Browsed by
Month: May 2011

Holy crap I’ve made a lot of money in the stock market

Holy crap I’ve made a lot of money in the stock market

I’ve started become more aware of how good my investment performance has been of late, but one thing that kind of solidified it for me was not only comparing my performance against the SP500, but then also looking at my investment returns in actual dollar figures. I don’t know why but while I think its cool to have great investment returns and see my nestegg grow by so much each month, I really wasn’t all that blown away by what was happening. Then for some reason I decided to break down my investment returns in actual dollar amounts and for whatever reason kind of blew me away.

This was money that I got and didn’t have to work for (well technically). I mean its the whole point of investing and you are probably thinking “no kidding you idiot – that’s why you invest”, but sort of like a kid who can’t understand why if they take the money they got from their grandparents for their birthday and put in the bank the bank will give them more money for what appears to be no good reason – its almost magical. Well this is sort of how I view how much money I’ve made in the market for just taking some money, not spending it, and throwing it into the stock market.

Here are my $$ returns each year I have been investing.

2006 – $3,603.49
2007 – $2,576.67
2008 – $(35,108.72)
2009 – $22,455.55
2010 – $32,127.00
2011 YTD – $20,737.30

Total money made in stock market in career – $46,391.29

Total money made in last 28 months – $75,319.85

So as you can see of my current $193,285 nestegg 24% of that has come from investment returns or basically money that just fell out of the sky and into my account.

Now granted I sort of cherry picked the dates, but I have been on an absolute tear the last 2+ years have during that time have made over $75,000 in the stock market and in just the first four months of this year I have made over $20,000 or in other words over $5,000 a month.

This to me is what really opened my eyes and was like holy crap – thats a lot of money for really no work and while its not consistent at all and I could just as easily lose $75,000 in next eight months, I’m currently making enough money in my retirement accounts that in theory I could pay my mortgage, take care of my family of five, and still have quite a bit of money left over all for doing next to nothing. The best part about all of this is I am still very young and just getting started. Again I know this is not eye opening revelation for most people and I certainly am not counting on this kind of performance going forward, but it really was eye opening for me to see the power of compounding/great investment returns/ and passive income.

Going forward I think I am actually going to keep track of that value just like I do my total nestegg, because long term thats where the majority of my money is going to come from and like I said for whatever reason it was kind of an eye opener for me.

Retirement Nestegg Report – April 2011

Retirement Nestegg Report – April 2011

Well another strong month of growth for my retirement nestegg and another strong month of investment returns bla bla bla. Seems to be a reoccurring theme each month and makes these monthly posts pretty monotonous. I am closely sneaking up on the $200,000 figure for my retirement nestegg and both my 401k and my individual stock accounts are each getting close to $100k a piece. So potentially lots of neat little milestones next month if I have another month like this one.

A few other interesting things happened last month. In my last monthly report I mentioned I got a 4% annual raise. Well I was feeling pretty good about myself and decided to go back to my boss and tell him that 4% just wasn’t going to cut it – and he bumped it up to 14.4% and I am now making over $100k a year in base salary from my primary job – which is kind of cool.

The other item is that our house savings account surpassed $100,000 last month – which as I pointed out last month is not so cool because its cost me a lot of potential investment gains as that extra money would have all gone into our retirement accounts, but is something we decided to do and will allow us to hopefully get a chunk of land out in the country and build a house on it.

Anyway here is the report

Traditional Rollover IRA – $15,455.57 (+8.91%)
My Roth IRA – $ 52,569.45 (+4.00%)
Wife Roth IRA – $28,917.87 (+1.10%)
Current Traditional 401k – $96,342.28 (+4.86%)

Roth/Traditional % = 42.16 % (tax free)

Total Retirement Nest Egg $193,285.17 (+4.35%)

Monthly Contributions $1,039.65 (401k)
SPY Performance +2.90%
My Monthly Investment Performance +3.77% (+0.87%)
My Monthly Individual Stocks Performance +3.84% (+0.94%)