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.
Random Crap Edition!
Sometimes, you just can’t think of anything clever to write about. You look through your notes and:
You go for a walk and:
You drink a couple beers and:
Less than nothing.
**Hold on a minute, I have to pee.**
**OK, better. Let’s move on.**
You come back in a couple days, thinking that inspiration will come later. But still, nothing.
So, you get the Random Crap Edition! You say:
What is the Random Crap Edition?
It’s pretty much a bunch of unrelated nonsense with no recurring theme. Fun! Not really.
To escape this drivel now, click on one of these smiley faces! —>>> 🙂 🙂 🙂
Hey, at least I’m not setting you up for disappointment! Let’s get on with the crappy randomness!
I recently posted about how Mrs. 1500 and I were considering buying an Airbnb condo and/or another
trailer park elevated home park (EHP). In the post, I had pretty much written off the idea of the condo, but we were still considering the EHP. We decided to do neither:
- We bailed on the condo because we don’t have the bandwidth to deal with it right now.
- We bailed on the EHP because it would have left our self-directed solo 401(k) empty and we may need the money for something else. More on that something else soon…
I finally finished my yard projects. Look! Here are the planter boxes on one side of the yard:
The main goal of the planter boxes and the front yard project was to get rid of the lawn. There is no need to have silly grass here in the high desert of Colorado. The yard is now filled with rocks and water friendly plants:
Mrs. 1500 and I just got back from Cuba:
Cuba deserves its own post, so I’ll save that for next week.
This Saturday, we depart on a road trip to California. On the way there, we’ll stop in Las Vegas to see family. In California, we’ll visit with the Wafflers, Tonya from Budget and the Beach and maybe the Crispy Doc. On the way back, we’ll stop in Southern Utah for a family reunion.
One of the main determiners of happiness is the quality of our relationships. Mrs. 1500 and I had some pretty great friends just down the street. They have a daughter who was friends with our children:
If one couple needed a babysitter for a date or to run errands, we knew we could count on the other for child watch duties. We camped together and had dinner in each others’ backyards. Our friends were down to earth, good people. And a couple weeks ago, they told us that they’re moving across the country.
Mrs. 1500 cried.
Our daughters were devastated.
And we reconsidered our situation.
We had never thought about moving from our quiet little street because of the great people around us. But now, our friends are leaving. Another family with kids similar in age moved away a couple years ago. Our street is starting to feel empty. That in itself isn’t reason enough to move.
Home prices have gone bonkers in our part of town. Our modest little ranch home that we bought just 5 years ago for $175,000 is now worth around $550,000 (some of this is because of the $100,000 and hard work we put into it).
So now, we find ourselves living on a very pricey street with little reason to stay. It’s time to cash out and move on which is probably what we’ll do next year. We’ll stay in the same town, but move to an area where prices are calmer, a place where the beer flows like wine, where beautiful women instinctively flock like the salmon of Capistrano…
Performance Update: May!
May was a great month. Our net worth started the month at $2,078,532 and ended at $2,129,970 for a gain of $51,438:
2018 (as of 6/1/2018)
- Days elapsed: 152
- Investment portfolio gains: $87,269 (including 401(k) contributions**** of $20,301)
- Net worth gains: $137,269 (investment portfolio gain of $87,269 + home appreciation of $50,000)
Since the start (1/1/2013)
- Days elapsed: 1976
- Investment portfolio and cash: $1,614,970
- Gains since 1/1/2013: $1,028,927
- Needed to quit work ($1,120,000 in investments): Mission accomplished!
Net worth: $2,129,970. This includes:
- Investment portfolio and cash: $1,614,970
- Home equity: $450,000
- Silly toy car: $45,000
- Other cars, bikes, dinosaurs: $20,000
We have a diverse portfolio that includes real estate:
- Elevated home park
- private loan (only one outstanding)
- syndication deals
And stock market holdings:
- individual stocks (old thinking)
- index funds (most money goes here now)
Here is the breakdown:
- Stock market: $862,243
- Monthly gain: $45,144
- 2018 gain: $72,457
- Real estate: $732,727
- Monthly gain: $1,792
- 2018 gain: $14,812
- Cash reserve: $20,000
My stock portfolio is absolutely killing it. My holdings are tech-heavy and this sector is on fire (purple line is the S&P):
My three biggest tech holdings are all walloping the S&P 500 (purple line):
- Amazon: This is my best performer in 2018. It’s up 38.06% and I have $111,106 in the company.
- Facebook: I own way too much Facebook: $292,523!! The stock is up 6.54%.
- Google: This is my favorite stock. I own $84,529 and it’s up 6.98%.
The S&P 500 is up 1.89% through the end of May.
I’m an index investor now and am slowly getting rid of my stocks to avoid capital gains. In the meantime, I’ll take the increases!
Pinch Me Baby One More Time
I’ll finish with one crazy thought I had the other day. It is this:
None of this has sunk in yet. Pinch me to make sure I’m not dreaming.
It feels good to be financially stable. Really good. Purchases in my life used to be a race to the bottom. At the grocery store, I’d find the cheapest version and throw it in the cart. Expiration dates be damned!
Except for toilet paper. Everyone has their line and that’s always been mine.
Anyway, about a month ago, the store was having a promotion on this ice cream:
Since it was the same price as all of the cheap crap, I went for it. And HOLY SHIT, it was awesome!!!!
Fast forward to Sunday night. I was sent on a mission by Mrs. 1500 to buy more ice cream which I gladly accepted. The Moose Tracks was now $5 while the store brand was on sale for half the price. After a couple of minutes of deliberation and some tense pacing, I decided to pay the extra $2.50 for the Moose Tracks.
And it was sooooo worth it.
Pinch me baby one more time.
*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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