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 August.
My portfolio continued its upward trajectory in August. I started the month at $924,818 and ended at $967,743. Much of my run-up was due to the Apple stock** that I bet big on over 7 years ago and have clung to ever since.
While I’m thrilled at my performance, I admit that I’m uneasy holding such large quantities of single stocks. When my tax situation gets better (retirement!), I’ll unload most of it. Anyway, here are the numbers as of 8/31/2014:
- Days elapsed: 242
- Days remaining: 123
- 2014 gains: $98,108
- Left to go (2014): Goal accomplished!
Since the start (1/1/2013)
- Days elapsed: 607
- Days remaining: 893
- Gains since 1/1/2013: $381,700
- Needed for $1,000,000: $32,257
- Net worth***: $1,167,743
Remodeling and Returns
While I’m thrilled with my incredible returns over the past 20 months, they would have been much better had we not decided to remodel our home. In the last year, I’ve depleted my savings by $40,000. I’ve also spent a large percentage of paychecks on tile, wood, light fixtures, drywall and all kinds of other crap. Had I not been in remodeling mode, I would have passed the hallowed $1,000,000 already. In the long term, I’ll come out ahead since downsizing reduced my mortgage from $2500 to $1100. I’ve also made my house much more valuable should we decide to sell. In the short term though, it’s painful.
On the other hand, we investors have had the pleasure of very strong tailwinds for a while. Recent market returns have been outstanding. Twenty months is a very short period of time though. As I always say, play the long game. I could just as easily sink to $900,000 or $800,000 before I hit the magic million. If you’re in it for the long game and believe the trajectory is up, it just doesn’t matter. Save, save, save and then save some more.
*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.
**Lawyer/legal bleating: I’m not a financial adviser and this shouldn’t be looked upon as advice. Do your own research! My big stock portfolio is a relic of an earlier time. Indexing is the right solution and the one I’ll be moving too after I’m retired and don’t have to pay capital gains.
***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
- extensive houseplant collection
- missing asthma inhalers in couch cushions, under bed and in cars (why do I lose these thing constantly?!?). Also, asthma sucks, because my lungs don’t.
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