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.
As noted in last month’s net worth update the big milestone for May was paying off our first rental property. We owed around $43,000 and the interest rate was 4.5%. It also was a private loan so there initially weren’t any bank financing costs when we originally took out the $45,000 loan. I did however have to pay a lawyer to write up the private loan documents.
Talking about mortgage payoff is sure to bring out opinionated folks in the personal finance community. Cubert from Abandoned Cubicle who also calls the midwest his home chimed in with his thoughts on my move, but alas it was too late. Bank ACH’s were already setup and the deed was done. I’ve copied our Twitter conversation below which pretty much sums up my thoughts on the matter.
Don’t do it! Keep leveraging the banks money – buy another unit with that 80k – then you’ll be crushing something!
— Cubert @ Abandoned Cubicle (@cubertAC) May 17, 2018
I already have enough – enough debt (around $240k after payoff), enough rental units (4), and enough in other investments. It’s time to increase cash flow, scale back work (success) and focus on some new endeavors. I’d argue I’m already crushing it, I’m 29.
— Quietly Crushing It (@QuietlyCrushIt) May 17, 2018
We had an unseasonably warm Memorial Day weekend so we spent as much time on the water (pictured above). It was warm enough to bring a few chairs along for a day out on the sandbar. What a great start to the summer season!
We also continue to put the miles on our electric bike (the Rad Wagon) and it has officially been crowned the best purchase ever in the QCI household. As of writing we have about 450 miles on it and it continues to be our go-to for any intracity trip. It’s such a nice feeling to see our car in the garage, collecting dust for days on end.
Another highlight for the month was making our own spring rolls for the first time. It was fun and easy and is definitely is going to make it into our ever growing meal rotation.
On the finances front things continue to go well. We crossed $600k in investments for the first time. With our rental-paid-off goal complete we will continue to invest any excess funds. Miss QCI will continue to contribute to her taxable account and I have already started on maxing out my Roth IRA for the year. I also changed my 401k contributions to 75% of my paycheck, up from 6%.
Mr.QCI Net Worth
Cash: ~$9,500 (-$21,500) – Single family rental paid off!
P2P Lending: $7,006 (-$362) – I am reducing my allocation to p2p lending
401k: $79,460 (+$2,257)
Vanguard Rollover IRA: $87,174 (+$1,961)
Vanguard Roth: $41,549 (+$2,649)
Vanguard Taxable: $122,267 (-$627)
Individual Stocks/Other Investments: $2,048 (+$67)
HSA (amount invested only): $22,361 (+$554)
Total Investments: $361,865 (+$6,499)
Assets: $475,000 – This is the estimated value of my four 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): $245,570 (-$43,000) – (Updated: January 2018 – I plan to update this every 6 months)
Net Worth: $600,795 (+$27,999)
Miss QCI Net Worth
Cash: ~$4,000 (-$23,000) – Single family rental paid off and remaining cash invested!
Vanguard Roth IRA: $55,576 (+$6,533)
Rollover IRA: $103,578 (+$335)
Vanguard Taxable: $90,012 (+$11,849)
Total Investments: $249,166 (+$18,717)
Net Worth: $253,166 (-$4,283)
Investments: $611,031 (+$25,216)
Projected retirement income (assuming 4% rule): $24,441/year
Net Worth: $853,961 (+$23,716)