I’m not even sure what to say anymore. I don’t think I could have imagined what has happened this year in my wildest dreams. My nestegg has put on just under $660,000 in value this year while there is a global pandemic and the market indexes as a whole are down for the year.
My individual stocks driven by Tesla, Shopify, Netflix, and Amazon are just absolutely crushing the market as a whole. My individual stocks are currently up 106.85% YTD meanwhile the SP 500 is currently at -1.41% YTD for a market outperformance of over 108% in just over 6 months.
I have put the majority of my money in my vanguard index funds and yet my individual stocks have performed so well that they now account for over 70% of my portfolio and the 4 stocks that I listed above as crushing it now account for almost 52% of my retirement nestegg. Clearly this opens me up for some extreme volatility and so far this year its been the good kind of volatility which is exacerbating the “problem”.
Like I mentioned before when it comes time to rely solely on my investments for livable income the vast majority of my money will be rebalanced into index funds, but for now I will continue to let it ride knowing full well that a half a million dollars or more could easily be wiped off in a short period of time, but I am still ok with that.
I feel like I have done the right thing with asset allocation and my only mistake has been that I was too good/lucky with the smaller portion that I allocated to individual stocks. I just went and calculated and over the last 14.5 years that I’ve been investing in individual stocks my annualized return currently sits at 19.23%. Now granted this year has helped this tremendously but all along it’s been outpacing the market enough to make me think it was worthwhile in my specific case.
19.23% annualized returns or even touching an individual stock is not at all necessary for early retirement. In fact I would argue that in 90%+ of cases it will result in you getting to retirement much slower, but in my case I just got extremely lucky.
Taxable Account Ally- $167,917.55
Taxable Fidelity – $5,716.76
Private Stock $72,000
Traditional Rollover IRA – $77,126.62
My Roth IRA – $650,714.27
Wife Roth IRA – $375,381.24
Wife 401k – $4,647.64
Traditional 401k – $554,649.92
Roth/Traditional % = 53.77% (tax free)
Total Retirement Nest Egg $1,908,154.00
Retirement Salary (4%) $76,326
$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 |