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 $125,424 (vs $123,178 last month and $45,643 a year ago). This is about 20.9% of our $600,000 goal.
Primary residence: The mortgage is $95,397 (vs $95,660 last month), which means it’s about 2.66% paid off.
The market is still falling so, once again, we did little better than treading water compared to last month. No biggie. We’re in it for the long haul.
Since we are still firmly in the accumulation stage, the market falling is just fine with me. It makes our investment money go further every month. 🙂
This month marks more than a year that we’ve been posting Hoard updates on the blog so, from now on, I’ll be able to show year-over-year progress as well as month-over-month progress like I did above. Woot!
It’s pretty motivating to see that we added almost $80,000 to the Hoard last year!!! Bitchin’.
We went from 7.6% of our goal in February last year to 20.9% this year. That means we added about 1.108% of our goal every month last year. If we could keep that pace up, we would have the $600,000 in about 6 years. And that’s with no market growth.
Since we have 9 years until our projected FI date of February 2025, you can see that we’ve built our goals around the fact that we planned on starting a family, and our savings might not be quite this aggressive every year. But, as they say, “make hay while the sun shines.” 🙂