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Portfolio growth exceeds income

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  • srblanco7
    replied
    I've tracked our portfolio performance in a spreadsheet since 2005. This thread prompted me to update YTD performance and take a look at recent annual returns. The increase in the value of our portfolio (including contributions) in 6 of the last 8 years (including 2019 YTD) was greater than the annual income we are targeting in retirement. Recognize that we're in an aging bull market, which skews our results to the upside. Nevertheless, I feel like we're getting close to a portfolio value that'll allow us to safely weather both market ups and downs without worry.

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  • LivingAlmostLarge
    replied
    We are up $170k for the year. Contributed 19k plus $11k roth IRA. Our returns have been outstripping our contributions for awhile. We are at $960k, I hope to break $1m this year in retirement we'll see. Since we started in 2003 we've contributed $305k between the two of us. DH didn't contribute till 2005 and i only did about $3k before 2005. We started that year saving when DH got his first real job. I had a job 200-2002 but no 401k and i should have maxed out the roth but instead we bought a house.

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  • rennigade
    replied
    Originally posted by disneysteve View Post

    And no, I don't think it's a reason to change anything.
    I wouldnt change it either, essentially 60/30/10 as you're nearing retirement. Even if there was a big correction, your cash stash could last you years even with the disgusting property tax bill.

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  • disneysteve
    replied
    Originally posted by jIM_MI View Post

    Is the return which generated this "sustainable"- meaning was portfolio return between 4-8%, or is the "good year" to give credit for a 10-20% return?

    Do you see this "milestone" as an indication to make a change?
    No, I don't expect returns like that every year. We're still in a bull market - a very old one but still going. It'll end eventually.

    I don't see this as being any sort of milestone. I was just sharing the numbers. And no, I don't think it's a reason to change anything.

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  • jIM_MI
    replied
    Originally posted by disneysteve View Post

    I'm not shy. Here are the exact numbers.

    YTD take home: $114,894
    YTD gross: $193,430

    YTD change in portfolio: $215,140
    Is the return which generated this "sustainable"- meaning was portfolio return between 4-8%, or is the "good year" to give credit for a 10-20% return?

    Do you see this "milestone" as an indication to make a change?

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  • disneysteve
    replied
    Originally posted by mommyof4 View Post

    Thanks for the quick response. I'm probably closer to 70/30 now, I think the glide path takes me to 60/40 over the next 10 years. I'm planning on retiring in about 8-10 years from now.
    We were at 69% stock at year end 2018. We've been accumulating more cash lately, especially now that the mortgage is gone. I didn't realize the stock allocation had dropped quite that far. I don't want it under 60 so I'll probably tweak the new contributions a bit and push it up closer to 65.

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  • mommyof4
    replied
    Originally posted by disneysteve View Post

    Funny you should ask. I just updated that calculation this evening.

    61.16% stock
    26.67% bond
    12.17% cash
    Thanks for the quick response. I'm probably closer to 70/30 now, I think the glide path takes me to 60/40 over the next 10 years. I'm planning on retiring in about 8-10 years from now.

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  • disneysteve
    replied
    Originally posted by mommyof4 View Post
    Can I ask what your asset allocation is?
    Funny you should ask. I just updated that calculation this evening.

    61.16% stock
    26.67% bond
    12.17% cash

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  • mommyof4
    replied
    Can I ask what your asset allocation is? I've just been using Vanguard target date funds in my tax advantaged accounts, and fidelity SP500 mutual funds in my taxable account. I've seen decent growth in both, but certainly not spectacular growth. I haven't been investing as long as you have, either.

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  • disneysteve
    replied
    Originally posted by rennigade View Post
    My portfolio is up $100,402.91 as of 10/1. Ive only contributed $8,987...the rest is growth. Thats with $570k thats actually invested.
    Pretty similar to us percentage wise. We've got about $1.2 million so just over double and we're up just over double you. Great job.

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  • rennigade
    replied
    My portfolio is up $100,402.91 as of 10/1. Ive only contributed $8,987...the rest is growth. Thats with $570k thats actually invested. So a decent rate of return so far.

    Id be curious how much my wifes portfolio is up but she doesnt keep as detailed records as me. Ill only know at the end of the year when I do all the year end stuff.

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  • disneysteve
    replied
    Originally posted by kork13 View Post

    That's fantastic! How much of that change was growth vs. contributions?
    I don't know exactly offhand. I think we're at about 30% savings so somewhere around 60K in contributions give or take.

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  • kork13
    replied
    Originally posted by disneysteve View Post

    I'm not shy. Here are the exact numbers.

    YTD take home: $114,894
    YTD gross: $193,430

    YTD change in portfolio: $215,140
    That's fantastic! How much of that change was growth vs. contributions?

    If I didn't know your plans to keep working Urgent Care shifts as desired, I'd ask you when your retirement party is scheduled.

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  • bjl584
    replied
    That's always a good feeling to see your money working for you instead of you for it.

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  • Jluke
    replied
    BUT if I look at 2018 peak Iím up about 50k. With close to19k of that as contributions

    so that December drop last year skews the evaluation.

    at least Iím making money.

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