Year-End Monthly Financial Update – January 1, 2024

The Monthly Financial Update gives our readers an inside look at the allocation and performance of our investment portfolio. At the beginning of each month, we share a snapshot of our investments and highlight their performance over the previous month. In addition, we compute our progress towards achieving our retirement number.

Sooo Close!

After experiencing our first ever year-over-year loss in 2022 we weren't quite sure what to expect in 2023. Early on, things seemed to be just as volatile as the previous year, however, as the year progressed it became apparent that 2023 had the potential to be a great financial year for us. I can now confirm that that potential was realized! The growth of our investment portfolio has put us closer than ever to our retirement number. We are so close that we've decided to begin testing the early retirement waters by changing from full-time to part-time employees at our jobs. This will give us a small taste of what an early retirement lifestyle might feel like without having to fully commit to cutting off all income. We are on the verge of achieving true FIRE (Financial Independence, Retire Early) and it feels amazing!

We had two goals in 2023 and we achieved both of them!

Goals for 2024:
1. Reach 150% of our retirement number. We are sooo close!

2. Lock in our long-term early retirement plan.

Results:
5.23% month-over-month growth

145.6% of retirement number saved

2023 Total Net Worth Growth (Jan. 1, 2023 - Jan. 1, 2024) = 28.1%

Check out our detailed performance in the table below.

The Numbers

AccountsPortfolio AllocationChange In Value
(December-January)
Liquid Funds0.23%+12.82%
High-Yield Savings9.81%+5.87%
REITs0.25%-4.24%
401(k)s40.80%+6.23%
IRAs5.01%+4.21%
HSA2.06%+5.29%
Cryptocurrencies0.04%+12.28%
Taxable Stock Investments38.86%+3.99%
Home Equity*2.94%-2.65
Debt0.01%-89.05%
Total =100%

Portfolio Allocation = Current asset distribution of our portfolio
Change In Value = Change in account value due to asset appreciation/depreciation, deposits, and withdrawals
*Home Equity not included in retirement number or month-over-month growth calculations

Growth Toward Financial Independence

Tools To Get You Started

Get a head start on your journey toward achieving financial independence by analyzing and tracking your income, expenses, investment performance, and overall net worth with the free online wealth management tool Empower Personal Dashboard.

We use Empower Personal Dashboard regularly to analyze our investment fees, track our investments, and project our net worth. We also periodically review our progress toward retirement with their retirement planning calculator.

If you’d rather do things on your own, become a subscriber today and you’ll receive our Free Financial Planning Dashboard. This tool allows you to enter your income and expenses to create a detailed budget. You can use it to track your spending habits over time or just to get an idea of where your money is going each month.  Take a look at the automatically generated charts and you may discover you have a little more cash to invest than you thought.

If you’re interested in detailed instructions on how to budget, save, pay off debt, and invest, check out The 6 Phases of Building Wealth. This book provides step-by-step instructions for working through each “Phase” in the process of achieving Financial Freedom. If you're just starting out, the information in this book will provide you with an invaluable resource. You can pick up the digital version for only $2.99 on Amazon.

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