Interim Retirement Nestegg Report $1.9M
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 |