August Performance Update (Day 2435): Pour Some Lifestyle Inflation On Me

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.

First and foremost, there are big, big changes happening in the 1500 household:

• The Acura NSX is sold! I’ve outgrown my silly teenage lust for sleek cars. The NSX was a lot of fun, but Mindy and I were done with it. Full post coming on Thursday.
• We’re about to buy another home to live-in flip. Before you call me out, we’re going to approach this one much different than our current one which nearly broke me. I’m also going to document the whole job on the official 1500 YouTube channel. To be the first to learn the juicy details, subscribe here!
• We adopted a dinosaur. Just kidding. I wish.

I’ll have a lot more to say about the departure of the NSX and the arrival of the new flip shortly, but this will be the last conventional performance update for a while. In September, we made some big money moves. It’s gonna get crazy…

August Performance Update

August was a busy month. The mechanical elements of our home conspired against us. Everything broke:

• We don’t have a big home, but due to a quirk in the addition we put on, we have two air conditioning units. Both crapped out.
• The whole house fan died.
• The waste disposal jammed.
• Our water heater became angry and needed to be replaced.
• A wind gust took our portable canopy for a ride. It went for a short flight and died upon impact, but not before taking some of the gutters on the house with it.

I fixed most of this stuff without hiring out. However, the materials still cost money. Water heaters don’t grow on trees after all.

Two other events conspired to jack up our August spending.

1. We spent $670 on various inspections for the new-to-us place.
2. Mindy and I went to Las Vegas and saw Def Leppard. We don’t get a ton of alone time, so it was nice to get away for the weekend. The show wasn’t cheap and neither was the hotel, but we’re pretty trashy when it comes to food:

Anyway, all of this is a long-winded way of saying that we blew out the budget in August. Brace yourselves, sensible readers.

August Spending: $7,691.87

Ugggh, that was difficult to type. Maybe I really am fatFIRE and am just in denial? Besides our mortgage ($1,238,49), here were the three biggest expenses:

Travel ($1,721,68): Pour some lifestyle inflation on me! In the name of spending! Pour your lifestyle inflation on me! Where are these crappy lyrics heading?

Household/auto ($1,597.95): Hot water heater, whole house fan, car parts. Oh my!

New home stuff ($670): We paid for a sewer scope and a couple of other inspections on the new home.

Most Fun Expense

August Money

August was a down month. We started the month with a net worth of $2,305,191 and ended at $2,286,717 for a decrease of $18,474. They can’t all be winners:

2019 (as of 8/31/2019)

• Days elapsed: 243
• July gains: -$18,474
• 2019 gains: $222,277 (including 401(k) and HSA contributions**** of $29,047)

Since the start (1/1/2013)

• Days elapsed: 2404
• Gains since 1/1/2013: $1,204,148
• Investment portfolio and cash value: $1,771,717
• Net worth (investment portfolio plus home equity, a silly toy car (Acura NSX!), bikes, and dinosaurs): $2,286,717

Portfolio Breakdown

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 ($40,000)
• Syndication deals (seven totaling $375,000)

And stock market holdings:

• Individual stocks (old thinking)
• Index funds (most money goes here now)

In August, we earned $5,400.49 in income from real estate:

• Trailer park: $1,211.92
• Coworking space: $1,000
• Syndications: $2,395.06
• Mortgage notes: $500.00
• Private loan: $293.51

We’ve earned $40,176.50 from real estate this year. At the same time, we’ve spent $42,727.12. I like that these two numbers are almost equal. In my ideal world, the real estate half of our portfolio would earn enough to fund our lives while the more speculative parts (Hello stocks!) would just ride forever. If that doesn’t happen this year, it will happen in 2020.

*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 (LOOK at the MONEY I’m MAKING!). My compromise was to have enough money put away to cover the mortgage at the time of retirement.

***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. 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.