Net Worth May 2019

May was a reminder that things can change in an instant, just like the 4th quarter of 2019.  For the month of May, I finished down -$55,555.69 or -4.67% for the month.  Net worth closes out May at $1,132633.46.  My goal every year is to increase my net worth by $100,000 per year and I’m setting my sights on $2 million by 2024’s year end.  In April, I was up over $115k for they year, but have pulled back to a +$59,000 YTD.

The S&P500 saw an decrease of -6.58% for May.  For the month, I was down -4.67%, outperforming the S&P500 by 1.91% in the 5th month of the year.  YTD, I am up 5.55% vs 9.78% for the S&P500, I have some work to do to close this gap.

Here’s what I said at the end of April… “For 2019, I’m pegging my portfolio to perform anywhere from finishing the year at $850,000 in a worse case scenario (the yield curve has finally inverted and it freaks me out), to a best case scenario of $1,225,000.  This rally has been long in the tooth, and I haven’t had a down year since 2008, streaks eventually come to an end, investor comfort level is too high and this is the perfect storm for the rug to be pulled from underneath.”  I’m worried about the damage that will be done to not just the US economy, but global economy.  The POTUS can quickly undo everything with these trade wars.

For any new readers, my net worth is super simple. I have absolutely no debt (including house, cars, student loans). I make more from my investments than actually going to work 40 hours a week.  Basically, I am liquid AF. For my net worth, I only count financial assets, so I don’t include material possessions like house, cars, shit in the house (I like to keep it simple and think of only assets I can raise cash in the matter of seconds). My goals are pretty clear too: Increase Net Worth by $100,000 per year, Get to $2,000,000 by 2024, Get to $40,000 in dividends by 2024, and my new goal of make $500,000 from my investments in 1 year at some point in my life.  So here goes the charting of my net worth since 1999…

While I am working to get to the $2 Million marker within the next 5 years, I should also note the slow and steady increases in dividend income. For 2018, I just passed the $26,000 marker for dividends. This allows me to never really touch my portfolio. 2019 dividend income is expected to pass $28,000 and the goal for 2020 is $30k.

Interesting tidbit from the chart above…looking at the figures for the last about 6 years I have increased my net by $563,609.26. The prior 15 years accounted for $624,579.89. I often refer to how my money works harder than I do. Think about it another way. From a time perspective the last 6 years out of the 21 years of this experiment equals 28% of the time involved. That means a little over a quarter of my time doing this has actually accounted for the majority of the growth of my assets. The 6 years has produced $563,609.26 or 47% of the growth. The first 15 years was 72% of the time and produced $624,579.89 or 53% of the assets. This disparity between time and asset growth will only continue over time.  Start early!!! It’s easy to make you’re money work hard for you, so you can kick back.

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