My main goal is to build a portfolio of $1,000,000 in 1500 days, starting from 1/1/2013. Every month, I provide an update on my status. My goal for 2013 is to get my portfolio up to $672,750, from a starting point of $586,043. Time to look back on the month of June.
Hey, look at that! If you’ve been paying attention to my little updates on the right side of the page, you’ve noticed that I reached my goal for 2013. In June, my portfolio went from $636,661 to $685,926 for a gain of $49,265. Perhaps you’re thinking that I did some Enron-esque, creative accounting. Nope. I’ll get to the explanation in a moment. First, the numbers:
- Days elapsed: 179 (as of 6/29)
- Days remaining: 1321
- 2013 gains: $99,883 (including my contributions)
- Left to go (2013): Goal accomplished!
So, how did I jump such an incredible amount in June? We redeployed our money. We sold our $400,000 home and moved down to a $176,000* one. We had $90,000 in equity on the previous home and put put down 20% ($35,000) on the new home: $100,000 – $35,000 = $55,000 in new cash to play with!
Put in this perspective, June was actually a down month. If I don’t account for the new capital, I actually lost about $5,000. Some of this is attributed to Apple which once again terrorized my portfolio, dropping more than $50/share in the month of June alone.
Here is what I did with my new found wealth: 15K to VFINX, 15K to Berkshire Hathaway and the rest I’m keeping in cash. We’ll probably buy a rental home in the next year, so I want to keep plenty of cash ready to deploy.
Finally, I didn’t set my 2013 goal with the intention of selling our place. The $55,000 is a bonus, so I want to end the year with $727,750** ($672,750 + $55,000).
The home we bought is a fixer-upper and I have big plans for it. While moving in consumed most of our time in June, I did manage to complete a couple projects in fhe first week of owning the home:
Gable fan: The ventilation in the attic was poor. Most people don’t realize that an attic should be about the same temperature as the outside. An overly hot attic in the summer will cause premature shingle failure. If you live in a cold place, a warm attic in the winter (usually caused by poor insulation) will result in ice dams. Ours was steaming hot, so I cut in more vents on one side of the home and installed a gable fan on the other.
Whole house fan: I have yet to meet another person who has one of these in their home, but I put them in every place I buy. A whole house fan draws air inside the home and blows it out through the roof vents (the picture explains it much better). What is the point of this? In our state of Colorado, often the daytime temps will exceed 90, but they drop into the 60s after the sun goes down. Instead of firing up the AC, we turn on the whole house fan and the home is cooled off in minutes and uses much less electricity.
The first half of 2013 is over and what a year its been. Markets are up over 10%. The second half of the year is going to be a bit rough if the US government starts tapering the bond buying program as expected. However, I am still optimistic, especially for the 4th quarter.
*We could have paid cash for this place, but no way I’m doing that with an interest rate of 3.25%, especially when my peer lending projects are earning more than 10%.
**The crazy dreamer in me imagines scenarios where I hit $800K*** this year.
***Now that I’ve written the above statement, I’ve probably doomed my portfolio to a lackluster 2013.
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