My main goal* was to build an investment and cash portfolio of $1,120,000* in 1500 days**, starting from 1/1/2013 and ending in February of 2017. I made my goal in 2016, my 1500 Days are over, and I’ve left my job. In the interest of openness, I’ll continue to share my numbers.
Summer is here! Well, not officially, but as far as I’m concerned, it is. The girls are out of school, friends are starting to come to town almost weekly, the weather is warm and the beer is cold. It feels like summer to me.
The girls’ last day of school was last Wednesday and we didn’t rest for even a moment. On Thursday, we tore around town on our bicycles. We went to the library before exploring this waterfall:
On Friday, we hiked Mt. Sanitas in Boulder and then had crepes at Foolish Craig’s:
On Saturday, a friend came into town and we sampled a new brewery called Primitive:
On Sunday, Mrs. 1500 painted parts for our new Lori Wall Bed while I built planter boxes for the front yard:
On Monday, Older Daughter and I ran the BolderBOULDER:
The girls haven’t even been out of school for a week and it feels like we’ve already crammed a month’s worth of activity into summer break.
And what’s that you say? This is supposed to be a performance update? Oops. Time to focus! Please excuse the diversion.
Our portfolio made quite a recovery this month. Our net worth started the month at $2,037,865 and ended at $2,078,532 for a gain of $40,667. We swung back to positive territory for the year; up $35,831 since January 1st:
2018 (as of 5/1/2018)
- Days elapsed: 121
- Investment portfolio gains: $35,831 (including 401(k) contributions**** of $15,781)
- Net worth gains: $85,831 (investment portfolio gain of $35,831 + home appreciation of $50,000)
Since the start (1/1/2013)
- Days elapsed: 1945
- Investment portfolio and cash: $1,563,532
- Gains since 1/1/2013: $977,489
- Needed to quit work ($1,120,000 in investments): Mission accomplished!
Net worth: $2,078,532. This includes:
- Investment portfolio and cash: $1,563,532
- Home equity: $450,000
- Silly toy car: $45,000
- Other cars, bikes, dinosaurs: $20,000
We have a diverse portfolio that includes real estate:
trailer parkelevated home park (people have told me that trailer park is an insulting name, so I’m going with EHP!)
- private loans
- syndication deals
And stock market holdings:
- individual stocks (old thinking)
- index funds (most money goes here now)
In 2018, my market holdings are dominating the real estate portfolio:
- Stock market: $817,099
- Monthly gain: $38,875
- 2018 gain: $27,313
- Real estate: $726,433
- Monthly gain: $1,792
- 2018 gain: $8,518
- Cash reserve: $20,000
These results aren’t unexpected. We’re still rehabbing the elevated home park (more on this soon) and most of the money from syndications comes towards the end of the deal.
I’d rather have a lot of money later than a little money now.
We’re not setting the world on fire with our returns, but we are on pace to increase our net worth over $100,000 this year which feels good. I expect that this pace will accelerate substantially as our real estate deals mature.
More Real Estate, maybe? More parties, definitely.
My favorite part of our portfolio is private lending. Sadly, most of our loans have been paid off. We’ll only have one loan outstanding on June 1st. This means that we have some cash to throw around. We’re considering purchasing an investment property near Winter Park Colorado. If we end up diving into the world of Airbnb rentals, I’ll post a full update.
In the meantime, we’re off to a Memorial Day party.
Tune in next month for another performance update. That is if my social life doesn’t drive me to death by exhaustion first!
*My goal wasn’t to have $1,120,000 at the end of 1500 days, but at any time before the day count was up. Why? It all goes back to the 4% Rule. Remember that our little friend, Mr. 4%, is nothing more than the most conservative safe withdrawal rate. So, if I were to quit my job now, I could spend about $60,000 in my first year of retirement.
**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 and 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.
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****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.
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