My main goal* was to build an investment and cash portfolio of $1,120,000* ($1,000,000 to retire on and $120,000 to pay off the house) 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.
July was our best month ever. Our portfolio gained $185,139. My first job out of college paid me about $37,000 per year before taxes. In 30 days, my investment appreciation was equivalent to 5 years of income from that first job. I know, it’s 20 years later, inflation, blah, blah, blah, but the numbers still blow my mind. Even at the peak of my earnings, I never made $185,000 in a year, much less a month.
These numbers feel uncomfortable to write about. What the hell is going on?:
Much of this insanity is due to Tesla which went bonkers in July:
Tesla quick take
I wrote about Tesla a couple of months ago. Back then, the stock was $650 and I thought it was expensive. It’s $2,000 now!
Tesla is insanely overvalued for what the company is doing currently. Its market cap is $350,000,000,000 (!!) and it will sell about 500,000 vehicles in 2020. That comes out to $700,000 per vehicle sold! Yowsers!
Tesla is insanely undervalued if the company does everything it plans including an autonomous taxi fleet, solar power, energy storage, insurance, etc. I think autonomy is the most important. But it’s also the most difficult.
I wouldn’t be at all surprised if Tesla dropped to well below $1,000 per share in the near term. I can also see Tesla being a $2,000,000,000,000 (I just love typing all of those zeros!) company in the long term (10 years). Because I don’t play the market timing game and have a strong stomach, I’ll continue to hold my shares.
Perhaps I’m just drinking the Kool-Aid. Or smoking the…
My other tech holdings have been killing it too. What the tech? I have no idea.
July Performance Update
July was our best month ever. Our investment portfolio (rental home, trailer park, private loans, syndication deals, coworking space) went from $2,605,803 up to $2,790,942 for a gain of $185,139. Add in our $150,000 in home equity and our net worth comes out to $2,940,942.
It’s at this point that I’ll mention a couple of things:
- Wife Mindy has a job. She earns roughly enough to cover our expenses. Am I really FIREd? Probably not. But, that’s just a label. Mindy and I are happy with our lives and that’s all we care about.
- Wife Mindy has an unplanned side hustle. Mindy got a real estate license so we could save money on transaction costs for live-in flipping. The side effect of this is friends and blog readers occasionally ask to work with her. In July, Mindy earned $11,783 from a deal.
2020 (as of 7/31/2020)
- Days elapsed: 212
- Investment portfolio gains: $755,902 (Our gains are outsized because we took equity out of our home and invested it. The next number, net worth which includes home equity, is more accurate.).
- Net worth gains: $533,026
Since the Start (1/1/2013)
- Days elapsed: 2768
- Investment portfolio gains: $2,204,899
None of this seems real. As I type this now (early in the morning of 8/21/2020), Tesla is at $2,040 per share:
And our portfolio is closing down on $3,000,000. Insane.
Maybe we really are living in a simulation and the aliens are screwing with us. Just kidding. Maybe…
*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 (LOOK at the MONEY I’m MAKING!). My compromise was to have enough money put away to cover the mortgage at the time of retirement.
***This is an affiliate link. If you sign up, the blog (me) makes some cold, hard, beautiful, cash. Personal Capital is a totally free and awesome 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 you are a fine person of above-average intelligence.
****My 401(k) contributions include my own, Mrs. 1500’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.
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.