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Retirement Nestegg Report December 2020

Retirement Nestegg Report December 2020

Oof. Wow what a year. I don’t even know how to put into words how crazy this year was. Obviously everything going on with a global pandemic and all of the horrible things that everyone has had to deal with this year has been at the forefront of everything 2020. One would logically think that 2020 would have been a horrible year to be an investor and once the pandemic hit I would have agreed 100% with that statement and I’m not sure many experts would have disagreed either.

Fortunately this is now not my first rodeo and I have experience of the benefit of doing absolutely nothing and this year it paid off in spades. My retirement nestegg over doubled ending the year up 117%. This was driven in a very large part by my individual stock portfolios which ended the year up 218%, which was driven in large part by the meteoric stock rise of Tesla which was by far my largest holding.

Our investment gains for 2020 were just short of $1.5 million. To put that in perspective all of my investment gains for the prior 14 years were only $890k and well my entire nestegg was only worth $1.2M going into this year. That’s the power of compounding in full force and well obviously our returns supercharged everything.

I will be the first to admit that I am extremely lucky. I have hit some massive homeruns with some of the best individual stock performers in the last 20 years (Netflix, Amazon, Tesla). My Tesla position now makes up $1M of my portfolio and that amount very well could be $0 as Tesla could have gone bankrupt. I definitely took some small educated risks over my career and some of them have paid off handsomely.

The thing is I didn’t need to be lucky. I didn’t need to take risks. Simply living below my means and putting my money in index funds has resulted in me having a sizeable nestegg that gives me tons of future freedom. I have contributed significantly more to my index funds and I started very early in this journey. This gave me the freedom to take some risks without really risking anything at all. If everything blew up in my face with my individual stock portfolio I was still going to be very ok and still on track for an early retirement. I already had my pile of F-you money. This gave me the freedom to take risks with parts of my portfolio and with my career choices.

F-you money money opens up so many new doors for you and I highly suggest you start accumilating your own pile of F-you money.

This now marks 15 straight years that I have published my retirement nestegg report. In that time it has grown from $24,616 to today’s total of $2,761.505. This has been incredibly valuable to me as I tracked my progress against my financial goals. Going forward this number really doesn’t mean much to me anymore and I really don’t have much more to accomplish. In that respect I’ve made the decision to stop publishing my monthly reports going forward.

I proved my point that by simply living frugally and investing for the long term over a period of 1 or 2 decades will result in more money than you could ever need. It wasn’t complicated. You didn’t need to win the lottery. You didn’t need to be a professional athlete. Just spend less than you earn, invest it, and let time work its magic.

Fidelity Taxable – $6,025.88(+10.24%)
Taxable Account- $331,736.27(+20.49%)
Private Stock $82,500(+0.00%)
Traditional Rollover IRA – $116,164.46(+16.30%)
My Roth IRA – $1,010,837.95(+15.35%)
Wife Roth IRA – $531,398.11(+9.38%)
Wife 401k – $5,577.30(+2.69%)
Traditional 401k – $677,265.58(+4.69%)

Roth/(Traditional+Taxable) % = 55.85% (tax free)

Total Retirement Nest Egg $2,761,505.55(+11.45%)
Retirement Salary (4%) $110,460

Monthly Contributions $933.84(401k)
SP500 Performance +3.71%
My Monthly Investment Performance +11.42% (+7.71% vs SP500)
My Monthly Individual Stocks Performance +14.55% (+10.84% vs SP500)

My retirement contributions for 2020 $31,376.37
401k $7,174.31
401k matching $12,302.06
My Roth IRA $0
Wife Roth IRA $0
Taxable Account $$11,900.00
Wife Retirement Account ??


SP500 Performance for 2020 +16.26%
Investment Performance for 2020 +117.02% (+100.76% vs SP500)
Individual Stock Performance for 2020 +218.49% (+202.23% vs SP500)
Total Investment Return 2020 +$1,481,868.23

Retirement Nestegg Report November 2020

Retirement Nestegg Report November 2020

Well another all time record high for our nestegg and near all-time high for gains and percentage. It’s bonkers that a gain of $430k and 21% in a single month is not an all-time record, but no just a few months ago in August the increases were even higher. As usual a large percent of these gains were driven by the performance of Tesla stock though the market has a whole had an impressive 10.76% gain now that the election is behind us. What’s even more impressive is I wasn’t even aware that the gains this month were anything special until I did this report. Looks like yesterday was a down day so I likely surpassed the $2.5M milestone yesterday – which equates to $100k forever retirement income which is more money than we will ever need.

Going forward I just need to come up with a better plan on how I can access any of this money over the next 20 years and start dialing back the amount of time we spend working.

Fidelity Taxable – $5,466.09(+6.81%)
Taxable Account- $275,325.93(+36.09%)
Private Stock $82,500(+0.00%)
Traditional Rollover IRA – $99,887.68(+28.91%)
My Roth IRA – $876,355.03(+25.95%)
Wife Roth IRA – $485,811.18(+23.15%)
Wife 401k – $5,431.03(+11.41%)
Traditional 401k – $646,952.83(+11.47%)

Roth/(Traditional+Taxable) % = 55.37% (tax free)

Total Retirement Nest Egg $2,477,729.77(+21.28%)
Retirement Salary (4%) $99,109

Monthly Contributions $933.84(401k)
SP500 Performance +10.76%
My Monthly Investment Performance +21.24% (+10.48% vs SP500)
My Monthly Individual Stocks Performance +26.81% (+16.05% vs SP500)

Retirement Nestegg Report October 2020

Retirement Nestegg Report October 2020

Another down month for my retirement nestegg and another month of underperformance by my investments. My nestegg however is still up over 60% YTD, so I think I will be ok. This has been my best year ever on every metric and volatility is to be expected. Long term the trajectory looks great.

Fidelity Taxable – $5,117.72(+0.87%)
Taxable Account- $202,311.18(-8.18%)
Private Stock $82,500(+0.00%)
Traditional Rollover IRA – $77,484.52(-6.34%)
My Roth IRA – $695,775.93(-7.36%)
Wife Roth IRA – $394,484.57(-7.46%)
Wife 401k – $4,874.69(-1.90%)
Traditional 401k – $580,366.73(-2.51%)

Roth/(Traditional+Taxable) % = 55.37% (tax free)

Total Retirement Nest Egg $2,042,915.34(-5.78%)
Retirement Salary (4%) $81,716

Monthly Contributions $1,400.76(401k)
SP500 Performance -2.77%
My Monthly Investment Performance -5.85% (-3.08% vs SP500)
My Monthly Individual Stocks Performance -7.45% (-4.68% vs SP500)

Retirement Nestegg Report September 2020

Retirement Nestegg Report September 2020

Well after last months insane month I should not be surprised at all to see my accounts dip a little bit this month. Ironically my first month back to work and my net worth dropped by over $150k, while the 3 previous months where I was not earning income my net worth increased by over $828k.

This means nothing per say especially in those types of short term freak occurrence time frames, but it does put into perspective that I’ve put myself in a situation where working for money is trivial compared to the massive snowball of previously saved and invested dollars that are going to work for me every single day regardless of what I decide to do when I get out of bed.

That part is the incredibly powerful part and was the whole point of everything and I think it’s still something that I am having trouble coming to grasp with as to just what a powerful and meaningful force that is and how to best use it to make my life better.

Big numbers are big and sometimes I don’t fully grasp what my nestegg is worth and capable of. In a relatively non eventful month we just lost a years worth of working salary. In the prior 3 months we gained over 5 years of working salary. That’s insane and what’s really insane is that it’s only going to continue to get more and more insane as time goes on.

Fidelity Taxable – $5,073.72(+3.76%)
Taxable Account- $220,327.48(-10.76%)
Private Stock $82,500(+0.00%)
Traditional Rollover IRA – $82,729.94(-2.33%)
My Roth IRA – $751,045.35(-9.11%)
Wife Roth IRA – $426,286.63(-7.38%)
Wife 401k – $4,968.88(-4.80%)
Traditional 401k – $595,324.03(-2.86%)

Roth/(Traditional+Taxable) % = 55.37% (tax free)

Total Retirement Nest Egg $2,168,256.03(-6.69%)
Retirement Salary (4%) $86,730

Monthly Contributions $531.12(401k)
SP500 Performance -3.92%
My Monthly Investment Performance -6.69% (-2.77% vs SP500)
My Monthly Individual Stocks Performance -8.51% (-4.59% vs SP500)

Retirement Nestegg Report August 2020

Retirement Nestegg Report August 2020

Well an all-time record month for our retirement nestegg in every single category. Our nestegg hit an all time high north of $2.3M which was an increase of over $430k over last months all-time high. Our nestegg grew by 23.41% and our individual stock holdings grew by 31.33% compared to the market returns of 7.01% just this month. This now puts our investment gains north of over $1M year to date.

All of this is mind blowing and I don’t even know what to think. This is a combination of us living significantly below our means for our entire lives, investing that money, and then more recently getting incredibly lucky with the small allocation that we had dedicated to individual stocks.

As far as the path forward I very much am aware of the easy come easy go – especially in the short term, especially with the meteoric rise of Tesla which now accounts for 1/3 of our retirement nestegg. Things will be volatile and I do expect I will be writing reports at lower values than this one. Luckily for me I’m playing a long term game so I don’t have to worry about timing the market like an idiot

What I will work on though is increasing the amount of money I can use for early retirement. I have a unique problem of having enough money to retire, but it is currently kind of in the wrong buckets. Most of it is held in my 401k and IRA accounts which I cannot touch for the next 18 years without paying penalties and taxes. I am going to withdraw the $100k or so of contributions that we made to our Roth IRAs and put it into a taxable account to hopefully grow our taxable account to a figure large enough to live off of for the next 18 years.

Fidelity Taxable – $4,889.74(-13.43%)
Taxable Account- $246,889.41(+55.42%)
Private Stock $82,500(+14.58%)
Traditional Rollover IRA – $84,706.37(+9.06%)
My Roth IRA – $826,305.88(+31.36%)
Wife Roth IRA – $460,263.23(+26.88%)
Wife 401k – $5,219.59(+7.38%)
Traditional 401k – $612,867.58(+7.14%)

Roth/(Traditional+Taxable) % = 55.37% (tax free)

Total Retirement Nest Egg $2,323,641.80(+23.41%)
Retirement Salary (4%) $92,945

Monthly Contributions $5000(Taxable)
SP500 Performance +7.01%
My Monthly Investment Performance +23.41% (+16.40% vs SP500)
My Monthly Individual Stocks Performance +31.33% (+24.32% vs SP500)

Retirement Nestegg Report July 2020

Retirement Nestegg Report July 2020

Well another banner month for our retirement nestegg with us hitting four different $100k milestones in a single month including punching through the multi-million dollar mark.

Things are obviously down a bit from that all time high, but hard to get upset at all about putting on over $200k in a single month and have now put on $634k YTD. Our individual stocks have returned just under 100% YTD and things are coming together better than I ever could have expected. My original goal was to hit $1M by age 40 and we actually hit the $2M mark.

Life is good.

Fidelity Taxable – $5,648.33(+7.36%)
Taxable Account- $158,850.64(+23.21%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $77,667.94 (+13.28%)
My Roth IRA – $629,034.16(+18.34%)
Wife Roth IRA – $362,755.12(+14.91%)
Wife 401k – $4,860.75(+5.61%)
Traditional 401k – $572,019.27(+5.00%)

Roth/(Traditional+Taxable) % = 50.69% (tax free)

Total Retirement Nest Egg $1,882,836.21(+12.65%)
Retirement Salary (4%) $75,313

Monthly Contributions $466.92(401k)
SP500 Performance +5.51%
My Monthly Investment Performance +12.62% (+7.11% vs SP500)
My Monthly Individual Stocks Performance +17.57% (+12.06% vs SP500)

Interim Retirement Nestegg Report – $2M

Interim Retirement Nestegg Report – $2M

Well today our nestegg hit $2M about 30 minutes into a new trading day where just the prior day it had just hit $1.9M.

This was a direct result of TSLA continuing its meteoric climb. This has been very rewarding as there has never been a stock where I had a stronger conviction on. There have been many bumps in the road and lots of naysayers – just like all there have been with all of our big winners (Netflix, Amazon, etc), but it is very rewarding (mentally and financially) to take the long term view and ignore all of the nonesense that has zero affect on the long term picture.

Now that we have hit the $2M milestone and the fact that these $100k milestones are now hit on a daily basis I will no longer update things mid month with interim financial reports and will just do my normal monthly reports going forward.

Taxable Account Ally- $186,598.38
Taxable Fidelity – $5,653.53
Private Stock $72,000
Traditional Rollover IRA – $79,594.95
My Roth IRA – $697,754.08
Wife Roth IRA – $398,426.82
Wife 401k – $4,647.64
Traditional 401k – $560,862.98

Roth/Traditional % = 54.66% (tax free)

Total Retirement Nest Egg $2,005,538.38
Retirement Salary (4%) $80,221

$100,000 NestEgg Milestones

Date DOW Jones Value MFJ Nestegg Time to Achieve
Oct 2008 10,000 $ 69,300 29 years 2 months
Oct 2009 10,000 (+0%) $100,000 (+44%) 30 years 2 months
Feb 2012 13,000 (+30%) $200,000 (+100%) 2 years 5 months
Jul 2013 15,423 (+19%) $300,000 (+50%) 1 years 5 months
Feb 2014 16,395.88 (+6.3%) $400,000 (+33%) 7 months
April 2015 18,084.48 (+10.30%) $500,000 (+25%) 1 year 2 months
August 2016 18,636.05 (+3.05%) $600,000 (+20%) 1 year 4 months
January 2017 20,068.51 (+7.69%) $700,000 (+17%) 5 months
June 2017 $21,182.53 (+5.56%) $800,000 (+14%) 5 months
January 2018 $25,484.72(+20.31%) $900,000 (+12.5%) 7 months
May 2018 $24,667.78(-3.21%) $1,000,000 (+11.1%) 4 months
April 2019 $26,234.34 (+2.94%) $1,100,000 (+10.0%) 11 months
December 2019 $28,331.20 (+7.99%) $1,200,000 (+9.1%) 8 months
January 2020 $28,885.42(+1.96%) $1,300,000 (+8.3%) 0 months 28 days
February 2020 $28,399.81(-1.68%) $1,400,000 (+7.7%) 0 months 21 days
February 2020 $29,308.80(+3.20%) $1,500,000 (+7.14%) 0 months 15 days
June 2020 $27,049.00(-7.71%) $1,600,000 (+6.67%) 3 months 22 days
July 2020 $25,884.15(-4.31%) $1,700,000 (+6.25%) 0 months 21 days
July 2020 $26,209.81(+1.26%) $1,800,000 (+5.88%) 0 months 5 days
July 2020 $26,075.30(-0.51%) $1,900,000 (+5.56%) 0 months 4 days
July 2020 $26,365.23(+1.11%) $2,000,000 (+5.26%) 0 months 1 day