Interim Retirement Nestegg Report $1.9M

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