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 was to get my portfolio up to $672,750, from a starting point of $586,043. I accomplished this in June and then raised my goal to $727,750 to account for the money I made selling our last home that I plowed back into the portfolio. Time to look back on the month of September.
September was another good month, for the markets and me alike. The S&P 500 increased from 1635 to 1681 for a gain of 2.8%. My portfolio went from $762,667 all the way up to $791,287 for a gain of 3.8%. Even better, the non-cash assets of my portfolio increased by almost $40,000 for a gain of 5.3%. I had to take $10,000 out of my cash stash to pay for home improvements, hence the 3.8% number. In any case, put an ‘X’ in the 1500 win column for this month.
One other thing is that I’ve made my 2014 goal as well. I originally published the chart you see below in my first post*. Wooo!
Here are the numbers:
- Days elapsed: 272
- Days remaining: 1228
- 2013 gains: $205,244 (including my contributions)
- Left to go (2013): Goal accomplished!
Facebook is the primary reason for my September gains. Facebook started the month at $42 and closed the month at $50. I own 2000 shares that I purchased at an average price of $29.
Now I’ve said it before and I’ll say it again, I don’t advocate buying stocks. It is something I very rarely do. However, every once in a great while, I see something that others don’t and I can’t help myself. This is especially true with facebook. My thinking behind this purchase is a post in itself, so I’ll save that for another day.
Can’t save a dime
My savings have dropped off to nothing lately**. Uglyhouse is like a giant vacuum, sucking money from our savings. I knew this going into the deal though. We bought our home in foreclosure for $45,000 less than it sold for 10 years ago. Based on the comps, I’m sure we got a good deal. I’m also doing as much of the work as I can myself, so I’m saving a bundle.
The cash hemorrhage is also temporary. Soon, things will be back to normal and the only home expense I have will be a small mortgage payment and an incredibly low, $1,100/year property tax bill.
I also enjoy the home improvement work. There is nothing like the sense of gratification when you step back and look at a bath or kitchen remodel. I just wish that I knew how to do more. I can build a spectacular kitchen (you’ll see it soon!), but I’d really like to put a small second story on this home. Any carpenters out there want a paid trip to Colorado to have some fun swinging a hammer with me for a couple months? Not kidding here folks. I’ve been trying to find good help for 4 months with almost zero success.
But I digress.
Three months to go
How do you think the markets will end the year? Mr. Market is facing some major headwinds:
- The buffoons in Washington are throwing their wooden shoes in the gears for a while and mucking things up.
- The government will also start to taper the bond buying program. Is it priced into the markets already though? Dunno.
- The market has had an incredible run this year. Nothing goes on forever.
However, I”m still positive. If I had to guess, I’d say that the S&P 500 will end the year higher than it’s at now. Hmmm, this sounds like the makings of a good contest. Tune in Monday for more information on that.
*I also mentioned in that first post that I need to be debt free before retiring. I currently have about $130,000 in mortgage debt, so I still need 330K before I can retire.
**While the work on this house needs to be done and I knew it when we bought it, it still kills me to throw all this money at the project. I’ll be very happy when the work is done and we can move back into super saving mode.
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.