My main goal is to build a portfolio of $1,120,000 in 1500 days*, starting from 1/1/2013. Every month, I provide an update on my status. Let’s take a look at January.
Before we get to the financial stuff, I have some other things to update you on first.
Let’s start with Bathrooms
I’m very immature and this blog frequently veers into junior-high level humor. I will be talking about bathrooms, but no poop jokes today.
The other good news is that Mrs. 1500 and I have been putting the pedal to the metal with our home remodel. In January, we finished work on all three bathrooms. We built two from scratch and remodeled a 3rd:
And look, the kitchen is almost finished too:
I still owe you more updates on these projects. They are coming.
Adventures in P90x
I’ve been trying to get my ass in better shape. This time, after hearing numerous friends raving about it, I decided to give P90x a try. How’s it going? I knew you’d ask.
It’s one thing to tell you, but that’s stupid. I’m working out, so I need to show you the results (or lack of them). Before/after pictures are the only way to do this honestly and transparently. Also, there is no better motivation than knowing the extreme humiliation that comes with showing you my naked torso. I’m warning you, last chance to cover your eyes.
Here we go:
I was quite surprised when I looked at the first picture there on the left,. I didn’t realize how bloated my midsection had become. I’m usually a skinny dude. My excuse is that the holidays did me in:
(Christmas cookies + beer) x lack of willpower = GUT
And now, my backside (no, not that backside):
I’m too sexy for my shirt,
Too sexy for my shirt,
So sexy it hurts.And I’m too sexy for Milan,
Too sexy for Milan,
New York, and Japan.I’m too sexy for your party
Too sexy for your party
No way I’m disco dancing.–I’m too P90xy, (Wrong Said 1500)
Anyone still here? If so, I’m sorry if I made you choke on your cereal. Those pictures aren’t easy on the eyes.
Did you notice those slick boxers in the pictures on the right? Why yes, those guys are Charlie Munger and Warren Buffett:
And here are my numbers:
I have a long way to go and my P90x-ing is off to a very slow start. First, I had a sinus infection for two weeks. Shortly after that, a work crisis monopolized my time.
However, I’m pleasantly surprised by my initial results. My weight is the same, but my fat dropped by more than one percentage point despite not eating that well. In February, I’m going to kick it up a notch; less beer, less sweets and more carrots.
While I’ve only completed 10 workouts, I think that the program is great. Is it 60 minutes of hell? Yes. I’ve almost thrown up a couple times after the workouts. But, I am fully confident that if you can stick to it and eat right, you’ll see great results. I have a lot more to say about P90x, but I’ll save that for another time.
Doom and Gloom
And finally, let’s get down to the money. January didn’t start out well for Mr. Market and I’m not immune. The Double Comma Club kicked me out again, but not before punching me in the face and kicking me in the groin. At one point, by portfolio was down about $120,000 to ~$930,000. However, by the end of the month, it had recovered much of the loss. The Double Comma Club let me back in:
Here are the numbers as of January 31:
2016
- Days elapsed: 31
- Days remaining: 335
- 2016 gains: –$35,406 (including 401(k) and some after tax contributions)
- 2016 401(k) contributions: $8,500*** (I front-loaded baby)
Since the start (1/1/2013)
- Days elapsed: 1125
- Days remaining: 375
- Gains since 1/1/2013: $436,512
- Needed to quit work ($1,120,000 in investments): $97,445
- Net worth****: $1,272,555
Catching Falling Knives
I love volatility. Volatility = opportunity. I like buying stuff when it’s on sale, so I couldn’t help dipping into my cash and placing some limit orders (VOO at $166, $164 and $162). Only the $166 order was executed:
Catching falling knives can be dangerous business. I like to talk all high and mighty about how dangerous market timing is and yet I’m doing it here. In this case, I deployed some money from the old emergency fund which I’ll promptly work on building back up again. Do not try this at home kids.
I never try to time the markets with my 401(k) or any other routine investments. This is only the second time I’ve ever bought on a dip. The first time was back in August:
World Dominator or Portfolio Constipator?
I used to be young and foolish. Here are some of my bad decisions:
- First car: Ford EXP
- All those hipsters are drinking PBR; there must be something to it!
- Those Internet stocks are going to go up forever!
Now, I’m older and still foolish, but I’m getting better.
I used to buy mostly individual stocks. I’ve come to my senses and realize that it’s not wise for most folks. Trying to predict the long term trajectory of any company is insanely difficult. The world is changing faster than ever and today’s World Dominator could become tomorrow’s Portfolio Constipator.
Perhaps the core problem is that disruption is very difficult to predict. When the iPhone came out, many very smart people thought it would flop. Blackberry and Nokia, where are you today?
So now, I stick mostly to index funds. Mostly. This month, irrationality won a small battle. I was reading up on Starbucks and then BOOM, my lizard brain kicked in and before I knew it, I was placing an order for shares:
In a small twist of irony, I am the one adult in the world who doesn’t drink coffee. That is putting it mildly because I absolutely despise it. This is in sharp contrast to Mrs. 1500 who drinks about 14 gallons per day.
The Goal
One thing I’ve been thinking a lot about lately is if I’ll make my goal. I have a little over a year to come up with another $100,000. Since I’ll be contributing less than that, the stock market has to go up some between now and the end of the 1500 days. If the stock market is lower in February of 2017, I won’t succeed.
Do I think I have a chance? I have no clue. I’ll sure enjoy the ride in the meantime.
*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. 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.
**This is an affiliate link. If you sign up, the blog makes a little bit of money. Personal Capital is a totally free and superior 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 I think you’re the best person on earth. I love you.
***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.
****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
- Bicycles
- Nothing clever to write here today. Move along now.
No coffee for me either, good thing as I may have spit it out this morning viewing the Mr.1500 P90X underwear party. What the hell dude? You could have left some more space between the text and the gut show, I mean gun show. 🙂
Nice Munger and Buffett do you wear them when you buy funds?
Nice progress on the house. Looking good. At least something look good in the post.
Brian @DebtDiscipline recently posted…Net Worth Update: January 2016
“Nice Munger and Buffett do you wear them when you buy funds?”
I should! And when the funds go up, never mind…
now I spit my drink out.
Brian @DebtDiscipline recently posted…Net Worth Update: January 2016
Wait wait, I didn’t finish. Never mind, I’ll just show you next time I see you…
It’s crazy how quickly 1500 days seems to be flying by! Hopefully the next 3 years (our estimated timeline) go as quickly as the previous 3…
We also took a bit of a hit in January, but used the opportunity to get our Roth IRA money in.
Also, Mr PoP is doing his best to support your Starbucks shares. He was over on his January coffee budget. =P
Mrs. PoP recently posted…PoP Income Statement – January 2016
It is flying by. I’m a bit sad that it is almost over.
Tell Mr. PoP that I fully support his whale of a coffee habit!
I understand the reasoning and benefits of riding out those times when the market drops.
However, were I in your shoes, I don’t know how I would actually react after seeing the value of my portfolio fall by such an amount! Even though it is likely to be only temporary, I don’t know if I would have the constitution to deal with it.
I don’t really have a point here, just a sense of being impressed!
You have no idea! I get downright giddy when things drop through the floor!
It is the right way to think about it too: If if goes up be happy cause you’re richer. If it takes a dump, be happy because everything costs less.
It is very frustrating to watch the market during January and February. However, do not get your emotion cloud your rational judgement.
Stick to the fundamental concepts, “buy low, sell high”.
I love the roller coaster markets! Volatility is the friend of the long term investor.
Nice progress and love the home renovations that you have done to your bathroom and kitchen. We are undergoing a few of those as well in preparation for selling the house and moving into the RV. It is definitely a huge sense of accomplishment once you finally get those things done – and looking good!
Steve @ Think Save Retire recently posted…One couple’s unforgettable trip to a cold, unlikely place
Thanks Steve!
Living in an RV sounds so much simpler. Do you think the wife would mind if I disappeared for 6 months?
No one has been immune to the dip, but you seem to have been doing pretty well. Google has just reported record profits, this will help keep you in the double comma club.
When I think about it, I find it crazy that Google and Apple have the same valuation, even-though Apple makes 4 times more profit than Google. Does the market think Google can be 4 times bigger in the future than it is now?
I guess it doesn’t matter if you own both stocks, ha!
Also congrats on starting the P90X training. I find that working out hard with a motivation has the potential to bring some interesting mental states. I hate running but I registered for a half-marathon next month. I feel like it’s a mental race more than a physical one. I plan on finishing under 2h (which would be insane), but I like the idea of crazy goals. From what I’ve read, P90X is a crazy program. Enjoy and keep us posted!
TheMoneyMine recently posted…How To Cool Down Markets with 78,960,000 Gallons of Oil (Per Day)
Google is killing it! I’m amazed that it’s almost a 20 bagger for me.
The Apple versus Google thing cracks me up too. Apple has a PE of 10 and Google’s is 32? I don’t think most people see Apple for what it really is. Valuing it as a hardware manufacturer is wrong.
Nice work and good luck on the half marathon!
P90x is crazy. It is the only thing that makes you feel awful and awesome all at the same time.
Got to earn us before nudity pics come!!!
Nice tiles 🙂 fancy, fancy
Sam
Financial Samurai recently posted…No Wonder Why Millennials Don’t Give A Damn About Money!
The cost is all in the labor. I put cool stuff in cause I’m doing it myself. It isn’t more work either, although that isn’t what the tile installer would tell you.
Congrats on the remodel progress and getting back into shape. How are you measuring BF%?
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There is a machine at the grocery store that I use to check my body fat. It uses bioelectrical impedance: http://dailyburn.com/life/health/how-to-measure-body-fat-percentage/ I’ll take a picture of it next time I’m there.
I don’t think these machines are super accurate, but I’ll try to be as consistent as possible to make the results better.
I would have stuck with the poop jokes! Just kidding – the remodeling looks good!
As far as the toning up goes, I give you real props on this. Even though you’re not at the Schwarzenegger stages yet, you’re at least trying. If you can get it to become a routine over time, I’m sure you’ll be exactly where you want to be.
Not a day goes by that I don’t think, “Wow – I need to start exercising.” Unfortunately, I just haven’t made myself do it. That’s actually one of the big reasons I’m yearning for early retirement – to eliminate the “not having enough time” excuse. Maybe throwing up while looking at you in your boxers might motivate me to just get started! Just kidding on that (I’m not sure if I’m referring to the throwing up part or the motivating me part!). 😉
Seriously though – be proud of yourself on this and good luck to you!
— Jim
Route To Retire recently posted…Banks vs Credit Unions
More poop jokes are coming! And fart jokes too. (Queue Mrs. 1500 rolling her eyes)
Yeah, working out is hard to fit in, especially if you just put in 8 or 10 stressful hours.
First of all, congrats is in order on the bathrooms, job well done! Looks nice and fancy. Also glad to read that you guys are still in the double comma club. Hope you can stay in there for the rest of the year.
Good luck on the P90X, but don’t forget that diet is 80-90% of obtainig weight loss (and more importantly, becoming/staying healthy). The P90X just helps you look and feel better.
Team CF recently posted…Savings Rate January 2016
Yeah… diet. I’m better, but I still eat some crap too. Luckily, I have a hyper metabolism. Eating right alone melts the pounds off.
I’m loving all the progress. And I’m sure you’ll make it. I have no doubt. Markets aside, you’ll stay in that double comma club out of sheer grit (and by that point, your P90Xing will be so efficient, you’ll be able to kick THEM in the groin if they try to kick you out!).
Maggie @ Northern Expenditure recently posted…January 2016 Plan Update
Ha ha, I have a love-hate relationship with the DCCs. The way the markets are going, it may be more “hate” this year. Roller coasters are fun though, so I don’t mind.
Looking good! The house reno, I mean, not the boxers. I also don’t drink coffee, but when you go to Ecuador you’ve got to try some of Cheryl’s. It’s delicious!
Ha! Yeah, the house renovation is going better than the body renovation. You just wait though!
I ascribe to the general rule of thumb that it is *mainly* (but not all) about calories in and calories out. Every can of beer requires ~20 minutes of moderate jogging on the treadmill to make it net neutral, give or take a few minutes.
Next time on the “after” picture, hit up the tanning salon and really oil up your body 😉
I’d love to nibble into SBUX but it’s just too damn high of a multiple for me. It’s been too high of a multiple for awhile. So I sit and wait.
On the other hand, I did grab a token amount of ecoli buritto… er Chipotle when it fell below 30 times earnings.
Kapitalust recently posted…Case Study: Apple Stock 101 for the Apple Store Employee
“Next time on the “after” picture, hit up the tanning salon and really oil up your body.”
Maybe I’ll get some piercings and tattoos too. That would really drive away the readership!
SBUX is expanding hard and heavy into China. So much potential. It will be interesting to see if they can pull it off.
Don’t forget an Ed Hardy t-shirt and Oakley sunglasses!
Kapitalust recently posted…Case Study: Apple Stock 101 for the Apple Store Employee
That double comma club has been elusive. Don’t despair, I am confident you will reach your goal in time. Loving the house photos. Can’t wait for more updates on that. On a side note, y’all have inspired me to start my own blog! Just did my first post, with a second to follow this week. So thanks for that.
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Nice work! After you get some more posts done, do my 10 Questions!
I notice a decent amount of progress in weight loss, especially in less than a month. I did p90x many years ago but didn’t follow through completely. Bigger question than how you think you look is how do you feel? I started hitting working out hard around the same time, mainly because I feel helpless lately with little control, but I figure I could work on the one thing I have control over – myself. I mostly do strength training with a bit of cardio but not too much because of my asthma. My routines aren’t as killer or long as P90x – no vomiting after. I notice feeling lighter on my feet, yesterday I realized my posture has improved and I feel stronger. after I tried P90x many years ago I had a friend that got me into power lifting and the science around it. The biggest thing is you need a lot of protein to get stronger, even a normal protein rich diet wont generally be enough, unless you eat like nothing but poultry. I use whey protein from us.myprotein.com $25 for 5.5 pounds 75% whey protein. a shake first thing in the morning, and a small shake after each meal and one after workout(I add maltodextrin to my post workout). aiming for 1 to 1.4 grams per pound of body weight. It seems impossible to do without some kind of supplement. I’m aiming for muscle gain now and I’ll aim to lose fat in a month or two. I also decided to cute alcohol almost entirely from my diet, unless I’m hanging out with friends and then I try to limit it to 2 or 3 beers.
Nice that the market bounced back a bit, I need to transfer my personal IRA’s from Betterment to Vangaurd, opening with Betterment was one of my mistakes. and I’m seeing if I can convert my 2015 Roth IRA to a traditional IRA before I file taxes. I guess I didn’t realize you can convert to a Roth down the road early last year. Everything is a learning curve.
Thanks for all the advice. I bought protein powder too, but I’m only drinking it once per day. Perhaps I need to up it. I wouldn’t mind putting on a couple pounds of muscle. I’d actually like to be around 160. I’d like to lose about 10 pounds of fat and put on 5 pounds of muscle.
Man, I feel loads better. I feel lighter on the feet and just working out puts me in a great mood. After I make it through that hour of hell, I feel like I can take on the world. Runner’s High is a beautiful thing.
I’m cutting my beer back too. After the super bowl anyway…
Sounds like you’re on the right track. I know P90x is a full regiment with nutrition. I’m not a guru on fitness by any means, but if you ever want to exchange notes feel free to email me. Some of the information on bodybuilding.com is really good, most of the people over there are really intelligent and not the classic “meat heads”. Seems to be a lot of doctors and biologists over there. My power lifting friend is now a civil engineer with his masters and one of the most intelligent people I know.
Problem with P90x is it’s so extreme most people don’t make it through, and even if they do they won’t keep up with it after they finish. Keep going, but when you’re done I’d find a routine and general nutrition/diet that’s easier to keep up with on a normal basis. You’ll still get 95% of the health benefits on a much easier regiment.
The home reno is looking good. Looks like you are having good progress with P90X. Keep it up!
I somehow gained about ~10lbs in the last half year. Still considered as skinny to some people but I can lose some weight. I’ve been focusing more on what I eat nowadays but need check out the different exercise routines.
Tawcan recently posted…Recent buys – RY & NA
I like P90x much better than I thought I would. The physical part is great, but so are all the little tips that the dude throws out when you’re doing the workouts. The information seems solid.
I do much better following a DVD than I would on my own too.
Well sir I’m rooting for you, getting in shape and showing off your Berkshire purchases all in one blog post. My parents still to this day are buying cartoons and super hero items for me to wear, it’s a mystery but I don’t complain too much, TMNT was a great show.
Steven recently posted…2016-The Year of Freedom
Ahhh, that would explain the Underdog Underwear at FinCon. I thought you just liked the cartoon? No need to see those again!
My eyes! My eyes! Those images are going to haunt me until the end of my days!
Just kidding.
On a more serious note, those bathrooms and kitchens are lookin-‘fine’. Teach me how to remodel like that! More pics please (of the house remodel, not the torso remodel)?
Mr. Tako @ Mr. Tako Escapes recently posted…Investing in Preferred Shares FTW
“Teach me how to remodel like that! More pics please (of the house remodel, not the torso remodel)?”
I know what you really meant: “More pics please (of the torso remodel, not the house remodel)?”
I love remodeling and you’re in a cool part of the world. What about some MMM style carpentourism someday?
Keep pushing play. That first month is killer. How do you like yoga?
The yoga is tough. After hearing “downward dog” for the 100th time, I was about ready to scream. Part of the problem is that I’m about as flexible as a 2×4. I hope the Yoga increases my flexibility.
What to you think?
Ha. Yes I’m the same on flexibility. P90X Yoga is really long. I much prefer the 30 minute P90X3 routine. There’s always fast forward/option to move things along.
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I don’t drink the java either but my coffee guzzling husband tries to convert me every day. I’m in my early forties and I don’t think I will start now. It is very difficult to find another adult who doesn’t drink it. Personally I like not having to rely on caffeine to start my day or keep me going.
GL in the year ahead! It’s looking like a bumpy ride….
It will be a bumpy ride, but I think smooth rides are boring.
One of the huge benefits of planning to retire early is that if things go bad, you can just work another year. This is much easier to do when you still have half of your life in front of you.
How much does your portfolio generate in dividends every month? Will the dividends help to put you back in the double comma club if the market stays flat?
You don’t have much hair on your chest. I hope that is a natural occurrence and not the result of any kind of waxing.
LOL! No waxing here! I’m just not hairy.
I have little to no dividends, besides what the general indices throw off. I do own Apple and Costco which pay dividends, but it is a drop in the bucket.
Awesome progress. Weight gain is a long drawn out process and we always want it to be gone much quicker than we gained it.
I’ve been controlling my food in the AM and at lunch by only having meats/veggies/fruits/nuts. When it comes to dinner, I’ll have something extra and it’s not the end of the world since I ate well during the AM.
And PBRs aren’t that bad. I think people are forgetting all of the fun reasons for low end beer. I still love how I can drink 10 Coors Lights (not often at all) and wake up at 7am to deal with the kids. Can’t do that with three micro brews!
Chris @ Flipping a Dollar recently posted…January 2016 Profits – Building Momentum
Yeah, some of the micros will knock you on your ass. There is a place near me that does one that’s almost 20%!!! The double IPAs I like are all 8% which is still extreme compared to college beer.
Beth beat me to it but I hope your not shaving or waxing the chest, unless that saves you a few more lbs.
I’m in the Mormon state so you’d think not a lot of coffee drinkers here but the Starbuxs are popping up everywhere. I guess you can get a variety of $4.99+ non-coffee drinks there too. I got into SBUX stock a year or so ago through Loyal3, cannot complain about the results.
Ha ha, no waxing. I’m a wuss and that sounds like a lot of pain. P90x is enough pain for me.
Yeah, I initially bought very small amount of SBUX through LOYAL3 too. I love that service.
The recent market volatility is why I’m such a huge advocate for having a written investment plan finalized in advance of times like these. It’s easy for many to want to tweak (read: run for the hills) when markets behave as they have recently. A written plan of action helps (at least me!) stay the course.
John
John recently posted…What were you thinking?
A written plan is a great idea. If nothing else, it helped me to think through scenarios and plan my actions far ahead of time.
Example: I’ll buy $5000 of VOO if the market drops 10% and another $5000 if we see another 10% drop.
Very sexy Charlie and Warren underwear. I am pretty good at not buying things impulsively and yet I am searching to buy one for myself and my wife.
https://www.google.ca/search?q=charlie+munger+and+warren+buffett+underwear+to+buy&biw=1920&bih=979&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiIl_GS0NzKAhWFVhQKHUHKDCgQ_AUIBygC#imgrc=VmGAaCf82NAoJM%3A
BeSmartRich
BeSmartRich recently posted…Jan 31, 2016 Net Worth Update: $142,759 (+$1,589, +1.1%)
Ha ha, want some? I’ll be at the Berkshire meeting in a couple months! 🙂
I’m surprised your post didn’t end with:
– Home equity
– Cars
– Bicycles
– Boxer shorts
Or some variation of that theme. 🙂 Congrats on your progress!
Yeah, I should wait. Just wait til’ you see what shorts I have in store for next month. Maybe you don’t want to see. Hey, at least I’m wearing something!
In “the numbers” of January, you’re still referring to 2015; so the 2015 losses etc. Make that 2016 🙂
Poop! Stupid brain hasn’t quite figured out that the year changed! Thanks for catching!
1,500 –
Nice job getting back into the double comma club! I love that saying, but I have to admit it took me a second to figure out what you were talking about 🙂
Nice job on the P90X results. You can definitely tell an improvement when looking at the back picture. I did P90X back 5-6 years ago and lost about 40 pounds! For me, I really started to see results between days 30-60. Good luck and hang in there – it will work for you! Do you best and forget the rest 🙂
I think you’ll be right down to the wire around Feb 2017 as to what the market is doing. My guess is that we will be lower for much of 2016 and into 2017, but my guess is just that. Good luck with the index funds as we are both in the same boat!!
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Thanks for the P90x encouragement. I need it! The program is NOT easy! Happy to hear that it worked out so well for you.
If I had to guess, I think you’re probably right about the stock market. Unless one of my big stocks like facebook or Apple does exceptionally well, I will not make my goal. It’s alright though since I’ve had a good run.
Happy New Year to you and your!
It looks like you have a pretty decent shot at hitting your goal. If you could lose (at one point) $120k in one month, it seems pretty reasonable to expect a $50k or so increase on top of your contributions… But of course you never know. Either way, at least you will b in shape by then!
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Ugh…. i like spongesister posts better than your harry arse (i mean stomach) =\
Hmmm, I could post SpongeSister’s hairy arse. That would be disturbing on so many levels…