One of the main purposes of this blog is for me to track my progress to financial independence which I am well on my way to achieving. Each month I share the details of all investment accounts and the changes from the previous month.
Note: if you’re just joining us you can view my most recent net worth update here.
What better way to kick off the new year with a letter of resignation! Miss QCI (my landlady sidekick – pictured) is officially leaving her corporate cubeville job for greener pastures. For us the journey has never been about stopping work, but rather doing work that is more meaningful, more fun, aligns better with our personalities and doesn’t require sitting at a desk all day. The original plan was for her to quit her job once bonuses were paid in spring, but the timeline was moved up due the immediate need by her new employer. Further proof that there is never a ‘right’ time to make a move like this. She will continue to work full time at the new job, but will have plenty of flexibility down the road, something we hope to take full advantage of eventually.
I am incredibly excited for Miss QCI to be able to take advantage of this opportunity, but it’s also important to note the role the corporate gig played in getting to this place. In just ~3.5 years Miss QCI has managed to amass over $100,000 in her 401k accounts. Not to mention the $7,000 or so in a pension and the 5 weeks of vacation that will be paid out after she departs. Miss QCI literally started at the bottom of totem pole, making $30k/year as a starting salary. She was promoted 4 times during the career stint.
With the career change I’m excited to consolidate Miss QCI’s accounts into Vanguard and take advantage of the Mega Backdoor Roth. Using this strategy at her old employer she was able to build up about $10k in after tax contributions that will be able to be rolled over to her Roth IRA.
Other highlights for December included some minor work on our new rental that we managed to get rented starting January 1. It was quite the process, but in the end we got a lease signed. We’re feeling pretty good about it. Here are the projects we completed and a few I have to finish up this week:
- Installed new curtains/blinds throughout
- Fixed loose Moen faucet (thanks YouTube!)
- Adjusted showerhead
- Patched walls where wallpaper? paint? was peeling (this was a true test of my drywall skills and included texturing the wall)
- Removed washer/dryer and got a free upgraded washer as a result (we don’t provide them)
- Misc. cosmetic and safety things (cleaning, fire extinguisher, outlet covers, hole patching, touchup paint)
- Toilet leaking (needs new flapper – to be completed)
- Tree roots preventing basement water to drain (surprisingly NOT the first time I’ve dealt with this – to be completed)
- Repair storm door (to be completed)
As seen below our investments and net worth continue to be on a tear. We are nearing a net worth of $800k which is hard to believe. For a historical perspective, last year our net worth was just $552,124 with investments of $416,875 (now $578,250).
With Miss QCI’s new gig we are committed to paying off a rental by June, 2018 which means I have scaled back all of our 401k contributions to the company match. Miss QCI’s new job doesn’t offer a 401k, but she will have a few paychecks from her old employer rolling in this year. This will give us some additional cash flow if I were to lose my job. In addition, we would no longer have immediate options of insurance through an employer, which means we need to be prepared for this expense in a worst case scenario. I also updated our mortgage debt in our update below which includes four mortgages.
By the way, I am looking for ideas on what I should focus on for content in 2018. Would you like to see more content related to our rentals, our YouTube channel with Miss QCI’s recipes & fun DIY projects, board games, sharing new products (electric bikes?!?), something else? Let me know in the comments!
Mr.QCI Net Worth
Cash: ~$14,500 (+$5,500)
P2P Lending: $10,897 (-$838) – I am reducing my allocation to p2p which will be directed towards paying off my new rental property)
401k: $74,168 (+$2,877)
Vanguard Rollover IRA: $85,577 (+$639)
Vanguard Roth: $38,552 (+$384)
Vanguard Taxable: $123,275 (+$3,018)
Individual Stocks/Other Investments: $2,098 (+$17)
HSA (amount invested only): $22,691 (+$1,238)
Total Investments: $357,258 (+$7,335)
Assets: $475,000 – This is the estimated value of my properties based on the purchase price and some appreciation our area has seen over the past few years and includes sweat equity. You can see my real estate holdings here.
Liabilities (4 Mortgages): $288,570 – (Updated: January 2018 – I plan to update this every 6 months or so, but I pay down about $10,000 of debt every year)
Net Worth: $558,188 (+$16,486)
Miss QCI Net Worth
Cash: ~$10,000 (+$2,000)
401k: $102,637 (+$3,204)
Vanguard Roth IRA: $36,060 (+$319)
Rollover IRA: $4,789 (+$47)
Vanguard Taxable: $77,506 (+$833)
Total Investments: $220,992 (+$4,403)
Net Worth: $230,992 (+$6,403)
Investments (what really matters): $578,250 (+$11,738)
Projected retirement income (assuming 4% rule): $23,130/year
Net Worth: $789,180 (+$22,889)