Tag Archives: networth

2016 Networth Checkin: $416,583

Incredibly, 2016 has come to a close. My networth goal for 2016 was  somewhere between $400k and $500k from last year’s $352k finish. I didn’t get (anywhere near) $500k, but I still feel accomplished given my mental health and spending more than I wanted to on my wedding this year. I’ve concluded 2016 with $416,583 in networth, including:

  • $14k in cash
  • $188k in taxable investment accounts
  • $204k in retirement accounts
  • $9.9k in college 529 (for grad school or future kids)

My goals for 2017 are:

  • $15k in cash
  • $250k in taxable investment accounts
  • $225k in retirement accounts
  • $10k+in college 529

TOTAL: $500,000

It will be tough, but this goal should be do-able if I either stay in my current job or find another one that pays close to this one. Even if I reduce my current salary by $20k I should be able to still hit this goal. I must save $84,000 in the next 12 months, or $7000 per month. This is definitely do-able with my current job (I make about $10k after taxes per month), but if I reduce that to $9k per month I can manage to save enough. Any less than that it would be challenging with my current rent and other recurring fees.

I am worried about the costs of infertility treatments (that will definitely ruin my networth goal for the year) but I’ll cross that bridge when I get to it. Even though my mental health is poor right now I know I will feel a huge sense of relief when achieving $500k in networth. It has been a dream of mine since forever ago to achieve half a million in networth prior to giving birth. Well, as I’m not pregnant yet I have AT LEAST nine months before I need to get to $500k. At this rate I’ll have more than nine months to get there.

2016 Home Stretch: Networth Goals and New Directions

My 2016 goal was to hit between $400k and $450k in networth. While I’m not going to get anywhere near the top of that range, there is still a chance I can make it to $400k.

On January 1, 2016 my networth was $339.5k. As of November 15, 2016, my networth is $391.4k, a $51.9k increase.  To hit my objective of $400k networth minimum, the stock market needs to hold out and I must save around $9k more between now and the end of the year. That should be doable but it will be close.

Next year is theoretically the big $500k year. With very poor job stability right now I’m guessing that goal is going to have to be adjusted down significantly – I won’t actually get to $500k before I have a baby (since I’ll probably have to spend $50k to even get pregnant!) In any case, despite the shakiness at work, I’m feeling good about getting closer to achieving my goals for the year.

I’m very seriously considering moving to a lower cost of living area to have a family and taking on a lower paid career – I just want to cross that $500k mark before I do. Having $500k in the bank means $1M-$2M in retirement as long as the markets don’t completely crash and go up at a reasonable rate, as long as I don’t touch the $500k basis. I will feel very successful once I get to $500k, and as I’m at $391 now it isn’t that far out. It’s definitely possible.

crowdfunding

How to Become an Accredited Investor

There are many benefits to being an “accredited investor,” primarily centered around being able to invest in securities not registered with financial authorities. In other words, the government blocks non-wealthy folks from making “high risk / high reward” investments. Is this fair? Shouldn’t I be allowed to invest my money in any investment if I earned that money?

While investments open only to accredited investors are high risk, there are many other investment types open to any income level which are extremely high risk. Even investing in one individual public stock – which anyone can do – is nearly the equivalent of putting all of one’s money on red in Vegas. Continue reading

Budgeting to Achieve $500k Goal Before Kids

As my long-time readers know, my “impossible” goal of hitting $500,000 in individual net worth before I have my first child is somehow within sight. It’s still seemingly impossible, but I always aim high and see how far I can get. I’m not pregnant yet, so that gives me at least nine months to get there. Below, I’m going to detail my budget plan to take me from where I am today to where I want to be before my first child is born.

On 7/15/16, my networth calculations = $379,412.

This leaves $120,588 to save prior to having children.

Continue reading

Mid Year Networth Check In

It’s been a while since I’ve written about finances on this blog, and since it’s somehow half way through the year it’s time to do a quick check in. So, the first half of this year has not been as profitable as it should have been given my high income, but the wedding just wiped out most of my gains. My stock has been performing ok so I haven’t lost money on paper, but I could be doing much better right now had I not gone crazy on my wedding. I don’t regret it, though, and it just inspires me to tighten my wallet for the rest of the year to hit my goals.

My goal WAS $500k before having kids and it still kind of is — I’m not pregnant yet and I’m at $373k in net worth right now… leaving $127k left to achieve my goal before I have my first child. Even if I got pregnant tomorrow, that leaves me nine months to accumulate $127k, which is $14k a month… not exactly doable (I figure being frugal with my current income I can save about $6k a month) but this is all on the hypothetical if I get pregnant tomorrow which likely won’t happen. More likely it will take me at least a year to get pregnant (and we aren’t going to really start trying until after our actual honeymoon next spring) so that buys me an extra 9 months at least… getting me to $7k a month savings/interest needed to hit my goal. While it will be tough the goal actually seems POSSIBLE to hit. It all depends on when I get pregnant and if I can keep my job – both serious up in the air variables – but if I’m not quite at $500k when I have a kid it won’t be the end of the world. It’s just a random goal keeping me on track to $2M+ in retirement.

(See first half of year being kind of bleh below:)

Screen Shot 2016-07-03 at 3.39.43 AM

I’m counting wedding gifts towards my total which I guess I should split in half with my husband, but he/his family didn’t pay for much of the wedding, so I’m currently keeping them toward my net worth (it still doesn’t cover all of what I spent on the wedding.) I’ll have to write another post on married finances because that’s worth a post (at least) but for now I’m still tracking my net worth independently. I think I will until I get to $500k because what fun would it be to merge our finances and get there by cheating and adding his small savings into mine. I want to get to $500k so I can move on to my next goal of $750k and then the big $1M. I think $1M by 40 is achievable but I might not go for that… I might aim for $1M by 45 or 50 and slow my career down a bit and seek out a better career that brings more happiness and creative fulfillment. Once I get to $500k I don’t want to go under it by much, I feel that’s a good amount for financial freedom when I still want to work full time.

My Parents Are Actually Not That Great with Money

When I grew up I knew two things to be fact – my dad was talented at earning money and my mom was equally talented at spending it. My mother constantly complained about us not having a lot of nice things – and we indeed were upper middle class and not a millimeter over the upper class line – but we had it rather great. As my father worked a professional job requiring his math brain, the money kept rolling in. And my mom (and I) would keep spending it.

But despite the “every time we come back from the mall” fights on spending it never was  a “real” issue. We weren’t in danger of losing the house. My private college tuition was paid for outright. So was my sister’s private school for a learning disability and then college. Apparently at some point my father’s company was sold and he did fairly well for himself in his stock and income appreciation. My parents should be comfortably set for life and then some.

However my father (who was told he had two years to live about nine years ago, mind you) and my mother have spent and spent and spent post “earning” years and with the stock market underperforming all his estimates about his finances didn’t quite pan out. Shocking for a man who made a career out of calculating risk. Yet, here we are today, with my father looking at all the numbers involved in the family finances and he can’t make heads or tails of it. There’s a massive home equity loan out that has to be paid back fairly soon, and there’s little left on it to borrow at this point anyway. He wanted to spend a lot on my wedding but, now that I better understand their financial situation – I realize it was not a good idea. It’s not that they are broke – they have social security and pension money coming in… about $100k a year. But in order to afford not only my wedding but also a winter condo they bought in the southeast and renovations to that condo and fixing a bunch of things breaking around their main house there is the reality that my dad had to pull out a bunch of money from the IRA bumping him up into a higher tax bracket so most of the income they’re making goes to taxes.

So they have to in the next few years pay back about $200k in home equity. How? The idea seems to be either from a reverse mortgage (which as I learn more about I really don’t like) or taking more money out of the IRA and paying a lot of taxes on it or, well, there aren’t many other options. The money is there, but it isn’t. They’re so much more fortunate than most people their age (due to smart saving at least and the possibility of a one-working-parent household being able to afford a nice life and a decent retirement) but their spending is just out of control. It’s not just my wedding – which theoretically my father had budgeted “forever” for – it’s the lack of acceptance of 1 – what life really costs and 2 – what their life really costs.

My father keeps talking about how they’re going to have to “get frugal” and I can’t help but laugh. They aren’t exactly going on luxury vacations but my parents do spend. My mother has no concept of money and I worry she’s going to eventually spend every last cent of her retirement money leaving her with “just” the monthly income – which at some point may not be enough to pay for her care. I’ll help, of course, as much as I can – but I’m stuck in the reality of my world which = I cannot ever afford a house, I cannot figure out how to save enough for my own/my family’s retirement, even on my current substantial income (which will not last because I’m about to completely crack in my current career and my next step is something less profitable but more personally fulfilling, I hope) – in any case, I’ll need to help out of guilt knowing how much my own life has cost them, but it’s still frustrating that this didn’t have to happen… they were doing so well and then they had to put an addition on the house and had to buy too-nice further for the vacation property and had to get a new dress for every wedding-related event coming up (I’m glad I talked my mother out of purchasing a $2000 dress for my wedding when the $300 dress she got looked WAY better than the one the fancy store was trying to sell her.)

I just worry too because I know that in so many years my father’s cancer will eventually end his life (I hope this is a long time out but who knows) and my mother will – god willing – life a very long time. But as bad with money and gullible as she is she’s suceptable to all sorts of scams and con arts and just about any potential way for her money to disappear. My dad likes to talk to me (so awkwardly) about how he wants my sister and I to get an inheritance – and I can’t comment on that because on and hand I think inheritances are just plain awful and unfair and should not be allowed and on the other hand the world we live in is one where people can or can not afford to, say, buy a house or send their kids to college due to such mini dynasties. It’s not a topic I’m comfortable talking about and I certainly don’t want to be the person held responsible for convincing my mom not to, you know, spend that money that one day would possibly end up trickling down to me and my sister – even though I honestly don’t want it if she needs to spend it, I just don’t want to see her getting conned. I worry I’ll have to be the responsible one because my sister knows nothing about money and clearly I’m the best educated on the topic (I don’t know how that happened but anyway, it happened.)

My father was even asking my advice on how to repay the home equity. I have no idea. $200 is a lot of money. It took me a very long time to save $200. Now I have almost double that. But it’s all locked up in retirement funds and such. It’s about half of the cost of their actual house. I don’t understand home ownership and the whole taking loans out against your property. It seems like he has a really great rate (2 percent?) so maybe that’s a smart/good thing. But it’s only smart insofar as the needed to spend the money. It’s my wedding but it’s more than that for sure. It’s just this nature of spending and spending and spending and being delusional slash not wanting to deal with the time to come when they really do need to be “frugal” in their own middle class sort of way… not something my mother has known how to do for years. I worry they’ll lose their home – though my father said that will never happen – but I’m starting to doubt his ability to predict these things. He seems rather surprised about how much taxes he owes in general and how things add up and money keeps disappearing. He seems perplexed that the stock market didn’t perform strongly so his networth shrunk more than expected and he didn’t have a backup plan to deal with this. And this all has led me to the conclusion that my father – the math guy – the financial industry risk expert – is actually really bad with personal finances. I worry for them, and I also hope somehow I can do better with my own family and wealth. I’m beginning to think that all starts with NOT owning property – EVER. Rent is expensive but at least it’s not handcuffs.

Networth Update May 2016: $365k

2016 networth goal $500k – aborted. I’ll be lucky if I break even this year. It’s my own fault. I’m making a really solid income I’m just spending way too much on my wedding. I mean – wayyyyy too much. I’m torn on how bad I feel about it. On one hand, financial blogger self feels nauseous about how much this wedding costs – and how I failed to manage to keep the budget within my very generous parent’s contribution that at first seemed impossible to exceed. Well, it seemed impossible to exceed before I fully understood the difference between $2000 and $6000 wedding dresses and how the higher petal count of garden roses makes them just so much more elegant than a standard rose and that DJs really aren’t our style and venues which rush you out because another couple is getting married an hour after your celebration ends make the whole day feel so unfortunately rushed and unromantic.

Ok. I went overboard. Way overboard. You can see how overboard in my networth chart for the year to date:

It’s going to look flat for the next few months. I’ve paid off the entirety of my dress and alterations, as well as deposits on the florist and photographer and videographer. I still don’t understand how despite how much we’re spending on this shindig it still feels I have to cut corners all over the place.

I’ve revamped my networth goal this year to $400k. It’s $100k under where I was hoping to be at this point but then again it doesn’t look like I’m having a kid anytime soon — and the real goal is $500k before my first child is born. If I add in my future husband’s savings and count it in my networth we’ll be close to $500k by that point. I’m still going to account my own networth separately going forward though – I don’t really think we should merge our bank accounts. We’re doing just fine splitting rent and food at this point. When we have kids or buy a house I guess we’ll have to figure it out.

So… I don’t think I’ll be able to save any money until after the wedding. I’m still maxing out my 401k this year… about half way there so far… but the rest of the wedding expenses will wipe out my sizable take-home income for the next few months. We haven’t even planned a honeymoon because that will be too expensive and there’s no time… though I’d like to take one. In any case, I figure July will be the first month this year I can start saving something. I have a zillion weddings to go to this year as well which are across the country, so I’ll be spending a lot even after my wedding is done. I’ll somehow make it work.

If I break even by July 1 — say, $360k — I have $40k to make up in the next six months of the year… or $6.6k per month. Fortunately with my income that’s doable but I really cannot buy anything other than gifts for my friend’s weddings and plane tickets (you know, and food and rent and such.) I just really really really need to keep my job. Odds are looking ok on that but not great. If I lose my job all bets are off. I’ve been struggling to manage wedding planning and job together so once that’s over I can get back to focusing 100% on work… hopefully I’ll last that long.

Farewell $500k goal… on my way to $400k this year. Next year I think $500k is really possible with interest and such or at least getting closer to it. 2017 will be my half million year, I hope.

Waking Up from The American Dream

Today, we received notice for our annual lease renewal. Our rent will be increasing $170 a month to a total steal of $2465 for a one bedroom apartment, not including any utilities. If we lived in the city the same apartment would be at least $1000 more. That’s life in the most expensive area in the country — no matter how much you make, you’re still not making enough to afford the life you thought you’d have at this point. You just have to wake up from the American Dream and realize it’s just that – a dream.

I’m incredibly fortunate to be one of the few who is making a high salary — more than I could ever had imagined making and more than I believe I deserve. At the same time, I acknowledge that in order to afford a house here you pretty much need to be taking home $400k (as a couple) which isn’t in the cards for our future, despite my relatively very high income – even if I manage to find success and stability in my job. I realize that many others will never even make as much as I do, and I feel I make too much, but it’s a loop of relativity when I try to comprehend how much I’d really need to make in order to purchase a 3 bedroom house with a tiny backyard.

Do I need a 3 bedroom house with a tiny backyard? Even if I don’t, soon our rent, for a one bedroom apartment, will creep up to $3000 a month, even in the suburbs. We won’t exactly be priced out but we’ll be able to save less and less each year. At some point, I think we’ll have to accept that it’s time to leave. And with a total income of about $250k, we’re doing much better off than a lot of people who live here. It’s just not enough and it will only get worse as we attempt to start our lives together.

If kids end up not in the cards, maybe it’s doable. We can stay in a one bedroom apartment, no need to pay for extra space when it’s just us. We can live in a one bedroom for the rest of our lives. This isn’t at all the life I had imagined, but we can survive easily without that much space. If we do have children that changes the story quite a bit. I don’t see how we can have children and remain here, especially if I need to take time off for any reason. The pressure of being the breadwinner, especially suffering from severe anxiety, is too much. If I am responsible for me, myself and I — that’s no big deal, I can roll with the punches, live cheaply when needed, and just weather any storm that comes my way. With children, we need a much bigger security net. We’ll have to move. We will have no choice.

I write this at a time when many entry-level workers here are seriously struggling, unable to feed themselves or pay rent on minimum wage. I feel embarrassed to look at my quite high income and still feel so hopeless, because if I feel hopeless, how on earth is the rest of everyone supposed to feel?

I’ve come to accept that if I’m going to have children we can’t stay here. I don’t have a solution yet or an answer to “where to do we go,” but sooner than later we have to get out. I’ll very much miss the beautiful scenery and sunshine. I’ll look back on my 20s and be glad I had the opportunity to live in such a glorious part of the world. But it’s time to grow up and move out. Or, at least it will be soon.

People say to not worry about the future and to just live in the moment. I find it very hard to do that. We now face the choice of staying in our current apartment and paying an extra $2000 to do so next year (and continuing my 3 hour a day commute) or finding a place closer to work that will either be more expensive or less livable or both. We’ll probably just stay here for another year – neither of us wants to deal with moving, and $2000 doesn’t seem like that much compared with the inconvenience of finding a new apartment and lugging our stuff to it… moving isn’t free either. So we’ll probably give it on more year here and hopefully by the end of the next lease I’ll be pregnant and we can then figure out where on earth we’re going to live in the future (aka not California.)

I had hoped that I’d be at a point in my career where I’d feel so distraught over losing my job / career in order to have a family… but while I appreciate my job for what it is now, and really admire my colleagues and am so grateful for this opportunity… I have no personal investment in this career. I feel no sense of pride in my progress or role. In five years, to continue on this path, I end up in a leadership role were I will never fit. I acknowledge it’s soon time to leave. Right now, the best I can do is hold on for dear life, do the best I can, and try to save money by living relatively frugally and bringing in a good income where most of it goes straight into the stock market / my savings accounts. This may be my last significant savings opportunity in my life, given I plan to move to an area with a lower cost of living and obtain a job which pays significantly less in my next career move. My goal is still to get to $500k in savings before I make this move, and the goal is becoming much more dire given that I’m rounding the corner of my mid 30s and I know I can’t handle this life for much longer. If I can just hold out until $500k — I can completely shift my lifestyle to one of lower income and greater flexibility in another part of the country. We can live off of, say, $100k total across both of our incomes and still live a decent life. If we make more than that, great, but we don’t have to (or, in the case of staying here, I’d likely have to earn over $300k in order for us to hit the $400k mark and afford a small home.)

What was once kind of this running silent joke in my head about how one day I couldn’t afford to live here and that I’d move away is proving true. I guess what has changed is that I’m more ok with that than I was before. I used to think that I didn’t want to trade my career for a simpler life. I didn’t want to be one of those women who had kids and no longer had her own identity, especially a professional identity. But now, I don’t know, my professional identity is not who I am. Despite not making it to Hollywood or Broadway I’m an actress nonetheless, everyday portraying someone who I’ll never be. I’m over this obsession with what I thought was success. I have nothing to prove, no one to impress, no game to win. I have maybe 60 good years left on this earth if I’m lucky, and many fewer with all of my loved ones in good health. I hope to make the most of them, and it doesn’t matter if that occurs within a tiny apartment or a giant house. It feels good to finally accept that… to embrace the loss of this embedded classism my parents have taught me, to stop feeling like if I can’t maintain the level of comfort and luxury from my childhood that I am a failure. The only true way to fail is to lock myself into a life where I no longer have any reasonable options for escape.

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Current Investment Portfolio ($323k)

Some of you have emailed asking, so here is an overview of my current portfolio:

STOCKS – now @ $144,385 (2016 goal = $200k … which may be a stretch!)

  • $18402 – AAPL
  • $8665 – AMZN
  • $1891 – DIS
  • $1130 – FTR
  • $2783 – GE
  • $649 – GOOG
  • $20408 – IHI
  • $7315 – JNJ
  • $7862 – MCD
  • $6951 – SBUX
  • $2935 – VOO
  • $8178 – VZ
  • $33392 – VGHCX
  • $13690 – VMGMX
  • $5634 – Loyal3 Account (multi-stock)
  • $4500 – Robinhood Account (multi-stock)

RETIREMENT (mostly pre-tax) – now @ ~ $154,824 (2016 goal = $190k)

  • $9172 – DVY
  • $1487 – GLD
  • $2898 – XRT
  • $3088 – AMZN
  • $2199 – GOOGL
  • $2299 – NFLX
  • $347 – TEL
  • $2106 – VTI
  • $4658 – VFWIX
  • $12867 – VEMAX
  • $21943 – VIGAX
  • $16169 – VTIAX
  • $31170 – VTSAX
  • $12612 – VDADX
  • $5078 – VDIGX
  • $10928 – VSGAX
  • $15803 – 401k to rollover

OTHER ($24,164)

  • $6464 – 529 plan
  • $873 – Prosper
  • $427 – Lending Club
  • $16.4k – stock options that will likely be worth $0 in 2016

How I Increased My Networth 13% in 2015

Last year I increased by net worth from $309,894 in January of 2015 to $352,066 in January of 2016 (increase of $42,112 or 13% YoY increase.) This is not accounting for the last week of declines, which may or may not hinder 2016 growth. With a total net worth of $352k to start this year, I’m focused on my goal of hitting $400k by the end of 2016. Although this isn’t my original goal of $500k by the end of 2016, I think $400k is still a very aggressive and challenging goal for this year.

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In 2015, my stock portfolio increased from $144k to $171k. My retirement portfolio increased from $152k to $171k. Thus, the year concluded with approximately $342k in active investments (mostly stocks.) This is why when the market dips my portfolio significantly decreases. Since I have a substantial amount of funds in the stock market I tend to wait now a bit before putting large sums into play beyond what is already invested.

Goals for 2016:

Stocks: $200k, including $15k additional in Vanguard admiral healthcare fund, which has a $50k minimum. This would = $29k in net new investment, or ~$2.5k per month. If the market drops lower than monthly investments will have to increase to make up the difference.

  • $1250 / month — Vanguard Healthcare Fund (to get to $50k admiral minimum)
  • $400 / month — loyal3 fee-free partial stock investing
  • $850 / month — Vanguard fund TBD to get to $10k admiral (might reinvest in the dividend growth fund I sold for losses after a month or so. We’ll see.)

Retirement: $190k (max out 401k and IRA for 2016 — $23.5k additional investment, or $2k per month)

  • $18k = 401k max
  • $5.5k = vanguard IRA (post tax)

Cash: $10k – I’d like to close out the year with a $10k emergency fund.

This = a total monthly investment of approximately $4.5k per month, up to $6.5k if the market drops further. $6.5k is fairly impossible w/ my general monthly expenses plus the wedding, so I think the $4.5k goal (esp with some of it in pre-tax dollars) is a reasonable objective. If the market sucks this year then I probably won’t get to $400k, but I’ll still be buying discount stocks which will hopefully go up at some point in the next 10 years to make up for any losses.

If I can do this then and maintain my job I should be able to close the year out with $400k net worth. This would be a very exciting achievement for this year, as I’d still be on target to hit $500k prior to 35 (2018.)