacular. At one point, I saw a fun curve ahead. I downshifted, stomped on the gas and the thing took off. The seller freaked out a little, but it was worth it. I told the owner that I had go home and think on it for a bit. And I did just that.
I soon realized something in me had changed.
Now that I had the money for my silly, silver toy, I didn’t want it quite as much. “Quite as much” is the key phrase here. I still wanted it. I wish I could say I didn’t, but I’m not that well adjusted. However, now that I have the money to have an NSX or just about any other car I desire, it just doesn’t mean as much as it once did.
I didn’t think I’d buy the car, but then the decision was made for me. The next day, I received a text from the seller saying that it sold for full price to a guy in California.
It was at this time that things got goofy. I had this conversation with Mrs. 1500:
- Me: The NSX is sold. I’m relieved, the decision not to buy it is now easier
- Mrs. 1500: Oh well.
- Me: Perhaps we can just get “his and her’s scooters” instead?
- Mrs. 1500: What the hell are you talking about? Are you drunk?
- Me: Not drunk. It will be like The Price is Right!
- Mrs. 1500: The Price is Right? What??? That game show with that old guy, Bob Barker? Is that guy still alive?
- Me: Yeah, that one! Remember the Showcase Showdown at the end of each show? Two contestants were shown a bunch of crap and they had to guess how much it was worth. The one who was closest won their bunch of crap. One showcase was usually pretty good and the other one sucked. It went something like this:
“Johnny, tell the contestants about their showcases!”
“Well Bob, in Showcase 1, we have a new Corvette, a monthlong trip to Hawaii at the Four Seasons and $25,000 in cash!”
“In Showcase 2, we have a 19″ color TV with remote, a plaid couch, a porcelain dog and “his and her’s scooters! That”s right, you’ll be cruising the neighborhood in style on these blue and pink beauties! The Yamaha Crapmaster tops out at 35mph! Helmets included!”
- Mrs. 1500: We are NOT getting “his and hers” scooters.
I do no want an NSX anymore**. Well, maybe just a little…
My P90xing didn’t go well in March. The culprit? Sleep. Or lack of it. The workouts are hard as hell. When I’m tired, I don’t have the physical and more importantly, the mental stamina to really push myself. I slept horribly for most of the month, so I didn’t get much out of the workouts.
That doesn’t mean that the exercises aren’t still beneficial. For the first time in 4 years, I weigh under 160. My gut is melting away. In December of 2014, I topped out at 180. That was a bad time.
Warning! Here are the pictures:
I have 2 more weeks to go on the current P90x schedule. Upon completion, I’m going to rest for a week and then start up again. Brace yourself for more pictures in future updates. Sorry for that. However, knowing that I have to show my nude torso to the world is incredible motivation. Anyone else want to join me?
And I’m supposed to be talking about money too. This was my best month ever. I started the month off at $1,022,555 and ended at $1,111,360 for a gain of $88,805. Yippee!
- Days elapsed: 91
- Days remaining: 275
- 2016 gains: $53,399 (including 401(k) and some after tax contributions)
- 2016 401(k) contributions: $25,500**** The front-loading party goes on, but ends in April. I owe the IRS and I’m paying them before I pay Vanguard. Actual freedom (I wouldn’t do well in prison) trumps financial freedom.
Since the start (1/1/2013)
- Days elapsed: 1185
- Days remaining: 315
- Gains since 1/1/2013: $525,317
- Needed to quit work ($1,120,000 in investments): $8,640 (!!!)
- Net worth*****: $1,361,360
Clarification on the Goal
Someone asked me if my goal is to get to $1,120,000 at any time or to be at that number at the end of 1500 days. My goal is the former. Unless there is some crazy catastrophe that knocks my portfolio down to $500,000, I’m not worried.
With that said, I’m not going to quit my job the day my portfolio hits the magic number. I’ll fulfill the obligations that I have to my employer and my contract. My job can be stressful, but the people I’ve worked with are great and I owe them a smooth transition.
And one more Thing
On Friday, I came within $545 of hitting my silly goal of $1,120,000. I checked my account aggregation tool, Personal Capital (Warning! I’m trying to make money off you here too through an affiliate link), no fewer than 736 times to see if I had made it. Nope.
I refuse to declare victory before I see my magic number. Don’t count your dollars before they compound!
*My original goal was $1,000,000 and no debt, I later raised the goal by $120,000 to $1,120,000 because I will have debt in the form of a mortgage which I firmly believe in not paying it off. My compromise is to have enough money put away to cover the mortgage at the time of retirement. So, to retire today, I would need about $1,120,000.
**Of course, I am completely silly for writing about marriage woes on Monday and then telling you about how I looked at a $39,000 toy. Bad priorities, right? Really bad. I know, I know.
I did look at the toy about a month ago, before I was thinking about my relationship (or lack of it). And like I said, the silly toy is an artifact of silly teenage desires. I don’t think I would have ever seriously considered purchasing the car, but my brain is still comforted knowing that I have the option. MMM once said that the time to buy a silly toy is after you’re FI and the purchase won’t matter. I agree with that.
***This is an affiliate link. If you sign up, the blog (me) makes some cold, hard cash. Personal Capital is a totally free and awesome way to keep watch over your investments. It’s worth it for the fee analyzer alone. I would never recommend anything that I don’t personally use and completely believe in, so give it a try. If you’ve already signed up through the link, please know that I think you are a superior mammal.
****My 401(k) contributions include my own, Mrs. 15oo’s, and the contributions from my corporation. Self-employment with a solo 401(k) is a very powerful savings tool. I should have done this years ago.
*****The numbers on the right side of the page only reflect my investments and cash. Net worth includes, but is not limited to:
- Home equity
- My house: I know, I already said this in the first bullet point, so I’m totally cheating (creative juices are on empty at the moment). But something interesting is happening where we live. We bought our little, ugly house for the sum of about $175,000 in June of 2013 and the market was already hot back then. Many houses received multiple offers the same day that they came on the market. It was nuts. Since then, two things have happened:
- We turned our ugly little 2 bed, 1 bath home into a 4 bed, 3 bath through a small addition and modifying the floor-plan. We also remodeled the existing bathroom and kitchen, replaced the windows, siding, upgraded the electric, redid the plumbing and landscaped the yard. Three years and $75,000 later, it is a completely different home.
- Our real estate market is far crazier. There are loads of good, high-paying, jobs close (Google is hiring thousands for a new office) which has pushed the housing market into full, DEFCON 2 mode. One house on our street had 16 offers in 2 days. Another one that sits a couple doors down sold for over $500,000, the first time this has ever happened on the street.
- This is a long winded way of telling you that I believe that our home is worth more than I’ve been accounting for. In these performance, updates, I’ve been pegging the value at $350,000. I’m pretty sure that we could get close to $400,000 for it though. We’ll have a better idea when we have it appraised for a line of credit later this year.
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