Salutacions a tots els meus milionaris lectors! Since I haven’t written anything about our finances since last July, it’s time for a net worth update. Edwina and I have decided to continue tracking our net worth publicly until we both become millionaires in our own right. (No more of this pathetic household millionaire nonsense!) In this post, I’m also going to separate our family money and Eduardito’s money from our net worth total.
Net Worth Battle Royale: Ed vs Edwina
Edwina and I have a long way to go before we individually become millionaires. The combined value of all of our individual accounts is roughly $977k. Here are our combined amounts:
- 72t IRAs * We have almost $636k in our two big rollover IRA accounts. We take $18,375 in 72t distributions from these IRA accounts every year. Our next 72t distribution will hit our bank account in early January of 2018.
- Traditional IRAs * We currently have $204k in these accounts. These accounts also hold funds rolled over from previous 403b plans.
- Roth IRAs * These accounts have a present value of $63k, but in November we plan on making a Roth conversion of $17k (possibly $20k).
- 457 Accounts * Our “Freedom Accounts” have a balance of $73k. So far this year, we’ve taken $17k from these accounts. There is a chance that we’ll withdraw another $3k if we need more spending money to get us through the year.
- Checking * I have $923 in a checking account at Schwab. This money is sure to be used for 2017 living expenses.
- Taxable Investments * There’s not much to see here. I have $115 in a brokerage account at USAA and a whopping $19 in a Schwab index fund.
Here is how our net worth figures compare:
In addition to our various individual accounts, we also have a number of family accounts. These accounts are either joint or family accounts, so I’ve decided to track them apart from our individual accounts. Here’s a look at our $81k of family money:
- Checking & Savings * Okay, our combined $3,090 in these accounts is precariously low. While it’s not much money, I think we have enough money to get us to 2018.
- Mutual Fund * Edwina and I have almost $8.5k in a joint mutual fund account at Vanguard. Naturally, it’s invested in the Total Stock Market Index Fund (VTSMX). As soon as we have $10k in the account, we’ll convert the shares into VTSAX Admiral shares (gotta keep those costs low, right?).
- HSA * This account is a little over $39k with about $36.5k invested in VTI at TD Ameritrade. The rest of the funds ($2.5k) are in a cash position at Elements Financial.
- Travel MURP$ * I still have $30k entered in the MURP$ category, but I need to take a closer look at this category. Why? First, we used Edwina’s United Airlines Miles to book our flights to FinCon. It sure was nice getting a deep discount on our flights from Mérida to Dallas. Second, I also used a seven-night hotel voucher to pay for our FinCon hotel. (I don’t think I had that figured into our MURP$ amount).
- Real Estate * Nothing to report here yet, but we might be pulling the trigger on a real estate purchase in December. Stay tuned…
- Charitable Trust * This category also has a null entry, but I’m exploring the possibility of opening a charitable trust in conjunction with a Roth IRA Conversion. I have more research to do in this realm, so any advice from my readers would be awesome.
Our 2nd Generation FIRE Project: Eduardito
The last component of our net worth is our son’s various accounts. His accounts are currently worth more than $52k…that’s a lot more money than I had in the sixth grade! Here’s what he owns:
- Checking & Savings * a combined $235 in these accounts. I plan on moving the $46 of savings to his mutual fund. So far, Eduardito has loved using his Youth Checking account at USAA.
- Mutual Fund * Almost $5.5k in mutual fund accounts. Most of the money is invested at Vanguard in the Lifestrategy Growth Fund (VASGX). He also has a small Schwab account invested Total Stock Market Index Fund (SWTSX).
- Coverdell ESA * This college savings account has over $42k invested in VTSAX. It’s amazing to see how this account has mushroomed the last year.
- Georgia 529 * This account is just shy of $5k in spite of the fact that we no longer contribute to it.
- Roth IRA * Nothing to report thus far, but Eduardito does do a lot of modeling on this website. I think $25 a photo would be fair compensation. That money could then be deposited in a low-cost Roth IRA at Schwab. What do you think?
Here is our net worth as tracked by Personal Capital (highly recommended, use affiliate link below):
Since our last net worth update in July, our net worth has grown by $28,865 ($1,111,031 – $1,082,166). Keep in mind that since that time, we’ve been living off our portfolio without adding to it. That blows my mind!
Return, Asset Allocation, and Holdings
- Return * So far this year, we’ve earned a return of 12.66% thanks to the surging stock market.
- Asset Allocation * We currently have about 81% of our assets in U.S. stocks. Our cash position is roughly 15% with the remaining 4% in other asset classes.
- Holdings * As always our main holding is Vanguard’s VTSAX fund where we have over $871k invested. We also have over $80k in Vanguard’s Prime Money Market (VMMXX) to cover a few years of 72t distributions. Finally, we have over $36k of HSA money in VTI (a Vanguard ETF).
Here are a few screenshots from our Personal Capital account:
Thank you Mr. Market! Before I get too excited, I need to remind myself that Mr. Market can be a pretty fickle friend. Sometimes he gives, sometimes he takes. Here’s a look at our asset allocation:
Our holdings aren’t very sexy or glamorous: total stock market index funds and cash (not all cash is shown in picture below).
Okay, that’s a wrap on our net worth for September of 2017. Obviously, I’m pleased that our net worth is climbing, but I’m also aware that it can plummet at any moment. Regardless of future market swings, we’ll continue living our awesome low-cost lifestyle while remaining fully invested in the market. There’s even a chance that we might work again in the near future. Of course, our 100% savings rate would allow us to invest even more into the stock market.
|Health Savings Account: We use Elements Financial to access commission-free, low-cost Vanguard ETFs at TD Ameritrade.