Browsed by
Author: MFJ

Retirement Nestegg Report September 2017

Retirement Nestegg Report September 2017

Not a great month for my investing performance, but another all-time new high for my retirement nestegg report. As I mentioned in my last report my wife is now working so not only do we have two incomes but she also has some sort of teacher retirement account that I will have to add to this report at some point. I believe we only get to see it’s value like once a year and there is no way to view it online so maybe it will be easier to pretend it does not exist.

Taxable Account- $47,700.66 (-1.44%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $24,343.02 (+0.03%)
My Roth IRA – $177,349.89 (+0.24%)
Wife Roth IRA – $116,012.44(+0.39%)
Traditional 401k – $376,020.05 (+3.49%)

Roth/Traditional % = 36.46% (tax free)

Total Retirement Nest Egg $804,526.06 (0.75%)
Retirement Salary (4%) $31,666

Monthly Contributions $1686.53 (401k)
SP500 Performance +1.93%
My Monthly Investment Performance +1.41% (-0.52% vs SP500)
My Monthly Individual Stocks Performance +0.05% (-1.88% vs SP500)

Retirement Nestegg Report August 2017

Retirement Nestegg Report August 2017

Well a pretty boring month for my nestegg but a pretty exciting month for me overall. My family and I took a 2 week out West to see some national parks and the eclipse and it was a pretty amazing experience. It makes you appreciate time alone with your family away from all of the other distractions of daily life and makes you truly appreciate what is important in life. It also makes me want to reach financial independence like tomorrow so that spending time like that is not restricted to just one two week stretch during the year.

The other exciting thing that happened while were on vacation is that my wife was offered a teaching job and accepted. So she will be working as well this year which means the MFJ household will have two primary incomes for only the 2nd year in this journey which while ironically will cut into family time here in the short term may give us more options going forward to expedite the financial independence portion. I’d like to say I’d have enough guts to take some action as early as next summer as far as scaling back my working hours, but it’s a big leap of faith and I’ll likely need some encouragement if things line up the way I anticipate they might.

The hardest part as you get near that point of financial independence is having the courage to turn off the spigot of money that pours over you for simply going and sitting in an office for 40 hours a week / 12 months a year. Everything a FI aspiring person does leading up to that point is maximize earning potential, cut costs, and treating each dollar as something sacred and then all of a sudden this same person is supposed to essentially say no thanks you can keep that extra $50k or $100k a year I think I’m just going to spend more time doing stuff with my family.

It’s a tough mental hurdle to get over and often leads at least in my experience to people hanging onto that extra security and padding that nestegg longer than is necessary. In my case the most pressing issue is the age of my kids as they are growing up faster than I ever could have imagined and if I don’t take action soon it will be somewhat for nothing as having loads of freedom in my 40s & 50s won’t be anywhere near as productive as having free-time still in my 30s when I can use that time to spend with my kids. I also turned 38 this month so me speaking like I have a lot of time in my 30s is a prime example of how time flies.

I don’t think I’m quite to FI yet as our expenses have risen quite a bit with the new house and the growing age of our kids, but deep down I know I could probably easily cut my salary in half with my wife working and not needing to save for retirement anymore and still be just fine. So if I can cut my salary in half in theory I only need to work half the year which probably would be perfect right now, but unfortunately the logistics around working part-time don’t seem to be as easy in practice as they seem on paper – especially when dealing with an employer. We will see…

Taxable Account- $48,396.05 (+1.55%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $24,336.07 (-3.22%)
My Roth IRA – $176,919.71 (+0.24%)
Wife Roth IRA – $115,563.54(+3.26%)
Traditional 401k – $363,337.24 (+0.53%)

Roth/Traditional % = 36.95% (tax free)

Total Retirement Nest Egg $791,652.61 (0.75%)
Retirement Salary (4%) $31,666

Monthly Contributions $1,405.44 (401k)
SP500 Performance +0.05%
My Monthly Investment Performance +0.57% (+0.55% vs SP500)
My Monthly Individual Stocks Performance +1.11% (+1.06% vs SP500)

Retirement Nestegg Report July 2017

Retirement Nestegg Report July 2017

My retirement nestegg grew very modestly this month and my investments greatly under performed the market as a whole, especially my individual stocks. This will certainly happen as my portfolio has much more volatility than the market and so my downs are usually much worse than the market and my ups have historically been much greater than the market anyway. I feel like I have the right mindset and these swings do not bother me much. Having 6 figures removed from my nestegg would be a normal ebb and flow for me and does not matter in the long term horizon.

Taxable Account- $47,655.94 (-8.02%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $25,144.40 (-8.21%)
My Roth IRA – $176,500.64 (+0.52%)
Wife Roth IRA – $111,913.47(+0.05%)
Traditional 401k – $361,422.34 (+2.08%)

Roth/Traditional % = 36.67% (tax free)

Total Retirement Nest Egg $785,736.79 (0.24%)
Retirement Salary (4%) $31,429

Monthly Contributions $1,405.44 (401k)
SP500 Performance +1.93%
My Monthly Investment Performance +0.24% (-1.69% vs SP500)
My Monthly Individual Stocks Performance -1.48% (-3.41% vs SP500)

Retirement Nestegg Report June 2017

Retirement Nestegg Report June 2017

Well for the first time since last October my retirement nestegg didn’t grow for a month and my investments especially my individual stocks under performed the market for a month. This has been an incredible run and in the last 18 months my retirement nestegg has grown over $300,000 dollars which is just mind boggling. Obviously with having my nestegg invested 100% in the stock market there will be ups and downs and if I had to guess there will likely be some downs coming, but if you had asked me the same thing 18 months ago I would have told you the same thing. $300,000 plus later I’ve learned that trying to time the market is a fool’s errand so just sit back and enjoy the ride.

Taxable Account- $51,812.37 (+1.70%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $27,391.82 (-6.66%)
My Roth IRA – $175,580.24 (-2.99%)
Wife Roth IRA – $111,863.17 (-0.92%)
Traditional 401k – $354,075.54 (+1.84%)

Roth/Traditional % = 36.67% (tax free)

Total Retirement Nest Egg $783,823.14 (-0.15%)
Retirement Salary (4%) $31,353

Monthly Contributions $1,405.44 (401k)
SP500 Performance +0.48%
My Monthly Investment Performance -0.33% (-0.81% vs SP500)
My Monthly Individual Stocks Performance -2.02% (-2.50% vs SP500)

Interim Retirement Nestegg Report – I broke $800,000

Interim Retirement Nestegg Report – I broke $800,000

Well another 5 months and another $100,000 added to my retirement nestegg. To be honest I’m a little dumbfounded how fast my nestegg is growing and the best part is it is almost entirely by market gains with no effort on my part. In fact since I wrote our monthly report exactly one week ago my portfolio has added another $16,000. I’m not expecting it to continue but at this pace the double comma club isn’t to far off and I am well ahead of my projections to hit a $1M nestegg by age 40.

Taxable Account- $53,154.14
Private Stock $63,100
Traditional Rollover IRA – $29,903.60
My Roth IRA – $185,147.52
Wife Roth IRA – $116,792.26
Traditional 401k – $352,140.20

Roth/Traditional % = 37.73% (tax free)

Total Retirement Nest Egg $800,237.72
Retirement Salary (4%) $32,009

$100,000 NestEgg Milestones

Date DOW Jones Value MFJ Nestegg
Oct 2008 10,000 $ 69,300
Oct 2009 10,000 (+0%) $100,000 (+44%)
Feb 2012 13,000 (+30%) $200,000 (+100%)
Jul 2013 15,423 (+19%) $300,000 (+50%)
Feb 2014 16,395.88 (+6.3%) $400,000 (+33%)
April 2015 18,084.48 (+10.30%) $500,000 (+25%)
August 2016 18,636.05 (+3.05%) $600,000 (+20%)
January 2017 20,068.51 (+7.69%) $700,000 (+17%)
June 2017 $21,182.53 (+5.56%) $800,000 (+14%)
Retirement Nestegg Report May 2017

Retirement Nestegg Report May 2017

Starting to sound like a broken record, but another month of all time nestegg highs and another month of investment performance that greatly exceeded the market. Obviously this can’t go on forever and eventually Tesla may slow down its meteoric climb for a bit, but in the meantime I guess I’m not complaining since I am not really contributing anything of significance to my nest egg so the crazy new highs every month aren’t causing me any anxiety due to me having to make purchases.

It looks like one more 2% month and I will crack the $800k barrier just 5 months after breaking the $700k barrier

Taxable Account- $50,948.89 (+2.21%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $29,348.20 (-2.07%)
My Roth IRA – $180,999.29 (+3.75%)
Wife Roth IRA – $112,898.22 (+5.86%)
Traditional 401k – $347,681.59 (+1.38%)

Roth/Traditional % = 37.44% (tax free)

Total Retirement Nest Egg $784,976.19 (+2.35%)
Retirement Salary (4%) $31,399

Monthly Contributions $1,405.44 (401k)
SP500 Performance +1.16%
My Monthly Investment Performance +2.16% (+1.00% vs SP500)
My Monthly Individual Stocks Performance +3.68% (+2.52% vs SP500)

Retirement Nestegg Report April 2017

Retirement Nestegg Report April 2017

Well another record setting month for my retirement nestegg. An all-time new high that is almost $30,000 higher than last month’s total. My portfolio performance greatly outperformed the market as a whole and my hypothetical safe withdrawal rate from my nestegg broke through the $30,000 a year threshold. I did also have a larger than normal 401k contribution due to my annual bonus hitting this month as well, but with the size of my nestegg the real performance comes from the nestegg itself and the contributions themselves these days are hard to move the needle much.

I don’t expect this type of performance to continue – I mean I’m only 3 months removed from breaking through the $700,000 milestone and am now closer to the $800k mark. A large part of my growth and out-performance has come from my individual stocks with large holdings like Tesla really picking up steam as of late. There will for sure be some volatility with my individual stocks, but long term I feel pretty good about them.

I also think I have sort of passed a weird psychological threshold. Normally I’m usually more bummed about the market going up and cheering on for the next crash, but given like I said above that my contributions make less of a dent these days and how to be honest I see my retirement savings starting to wane some going forward here I guess I’m fine with the markets reaching new highs as it means my date to financial independence keeps moving closer and closer. Just a random self reflective observation. Guess that means I’m getting old now and this far fetched retirement date sometime long in the future is probably not as far off as it once was.

That being said I have some work to do yet as I have five kids and a brand new large mortgage so I probably have a higher burden than some folks on the financial independence journey, but knowing that I have 3/4 of a million dollars tucked away working hard for me makes it easier to put less of an emphasis on worrying about my career or salary or having to put massive amounts of money away. Those things are still important, but not even remotely close as important as they were 10 years ago. The heavy lifting has been done and now I have more options – which hopefully I will have the courage to take advantage of in the coming years.

Taxable Account- $49,847.92(+6.50%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $29,968.10 (+3.97%)
My Roth IRA – $174,451.26(+4.05%)
Wife Roth IRA – $106,657.24(+7.79%)
Traditional 401k – $342,962.59(+3.25%)

Roth/Traditional % = 36.15% (tax free)

Total Retirement Nest Egg $766,987.11 (+2.82%)
Retirement Salary (4%) $30,679

Monthly Contributions $5,240.89 (401k)
SP500 Performance +0.91%
My Monthly Investment Performance +3.29% (+2.38% vs SP500)
My Monthly Individual Stocks Performance +5.46% (+4.55% vs SP500)