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.
This Is Getting Ridiculous
The investment portfolio is up $66,341 in April and $204,157 in the first four months of the year. To put this in perspective, at my first real job, I made about $37,000 in year one. I earned that money putting in 2,000 hours of work. Add another 500 hours for the horrible commute. I was making about $14.80/hour.
Side note: Why the hell did I ever sign on for such a thing?
Fast forward to today. In 2019, my portfolio has appreciated $204,157 with almost no effort. I already did the work (saving and investing), so now I just sit back and watch those dollars do their thing. I’ve spent about 10 hours keeping records and overdosing on Personal Capital. $204,157 over 10 hours comes out to $20,415.70/hour.
Of course, you could argue that these are paper gains and I really haven’t made anything until I sell. You could also argue that I’m cherry-picking one very small period of time. Both points are correct. However, I’d argue that over the next 5 decades or so that I have left to live, my portfolio will grow ever bigger while I sit around, but not behind a desk reporting to a boss. And as compound interest continues to do its thing, future gains will dwarf current ones.
It’s pretty great. Never forget that it’s always better to let money work for you than the other way around.
April Spending: $4,504.41
We blew $4,504.41 in April. After our mortgage payment of $1427.12, our three biggest expenses were:
Groceries ($859.08): We mostly eat at home and we eat well. Also, our youngest child has the appetite of a T-rex.
Accountant ($300): Filing my taxes doesn’t excite me, so I pay someone else to do it.
Dining out ($270.43): I’m not sure how I feel about this. We could certainly dial it back, but we’re mindful here. Most meals out this month were social occasions with friends or family. We had fun. Still, according to this, the average household spends about $3,000 per year at restaurants. We’re about average. Meh.
Most Fun Expense
I blew like $6 on this piece of cherry pie with really good ice cream. It was spectacular:
April Performance Update
We started the month with a net worth of $2,202,256 and ended at $2,268,597 for a gain of $66,341.
2019 (as of 4/31/2019)
- Days elapsed: 120
- April gains: $66,341
- 2019 gains: $204,157 (including 401(k) and HSA contributions**** of $9,611.00)
Since the start (1/1/2013)
- Days elapsed: 2310
- Gains since 1/1/2013: $1,167,554
- Investment portfolio and cash value: $1,753,597
- Net worth (investment portfolio plus home equity, a silly toy car (Acura NSX!), bikes, and dinosaurs): $2,202,526
We have a diverse portfolio (full listing here) that includes real estate:
- Mobile home park (elevated home living to the easily offended/politically ultra-correct)
- Coworking space: We own a building/small business in Longmont
- Private loan ($45,000)
- Syndication deals (six)
And stock market holdings:
- Individual stocks (old thinking)
- Index funds (most money goes here now)
Both sides of our portfolio saw increases, but some of the details are difficult to keep track of because we’ve been moving money around in anticipation of a real estate deal. I do know that we brought in $5,376.85 in real estate income:
- Syndication deals: $4,083.34
- Coworking space: $1,000
- Private loan: $293.51
2019 income from real estate is $15,317.71. If income kept its current pace, we’d make about $46,000. However, I expect profits to increase from the coworking space as the year progresses. We’re also close to taking our first distribution from our trailer park, so I’m guessing that our real estate income will end the year above $60,000. While this is somewhere between 7 and 8%, I’m not complaining. The syndication deals, mobile home park, and coworking space are all investments that will distribute greater amounts of money with the passage of time.
Making a little bit of money now is not the goal. Making a lot of money in the future is. I’m building momentum.
*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. Since my investment portfolio now sits at $1,550,000, I can spend about $62,000 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 was to have enough money put away to cover the mortgage at the time of retirement.
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****My 401(k) contributions include my own, Mrs. 1500’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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