According to my Integrity Policy, I want to let you know that this post contains Personal Capital referral links. Personal Capital is a free service. They are looking for high-net worth individuals as possible customers for their financial advisory services, but the expense tracking and retirement planning tools that I recommend are free of charge.
This month was epic! In some ways, it was my doing, and it other ways, it wasn’t. Let’s take a look at the numbers.
|Real Estate Operating Account||$1,715.27||$1,774.87||$59.60|
|Real Estate Cash Flow Account||$1,640.25||$2,298.12||$657.87|
|Retirement - After Tax||$39,812.67||$44,301.84||$4,489.17|
|Retirement - 401(k)||$51,061.64||$65,528.05||$14,466.41|
|Retirement - IRA||$4,175.02||$4,502.52||$327.50|
|Asset - Home||$408,438.00||$437,000.00||$28,562.00|
|Asset - Rental 1||$55,324.00||$55,692.00||$368.00|
|Asset - Rental 2||$71,228.00||$70,703.00||-$525.00|
|Mortgage - Home||-$383,724.42||-$383,500.43||$223.99|
|Mortgage - Rental 1||-$44,907.39||-$44,849.78||$57.61|
|Mortgage - Rental 2||-$48,624.26||-$48,561.03||$63.23|
|Student Loan 1||-$23,172.61||-$23,050.70||$121.91|
|Student Loan 2||-$14,404.72||-$14,328.95||$75.77|
|Student Loan 3||-$5,338.12||-$5,242.80||$95.32|
Holy cow! That’s an increase in net worth of almost 42%!
The biggest factor in this increase was increase in value of our primary residence (which is finally out from underwater after 8 years, but that’s another blog post), but the second most powerful factor was the one I’m constantly harping on. When the market is down, what should you do? Buy! When the market was down, what did I do? I bought! I bought with every penny I could find!
I never try to time the market, I just buy according to my investment policy statement every time I get paid. I also happened to get a little lucky this past month. I had a check come in from one of my contracts that wasn’t earmarked for taxes or any other expenses, so almost everything I earned this month went into the market. I happened to purchase within a day or so of the very bottom of the recent correction. When the market came back, it came back big time for me! It was almost like having a time machine that took me back a full year and allowed me to buy at those prices!
Everything else performed as expected this month: Rental income, student loan and mortgage payments, and all the rest.
This coming month (and most other months!) will be comparatively modest. I’m investing as normal, but I’m also traveling to Thailand for major dental work. Though that will be much cheaper than seeking the same treatment in the US, it will still be a pretty expensive month. I still hope to see my net worth increase.
As I mentioned in my Integrity Policy, I want to make sure I share any and all professional relationships and compensation I make as a part of this blog. In October, I made $4.28 in Google Ad income. I received $100 in referral payments from Personal Capital. I had a few clicks to my iTalki link, but nobody has taken a lesson so I haven’t received any lesson credits there this month. Thus, my total income for the month from the blog was $104.28.
Note: I report Google Ad revenue as it as earned, and any other income when it is paid.
Our net worth is up $47,887.20 this month, which is pretty darn unbelievable (and unlikely to be repeatable!). We hope to be able to retire in 47 months. Based on our plan for investing and purchasing properties, we are on track.
With equity and bond accounts totaling $114,332.41 at the end of September a 4% Safe Withdrawal Rate would allow us to take out $381.11 per month. My rental properties, after all expenses, vacancies, and short and long term maintenance are considered, produce $465.00 of safe cash flow every month.
Safe Monthly Income: $846.11 (+$64.28 to Last Month)
% to Goal: 16.92% (+1.28% to Last Month)
Want to Know How to Track Your Expenses This Closely?
It’s really easy. Sign up for a Personal Capital account, which is completely free. It’s how I track my balances across time, and allows me to project all my retirement progress without doing any work at all. As a disclaimer, if you sign up with Personal Capital, this site may get a referral fee depending on the size of your portfolio.