The Hoard: October 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 $105,345 (vs last month’s $95,372).  This is about 17.6% of our $600,000 goal.

Primary residence: The mortgage is $96,447  (vs last month’s $96,708), which means it’s about 1.58% paid off.

Hell yeah! This is the first time that The Hoard has broken the six figure mark!!!

They say the first $100k is the hardest and I certainly hope they’re right.  It took thirty years to get the first one, and I’m hoping for more like 1.5 years to get the next one. 🙂  I guess time will tell.

I was actually a little surprised to see such a big jump in our net worth this month. We didn’t do anything out of the ordinary.  After looking around in Personal Capital, I see that our investments grew by about 3.5% over the last thirty days.

Thus far, fluctuations in the market haven’t really affected our bottom line very much.  But now that we actually have a decent chunk of money invested, I can see that going forward the market will start to dominate the performance of our bottom line.

This is, of course, to be expected, but it’s very different to know that theoretically versus seeing your bank accounts shrink and swell as the market moves.  Either way, I’m pumped for this new development.  It means we’re starting to pick up some momentum.

We continue to invest versus aggressively paying down the mortgage and I don’t think that will change any time in the next 6 months at least.

Right now we are making a really aggressive push to try to fill up all our tax-deferred accounts as much as we can before the end of the year.

As I mentioned in this post, between the two of us Mrs. Dragon and I have a total limit of $83k a year that can be put into tax-deferred accounts.  We won’t quite make the full $83k this year (mostly due to buying the house), but I’m hopeful that we might get it all next year.

Anyway from now until December we are trying to squeeze out any extra dollars that can be put in those accounts before the year ends.

All in all I’d say this was a kickass month for The Hoard.  Any time we get a $10k boost from one month to the next is definitely a huge win. We’d be completely FI in five years if we could do that every month.  But, as they say, “if ifs and buts were candy and nuts we’d all have a merry Christmas.”  Am I right?!

How did the last month treat your investments? Do you think we are on track for FI by Feb 2025?

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