The Hoard: August 2015

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.

How are we currently doing?

The current market value of the hoard is $92,608 (vs last month’s $79,035).  This is about 15.4% of our $600,000 goal.

Primary residence: The mortgage is $96,968  (vs last month’s $97,227), which means it’s about 1.05% paid off.

Hell yeah!  Another huge leap in the right direction.  As mentioned before, we’ve been getting some extra hours at work and that is represented in these numbers.  But I’ll take a $13,573 improvement any month I can get it!

We’re also veeeery close to reaching the point where the Hoard is bigger than the mortgage.  Of course, that won’t really mean anything, but it’s still nice to know that our liquid assets are worth more than the debt.

Not that it’s that simple, really. Most of the Hoard is in tax-deferred accounts, so it would be a huge bitch to get access to all of it at once.  Not that we want to.

It’s also apparent that barring any huge catastrophes we are going to eclipse $100,000 in a month or two.  That is truly incredible. As I mentioned in the last update, I was thinking 100k was a stretch goal for this year.  The new stretch goal is 115k.  If we can buckle down on our expenses, we might just eek it out.  Either way we’ve made some major progress on our goals this year and I am pretty pumped up about it.

In other news, we eclipsed 1% paid on the mortgage.

Do you think we are on track for FIRE by February 2025?  How is your own progress coming?

Expenses: July 2015
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Expenses: July 2015

Expense report!  Since I'm a total voyeur for finance, these types of details are exactly the kind that I love...

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