August Financial Update

Like every month, I track our finances.  Here is a quick update for August.

Net Assets: Up 0.4% over last month and up 37.1% over July last year.  The month change is mostly due to paying down more student loan.  The year-over-year change is mostly due to the our real estate going up and secondarily due to our investments going up.  I don’t like that it was up do to an increase in real estate values.  I would much prefer that investments be the main driver.

Asset allocation

  • Investments (stock market and P2P lending) – 18.9%
  • Cash – 6.1%
  • House – 54.5%
  • Rental – 17.8%
  • Cars – 2.7%

Retirement calculation: I need to check that this is reasonable, but I’ve put a rough goal of having 20 times expected expenses.  Right now, we stand at 9.53% of that goal/amount.

Debt Management:  We’re still working at paying off student loan debt.  According to my snowball spreadsheet, we should have it paid off in the first quarter of next year.  After that we’ll split our extra income (after contributing 15% to retirement accounts and 10% to tithing) between mortgage payoff and putting together a investment property down payment.  The mortgage should take

Investment Returns: YTD my investments are up 11.8% vs the S&P’s 6.1%.  I realize that might be different from the return that others show for the S&P, but it is being calculated as a benchmark for me in this instance.  By that, I mean that for every stock purchase, I show a certain return and what the return on the benchmark if I had bought that instead.  Which is different than calculating what the S&P has returned on $1 invested Jan 1.

I’ve enjoyed directing my own stock investments over the past two years (I’m beating the S&P by only 1% over the whole period).  I certainly realize that this is a risky approach and even though my YTD returns look good, they could go the other way just as quickly.  I definitely have a large portion in ETFs like REIT ETFs, QQQ, etc. so that will hopefully balance out my stock picking madness.

One bright spot is the P2P lending which as consistently returned ~9-10% over the past 5 years.

A future post might be about my investment approach.


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