I am worn down. I spent the last week in Chicago on a work trip and never made it to bed before midnight. When I’m tired, I have no creativity. So this may be the most boring post you ever read on this site. I am putting myself to sleep just typing this out…
Huh, what? Oh yeah. Time for the performance update.
My main goal is to build a portfolio of $1,000,000 in 1500 days with no debt*, starting from 1/1/2013. Every month, I provide an update on my status. My goal for 2014 is to get my portfolio up to $768,536. Because we saw exceptional returns in 2013, I have accomplished this goal as well as my goal for the end of 2015. Time to look back on the month of September.
Four months of gains came to screeching halt in September. I started the month at $967,743 and ended at $948,294 for a loss of 2%. I underperformed the S&P 500 which only lost 1.6%. My underperformance is mostly attributed to Apple which took a hit after the new iPhones were announced. Here are the numbers:
- Days elapsed: 273
- Days remaining: 92
- 2014 gains: $78,659
- Left to go (2014): Goal accomplished!
Since the start (1/1/2013)
- Days elapsed: 638
- Days remaining: 862
- Gains since 1/1/2013: $362,251
- Needed for $1,000,000: $51,706
- Net worth**: $1,148,294
As long as we’re on the topic of Apple, I have placed orders to sell most of my shares. Over 15% of my portfolio is in Apple alone and that is just ridiculous. This over-allocation along with my uncertainty about the company’s long term prospects makes me nervous. However, I also don’t want to take a huge tax hit. My compromise is to place a trailing stop loss order. If the stock drops a certain percentage from its all-time high, Apple says “bye-bye” to my portfolio. I have too much facebook as well and have placed a similar order for most of that stock. See, I told you, boring.
Oh, what? Still there and awake? Let’s move on.
I hope neither of these orders trigger. I’d much rather sell when my working life is done and I won’t have to pay anything in capital gains. Since I’m a couple years away from my planned retirement date, I think that this scenario is a long shot. Time will tell though, won’t it?
Boring is good
If your portfolio bounces up and down like a super ball, you may want to question what you’re doing. After those Apple and facebook orders execute, I’ll move the money to boring stuff like index funds. The crazy thing about investing is that the boring, stable index fund is not only the simplest, but the best thing to put your money in.
My guaranteed stock market predictions that will make you rich
It is time for bed and I’m getting very sleepy. However, there is one more thing I need to tell you.
Now, I don’t normally make predictions, but I’m going to make an exception here. I have a hot stock tip and a pretty solid prediction about where the markets are headed for the rest of 2014.
Before I get to that though, don’t forget to check out the blogger net worth page on Rockstar Finance. There are a lot of really sharp folks in this little blogger community.
Without further ado, I make the following, guaranteed predictions:
*I still owe something like $120,000 on my mortgage. Because I have a low rate, I firmly believe in not paying it off. My compromise is to have enough money put away to pay off the mortgage at time of retirement. So, to retire today, I would need about $1,120,000.
**The numbers on the right side of the page only reflect my investments and cash. Net worth includes, but is not limited to:
- home equity
- fancy beers in my refrigerator
- extensive collection of spare computer crap
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*Only if your life is pretty bad to begin with.