Our first month in 2019 where we turned red month-over-month.
The markets declining about 6% in May had a major role to play.
Major expense last month was a $2.5K payment for an emergency room visit from 2 months ago. All good on health front though. Another $2.75K on flights for one set of parents. This is a yearly expense baked into our finances.
Reduced debt by $4.2K by mainly paying extra on the mortgage principal.
Besides that another month of the usual. Markets could go down even more. Or it could rise. That’s how the markets work. It’s all good.
We were less than $2.5k away from being “asset millionaires”! (That doesn’t really mean anything, but the little joys of “millionaires” and “we” being in the same sentence :D)
At ~$23K, we posted our lowest year-to-date monthly increase of net worth. I can’t even begin to imagine how privileged we are to be in our position. Some of it comes with being judicious with our spending and automatic savings/investment. Our incomes helps as well. But where we started off in our adult lives, or for that matter the factors that precedes our birth, play a major though silent roles in where we are. #acknowledgePrivilege.
We paid taxes last month! On April 15th, automatic direct deductions were made from our account: around $2.5K to Federal and $500 to state. For the past 9 years or so we have owed money at the end of the year. This is expected as we would rather owe money than get a refund. Ideal case would be if we had paid the exact amount of tax in the prior year, but that’s hard to pull off. I’m perfectly fine with the government giving us an interest free loan for a few months, on which we earn interest! We have a savings account earmarked for taxes that pay 2.5%, so it’s a win-win for us.
Nothing else really worth noting for April. Markets have been on an upward swing. No major spending. Just a good ol’ solid month.
We as a family made a major decision last month. Not quite ready to reveal it here as we need a little more time to flesh it out. Stay tuned for some big update in the next month or so.
The markets have been relatively flat over March but we have been pumping in our usual amounts to our respective 401(k)s, joint brokerage account, and 529 for the kiddo.
Also, we made most of our Roth and traditional IRA contributions for 2018 last month. We were pleasantly surprised that we’re still able to contribute for Roth, though our MAGI was in the phased out section. Don’t think we’ll be able to contribute to this bucket for tax year 2019. The reason we waited to make our contributions so late is we wanted to know for sure how much we’d be able to contribute in our Roths, knowing well that we would either be over the range, or close to the top. Once we filed our taxes mid March, we got the AGI, and then the MAGI, to determine how much we can contribute.
Asset for March is at an all time high, so is Net Worth. Liabilities are down by almost $4.5k compared to February.
A $10k bond we had for the past 20 years reached its final maturity last month. For the time being we have kept that in a checking account.
Remember: Markets will fluctuate. Maintain course!
Total assets of $955k for February has smashed the previous high-water mark of $937k set in September 2018. Net worth is at all time high of $744k. Wow! Keep in mind though, as we always do, the market will have some hiccups on the way.
Outstanding mortgage is below $200k. I think we can reach our stretch goal of bringing this down to $160k by the end of the year.
Major expense for last month was $1,038 for home insurance we paid using credit card, and promptly paid back the card. $13 instant cash back! We took off home insurance through the mortgage escrow as soon as we were able to and now pay it directly and pocket the cash back.
Typing out the heading for this post made me wonder, “Where did the month go by??”
With this update we’re introducing a change in how we report numbers. Our Retirement bucket is by far our largest asset. We’ve decided to expand this by splitting up into 401(k) and R/T IRAs by individuals.
With the uptick in markets in January, our Net Worth is at an all-time high. Starting in January, we’re sending $3,100 in extra principal towards the mortgage. That’s a guaranteed 3.875% return! This will ensure that we’re mortgage free in 53 more months. (Possibly quicker when you factor in one-time payoffs from bonuses)
Major expense for the month was semi-annual $836 for car insurance, for both our vehicles.
With the markets having the worst December since the Great Depression it is not a surprise that we posted a loss in net worth. Valuation of assets are down almost $22k since November. A couple of factors prevented us from being more in the red than the $18.7k you see here.
a) Debt reduced by ~$3.2k
b) In addition to what we put in the markets in a regular month, we pumped in $1.5k more into our taxable brokerage accounts
When the markets rose the day after Christmas, we were able to ride the wave.
The big ticket expense for December was $1.2k that was spent on purchasing an international round trip flight tickets that we’ll be using to attend a wedding.
I’m looking forward to the next couple of posts, which have been in the works for sometime now, in which we will review the year, look at what we invest in, and one philosophical/opinion post on why Americans don’t save more.
November was a three paycheck month for M and we paid little more than a full extra payment to our mortgage. Other than that nothing major for the month. The markets seems to have stabilized. Or not. We’re still putting in our usual for the month.