I have learned a lot this year, I know what a PE ratio is, how to buy and sell stocks and mutual funds and I even bought into a cryptocurrency. I realized that the key was to get started. As my favorite author, Chris Guillebeau, put it, “An ounce of action is worth a ton of planning.”
The best thing I did this year was get started. This year I set a goal of retiring in 10 years. At the end of this year, it seems more possible than when I began. Some simple math gave me a number to shoot for. I want to draw a paycheck of $100,000 per year, a good index fund will earn 8-10% annually. So I set my withdraw rate below that at 5% to ensure the nest egg is being replenished, $2,500,000 is the number I need to quit working for other people. I’ll share my story as the years continue and we will see if I get to rags or riches.
Here are a few numbers that recap the little more than 6 months I spent investing and studying the market:
Cash contributions: $5,398
Stocks roll over (Orginal Cost): $1,920
Realized Gains (Profits): $5,484
Unrealized Gains*: $10,693
*Included LOW which has been growing since 1999 when purchased. The number above includes $9,445 in gains from LOW
End of Year Balance: $23,495
IRA (Individual Retirement Account)
Balance transferred in: $13,203
Unrealized Gains: $1,256
Total increase: $3,286
End of Year Balance: $16,490
Cash put in: $543
I am not including any gains since I have no option to withdraw right now. The R2-B website lists my investment as worth significantly more than I put in but since I can’t withdraw it I don’t consider it real yet.
TOTAL CASH INPUT FROM 2017 & ALL PREVIOUS YEARS: $25,014
TOTAL GAINS FROM MARKET, PREVIOUS YEARS INCLUDED: $15,514
TOTAL ACCOUNTS VALUE AT END OF YEAR: $40,528
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