We were sooo close to the $1 million mark before the virus.
Were sitting around the $991k mark. Will not make it now.
I'm guessing my company will be shutting down real soon. No work for me for a while.
I can't believe it but we made it past $1 million. My wife doesn't share the excitement as much as I am so I'll share it here.
She keeps asking me if we can retire. NOT YET.
When I posted this on Mar 12th, getting to $1 million was the furthest from my mind.
Mar 13th would be my last day of work and I've been sitting at home since(furloughed). Considering I was making ~$120k, this was a huge blow to our goal. Part of our assets was rentals and I was afraid my tenants wouldn't pay.(I'm somewhat right as I'm still missing Apr and May rent.
A few things that got us to one million even without me working.
- It was a combination of intuition and luck but I reallocated 60% of our VTSAX to bonds at the peak of the market Feb 19th. I resumed to moved everything to bonds after another week. We only had roughly $300k in investments and the rest was real estate. I think we ended up only losing maybe ~$20k during the dip vs losing $100k.
- My wife is still working. She graduated last summer and got a nice job last July making $50k. Not bad for her first gig. She was only there for 6 months until it started stressing her out. Funny thing is I told her she could quit before the pandemic. I told her to hang on until this dies down but it looks like she will continue at least till the end of the year. I'm in the restaurant business so I won't be making $120k again anytime soon. Her salary doesn't cover our expenses(we have a 15yr mortgage) but I've been getting unemployment so we are able to cover expenses for right now without having to dip into savings.
- As mentioned, our break was getting out of the market when it was dipping. I've been reallocating money back into VTSAX so thats where we are making most of money back. We are $6k ahead in our investment accounts VS at the high onFeb19th and $16k ahead since the beginning of the year. Plus I've been playing with the stock market with spare money and ahead $3500 as of now.
The breakdown is as followed:
210,000- Rental house. Zillow say $242k but I'm happy if I can net $210k for it. Paid off.
138,000- Equity in primary home. Zillow say $356k. Its a brand new home with lots up upgrades. I think its worth more than $356k
but I'm counting it as $350k. We owe $212k left. The value of these 2 houses we left alone since the pandemic.
184,252- Loan to SIL for house. Our names are on the title. We lend this money @3.5% This was probably one of my dumber
investment. We had just sold a previous primary home and had all this cash. I was thinking about the 4% rule and while
getting back just 3.5%, its non-tax so its pretty close to a 4% return and its guaranty. Don't I wish I had this money back.
I can make so much more from the market right now.
$45,000- 2 paid off cars plus all of our possessions. My wife also has a nice collection of luxury purses(Chanel, LV, Gucci, YLS).
Basically if we were to move to another country, we can probably sell everything off and get at least $45k.
$16,866- My HSA.
$18,300- My 401k from a previous company.
$79,168- Vanguard Account.
$85,257- Vanguard IRA.
$45,652- Vanguard ROTH.
$16,200- Wife's 401k. I told her to pull this money out when I pulled everything out but she refused. Should be ~$18k.
$56,230- Wife's IRA.
$4,500- Wife's HSA.
$38,200- Etrade. All stocks.
$6,000- Gold.
$38,200- CASH.
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$1,007,230. Grand Total.
I won't be joining any other thread. Our original goal was to hit $1.5 mil and retire but I think we will just work to cover our expenses and let the $1 million grow for us. If my job ever get back to normal I will let my wife quit her job too. For now its nice that she's bringing home the bacon. I got my own sugar mama now.
