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Retirement Nestegg Report April 2018

Retirement Nestegg Report April 2018

Overall a pretty boring month. I love how boring is now an increase of $33,000 in a month. My individual stocks carried me this month outperforming the market by a little under 6%. It’s earnings season so we could see some volatility and if things go well maybe flirting with the 2 comma club again. I received a large bonus at work which is where the big 401k contribution came from this month. Other than that not much to report.

Taxable Account- $51,179.86 (+7.51%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $29,701.81 (+3.00%)
My Roth IRA – $238,554.51 (+5.52%)
Wife Roth IRA – $148,955.78 (+6.97%)
Wife 401k – $3,790.01 (+0.35%)
Traditional 401k – $424,592.26 (+1.60%)

Roth/Traditional % = 39.43% (tax free)

Total Retirement Nest Egg $959,874.23 (+3.59%)
Retirement Salary (4%) $38,395

Monthly Contributions $6,110.75 (401k)
SP500 Performance +0.27%
My Monthly Investment Performance +2.93% (+2.66% vs SP500)
My Monthly Individual Stocks Performance +6.07% (+5.80% vs SP500)

Retirement Nestegg Report March 2018 (almost joined the 2 comma club)

Retirement Nestegg Report March 2018 (almost joined the 2 comma club)

Well as with February March was a very interesting and exciting month. I actually came within $1,000 of hitting a $1M nestegg during the month and ended up the month $74,000 lower that that intra-month high. We’ll see if I regret it or not, but I did have an opportunity to at least temporarily hit the double comma club by making a contribution during the month, but ultimately decided to see if I could hit it all natural and well that back fired 🙂

First off the growth of my nestegg and the outperformance of my investments to the market over the last 2 years or so has been rather astounding. My March 2016 nestegg report I was going bananas because I had a $46k monthly increase to jump my nestegg from $485k to $531k in a single month and now 2 years later my nestegg was within breathing distance of the mythical $1,000,000 barrier.

Now I also have to look at this growth and realize very quickly that it is not realistic and that even if my nestegg dropped by a few hundred thousand dollars I’m probably still doing quite well. Everyone looks like a genius when the market has been going up and well the market has been doing nothing but going straight up for the last decade so I should be very careful not get a false bravado about my financial and investing acumen. The law of averages will catch up and I’ll probably be looking back at this time with fond memories of the good old days.

The other piece that almost got put into action by me meeting my last financial goal is to start thinking about what is next for me. Because let’s be honest having a $1M retirement nestegg and a $999k nestegg for one day really doesn’t change much. I really need to start putting together the “what’s next” piece of this blog. I started this blog with a goal to save $100,000 for retirement by age 30 which I came very close to achieving. Then I transitioned to the $1M by age 40 goal which while still in progress I damn near achieved this month (I’m 38 by the way).

The last goal for this blog will be me spending much less time working for money and more time with my family and I really need to figure out what that means because right now that’s a really fluffy goal. Part of me thinks I could probably start this now and part of me thinks oh crap that’s really scary and dangerous. I need to spend some time fleshing out the scary and dangerous parts and try to see if I can remove some of the fear so hopefully I feel comfortable enough to pull the trigger on what has been the entire point of my financial journey.

Taxable Account- $47,605.61 (-11.04%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $28,837.41 (-3.91%)
My Roth IRA – $226,082.88 (-3.19%)
Wife Roth IRA – $139,244.41 (-4.42%)
Wife 401k – $3,776.69 (-1.78%)
Traditional 401k – $417,926.40 (+0.59%)

Roth/Traditional % = 39.43% (tax free)

Total Retirement Nest Egg $926,573.40 (-1.97%)
Retirement Salary (4%) $37,062

Monthly Contributions $8,573.23 (401k)
SP500 Performance -2.69%
My Monthly Investment Performance -2.87% (-0.18% vs SP500)
My Monthly Individual Stocks Performance -4.51% (-1.82% vs SP500)

Retirement Nestegg Report February 2018

Retirement Nestegg Report February 2018

Well as much as the end result for this month was not very impressive, what happened during the month was actually pretty impressive. At one point this month I was down just under $100,000 from my month end total at the end of last month and ended up only having my nestegg be down $2k.

The other impressive area was once again my individual stock performance which bested the market by over 6% after besting it by over 10% last month. My individual stocks are besting the market by over 17.5% YTD!

Taxable Account- $53,514.91 (-0.92%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $30,012.23 (+2.16%)
My Roth IRA – $233,525.80 (+2.60%)
Wife Roth IRA – $145,684.13 (+3.25%)
Wife 401k – $3,844.99 (-3.73%)
Traditional 401k – $415,460.29 (-2.99%)

Roth/Traditional % = 40.12% (tax free)

Total Retirement Nest Egg $945,142.35 (-0.24%)
Retirement Salary (4%) $37,805

Monthly Contributions $1,873.92 (401k)
SP500 Performance -3.89%
My Monthly Investment Performance -0.24% (+3.65% vs SP500)
My Monthly Individual Stocks Performance +2.36% (+6.25% vs SP500)

Retirement Nestegg Report January 2018 (+$89,900)

Retirement Nestegg Report January 2018 (+$89,900)

Holy cow. What a month. I am not even sure how this makes sense. At one point this month my nestegg was up over $100,000 and ended the month up just under $90,000. The market was up 5.62% this month, but my nestegg grew by almost 10.5% and my stock investments returned 16.17% beating the insanely large market returns by over 10.5%. I honestly would be pretty happy to thrilled if this was my report at the end of 2018 and the fact that I am writing it after just one month sort of blows my mind.

All this being said percentage wise this wasn’t even my best month in history as I had an ever bigger month in September 2010 with my nestegg growing by over 12%. The difference is back then 12% netted me $16k and not $90k. Big numbers get bigger. Apart from a highly probable implosion in the market it looks like I am way ahead of schedule to hit my $1M by age 40 goal – in fact 15 months ahead of schedule. Even with rather minimal contributions this year I only need my investments to grow by about 2.4% to hit the double comma club with my nestegg. This would then complete my only active goal for this blog and force me to write and plan for the last and remaining step in my financial journey.

Taxable Account- $54,007.95 (+12.34%)
Private Stock $63,100 (+0.00%)
Traditional Rollover IRA – $29,377.70 (+3.29%)
My Roth IRA – $227,599.05 (+17.95%)
Wife Roth IRA – $141,101.32 (+17.90%)
Wife 401k – $3,994.06 (+0.00%)
Traditional 401k – $428,264.20 (+5.67%)

Roth/Traditional % = 39.08% (tax free)

Total Retirement Nest Egg $947,444.28 (+10.48%)
Retirement Salary (4%) $37,738

Monthly Contributions $1,873.92 (401k)
SP500 Performance +5.62%
My Monthly Investment Performance +9.80% (+4.18% vs SP500)
My Monthly Individual Stocks Performance +16.17% (+10.55% vs SP500)

Netflix My first 100 bagger

Netflix My first 100 bagger

Well something else interesting happened today. The value of one of my Netflix purchases exceeded 100 times my original purchase price back in 2007. I purchased 28 shares of Netflix for $19.72 back on June 22nd of 2007. Today after a previous 7 to 1 split I have 196 shares at a cost basis of $2.81 per share and today the stock price is north of $286 per share netting me 100x my original money. In addition the value of all of my Netflix holdings (4 purchases amounting to $1800) has exceeded $100,000 with $98,200 of that coming in investment gains. Pretty sweet.

In the grand scheme of things it doesn’t mean too much, but I do seem to like to celebrate nice round number milestones around here and set nice round number goals for myself. Having a stock go up 100 times in value and having my first individual stock be worth $100,000 is a fun milestone to take note of, especially with it happening in the same day. It is cool because it shows the power of investing over time and the amazing power that time and compounding have. My initial invested amount over quadrupled just today. I know how damn hard it was to save $100,000 by the time I turned 30 and more importantly how damned important it was. Milestones like this kind of validate that the young MFJ had a clue of what he was doing and that true wealth is built very simply and relatively slowly over time.

Interim Retirement Nestegg Report – I broke $900,000

Interim Retirement Nestegg Report – I broke $900,000

The run continues – another 100k milestone just 7 months after my last milestone and what’s even crazier to me is that my nestegg has increased in value more than $43,000 in just 8 trading days in 2018 with no contributions! The next milestone will be kind of a special one as I will officially reach the double comma club and at current trend/pace will potentially reach it quite a bit ahead of my original planned schedule of getting there before age 40.

Taxable Account- $52,395.00
Private Stock $63,100
Traditional Rollover IRA – $29,326.93
My Roth IRA – $208,716.50
Wife Roth IRA – $129,780.78
Traditional 401k – $416,691.54

Roth/Traditional % = 37.61% (tax free)

Total Retirement Nest Egg $900,010.75
Retirement Salary (4%) $36,000

$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%)
January 2018 $25,484.72(+20.31%) $900,000 (+12.5%)
My best and worst stocks in 2017

My best and worst stocks in 2017

Well as with my portfolio in general I had some high flyers when it came to my individual stocks. I had 3 stocks more than double and 11 stocks outperform the market out of my 27 individual stocks. Overall it doesn’t take too many winners to wipe out a lot of losers and well I sure had a lot of big winners this year. Looking at this list I feel very good about their prospects long term even given the large run up in 2017. Panera was bought out so that is no longer part of my portfolio. It is also interesting that some of my biggest winners this year are pretty massive companies and have been winners for me for quite a few years (Amazon, Netflix, Apple, Tesla).

Arista Networks +142.71%
Shopify +135.87%
IPG Photonics Corp +116.77%
Proto Labs +95.08%
Intuitive Surgical +70.59%
Panera +56%
Amazon +55.17%
Netflix +50.57%
Apple +45.70%
Tesla +43.49%
Brookfield Infrastructure Partners +34.00%

Now to my losers. 3D systems did it again! Every year I have owned it, it has easily made my best/worst list. Thankfully it’s only worth 0.13% of my portfolio and is currently down 73% for me.

3D systems annual performance
2012 +90.40%
2013 +172.91%
2014 -63.79%
2015 -73.63%
2016 +52.93%
2017 -36.89%

The big kick in the gut with this list was Under Armour and Chipotle, both of who have been very good long term wealth accumulators for me and which had previously been a pretty good portion of my portfolio. They both have their current short term struggles and I am more than willing to give them a few years to work things out.

Under Armour -48.29%
3D Systems -36.89%
Zoes Kitchen -28.79%
Chipotle -22.88%