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. Time to look back on the month of June.
June was another good month. I started at at $882,486 and ended at $913,233. Woo! Here are the numbers as of 7/1/2014:
- Days elapsed: 182
- Days remaining: 183
- 2014 gains: $43,568
- Left to go (2014): Goal accomplished!
Since the start (1/1/2013)
- Days elapsed: 546
- Days remaining: 954
- Gains since 1/1/2013 gains: $327,160
- Needed for $1,000,000: $86,767
- Net worth**: $1,113,233
Halfway through 2014
Hard to believe we’re halfway through 2014. Time is flying. Two things stand out regarding my portfolio:
- Sayonara cashola. I started the year with $50,000 in cash. It’s been decimated to $10,000. Ugggh. Home improvements always cost more than I think and remodeling my current home is no exception. The good news is that we’re done with most of the costly items and will back to saving mode by the end of the year. Based on recent sales in my ‘hood, I’m confident that if I were to sell my home, I’d be able to make a hefty profit as well. (Mrs. 1500 note: We are NOT EVER selling this house. The girls can sell it after we die. I hate living in a remodel project, and this is the last one, ever!!! Mr. 1500 note: Never say “never!”)
- Investments are killing it. At the start of the year, my investments were worth about $819,723. They have grown to $913,233, for a gain of 11%. Compare this with the S&P 500 growth of 6.1%. If I was pressed for an answer, I believe I’ll finish the year strong as well.
About that 2nd Bullet Point
The most common question I get is this: “What do you invest in”? This is an easy question with an easy answer, but a very complicated explanation. It’s so complicated that I need at least 4 posts to explain it all. I’m finally ready to do so and will tell all in August.
In the meantime, anyone want to come over and play Hot Wheels?
*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
- cars
- kitchen utensils
- vast assortment of t-shirts
- rubber ducks
- bicycles
- power tools
- Hot Wheels collection***
Mrs. 1500 note: I think it’s funny that he mentions all these things in the same sentence. While we have significant equity in the home, the cars might be worth $5,000 if you were to find an extremely generous appraiser. We have been unpacking boxes, and if I were to show you Mr. 1500’s collection of t-shirts, every single one of you would tell him he has no business calling ME a hoarder… Our bicycles and power tools, if included in the net worth, might actually push us over the edge of $2 Million. Sadly, the Hot Wheels collection has been decimated by the littlest 1500, who destroys everything she touches…
***My anti-consumer instincts are strong and powerful in almost all aspects. However, I cannot pass on a cool Hot Wheels.
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Dave @ The New York Budget.com says
Nice work! So what happens when you reach your end goal by the end of 2014…
Do you hang em up or continue on through 2017?
Dave @ The New York Budget.com recently posted…Dabbling in Peer-to-Peer Lending with Lending Club
Evan says
I was just thinking the same thing….Do you start investing defensively? Worrying about income? etc.
Evan recently posted…July 2014 Net Worth Update
1500 says
Man, I have no idea what I’ll do if I make it ahead of time. I’m not planning on it (don’t count your dollars before they compound). I will cross the Double Comma Bridge when I come to it.
“Do you start investing defensively? Worrying about income?”
I have no idea about this either. As you’ll see shortly, I’m squarely in the corner of growth stocks. However, I would like some investments that produce income too. Lots to think about…
Dunny says
Interesting blog. I can’t wait to read your posts about how you invest for such high returns. Many blog about dividend investing, few or none about growth stocks. My portfolio goal is the same as yours and it’s about the same amount as yours right now. When I reach $1 million (approx. July 2015 as an aggressive goal), I will move back into my house (currently rented) and spend more time travelling. I am already living on other passive income. I have a lot of growth stocks and also some blue chip dividend stocks and cash for stability. I am not sure of the proportions, but I know the growth stocks are what are increasing my net worth. In this low interest rate environment, the capital losses on the income stocks and REITs negate the income. I wish I knew more about technology so I’d be more comfortable with those stocks, but I am staying away for now (waiting to read your thoughts). Once I reach my goal, I will probably shift the portfolio to more conservative stocks. My withdrawal rate will still allow the portfolio to grow but I can relax because even with a 30% market correction, I can still withdraw enough for my lifestyle.
1500 says
Hi Dunny-
I bought some really good growth stocks a long time ago (Google, Apple) and never let go of them. I’m going to discuss what I bought and why I bought them, so stay tuned.
“I am already living on other passive income.”
I’d be curious to hear about your passive income. You have a rental which is a big one; what else do you do? Passive income is the big hole in my portfolio. I have next to nothing. I’d love to have a rental though.
Brad @ RichmondSavers.com says
This is really amazing! Your net worth has increased 56% in the last 18 months, which is absolutely incredible — congrats!
It always interests me how some people include their home equity in the net worth calculation and others don’t. I definitely see both sides of the argument, and don’t think there’s a “right” or “wrong”, but I choose to include it since by any measure that is a real part of my net worth if I were to liquidate everything.
So I guess that’s my measure: If I were liquidating everything down to cash/investments, what would my number be.
Brad @ RichmondSavers.com recently posted…Travel Rewards 101: A Beginner’s Guide to Credit Card Rewards
1500 says
Yep, like I said in another comment, I have to pinch myself every day. 15 years ago, I had 15K in debt. 25 year ago, we were a lower middle income family living in a trashy neighborhood. The people across the street from us had a pet goat. The people next to them were drug dealers. This sounds strange, but I have an uneasy relationship with money. It just feels strange to actually have it and I’m still not comfortable with it.
FI Pilgrim says
I’m interested to see your investing strategy posts in August. You guys make working towards FI look so easy!
FI Pilgrim recently posted…June In Review – Income Expense and Net Worth
1500 says
I’ve been thinking about that post since I started this project, however it terrifies me. It’s really taken me 18 months to figure out how to write it. Even now, I post with trepidation!
Retired by 40 says
You are so unbelievably close to 1 million! Congratulations! Thanks for posting these as well, I love reading them, and they really help to motivate me!
Retired by 40 recently posted…5 Ways to Check Your Credit for FREE!
1500 says
I know! I think I can reach it this year too. There, now I jinxed myself.
Even Steven says
Mrs. 1500 note: We are NOT EVER selling this house. The girls can sell it after we die. I hate living in a remodel project, and this is the last one, ever!!! Mr. 1500 note: Never say “never!”)
My favorite part of the post!
Even Steven recently posted…Goal Progress to Financial Independence
1500 says
Ha, we shall see! If nothing else, the drama will make for some good blog content.
Mrs. 1500 says
We are never ever ever, selling this house.
zut says
Inspiring!!!
When you do reach the $1 million mark, is there any way to tell us (might not be easily determined) how much you contributed vs. how much came from interest?
1500 says
Yeah, I used to keep track of it, but I got lazy and quit. It’s not hard to come up with a rough estimate though. Since the start of the blog, I’d say less than 50K is my own contributions. We’ve been putting all extra money into our remodeling.
Asset-Grinder says
Your gains are very solid yet again. Over 10k bump 2 months in a row. Very nice.
Hmmm wonder what my tshirt collection appraised at?
Better yet my collection of hundreds of random electrical, audio,video chords! Surey its worth at least $50 in scrap!
Good Day and Grind On!
Asset-Grinder recently posted…June 2014 Dividend and Monthly Report Update
1500 says
Yeah, I have to pinch myself to make sure I’m not dreaming. 15 years ago, I had over 50K in debt.
Oh man, I have boxes of old receivers, speaker wire and speakers. It is hard to part with…
SavvyFinancialLatina says
That’s awesome growth, although I want it to go back to lower prices so I can buy more stock with my money. I have also noticed an increase in airline tickets and a decrease in travel deals since we started “recovering.”
SavvyFinancialLatina recently posted…Save, Save, Save
1500 says
Yeah, the markets are definitely high: http://www.multpl.com/. Something has to give and it will. Could be in 2 months or 2 years. Who knows? No-one.
Mrs. Pop @ Planting Our Pennies says
I’m sure those are some investment grade rubber ducks you’ve got there. =) But I can’t fault you on the T-shirts… I have a ridiculous number of race shirts that I can’t bear to part with.
Mrs. Pop @ Planting Our Pennies recently posted…PoP Income Statement – June 2014
1500 says
My t-shirt collection is completely out of hand. 60? They are slowly wearing out, but I think I have enough to last the rest of my life.
Mrs. 1500 says
They are not wearing out fast enough! Unpacking boxes, I just found about 10 more. ARGGH!
Hannah says
I’ve found that well-worn white athletic shirts clean up baby spit-up better than anything on the market. Perhaps you could cut these into squares and donate to a friend who is having a baby.
G-dog says
Congratulations! You are inspirations.
Mom @ Three is Plenty says
I finally got rid of all my old con-swag T-shirts. I wasn’t wearing them, so I took pictures and donated them many years back. I can count on one finger how many times I’ve gone back and looked at those pictures….
Mom @ Three is Plenty recently posted…We’re Moving!
1500 says
Ha, I just can’t part with mine. Yet.
FI Fighter says
Amazing progress! You’re so close to reaching your goal! I’m guessing the last two years have felt a bit surreal, haven’t they?
If I’m dreaming, don’t wake me up! 😉
FI Fighter recently posted…June 2014 Net Worth Update
1500 says
Yes, very surreal. I never set high expectations for myself as a kid. We struggled and I had no role models. Now that I’ve broken out of it, it is strange. More later.
Dunny says
You’ve done sooo well. Great partner and family, growing assets.
I too started with low expectations of life, other than getting out of my small town as soon as possible. So many reasons. Then in my 20’s I set what I thought were very aggressive goals (become a professional, own a house, publish a book), and when I achieved them, I realized I should have set them much higher. Now my financial spreadsheet goals are fairly aggressive (with lots of fall-back positions) AND I have a separate much broader and more aggressive list to remind myself not to limit myself.
1500 says
“I too started with low expectations of life.”
Yep, this is my biggest regret in life. I got straight As in college. Not easy classes either. Organic chemistry, cell biology, physics. I probably should have gone to medical school. I just didn’t believe in myself.
Life is good now, so there is little to complain about.
Wade says
very solid progress. When you get to $1 million, then set $1.5 million as your new target. Or work less and only contribute $12k per year. Buy more time and save at a slower pace. I would like to get to a point where we could just work enough to “tread water” from say 50 to 62 or something. So many good options.
Wade recently posted…Do you carry cash?
1500 says
I like the idea of treading water too. My ideal situation would be to work 20 hours/week at my current job for the next 5 years. I don’t think I can make it happen, but it’s fun to think about.
g-dog says
This is my sketchy plan for post-FIRE. Part-time job to cover some living expenses so I don’t have to dip into my investment pool & can let it keep growing until I hit a more traditional age to tap into the funds.
1500 says
g-dog-
I’d like to do the same as you for at least a couple of years. That would provide a transition from working 50 hours a week and also boost my confidence in my investments.
I also like the idea of not having to tap into the core nest egg for a long, long time.
My Dividend Pipeline says
Fantastic results! I still think you need to rename your blog 750 Days…maybe even 650. 🙂 I can’t wait to see next month’s investment post!
My Dividend Pipeline recently posted…June 2014 Passive Income
1500 says
Ha, dunno. Don’t count your dollars before they compound. I’m very happy with my results, but it’s only a blink in time…
Michelle says
You have made a lot of progress. Great job!
Lisa E. @ Lisa vs. the Loans says
June was such a great month for me, too! Yay for market gains!
Lisa E. @ Lisa vs. the Loans recently posted…Links Lisa Likes – Mo’ Money, Mo’ Problems (Minus the Mo’ Money Part)
Dan says
After following this site for a while now it’s crazy to think you’re so close to $1,000,000!
It’s encouraging to see someone stick to their targets and be so successful in working towards their goal. Looking forward to seeing how it all fits together over the coming months.
90M says
Hi! I just stumbled across your blog and love it!
Had a quick question about your portfolio return. I was looking through your blog trying to find your approach to investing (but I couldn’t find it in the short time that I looked). It is incredible that you outperformed the S&P by 5 points and I was wonder what your approach to your investment portfolio was (i.e. what caused the difference between your investment return and the S&P return – do you have a more concentrated portfolio of chosen stocks, do you have a skew to different asset classes etc.)
90M recently posted…Where have all the Investment Banking posts gone?
1500 says
Hi 90M-
“I was looking through your blog trying to find your approach to investing (but I couldn’t find it in the short time that I looked).”
I’ve never discussed it in depth for various reasons. However, I’ll be disclosing my entire portfolio next month. As for June, I have some individual stocks (Apple and facebook mostly) that have done very well lately. While I’m happy with my returns, I am also need to re-balance. Anyway, tune in in August for more.
Michael J. says
This is really amazing! This is a really good result.