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
Expenses: June 2016

2 thoughts on “The Hoard: June 2016

  1. US investor here, with some “international” exposure (heavy on UK) in my retirement accounts. I’m 7-8 years out from FI.

    Brexit’s provoked no change for me so far. I’ll assess in November when it comes time to rebalance. I expect to continue my current plan to shift my “international” into very-large-cap multinationals trading here in the US.

    There’s enough cross-talk about Brexit here in the US, though, that it’s influencing the Trump run for president. I lean pro-open-policies (so would have been in the Remain camp were I voting in the UK) and thus would be happier seeing a Clinton presidency. Just like my finances, my politics is pretty pragmatic and weighted towards general prosperity and creating options.

    • I am also a US investor and have quite a bit of international exposure. Something like 30% of our holdings are in ex-US index funds. I agree with you in that it hasn’t affected our strategy at all. As you say, the only effect will come during rebalancing.

      Our political ideologies (and financial ones) sound very similar. Here’s to coming out ahead on the other side. Cheers!

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Expenses: May 2016

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