My main goal is to build a portfolio of $1,000,000 in 1500 days with no debt*, starting from 1/1/2013. Every month, I provide an update on my status. My goal for 2013 was to get my portfolio up to $672,750, from a starting point of $586,043. I accomplished this in June and then raised my goal to $727,750 to account for the money I made selling our last home that I plowed back into the portfolio. Time to look back on the month of December and 2013.
December
December was a really good month. We started December at $839,261 and ended at $869,635. The investment portion (non-cash) started at $788,823 and ended at $819,723 for a gain of 3.9%. These gains were mainly due to facebook** which surged over 7$/share. Here are the numbers as of 12/31/2013:
- Days elapsed: 365
- Days remaining: 1135
- 2013 gains: $283,592
2013
Wow, what a year! The S&P 500 saw gains of almost 30% while the Nasdaq saw a gain of 38.3%. My tech heavy portfolio also gained 38% in 2013. Woo!
Speaking of goals, I’ve almost made my goal for the end of 2015. As of this writing, I’m almost two years ahead of schedule:
However, it doesn’t really mean much. One year is a relatively short period of time in the course of your life. Next year could be equally bad or worse. Play to win the long game, not the short one.
Random Thoughts for 2014
Portfolio overhaul: This will be the year I change my investments around. More than 1/3 of my portfolio is tied up in individual stocks. I’m hoping to sell some of these stocks and pick up a rental property with the proceeds.
- I can’t wait to start saving again: Uglyhouse has been holding a gun to our bank account. Every dollar that comes in has been going into the house. However, this should all come to an end some time in the first half of the year. After that, we’ll put the car back in first gear and start saving again.
- Prediction nonsense: I love to read about the markets and the business world. Lately, there have been a load of articles about what the stock market will do in 2014. This is all nonsense. No-one really has any clue. Stake your claim on long term gains and ignore all of the noise.
- My butt is 40 now: However, I’m happier and healthier than ever. Regarding happiness, it seems like everything in life is coming together lately. Our home construction will be done soon. We’re achieving our investing goals. We’ve lived in our new town for about 6 months, but have some pretty good friends already with more to come in the new year. Regarding fitness, I can do almost 10 pull ups now. In my high school days, I don’t think I ever cranked out more than 1. My body feels fine. Only thing I noticed is that alcohol affects me adverse ways. However, that is easily remedied.
Enough blabbing! Here’s to a happy and prosperous new year for everyone! And holy crap, unless you’re in PoP-land, IT. IS. COLD. Stay warm everyone.
*I still owe something like $120,000 on my mortgage. Because I have a low rate, I firmly believe in not paying it off. My compromise is to have enough money put away to pay off the mortgage at time of retirement. So, to retire today, I would need about $1,120,000.
**Don’t copy me! I am not a financial adviser and I have come to believe that buying individual stocks is a bad, bad idea for most. I still owe you a post on that one. It’s coming.
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Financial Samurai says
Incredible gains man!
What do you think will happen in the markets for 2014?
Financial Samurai recently posted…Top Financial Resolutions For The New Year
1500 says
Ooooh, fun! If I had to guess, I’d bet that 2014 will be pretty good. I’ll say 15% for the S&P 500.
Other random predictions for 2014 and beyond:
-> Google will continue on it’s march to world domination. I’m guessing that they become the first company with a market cap of 1 trillion, not in 2014 though.
-> facebook will also rise as they figure out monetization. If they can’t figure out how to make truckloads of money with 1 billion users, they are completely stupid.
Brad @ RichmondSavers.com says
Mr. 1500,
I started reading this post in the email update and I clicked over to comment as I wanted to ask about 1) If you planned on moving out of individual stocks as you got closer to your $1M goal (and retirement) 2) If you were going to write up a post about your individual stock picking, as you’ve alluded to a few times.
And of course you touched on both!
I’m curious to see how your portfolio evolves over the next few years as you approach retirement…
Brad @ RichmondSavers.com recently posted…Travel Rewards: Free New York to Bermuda Vacation in Style
1500 says
“I’m curious to see how your portfolio evolves over the next few years as you approach retirement…”
Me too! I’m still figuring it all out, but the process is fun.
By the way, I finished the Bogle book and it’s great! Thanks so much for mentioning it!
writing2reality says
Very interesting Mr. 1500. Obviously congratulations are due on the tremendous success of 2013, regardless of the reasons! I am very interested to see your new plan for the future investment wise, both with the potential rentals, as well as the equity positions.
writing2reality recently posted…Passive Income – September 2013 Update
1500 says
I am interested too! 2014 will be a fun year!
SavvyFinancialLatina says
Can’t wait to start investing. How did you start investing in taxable accounts? Sometimes it seems like investing the first $5,000 in a taxable account is the hardest.
SavvyFinancialLatina recently posted…How a house is impeding me from becoming a BUM
1500 says
“How did you start investing in taxable accounts?”
I just opened an eTrade account and started buying stuff! Pretty scary and don’t repeat! If I were you, I’d open up a Vanguard account and buy index funds. Boring, but unbeatable. Check out some of John Bogle’s books which are really, really good.
Mrs PoP @ Planting Our Pennies says
It’s even cold down here today!! Today is the start of our 36-hour cold snap. It was 43 when I biked to work this morning and it’ll be the same tomorrow morning. But luckily by tomorrow afternoon we’ll be back in the 70s.
That’s some awesome progress for the year. And you should write a thank you NYE to mr market for outperforming when you guys were throwing cash into the house. Nice to have one make up for the other. =)
Mrs PoP @ Planting Our Pennies recently posted…Updated Thoughts On Zillow
1500 says
Mrs. PoP-
Kudos for you for riding your bike, despite the lowly 43. I’d kill for 43 right now! 🙂
Happy 2014 to you and Mr. PoP!
Dave @ The New York Budget says
Your gains are amazing! Very inspiring. Can’t wait to see what you do in 2014!
Dave @ The New York Budget recently posted…Being Generous and Frugal: A Goal for 2014
1500 says
No kidding! Go 2014!!
Done by Forty says
You’re closing in on a million! I’m always blown away by your portfolio’s performance. Let us know how the rental property search is going, too. Would love to hear more about that process.
Done by Forty recently posted…What’s it Like in America?
1500 says
Ha, I call it educated luck. Here is an example:
When facebook IPO’d, everyone said it’s earnings didn’t justify the stock price. They were right. However, if you know anything about the company, Zuckerberg always said that pre-IPO, their goal wasn’t to make money, but to grow the user base. So, the thought that went through my head was this: what happens when facebook turns the monetization screws. They are doing that now and look what’s happening. My money has doubled.
However, there is still plenty of risk and I don’t recommend that people do what I do.
Raquel@Practical Cents says
You had an excellent year of gains! Congrats!
Raquel@Practical Cents recently posted…Looking Ahead to 2014
1500 says
Thank you!
Steven says
■Portfolio overhaul: This will be the year I change my investments around. More than 1/3 of my portfolio is tied up in individual stocks. I’m hoping to sell some of these stocks and pick up a rental property with the proceeds.
I’m curious to know your strategy on the rental property, my ?s would include what price range for the house? Owner occupied? Down payment? Fixer Upper?
Steven recently posted…How We Are Cutting Costs on Our Cell Phone and You Can To……Republic Wireless Review
1500 says
We are looking for something around 200K. I like structurally sound, but cosmetically ugly homes. The main reason is because other people don’t. (Deal!) In my experience, the average person will choose a pretty home with problems (old windows, old furnace, sloping floors) over a sound home that is just dated.
I’d put a month of time into it, making it look nice. A nicer home gets nicer renters.
I’m not sure how much I’d put down. It depends what rates are at the time. If they stay low, I’d definitely finance it. If they start to climb, I’ll cash out enough to pay cash.
Michelle's Finance Journal says
Wow what a year you had and what an impress portfolio you have. I’d be happy if I’m 2 months ahead of schedule, but you’re 2 year ahead. Like you said, you never know how this year will be, but still impressive. Good luck this year again~
Michelle’s Finance Journal recently posted…Tying Lose Ends
1500 says
Thank you Michelle! Hope 2014 is a prosperous year for you!
Steve says
I set up a sample portfolio of 4 index mutual funds at the beginning of last year $100 in each index fund (I’m still in aggressive student loan repayment phase, with one year left!) and the gains on the US S&P500 index fund was 37%!!
Haha I joke to myself that I shouldn’t have wasted my time with the Canadian index, International index, and Canadian bond index funds as they averaged my sample portfolio to a 17% gain over the course of 2013 😀
Steve recently posted…Getting Rich and Buying Freedom
1500 says
17% is still pretty darn good! Every dog has it’s day. I don’t think the American markets will repeat their 2013 performance any time soon. I recently read about how the tech industry is booming in Canada. You also have a lot of energy up there.
Pay off your loans and then start saving, saving, saving!
jlcollinsnh says
Well played, Mr. 1500!
Here’s to another great year, once you tell us what to expect. 😉
Oh, and thanks for the links!
jlcollinsnh recently posted…1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and your chance to enter for 2014
1500 says
Thanks Jim!
“Here’s to another great year, once you tell us what to expect”
Ha! My money is on chicken. Their prices will go through the roof. Buy chicken futures NOW!
anna says
Did you recently turn 40? If so – Happy Happy Birthday! 🙂 Congrats on an incredible year – 2 years ahead of schedule is amazing! Stay warm in Colorado to you and the fam. 🙂
anna recently posted…Wedding update – two month countdown!
1500 says
Thanks Anna! Yep, turned 40 about 5 weeks ago. It was strange because I didn’t really care. Just another piece of german chocolate cake for me!
Micro says
I’m not sure if I will ever wind up investing in any individual stock. I know I’ve been interested in reading up on Lending Club for when they put out their IPO but I already have an investment account with them. If I buy stock it puts more of my financial eggs in a single basket. Kind of like buying stock from your employer. If they go down, they take down multiple legs at once. Plus, index funds appeal to the lazy side of me. I can just plop the money in and let it be.
Micro recently posted…2013 spending in review and 2014 budget
1500 says
I have to admit that Lending Club intrigues me too. If I buy a stock in 2014, it will be Lending Club. I love their business model and soooooo much potential. Plus, Google invested in them and they sure as hell know what they’re doing.
writing2reality says
Ahhh yes… looking forward to this with some eager eyes. Their business model is fantastic and scales tremendously.
writing2reality recently posted…Passive Income – September 2013 Update
Alicia @ Financial Diffraction says
Awesome!! I’m curious how your portfolio will change as you approach your 1500 days.
1500 says
Me too, ha! I really have to switch things around. Just 2 stocks compromise almost 1/3 of my portfolio. Danger Will Robinson! I don’t like talking about it because I don’t want to give people the wrong idea. I need to though.
Jeff says
What a great year – be nice if we could string a couple more of these together! Congrats on advancing the schedule. I need you to teach me the basics of looking for a solid, ugly, house 😉 Happy New Year to you and the family – and Happy Birthday. Oddly enough German Chocolate cake also happened to be my birthday cake of choice growing up – do you do the coconut pecan frosting?
1500 says
“What a great year – be nice if we could string a couple more of these together!”
Ha, yeah! 2014 will be an interesting year. Hold on to your seats folks!
“I need you to teach me the basics of looking for a solid, ugly, house…”
That post is coming up actually. Stay tuned.
Regarding the german chocolate cake, the pecan frosting is the best part. Who needs the actual cake!
Mom @ Three is Plenty says
Happy birthday! Those are some great gains in the market, and I agree with you that I don’t think 2014 will show the same growth, but I still think it will grow (no particular reason other than gut feeling). Maybe you’ll be 2-3 years ahead at the end of next year!
Mom @ Three is Plenty recently posted…Detailed Financial Picture – January 2014
No Waste says
Outstanding year.
Hangovers have gone from a few hours to a few days for me, ever since rolling over to my 30s.
1500 says
For me, it’s sleep. If I drink, I fall asleep instantly. That is fine. However, I wake up a couple hours later when the effects wear off. Bleh.
Kay @ Green Money Stream says
Congratulations on the great return! I’m also curious about how you will be changing your investments as retirement approaches. My focus is on building a portfolio of dividend paying stocks for the passive income they will provide in retirement. What do you envision your main source of income to be in retirement? Are you planning on rental income or on shifting to more dividend paying stocks or just a combo of these or something else?
Thanks for the update and Happy Birthday. My husband will be 40 this year and he is not happy about it!
Kay @ Green Money Stream recently posted…Make the Frugal Switch to Homemade Cleaning Products
1500 says
“What do you envision your main source of income to be in retirement?”
Hi GMS! I’m still trying to figure this out, but dividends will be a part of it. I only have 2 dividend paying stocks now; Costco and Apple. I’m uncomfortable with keeping the latter long term.
Besides dividend stocks, I’ll probably keep peer lending (Lending Club), invest in a REIT and purchase a rental home or 2.
I’m sorry that your husband isn’t happy. It’s not all that bad!
Elroy says
Nice work on the NW gains.
I bought a PEX crimp ring tool for $94 and a soldering kit for $20. Sharkbite is sooooo expensive. And I don’t trust them.
Elroy recently posted…Dipping
1500 says
I know, Sharkbites are way to much. My crimper was $50, the cost of 8 or 9 Sharkbites.
However, I totally vouch for them. They are like some voodoo black magic.
GPS says
Terrific!
Do you think you would retire earlier with these gains? Say before the age of 43? What lifestyle changes would you make after you hit the $1million mark?