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 in 2016, my 1500 Days are over, and I’ve left my job. In the interest of openness, I’ll continue to share my numbers.
$100,000 Dollar Month!
January was a big month for Mrs. 1500 and me. Our biggest ever. For the first time ever, we gained over $100,000. In a month. To be precise, we’re worth $100,513 more on 1/31 than we were on 1/1. Yowsers.
When I was a kid, I never thought that I’d have a job where I earned $100,000 per year. Only super-rich people made that kind of money. Eventually, I did make $100,000 year and I’m still coming to terms with that. Money still feels like an exotic luxury that I don’t quite deserve. Impostor syndrome cuts deep.
But now, I find myself increasing my net worth by $100,000. In. A. Friggin’. M
Compound Growth >> Job
To put the $100,000 gain in another perspective, I made about $37,000 per year, before taxes at my first job, just over 20 years ago. Letting Mr. Market do the heavy lifting is so much better:
- First job: I worked for a micromanaging boss and had a commute that often took one hour. Each way. I worked
farmore than 2,000 hours to earn that $37,000. I also spent a lot on gas and clothes to support the job.
- Mr. Market: In January, I binged on Game of Thrones, spent time at the beach in Florida, ran at the gym, attended parties, and spoke at Camp FI in Florida. While I did all of that, my portfolio went bonkers.
About 25% of this gain was due to Facebook which took off like a SpaceX rocket:
Before we take a victory lap, much of the $100,000 gain was just a rebound or reaction to a poor December. That month, our portfolio dropped $62,668. After the dark comes the dawn. December was dark, but January brought the light.
And this is how Mr. Market operates. In the short-term, the ride is bumpy. That’s why you must always have a long-term mindset.
While we spent about half of what we did in December, we still burned through dollars than I thought we would. As always, the mortgage was our single biggest expense: $1427.16. Only 9 years and 4 months left to go! After housing, our biggest expenses were:
- Groceries ($602.40): We entertained a lot in January which drives up the food bill. When we’re by ourselves, we eat frugally; tofu and salads. However, we like to be good hosts, so we go a little fancier when we have guests.
- Random household nonsense ($331.38): We’re still buying stuff to complete our home remodel that we started in June of 2013.
- Eating out ($281.33): Much of this came early in January when we bought dinner out for the extended family ($127.91).
Most Fun Expense
While in Florida, Mrs. 1500 and I went to the Navy SEAL Museum. I’ve always loved learning about special forces, so when I found out we were staying a couple of miles away from this museum, I had to go.
Most Bizarre Purchase
I never saw myself as a business owner. I don’t want anything consuming my time and more importantly, my sanity. Own a restaurant or retail space? HELL NO! Besides, I know almost nothing about small business. I come from a family of worker bees, not entrepreneurs.
However, an opportunity came up that Mrs. 1500 and I couldn’t pass up. We now own 1/3 of coworking space in Longmont with local friend Pete, otherwise known as Mr. Money Mustache.
There is a lot to say about this, so I’ll save it for a dedicated post. In the meantime, learn more:
- Listing on 1500 Days: https://www.1500days.com/cowork-in-longmont/
- Listing on Mr. Money Mustache: https://www.mrmoneymustache.com/hq/
- Instagram: https://www.instagram.com/mmmhqcoworking/
- Twitter: https://twitter.com/MMMHqCoworking
- Facebook: https://www.facebook.com/MMMHQCoworking/
January Performance Update
January was huge. Our net worth started the month at $2,064,440 and ended at $2,164,953. This was our biggest month ever.
2019 (as of 1/31/2019)
- Days elapsed: 31
- Investment portfolio gains: $100,513 (including 401(k) and HSA contributions**** of $1796.66)
Since the start (1/1/2013)
- Days elapsed: 2221
- Gains since 1/1/2013: $1,063,910
- Investment portfolio and cash: $1,649,953
- Net worth (investment portfolio plus home equity, a silly toy car (Acura NSX!), bikes, and dinosaurs): $2,164,953
We have a diverse portfolio (full listing here) that includes real estate:
- Mobile home park (elevated home living to the easily offended/politically ultra-correct)
- Coworking space: We own a building/small business in Longmont
- Private loan (only one outstanding)
- Syndication deals
And stock market holdings:
- Individual stocks (old thinking)
- Index funds (most money goes here now)
Both sides of our portfolio saw increases:
- Stock market: $751,335
- Real estate: $858,618
- January income from mortgage notes, syndications, and private loan: $5,792
- Cash reserve: $40,000
We moved some money around this month to raise funds to buy the coworking space ($127,500) including the sale of 200 shares of Facebook and various shares of other funds. The rest of the year should be much more stable. I don’t like to make many moves.
How was your January? How is Mr. Market treating you?
One more thing: UK Chautauqua
Hey look, I’m speaking at Chautauqua again! Chautauquas are incredibly fun events where you get to hang out with your tribe in an exotic locale for a week.
Sounds good? Get your ticket here. And act soon (half of the weeks are already sold out).
*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. Since my investment portfolio now sits at $1,550,000, I can spend about $62,000 in my first year of retirement.
**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 was to have enough money put away to cover the mortgage at the time of retirement.
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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.
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