The first half of the year is behind us and it’s time for an update to the Epic Quiver 2017 financial goals. The first half of the year has gone better than planned, which is amazing as I had never put away more than $15,000 a year into savings and investments until I ran into the F.I.R.E. community. So let’s look at the progress to date.
The job market was in full swing the first half of this year. I ended up receiving job offers from four different companies all in the six-figure range. I ended up switching jobs at the end of June, choosing a company that gave me a leadership role, full control over my department, the ability to set my own schedule, an opportunity to help build a new company culture, and the ability to still be involved with the space exploration industry that I love. The new job also had several financial benefits over the other opportunities such as: after-tax 401(k) contributions which can be rolled over to an IRA, a high deductible medical insurance plan with a Health Savings Account, a $20,000 pay raise, and a 5 minute commute that allows me to ride my bicycle to work.
I made the decision to max out my pre-tax 401(k) by the end of May and I hit the $18,000 target as planned. I am now contributing after-tax dollars to my 401(k) and intend to roll over about $15,000 into my Vanguard ROTH IRA in December which will be my first Mega-ROTH IRA conversion. All 401(k) funds are invested in Vanguard’s Total Stock Market Index Fund (VTSAX / VTSMX). To date I have made $1,248 off of my 2017 401(k) contributions.
My second 401(k) account from a previous employer that I use for day trading and swing trading has been sky rocketing. I have been holding Amazon, Facebook, and Twitter since last November, which have provided me 32.75%, 43.28%, and -8.03% returns for the year, respectively, totaling $11,403 in profits, year to date.
The $5,500 I invested into VTI via my wife’s IRA at the beginning of the year has returned 6.74% for $371 profit year to date.
My $4,170 ROTH IRA contributions from earlier this year have also returned 6.74% for a $136 in profits Year to date. My SNH investment is currently at a 1.68%, $18 loss on stock price value, but I have made $43.68 to date on quarterly dividend payouts. I’m currently watching for a bigger dip in the stock price of this REIT so I can load up on more shares and increase my dividend average from 8% to 8.5%
In April this was a massive dip in the stock price of Twitter, that was still within my rang of risk tolerance for my 401(k) investment. I decided to use this opportunity to load up on additional shares via my ROTH IRA account, to lower my risk. This additional position size paid off and is currently resulting in an 11% profit, which offsets the losses from my 401(k) position.
Health Savings Account
My new company offers an HSA and a $500 a year company contribution. My goal is to max out the HSA with $6,500 in contributions. To date, my HSA contributions are at $2,386, since joining signing up a little over a month and a half ago. I cannot invest any of this money until I exceed a balance of $3,000, so I’ll probably wait until the end of the year to invest any money in this account.
In May the FB stock price had a significant pull back, and I decided to buy up additional shares with my vacations savings. I sold these shares at the end of July for a 19.84%, $345 profit, which ended up paying for my new surfboard.
Quarterly payments from my RealtyShares investment have been delayed until Q12018. I am a little disappointed in this, but it’s a risk I signed up for in an effort to potentially make a 17% return.
Lending Club has been my biggest investment failure of 2017. This peer-to-peer platform use to pump out 20%+ annual returns for me when I signed up five years ago, but over the last two years, I have seen a huge increase in loan requests for debt consolidation, which significantly increases the risk of default. My annual return rate had dropped to 8% in 2016 and I had set a goal to get my average return back over 10% by July. I have not been successful with this goal, my average return is now at 6.34% so I initiated my exit strategy to wind down my investments on the platform by choosing not to reinvest funds when I am paid back. I have talked to several other friends who started using the platform at the same time as me in 2012, and they have all begun to wind down their use of the platform as well.
I picked up another $281 through affiliate programs related to this blog, which I put towards my new surfboard fund.
I started a new side hustle with a group of friends who have been successful in their careers. We are providing job hunting, career advising, and mentoring services to millennials who are looking to excel in their professional careers. The business is called Millennial Career Advisors which will officially launch in September, but we have already made over $1,200 during our pilot phase.
My goal is to increase my net worth by $53,000 by the end of the year. To date my net worth has reached $259,229, up $39,031 from the start of the year. If I maintain the current momentum I should be able to finish the year between $58,000 and $59,000 in additional savings.