The Hoard: June 2016

The Dragon's Hoard

Every good dragon has a hoard.  You know.  The collection of gold, jewels, and other valuables that the dragon guards in his or her cave.  For me, The Hoard is what I call my assets.  The collection of stocks, bonds, and other income producing assets that Mrs. Dragon and I have collected thus far.

Mythological fire breathers have to protect their hoard from knights seeking glory, wizards wanting power, etc.  Real-world FIRE breathers have more mundane, but very real dangers to their own hoards: the tax man, the cable company, lifestyle inflation, high-fee brokers, and many more.

This is one post in a series that documents my progress towards financial independence.

You might recall that I don’t include our primary residence in the assets (it doesn’t produce income) and I don’t include our primary mortgage against the assets.  If we had a rental house, I would include it in both parts of the equation, but I’ll address the primary residence in a separate category.

I do not differentiate between tax-advantaged accounts and taxable ones in the number for The Hoard.  Assets are assets.

We use the excellent (and free!) service Personal Capital to keep track of how The Hoard is coming along.  It lets you view all your accounts on a single homepage for a convenient snapshot of your financial life.  It is a top-notch service.  Highly recommended.

Mrs. Dragon and I want $600,000 in liquid assets and a paid-off house to consider ourselves financially independent. We’re hoping to accomplish this by February of 2025.

How are we currently doing?

The current market value of the hoard is $161,997 (vs $161,935 last month).  This is about 27.0% of our $600,000 goal.

Primary residence: The mortgage is $94,396  (vs $94,647 last month), which means it’s about 3.68% paid off.

Not much progress since last month, mostly due to a large down-swing in the markets because of the UK’s decision to leave the EU (#Brexit).  The Hoard was above $172k at one point, but has since tumbled quite a bit.

That’s life in the markets! Some months are up and some months are down.  We just continue to invest every month. I’m hoping things don’t rebound this week since we get paid on the first of each month.  That way our automatic purchases will be at the new discounted prices!

We have family in town so I’m going to keep this short and sweet.  We’re expecting Baby Dragon any day now, so I haven’t really been thinking too much about our investments.

Hopefully you’re enjoying the warm weather and making time for friends and family this summer!

What are your thoughts on Brexit? Is it affecting how you view your investments?

Expenses: May 2016

ExpensesExpense report!  Since I’m a total voyeur for finance, these types of details are exactly the kind that I love to read on other people’s blogs.

Don’t get me wrong though, these numbers are primarily written for me and Mrs. Dragon.  Every good FIRE breather knows that to be successful, you have to track your expenses. You have to track them like a democrat tracks superdelegates.

How else will you know when your Hoard is big enough?

Without further ado, here are the numbers for May (rounded to the nearest dollar):

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The Hoard: May 2016

The Dragon's Hoard

Every good dragon has a hoard.  You know.  The collection of gold, jewels, and other valuables that the dragon guards in his or her cave.  For me, The Hoard is what I call my assets.  The collection of stocks, bonds, and other income producing assets that Mrs. Dragon and I have collected thus far.

Mythological fire breathers have to protect their hoard from knights seeking glory, wizards wanting power, etc.  Real-world FIRE breathers have more mundane, but very real dangers to their own hoards: the tax man, the cable company, lifestyle inflation, high-fee brokers, and many more.

This is one post in a series that documents my progress towards financial independence.

You might recall that I don’t include our primary residence in the assets (it doesn’t produce income) and I don’t include our primary mortgage against the assets.  If we had a rental house, I would include it in both parts of the equation, but I’ll address the primary residence in a separate category.

I do not differentiate between tax-advantaged accounts and taxable ones in the number for The Hoard.  Assets are assets.

We use the excellent (and free!) service Personal Capital to keep track of how The Hoard is coming along.  It lets you view all your accounts on a single homepage for a convenient snapshot of your financial life.  It is a top-notch service.  Highly recommended.

Mrs. Dragon and I want $600,000 in liquid assets and a paid-off house to consider ourselves financially independent. We’re hoping to accomplish this by February of 2025.

How are we currently doing?

The market value of the hoard in mid-May was $161,935 (vs $158,175 last month).  This is about 27.0% of our $600,000 goal.

Primary residence: The mortgage is $94,647  (vs $94,898 last month), which means it’s about 3.42% paid off.

This post is a little late, because we have been super busy lately, so I’ll keep it short and sweet.  Another solid month of progress here.  Our investments are pretty much on autopilot, so things just keep going smoothly.

But Mr. Market is a moody S.O.B. so you never know when a sudden spike or drop will come along.  However, we’re mentally prepared for when they inevitably do come.  For now, we’re just enjoying the relatively smooth sailing.