Retirement Nestegg Report – December 2009

Retirement Nestegg Report – December 2009

Well 2009 has come to an end and my retirement nestegg is at an all-time high. Despite things being so horrible and everything being in shambles with the economy my retirement nestegg grew 76% this year and to be honest other than these reports I barely noticed or barely cared. In fact I am to the point now where I can go a month or more without even looking at a stock market ticker or knowing whether the market went up or down, and to be honest I think this is a really good thing.

I’ve learned a lot over the past 4-5 years – I had lots of fun seeing my nestegg grow and my stocks jump or fall 20% or more in one day, but now after a few years I’ve realized that day to day, month to month, or year to year fluctuations really don’t mean anything and its just a waste of time to follow or care about them. I did my few years of homework and learned tons about personal finance and investing, put a plan together, and now I am in cruise control and can spend my time worrying about more important things like watching my kids grow up and working on my golf game. No amount of time and daily effort on my part is going to make a bit of difference on whether a stock or mutual fund of mine is going to go up or down or for me to try to rationalize why something went up or down. It simply does not matter. People who spend time doing this are wasting their time and probably hurting their performance, because well when you follow something so intently – you tend to take action – which is usually a bad thing.

From now on I will create these monthly reports – well partly because I started them from the beginning and its fun to see how the month to month fluctuations mean absolutely nothing in the long term. From now on I will check my investments maybe once or twice a year and then pretty much forget about them and live my life – which in the end is the whole purpose of this investing game.

Anyway here is my 2009 year end nestegg report and a chart of its growth over 2009.

Traditional Rollover IRA – $10,919.10 (+5.66%)
My Roth IRA – $32,298.79 (+5.58%)
Wife Roth IRA – $17,936.49 (+6.75%)
Current Traditional 401k – $44,261.51 (+13.03%)

Roth/Traditional % = 47.65% (tax free)

Total Retirement Nest Egg $105,415.89 (+8.80%)
My Contributions for 2009 $14,383.91
SPY Performance for 2009 +26.46%
Investment Performance for 2009 +32.75 (+6.29%)
Individual Stock Performance for 2009 +35.78% (+9.32%)
Total Investment Return +$22,455.55

2009 Retirement Nestegg Growth

  • PhxKev

    What? That’s it? After all this time and effort it’s time to put on the cruise control? I’m a little shocked and not sure I understand, let alone agree. Without a doubt it makes sense to pull back on financial obsession from time to time (we all need a break) but I dont think that staying active in the markets and enjoying your life/family are mutually exclusive. After all the effort you put in to learn ways to save, and increase returns, at 30 years old and 100k seems like hardly the time to chill out and enjoy. There’s a lot of things on the horizon both personally and financially that can make that extra few percent return worthwhile. Especially if you enjoy it. Kids college? Braces? Sport courts? A car without rust? Charity, job loss, the dead reanimating and returning to life…all of these unforeseen circumstances could make keeping vigilant and on your A game worthwhile.

  • MFJ

    Thanks for the comment PhxKev. I think you took the cruise control comment a little too literally. I am still very much involved and monitor my finances just as close as I used to, its just easier now and I don’t have to micro-manage nearly as much as used to or not as much where I feel its intriguing enough to people to write about.

    I have kids college savings account created and funded each month, I currently have $40k saved up for the new house / basketball court / hobby farm. So this doubles as the emergency fund and I hope will reach $100k in the next 18 months.

    We are going on a family vacation to Florida in a month or so and we do need to work on our charity (wow you must read my blog you got all of my major goals/aspirations nailed down in one comment).

    The part where I am on cruise control or where I have taken a step back on is researching so hard on individual stocks / mutual funds and being an active buyer of stocks. For whatever reason I feel very comfortable picking out my few funds and leaving my individual stocks as they are and just putting that part in cruise control. I really am not sure all of the extra effort I put into that part (buying new stocks each month) was really going to increase my returns enough or at all vs just coming up with a high level plan and buying a few good funds via automatic purchases each month.

    All of my saving whether its retirement, kids college, new house, vacation fund, golf membership, etc are all automated so everything I do is so easy now that I rarely have to think about it. I’ve worked so hard over the last few years finding the sweet spot between saving vs living now and think I really have things figured out where I don’t have to work so hard to find new ways to save – to me its all in cruise control and I can sit back and watch and enjoy.

    That being said I’m very glad you commented and sort of nudged me, because maybe I am being a little too laid back and should setup some good goals to push myself as I head towards 40.

    Maybe its the 3 kids, maybe its the big magic age 30, or maybe its all of the work I put in the last 5-6 years, but I seem to be in less of a hurry or worry about my finances. I know I am on the right track and am doing the right things and have been for a while so its tough to get too excited anymore – which I think is a good thing as long as it doesn’t get taken too far.

    I do need some new goals though and glad you prodded me. I will do some soul searching and try to come up with some good ones shortly.

  • Michelle

    You’ve earned the right to put your retirement on cruise control. Well done!

  • Keep the goals coming! I want to see $500k by 35 or $1M by 40! What if you could retire by 40? What would that take? $2.5M in an account earning 4% in a banking policy or other account would yeild $100k a year! Think about it!

    Kudos on hitting your goals 🙂

  • This blog really is an inspiration to me, as I am just startign out in the working world and would love to be in your position by the time i turn 30. I sadly do not have a 401k option but I am starting my own Roth IRA account and will max that out at 5k a year hopefully for the next 40 years! haha scary even thinking about that. Any tips for someone just starting out? Should I be investing in stocks on the side as well?

Comments are closed.