The Hoard

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.  Before we get to the nitty-gritty, let me describe how I calculate the number you’ll see below.

The number below represents the sum total of all income producing assets minus any debts.  I do not include my primary residence in the assets (it doesn’t produce income) and I do not include my primary mortgage in the debts.  If I had a rental house, I would include it in both parts of the equation, but I’ll address the primary residence on its own.

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 $45,643.11.  This is about 7.6% of our $600,000 goal.

Primary residence: don’t have one yet 🙁  But that should change quite soon.  We are under contract on a house right now.  Exciting!  This is 0% progress on this goal.  Ouch.

Not too shabby.  We spent the last several years making peanuts in grad school.  Now that we’ve got big boy (and big girl) jobs, we are actually making some real progress.

The kicker here is that we only have $1500 in debt.  This is the remaining balance on the student loan I took out in undergrad.  Soon this should be gone and we’ll be debt free!!! … for about 10 days.

Our closing date for the house is next month.  If everything goes smoothly, we’ll be the brand new owners of a $97,000 mortgage (woo-wee that’s a lot of dollars).  Wish us luck!

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

 

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