Tuesday, February 28, 2017

February 2017

Jan-2017
Feb-2017
Assets
Retirement
359,774.81
378,531.17
529college
14,317.25
14,746.21
Bank Accounts
47,050.67
42,856.20
Investments
11,082.92
11,535.76
Bonds
11,888.20
12,091.76
House
300,000.00
300,000.00
Total Assets
744,113.85
759,761.10
Liabilities
287,173.32
285,683.72
Net
456,940.53
474,077.38
Change
17,136.85


All numbers are in USD.

Assets and Liabilities buckets

Here are some details behind what goes into our Assets and Liabilities columns.

Retirement bucket
We both have 401(k) accounts at our respective jobs. One of us also has a Roth 401(k). We both have individual Roth IRA accounts with Vanguard. One of us has a Roth IRA account with CapitalOneInvesting, an old account that doesn't receive any new funds (but reluctant to roll over to Vanguard, just "playing around" money). One of us has a fully vested pension component, from work, as well.

529 college bucket
We have a 529 college account with Utah Educational Savings Plan, for our child. We also have different accounts for our nieces and nephews but those are not included in our assets column.

Bank Accounts bucket
Pretty self explanatory. Only checking and savings accounts. We do not currently have any CDs.

Investments buckets
Individual taxable brokerage accounts with Vanguard, Computershare and Loyal3. This is mainly "playing around" money. Computershare offers DRIP in major companies, a lot of them with no fee on buying. Loyal3 is a commission free online brokerage platform, which also allows ordinary investors to take part in IPOs.

Bonds
A bunch of Treasury bonds given as present from grandparents. We let them go till final maturity.

House
Our primary residence. The valuation of $300k is from 2015 when we refinanced. We know there has been appreciation but we don't factor that in.


The following make up our liabilities.

Mortgage
30-year fixed at 3.875% (~$238k on Feb 28, 2017)

Car loan
5-year fixed at 0.9% (~$21k on Feb 28, 2017)

Student loans
Government loan at 6.21% (~12k on Feb 28, 2017)
Private loan at 4.99% (~15k on Feb 28, 2017)

Credit Cards
We do NOT have any credit card debts. We use our cards for any purchase, for any amount, where ever they are accepted, and we pay off the full balance every month.


Monday, February 27, 2017

What is this NetWorth blog?

After being inspired by MrMoneyMustacheJLCollins, and MadFientist for a number of years, we decided to, anonymously, create this site where we put up our net worth every month.

What is Net Worth?
If you add up all your assets (bank accounts, retirement accounts, CDs, investments in the stock market, real estate investments, treasury bonds, 529 accounts) and then subtract any outstanding loans and debts you have (car loans, mortgage, tuition loans, credit card debts) the answer is your net worth.

Why is Net Worth important?
Net gives you the single most reliable number where you are at the moment. Or how far you've come. Or where you need to be. To be Financially Independent and/or Retired Early (FIRE).

Who are we?
We are a mid-30s couple, with a pre-schooler (as of Feb 27, 2017). We both work. We live in the American midwest. Our combined annual gross salary is ~$200k. Details about us are intentionally vague because the point of this blog is not who we are and where we live and how much we make; the point is how are increasing our net worth every month.

What is our goal?
To be FIRE by age 50. That would mean all of our expenses at that point will have to come from our investments.

Why this blog?
Two reasons:
1. To publicly, though anonymously, document and show what we are doing; and
2. By showing it to the world, inspire others that it can be done
We will post our net worth, and the changes, at the end of every month, ideally on the last day of every month, but practically it will be within the last week of the month.