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.
April Update
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
Portfolio Breakdown
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.
***This is an affiliate link. If you sign up, the blog (me) makes some cold, hard, beautiful, 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 you are a fine person of above-average intelligence.
****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.
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.
“Elevated home park” got me smiling early in the morning; I shared previously that I have some family who invested and vacation in an “elevated home park”. I’ll ask them which term they prefer.
Thanks for sharing the update. – Mike
Haha!
I was surprised at some of the comments I received when I used the term “trailer park.”
You are absolutely crushing it. It appears that things are on auto pilot and you are loving life. Congrats on another awesome month!!
MUSTARD SEED MONEY recently posted…This Is the Amount You Need To Save Per Day To Become a Millionaire
Thanks MSM!
i’ll be interested to see the outcome of the airbnb decision. i think municipalities and governments are catching on and getting their grubby hands into the pie or even restricting shorter term rentals in some places. seems like you could still make money but the taxes might end up looking more like what hotels pay. y’all did more this week than we’ll do all summer!
freddy smidlap recently posted…Painting Sales and Portfolio Details
Yep, it’s definitely regulated where we’re looking at. I’d rather know this going into the deal though than have it be an unknown.
Pace yourselves, if you don’t the dinos will end up in summer actively rehab come August. 🙂
Brian recently posted…How I Paid Off $65,657 In Student Loans in 5 Years
Rehab! I know, right?
What did you use to make the planter boxes? I’m probably going to try and build some for our front yard this fall, but can’t figure out what kind of wood to use since I’m reticent to use treated lumber if I’m going to plant anything I’d want to eat in it.
Mrs PoP recently posted…Clothes Shopping When You’re Frugal But Hate Thrift Stores
Planter boxes are made out of pressure treated wood, but we’re lining them with a material similar to Tyvek.
In the fall of 2001 I moved from Eastern PA to Boulder, CO, the first place I ate at was Foolish Craig’s. When I worked in Boulder I would eat lunch there quite a bit and also take out-of-towners there. To me there’s something very special and genuine about that place. And of course the bread of the day.
I highly recommend getting up to Gross Reservoir sometime this summer before it closes for the next few years. We take our SUPs up there. Hidden gem.
Bread of the day! I LOVE bread, but we’ve only ever been there for breakfast…
Gross Reservoir! Thanks for mentioning it again. We’re going to head up there next week.
I’m so envious you were at BolderBoulder – Kara Goucher was there!
The Bolder Boulder is incredible! Since you’re a runner, put it on your bucket list!
Looking good. Enjoy the summer!
We still have 2 more weeks of school left. We’re heading to Iceland right away. It’ll be a busy summer.
Joe recently posted…My Best Advice to New College Grads
Iceland! Now that looks awesome.
That’s an awesome jump! I can’t wait till my portfolio makes 5 figure jumps in one month when I’m not even actively working. Talk about life hack!
And the food porn, don’t get me started on that. You just ruined my summer diet, jeez that looks so good
“I can’t wait till my portfolio makes 5 figure jumps in one month when I’m not even actively working.”
I know, right? It’s so much better to let money work for you than to work for money.
Hiking and brewery’s.. can you ask for anything better!? Would love to hear about whether you end up purchasing the Airbnb rental as that’s something I’m definitely looking into as well.
Beer tastes even better when you’re FIREd!
Back in the green I see! Decent returns Mr. 1500! You’ll be bustin into the $3 million range any day now!
Mr. Tako recently posted…Nobody Wants To Get Rich Slowly
$3,000,000! It will happen, but probably not for at least another decade!
“More parties, definitely.”
Testify! Every bungalow in our city has a porch, and lately we’ve been hanging out with neighbors on them at least weekly (rain or shine). Had ten folks on ours yesterday, feasting on our house white sangria and a variety of homemade mezze.
Incidentally, that crepe looks astonishingly good. Time for me to pick up a big flat cast iron surface… I’ve been inspired.
You paint a beautiful picture Adam!
We used to have more of this in our neighborhood, but sadly, it seems to be going in the wrong direction. Folks aren’t as social as they once were.
Mr. 1500 I’m still getting caught up on your journey.
Have you written about your private loans/syndication deals before? Wanted to read up on that.
For the solo 401(k) does the contribution from the corporation mean that the corporation (employing only you and your wife?) matched your contribution? If so, that is awesome! Like paying yourself twice.
Those planter beds look really cool. Know what will go in them?
Awesome update Mr. 1500
I did do a little write-up here: http://www.investmentzen.com/blog/how-to-invest-in-real-estate-without-owning-real-estate/
I need to expand and write more on the topic though.
“For the solo 401(k) does the contribution from the corporation mean that the corporation (employing only you and your wife?) matched your contribution?”
Yep! 25% of our wages are matched! It’s awesome!
Great month, always good to be back on the positive side. Our daughters last day of school was last Friday and we are already starting the “summer vacation”. Love being able to spend extra time with her. Don’t forget to breath and enjoy it!
FIbythecommonguy recently posted…April 2018: Net Worth Update #13
whoa there! you may need to go back to a full time job to get some rest!!!
I grew up in Winter Park! Love that place!
So instead of elevated home or trailer parks have you thought about investing in a tiny home parks. I think there is so much upside in small manufactured homes (so does Warren Buffett) check out this list of tiny house blogs. https://blog.feedspot.com/tiny_house_blogs/
Tiny house talk – is a good place to start.
The passion of the community reminds me of the FIRE community. Colorado is also home to several of the top manufacturers.
Brad recently posted…Prestige Syndrome and the Startling Difference between Vertical and Horizontal Wealth.
whoa there! you may need to go back to a full time job to get some rest!!!
Well we lived in a ‘mobile home park’ when the wife and I got married.
I can’t believe it has gotten to the point that ‘trailer park’ is considered insulting, what a bunch of pussies (I hope that is the plural of pussy). And before anyone else gets their underwear in a knot, that is a bunch of pussy willows….
“I can’t believe it has gotten to the point that ‘trailer park’ is considered insulting…”
Haha, I know. I got numerous comments from folks who didn’t like it. In 10 years, Elevated Home Park will be insulting too and I’ll have to come up with something else. So it goes. Silly humans.
Great article and glad to see you’ve made incredible progress in such a short period of time. Yours is an inspiring story.
Take care,
Ryan