Market volatility continued to swing in a big way between June and July. Our portfolio rebounded and moved up so strongly that we hit a positive net worth for the first time ever (not counting our equity in house/rental)!
As a FIRE student, I am super encouraged to hit that watermark, but I also know that there’s just as good of a chance that we back down from it over the course of the next month or two if we have a couple of bad market months.
Key Month Updates:
- Refinanced our rental condo from an Adjustable Rate @ 5.25% to a 15 year Fixed Rate of 3.62%
- Used emergency fund to cover wife’s unpaid leave
- Overspent vacation budget and will be dedicating 1.5 more months vacation budget to paying off trip ($700)
- Received $700 from family for Baby Pro Finance 529 Plan
At this stage in my FIRE journey, which is still very early in my opinion, I am struggling to go to work each day. In the back of my mind I always think about the fact that if I was to be laid off, I would be able to afford to manage the exact same style of living for over a year through only touching my taxable brokerage accounts and Roth IRA contributions. Of course, there would be severely detrimental consequences in reaching early retirement if I were to do that, but the thought remains.
I’ll leave you with the compound interest fun fact of the day. If I was to never contribute another dollar to my 401k and let it grow at 6.5% annually, I would have over $1.5 million at age 65. That’s another comfortable security blanket that keeps me warm at night and not totally dependent on my job for security.
Categories: Journey to FI