June 2015 Net Worth Update (+2,172)




Highlights for June

  • We have earned approx $3,400 (in gift cards, points, and miles) through credit card signup bonuses in the part year. We just finished the last 2 offers and will be looking for my next opportunity.
  • Our properties are listed on our balance sheet based on their cost basis, not current market value. We have done this during the the real estate market highs and lows. I believe real estate is too illiquid to list based on recent sale transactions.
  • I received my employer's annual bonus in June. It was small, but better than last year's ($0) so a step in the right direction.
  • I took a step to move some of our available cash ($5,000) to accelerate paydown of the mortgage on Rental #3. Its the highest interest rate (5% fixed) debt we have.
  • In June we spent a week at Myrtle Beach for a vacation. These days I feel like we need a vacation every month. I would like more opportunities to slow down with the family.
  • In June I sold a significant portion of our Bank ETF (KBW) as it hit new highs and our investment portfolio monthly return (-2.12%) was slightly worse than our benchmark (-2.09%).


May 2015 Net Worth Update (+15,309)




Highlights for April

  • We have earned approx $3,400 (in gift cards, points, and miles) through credit card signup bonuses in the part year. We are actively working on 2 additional bonuses including the Delta Amex Card for 50,000 Skymiles & Barclay Travel Plus Card for $400 in travel credit.
  • Our properties are listed on our balance sheet based on their cost basis, not current market value. We have done this during the the real estate market highs and lows. I believe real estate is too illiquid to list based on recent sale transactions.
  • I spent 2 weeks in May on a business trip to China. I enjoying traveling (this trip included my first visit to Chengdu, China); but with a young family back home its difficult to manage. We end up spending more while I travel for work.
  • I'm expecting a small annual performance bonus in June for the first time in a couple years from my new employer. We continue to go through a great deal of transformation and uncertainty as we integrate our organization that was acquired from IBM last year. Change can be hard, but I continue to embrace it and hope it will payoff down the road.
  • In May we hired a painter to help take care of some long standing projects around the house. In the end we spent about $1,400 to update several rooms and some of the exterior of our house. I'm so far behind on home projects that it was a good value to see some progress, but I cringe at the thought of hiring someone to perform a task we can do ourselves. I do see this expense as a good example of the cost of the extra hours I am putting in the office that I could otherwise be putting towards home projects or this blog ;-).
  • Our portfolio performed poorly compared to our benchmark. I continue to think the markets are overvalued and focus our free cash on paying down our property mortgages.
  • In June we have a beach vacation planned for a week after my oldest daughter completes kindergarten. We are looking forward to some down time.



April 2015 Net Worth Update (+$16,009)




Highlights for April

  • We have earned approx $3,400 (in gift cards, points, and miles) through credit card signup bonuses in the part year. We are actively working on 2 additional bonuses including the Delta Amex Card for 50,000 Skymiles & Barclay Travel Plus Card for $400 in travel credit.
  • Our properties are listed on our balance sheet based on their cost basis, not current market value. We have done this during the the real estate market highs and lows. I believe real estate is too illiquid to list based on recent sale transactions.
  • April's focus has been on the rentals as 2 of our tenants have indicating they are not renewing this year. The good news is looking at the rental market we are bumping the rent on each of these properties by $100+/mo which will certainly help with cash flow. However the time required to re-rent these houses w/ my work & family commitments is a challenge. I am seriously considering if I need a property manager going forward especially if work demands continue at this pace.
  • Our investment portfolio did well this month compared to our benchmark. Our gains were partially driven by some recovery in the oil industry including our recent ETF investment (USO).
  • I discovered when creating this report, that BB&T has not processed our recent mortgage prepayments correctly and applied them to our monthly mortgage payment. I'll have to dig into this, net is this has increased our cash further short term since we didn't have our mortgage payment deducted.

  • Financial Freedom Plan - 2015 Update

    I finally sat down to get an updated view of our progress towards our financial freedom plan that I laid out a few years go in terms of asset allocation.

    Some notes:

    • Our asset allocation to fixed income (interest) will continue to be a gap for us while government drive the low interest rate environment. No sense in putting assets to work here as generally the return is not worth the risk in my opinion. If interest rates normalize well likely shift focus to here.
    • Our invest-able cash flow focus has been on paying down the rental mortgages over the past couple years, but that has not kept pace with the growth of our retirement assets.

    No major course corrections for now. We will continue to pay down rental mortgages to boost cash flow, build cash savings, and continue to take advantage of tax incentives to save in retirement vehicles.


    March 2015 Net Worth Update (+$5,216)




    Highlights for March

About 2millionblog.com

A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,405,985

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