My main goal was to build an investment and cash portfolio of $1,120,000* in 1500 days**, starting from 1/1/2013 and ending in February of 2017. I made my goal last year and my 1500 Days are over, but in the interest of openness, I’ll continue to share my numbers.
Our 7 year old (I’ll call her D) says crazy things. On a recent trip, she unleashed a couple memorable lines:
Dad, I’m not risking my life for that.
Much to my angst, she loves TV. I hardly ever let her watch it, but in a hotel room, I had some stuff to do. To keep her busy, I said it was OK if she watched one show. She got very agitated when she couldn’t get the TV to work and with great enthusiasm, she let this out:
The TV is a douchebag!
I hate that word, so I never use it. I wonder where Daughter D got it from? Oh wait, I know:
Anyway, I recently had a conversation with Daughter D about money:
- Me: What is your net worth?
- D: Ummm???
- Me: I mean, how much money do you have?
- D: $45.
- Me: Is that a lot?
- D: No.
- Me: What is a lot?
- D: $100.
- Me: What would you do with $100?
- D: If there was a house for like $99, I’d buy it. I’d then fill it with dogs.
- Me: Do you know what our house is worth?
- D: Probably $1,000,000. (Actual value is $460,000)
- Me. How much did our Honda Element cost?
- D: $200. (Actual price was $20,000)
And so it goes. Little Daughter D has a lot to learn about money.
March was a great month. My portfolio went from $1,351,858 to $1,389,206 for a gain of $37,348. $16,470 of the gain was from 401(k) contributions.
2017 (as of 3/31/2017)
- Days elapsed: 90
- 2017 gains: $132,078 (including 401(k) contributions of $27,940****)
Since the start (1/1/2013)
- Days elapsed: 1550
- Gains since 1/1/2013: $803,163
- Needed to quit work ($1,120,000 in investments): Mission accomplished!
- Net worth*****: $1,759,206
Market valuations are sky high and it scares me.
I’m not a market timer, so I’m not calling a top and moving money to cash. However, when other opportunities present themselves, I open my ears and my wallet. This is especially true with real estate.
I’m not buying any properties personally. Instead, I’m helping others buy them in the form of hard money and syndication. I currently have two hard money loans ($195,000) and $50,000 with a syndicator. This month, I’m loaning another $60,000 in hard money to bring our loans up to $305,000.
I like the real estate investments a ton. With the hard money loans, I’m in first position on the lien and have low loan to value ratios. The worst case scenario is that we end up owning a property or two. The syndication deal has more risk, but the syndicator has an excellent record, so I don’t lose sleep over it.
If all of these investments go as planned, I’ll make a 12% return. I’ll take that any day of the week.
I still have unhealthy desires to buy individual stocks. To convince myself that this is a bad idea, I chose a portfolio of my favorite companies and threw $10,000 at it. The goal here is to lose to the S&P 500 so I no longer want to pick stocks. March was a tumultuous month, but I’m still winning.
I’m on the road in Chicago living the hotel life. I didn’t take pictures or weigh myself before I left, so you’ll have to wait until next month for an update. Do you really want to see those pictures anyway?
Instead, I’ll let Mrs. 1500 have the final word.
*My goal wasn’t to have $1,120,000 at the end of 1500 days, but at any time before the day count was up. Why? It all goes back to the 4% Rule. Remember that our little friend, Mr. 4%, is nothing more than the most conservative safe withdrawal rate. So, if I were to quit my job now, I could spend about $48,000 in my first year of retirement. I’d stick very close to that number too because market valuations are ambitious. Let’s say that Mr. Market caught a cold tomorrow and my portfolio dropped down to $800,000. No big deal. This would mean I’d be safer stretching my spending a little north of 4%.
**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 and 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.
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****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 ($350,000 after the appraisal!)
- Zzzzzzz: I just worked a 12 hour day (7 more to go!). I’m tired, so nothing clever here this month.
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