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 $199,502 (vs $201,517 last month). This is about 33.3% of our $600,000 goal.
Primary residence: The mortgage is $93,383 (vs $93,637 last month), which means it’s about 4.71% paid off.
It’s been a while since The Hoard went down month-to-month. Mostly this is because we have had a couple of really expensive months here at the end of 2016. Unfortunately, we will probably have several more in the coming months.
However, we are still just chugging away with investments on autopilot. Dips are bound to happen here and there as expenses and the markets fluctuate. I’m still waiting for our first big drop from the market to come around. I’ve never dealt with losing ~$40k before, but that is totally possible given how heavily weighted in stocks we are.
You just have to remember that if the market dips that just means the stock market is having a fire sale!