The market giveth, and the market taketh away. Last month was definitely a month that the market giveth. There were significant increases in our Roth IRA, Brokerage, & 401k accounts last month. It was so much, that it almost made me forget about how brutal the previous month was.
The stock market followed up the worst December in 10 years, with the best January in 30. Quite a wild swing. If you started feeling optimistic about the market moving higher and higher in 2019, Goldman Sachs came out a few days ago to pee in everyone’s Cheerios. They stated that “If you missed the January rally, you likely missed the 2019 gain” (source)
If you caught my previous post about not panicking when the market drops (here), you know I was holding my nose and buying a little bit around Christmas. That seems to have paid off for us the first month of the year.
Enough rambling. January was a record month for us, both in total dollars gained, and percent gain, here’s the breakdown:
2nd month of using Zillow’s estimator for this value. Last month dropped a crazy amount, out of nowhere. This month the value moved back to where the Z-estimate was for most of 2018. Either way, we aren’t planning on selling this place any time soon, so it’s all moot. That being said, it is way more fun to have $10,000 home gains than $9,000 home losses, moot or not!
Cars depreciated a little bit slower than they did last month. My favorite thing about these cars is that we own them free and clear! No monthly payments is a relief. I wrote a few months ago about just how impactful dropping the car payment could be for us (here). So far, we increased the amount going into our Ally Savings account each week, and also increased the amount we are paying into our Home Equity Loan.
Our contributions increased to match the new 401k annual maximum contribution of $19,000. Each week a portion of my pay goes straight to the account into a mix of funds that I picked. This year, including my company match, ~$25,862 will be contributed to this account! Over the last month, this 401k has outperformed the S&P, 9.6% vs. 7.9% – another win!
Roth IRA (+3,138.92)
Over the last month the stocks I own in my Roth IRA recovered quite a bit. The 4th Quarter results from Apple helped significantly as it turned a total loss in excess of $500 to positive $200. I also sold off the VTI I was holding in the Roth IRA and bought a bit more MO when it dipped below $44/share; if I sold that position I would realize a ~13% gain in the month I made the trade. However, I’ll just keep those extra shares to get my dollar cost average in Altria down and collect the 7% dividend yield from that purchase.
Monster Vacation Fund (+$661.73)
Our account grew by 17% last month, driven by buying a bit of VTI after Christmas (those shares are up 12%), and by Facebook stock finally recovering. I definitely bought the falling knife when I purchased it in the low 160s, but as far as it dropped, the 26% gain in January pushed us back into the green. I still think the stock is undervalued at it’s current levels and if the overall market drops over the next couple of months, I might be buying FB for the Roth IRA.
What happened here??? We had finally turned our cash situation around, and now we’re down 77% and close to our November lows?
I started my MBA in December with some tuition reimbursement from my job. I’m due >$4,000 back from my company, and by the time this posts, our cash will probably be positive. But as of the end of the month, that money didn’t hit our account so here we are, down $3,600 from last month.
Slow and steady. We’re almost a quarter through paying off our mortgage (24.5% down). Every month a couple extra dollars hit the principle. By the end of the year we should be under $200,000 remaining on this mortgage!
Equity Loan (+1,007.65)
Three payment periods back in November finally hit the bottom line in this month. By the end of the year, we should be well on our way to over a quarter of this loan paid off in less than 3 years. We upped our bi-weekly payment amounts from $475 to $493. That means we are making the monthly payment every other week. So, this year we will make 26 payments instead of 12. 14 of those payments (~$6,900) will only go towards the principle and the 12 regular payments will contribute ~$4,400 towards the principle. We will be in great shape to pay this loan off in a couple more years.
Previous 12 Months Graph
I updated the graph to start at $200,000 at the bottom, so the month to month changes look a bit more dramatic. You can see that we’ve completely recovered from the December drop and are at a new net worth high!
Our retirement account crossed the $150,000 mark again – $158,795.01. Our goal for 2019 is to cross $200,000, and our 2019 Roth and 401k contributions this year will put us pretty close. So it’s an attainable goal with just a little bit of help from the market.
- Finish Fire and Blood (Affiliate Link) I’m about 300 pages in, if you like the world of Game of Thrones, you would enjoy it
- Keep up with my new eating and workout habits
- Post 8 times
- Complete all my MBA work >24 hours before it is due
I hope your January was as fruitful as ours.
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Tracking my net worth was one of the first and best decisions I made to start getting serious about saving for my future. Back in April 2017 I created a Personal Capital account to make it easier to keep track of my accounts. Instead of hopping from website to website to add up my different accounts, I just needed to visit Personal Capital to see them all in one place.
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