This is going to be the first of a regular monthly update post showing changes in my family’s overall savings, investments, and debt. The objective in posting this information is to ensure that I continue to maintain a firm grasp on where the dollars are going each month and in a lot of ways trying to slow down the longer term view that I have toward investing. As this is the first update, I’m going to give an overview of what the current state is for the Pro Finance Family’s Balance Sheet.
Starting with the layout, the cash holdings will be maintained under the savings section while a separate section is included below that for our investments. The final section is our total debt. As described in Don’t Budget on your Budget, you can follow how we generally allocate our income each month toward these savings accounts, investments, and debt. The actual results each month will be shown here. With this first post I am providing a look into the starting point… at least in terms of my blog and monitoring my progress. The next post that I have on this will be showing how we have progressed once we make payments and allocate how we pay ourselves.
|Emergency Fund||$ 1,196.00||50.8%|
|Car Fund||$ 29.40||1.2%|
|Kid Fund||$ 2.10||0.1%|
|Rental Repair Fund||$ 916.58||39.0%|
|Vacation Fund||$ 178.70||7.6%|
|Mr. Pro Finance Savings||$ 30.00||1.3%|
|Mr. Pro Finance 401K||$ 162,932.71||65.4%|
|Mrs. Pro Finance 403B||$ 13,025.44||5.2%|
|Mr. Pro Finance IRA||$ 6,714.17||2.7%|
|Mrs. Pro Finance IRA||$ 4,894.89||2.0%|
|Mr. Pro Finance Roth IRA||$ 34,633.56||13.9%|
|Mrs. Pro Finance Roth IRA||$ 216.65||0.1%|
|Brokerage Acct 1||$ 9,715.28||3.9%|
|Brokerage Acct – Mortgage Investment||$ 5,860.44||2.4%|
|Brokerage Acct – Car Fund||$ 3,990.31||1.6%|
|Brokerage Acct – Kid Savings||$ 1,153.46||0.5%|
|Health Savings Account||$ 5,535.49||2.2%|
|Brokerage Acct – M1Finance||$ 116.66||0.0%|
|Brokerage Acct 2||$ 125.64||0.1%|
|Home Mortgage||$ 229,861.51||71.4%|
|Rental Mortgage||$ 56,936.16||17.7%|
|Credit Cards||$ 4,000.00||1.2%|
|Student Loan||$ 6,294.47||2.0%|
|Car Loan||$ 24,697.09||7.7%|
|Net Worth||$ (70,453.42)|
- Emergency fund is kept in a high interest savings account. We continue to try and build this up by adding $200 a month for unconventional emergencies and $150 added per month for our car insurance.
- Car Fund is a regular savings account that we used prior to investing that money. It has some hold over money in it currently and we will park (haha) our money here once we are closer to making a purchase.
- Kid Fund is also a regular savings account that we will put some money aside each month for expenses specific to children. It will be a liquid fund that we draw on to pay ourselves back for various expenses.
- Rental Repair Fund is an emergency fund to pay for repairs with our rental property as well as our association and assessment dues.
- Vacation Fund is a regular joint savings account that we add money to each month to be used to fund our trips together.
- Mr. Pro Finance Savings is a regular savings account that I use rarely to put spare money in when the opportunity presents itself, which isn’t often J
I was debating how to show this category and what I decided is to show you the balance of the accounts in terms of changes month to month. When a sale is made, I will identify the realized gain or loss for the transaction, but I’m not going to have the unrealized gains or losses listed as I don’t think that is as relevant from a month over month change.
- Mr. Pro Finance 401k is my work 401k that I have been contributing to for around 6 years currently. I have generally added between 10-20% to the fund while gaining an employer 6% match on top of that. My allocation in the account is currently:
|Asset Class||Current Mix||Future Investment|
|Large CAP – US||31%||23%|
|Small/Mid CAP – US||39%||30%|
I don’t claim to be Warren Buffett or someone that is going to make you tons of money overnight, but personally I have been increasing my stake in company stock as the share price has fallen after taking part in the market’s massive bull run over the past year. I also have a moderate risk tolerance where I will always opt for small/mid cap with growth potential vs large caps.
- Mrs. Pro Finance 403B is my wife’s primary retirement vehicle. She is setup in a fairly typical target retirement allocation.
- Mr. Pro Finance IRA was started as a Rollover IRA from a 401k with a former employer. In this account, I buy and sell depending on market conditions several times per year. I will say upfront that with 100% profit from a sale earlier in the year, I made a purchase on Helios Matheson as a flyer. It actually worked out too as I bought at .07 and attempted to sell at .12 but was locked out of my account. Unfortunately nothing could be done so I hold onto my shares but consider my $300 investment lost.
- Kraft Heinz Corp
- Helios and Matheson Analytics Inc
- Las Vegas Sands Corp
- Mrs. Pro Finance IRA was started during tax time 2017 to reduce our tax liability, but did not max it. My intent is to max this with my wife each year (well combination of this and her Roth). Her portfolio is includes:
- Caterpillar Inc.
- General Electric
- Mr. Pro Finance Roth IRA was started during 2014 and I have contributed the max each year by doing a monthly contribution. My portfolio includes the following:
- VTSAX – Vanguard Total Stock Market Index Fund – Admiral Shares
- VSS – Vanguard FTSE All World Ex US Small Cap ETF
- VNQ -Vanguard Real Estate Index ETF
- VHT – Vanguard Health Care ETF
- VFH – Vanguard Finacials ETF
- VDC – Vanguard Consumer Staples ETF
- VBK – Vanguard Small Cap Growth ETF
- SMG – Scotts Miracle Gro Company
- AKS – AK Steel Holding Corp
- Mrs. Pro Finance Roth IRA
- JP Morgan Chase & Co ETF
- Brokerage Account 1
- General Electric
- Brokerage Account 2
- VYMI – Vanguard Intl High Divid Yield Index ETF
- Brokerage Acct – Mortgage Investment
- VTI – Vanguard Total Stock Market ETF
- Brokerage Acct -Car Fund
- MGK – Vanguard Mega Cap Growth ETF
- Brokerage Acct – Kid Fund
- VCLT – Vanguard Long Term Corp Bond ETF
- Health Savings Account
- Mix of every Vanguard ETF offered
- Brokerage Acct – M1Finance
- Separate Pie of all companies we typically spend some money with
Ah, the least fun category to put together because it is money that we have to pay others. Debt can be your biggest financial handicap or possibly be utilized as a tool to increase your wealth. With varied perspectives on this concept, I believe that you need to factor in your lifestyle to figure out what works best for you. Here are some thoughts I have on making debt decisions and reviewing the Dave Ramsey philosophy.
- Home Mortgage – we purchased a large home for what my wife and I needed, but did it at a time where interest rates were incredibly low and the market in our area was doing awful. We also have plenty of room to grown into the home as we add to our family.
- Rental Mortgage – 2 BR condo that we rent out
- Student Loans – Only Mr. Pro Finance carries some student loan debt. My interest rates are 3.15%, 4.25%, and 6.55%. The 6.55% has been getting extra money thrown at it since I started paying them off. Barring unexpected expenses, our plan is to payoff these loans with a windfall expected next Spring and then turn this debt payment into an investment of a college education for our children.
- Car Loan – As mentioned before, we purchased a new SUV last Fall and was able to get a 0% interest rate. I don’t expect that we will make additional payments on this loan as a result.
- Credit Cards – The worst of the worst. I have a few credit credits and unfortunately we are carrying some debt on them now due to some inefficient spending (luxurious trip to Europe) which exceeded our vacation budget and then some immediate emergency home repairs that evaporated our emergency fund. That has put me in a position to have to figure out how to best handle credit card debt – check on why I decided on our plan of action here.
In future updates I will include an updated look at the portfolio and balance changes as well as highlight any investments or debts that are added or removed during a month.
I also welcome constructive feedback on allocation of savings, investments, or debt. As of now, I know that I have work to do on mitigating risk and tax efficiency.
Categories: Journey to FI