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Net Worth Jan’18

SUMMARY: January is a red-headed month given my 2017 year-end bonus payment.  With it, I maxed out my 401(k) and because the company matches dollar-for-dollar up to the IRS limit, it’s an easy $37k saved in the first month of 2018.  My bonus is completely discretionary and, therefore, only assumed the 401(k) would be maxed in my 2018 forecast.  I never bank a bonus before it’s paid.  The remaining cash left after maxing out will be temporarily held in my savings and allocated via my waterfall method in February.  

Incentive compensation is a great benefit, but this particular one took a few years off my life earning it all.  Was it all worth it?  Yes and no.  Would I do it again?  No.  Should I search for a job with less compensation, but a better quality of life?  TBD.  Regardless of where I land, everything will turn out fine because, at the very core, I am a saver.  And savers always win this game.

Next month preview: life insurance loan pay down (i.e. money I borrowed from myself at a simple interest rate).    

LIQUID ASSETS

Checking – cash purposed for managing day-to-day and monthly expenses

  • -$1,239.93 cash decreased due a large chuck of credit card debt being paid down from the Christmas holiday 

Savings – cash purposed for the next 3-5 years (house down payment, emergency etc)

  • +$50,150 year-end bonus + $150/month automatic transfer from my savings. Will reduce next month to recapitalize my bank (life insurance)

Life Insurance – cash value of policies purposed for strategic investment opportunities and financing other large purchases

  • +$5,509.45 monthly premium + policy growth (i.e. monthly straight-line accretion to current year’s guaranteed cash value)

Stocks

  • -$3,566.86 positive market movement that was completely offset by my loss in alt-coins.

Real Estate Earnings – PeerStreet monthly interest earnings

  • -$2,656.09 re-invested principle & interest in the PeerStreet cash account 

NON-LIQUID ASSETS

Retirement  – 401(k), IRAs, Pension

  • +$50,207.86  Maxed out my 401(k) with 100% match from the company (+$37k) and my financial advisor managing my IRAs had a nice run of approx. +$13k.  I am a front-loader in case anyone is wondering.

Other – represents my cost basis in illiquid assets (PeerStreet principal investment, Mrs. Church’s wedding rings, apartment security deposit, and an outstanding loan receivable)

  • -$613.00 late interest payments from PeerStreet investments and $500 repayment of personal loan I hold

LIABILITIES

Credit Cards – two cards (Amex & Visa) with great rewards

  • -$2,924.36 year-end bonus paying off a significant chuck of Christmas credit card debt

Lease Obligations – Apartment lease, storage unit, gym memberships etc

  • -$4,150.00 contractual monthly costs 

Life Ins Loans – life insurance policy loans used to fund strategic investment opportunities or large purchases

  • -$4.67.17 monthly loan reduction

2 comments

  1. Wow! You are killing it. Maxing out your 401k in January is incredible. For a young guy, you are doing exceptionally well. Just take care of yourself and don’t work to hard in the process. You are setting yourself up for a nice retirement when you decide to call it a day.

    • Thanks for the kind words, Dave. I am trying to figure out the “not work too hard” piece right now. Something needs to give, so maybe when I get it all figured out it will be a nice post. Running out of interesting things to say anyway…HAHA!

      Thanks again for stopping by.

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