2020 is weird. Remember when our stocks dropped about 30%, then bounced right back? I made some not-so-wise money when the market was down, but also made a few good ones. And maybe the bad ones weren’t so bad after all.

My asset allocation is all out of whack. Still. It’s worse, because I admit I’m a wee lil addicted to individual stock buying and those individual stocks are primarily US tech stocks. I do not recommend this to anyone, this is me being dumb and seeing investing as a hobby outside of my actual diversified index fund investments. It was fun when I had about $50k in my old Sharebuilder account and I could see if I could beat the market, for kicks. Now I have about $300k in that account (moved to another broker but nonetheless), it’s getting a little, well, scary.

Right now, my networth (after tax*) looks like this:

• Cash: $318,937 (downpayment fund + emergency fund)
• US Large Cap: $546,150 (65.5%, target 43%)
• US Small Cap: $31,810 (3.8%, target 5%)
• International Developed: $183,258 (21.9%, target 27%)
• Emerging Markets: $28,546 (3.4%, target 5%)
• US Bonds: $0(0%, target 12%)
• Int Bonds: $45,142 (5.4%, target 8%)

TOTAL: $1,154,954

(*why after tax? I count my networth based on after tax value, not including any penalties or fines for early withdrawals, so I have a full picture of my actual savings and asset allocation)

As you can see above, I’m wayyyy overweight in US Large Cap.

This doesn’t tell the whole picture, because:

• it doesn’t include my husband’s savings or investments (~$200k which help the diversification but not much, total ratios look like 65/3.9/21.8/3.7/.4/5.3 %)
• it has $0 in bonds because I sold US bonds for downpayment, and need to rebuild my bond fund
• the above does not include my potential RSU earnings in the next 16 months, which after tax = ~ $536,896 if I can keep this job for another 16 months, which I hope I can! (total networth including 16 month RSU vested and taxed = $1,691,850)

At this point, for my goal of $2M after tax networth by 40 (solo, not including husband’s savings/investments), I think I’m making good progress. The next 16 months will be key. If the stock market crashes, given how heavily I am invested in stocks, the $2M goal could be far off. If it goes up, then I could be closer than I think.

$2M isn’t a substantial goal for me. I won’t feel good about my personal finance progress until I get to $5M. I want to do that by the time I’m 50, so I have enough money to raise a family in a very HCOL area and help my mother and sister out, so they don’t have to worry. My mother will be 76 then, and I expect that to be the age she is running out of money. When I hit $5M, I plan to pay her back for my college education and wedding (if she really needs the money before then, I will definitely help her out and I already pay for her trips to visit my family, etc.)

$5M seems like a long way off, but if I can find another company growing at anywhere near a similar rate to my current company and get an equivalent or larger RSU grant, maybe 2-3 more times, it’s somewhat possible.  I didn’t think $100k was possible just 15 years ago, so who is to say adding $3.5M in 10 years isn’t possible? With my current funds growing at 5% a year, that will add about $1M in 10 years, so I just have to makeup for $2.5M, which is saving $250k a year. That’s going to be rough, maybe impossible. It depends what kind of salary and total comp growth I see in the next 10 years. It’s probably impossible… but I always pick impossible targets, why not this one?

Related Posts:

• From Now to Rich in 3 Years.
• My New Buckets FIRE Retirement Strategy
• April Networth Check-In: $575k
• How I Increased My Networth 13% in 2015
• Oh the Progress You’ve Made…