Hey, thanks Kit! Very nice to e-meet you! Def. not worth millions over here, but one day?! :) Going over to check out your blog now – love reading new ones!

That being said what really made me comment was that your wife is federal employee which I noticed when I saw TSP section of your table. You mentioned she is in the L2040 fund, because she is more conservative and wants to be diversified more.

I was in the L2040 for several year (up until like October 2017). Then I realized I was missing out on a lot of potential. The L2040 is currently 28% Bonds/Government Securities so wouldn’t this be less diversified than having more of that money spread out through hundreds and thousands of different companies (i.e. the “C Fund” and “S fund”). I’m currently gambling it up using a seasonal strategy, but I will probably fall back to 80% “C” and 20% “S” within the next year. If your wife wants to have some assets not in equities I’d push for putting that amount strictly in the “G Fund” and skipping the “F Fund” altogether. I also skip the “I Fund” for the same reason a lot of people just do a US total stock market index (a lot of big US companies do business overseas resulting in international exposure) especially since the “I Fund” is only developed market.

And congrats on your guys’ new highs as well! Love that you’re calculating it from all different angles!

These updates don’t factor in tax stuff at all – I mainly use it as an overall “snapshot” of my money to keep myself motivated :) I know people who do include it in their net worths though, although usually I see it in “retirement” or “cash flow” spreadsheets/calculations instead. Just depends on what you’re going for :) (And even better if you DO keep multiple spreadsheets for each area you’re tracking! The more angles you look at this stuff the better!)

I’ve also been gradually rebalancing, and today pulled the trigger on another change in one of my retirement accounts. Gulp – that always makes me so nervous!

That is a seriously adorable baby you and your wife have made. I hope he is and continues to be “Basic Baby” (healthy, happy, with typical needs and development).

Quick question on these net worth numbers. Are these post tax or pre tax numbers? What I mean by that is, do you remove the effect of federal/state income tax assuming that the gov’t will be taking some portion of any capital gains? For example, let’s assume I have a stock portfolio that is $100K but the cost basis is only $10K (obviously a very hypothetical scenario). On the $90K, the gov’t is going to take their share of the pie (assume combined fed/state income tax rate of 20%, so $18K). When I think about my net worth, should I think of my net worth as $82K? Which would then be the number that I use to base the SWR on?

Your thoughts on this would be greatly appreciated!

Thanks!

Haha… all I know is that I very much enjoyed reading this (AND GO CAPS!!!)

I’d make sure you don’t owe any taxes on that $80 grand you’re about to profit from, but outside of that i think it’s great you’re pre-planning everything and trying to optimize the results. I’d personally just invest all the extra money in one lump sum vs dollar cost averaging, but maybe DCA’ing is more exciting to you or extends the good feelings?, in which case i say run with it. You can always decide to dump the rest in any day if you don’t want to wait anymore. I also agree on splurging a little because if you can’t with a windfall like that, when can you?? It’s no fun just saving and investing your whole life…

so yeah man, i hope the sale all goes smoothly and be sure to come back here and update us over time… sounds like fun times ahead!

net worth -161,016 (yes, that’s negative, doesn’t include the home i currently own or my car, etc)
checking 11,999
401k 13,001
Roth 12,016 (invested in vtsax)
credit card 1,786 (pay full statement amount every month, never pay fees. double cash back card from citi)
car loan 11,910 (2.84% interest)
student loan 9,170 (3% interest)

65k/year salary

the real issue for me here is-i’m selling my house and closing is at the end of this month. I’m estimated to pocket a little over 80k after the sale. i’m moving in with the girlfriend and will be paying rent (if you want to call it that), so my monthly expenses will drop from about 2800 per month to about 2300 per month.

my plans are to immediately contribute 5500 to 2018 roth (maxed 2017 with my tax refund)
figure the exact percentage i need to max my 401k on my last pay period of the year (currently contributing 10%, so this will probably mean contributing 50% which means setting aside about 15k for those purposes)
possibly holding back 5500 for 2019 roth on january 1, 2019
i like to keep 10k in my checking as emergency fund
i do not intend on paying my debts off early, with those interest rates i’d end up “saving” about 3 grand over the next 7ish years…who cares?
so this leaves me with 54k to play with…i have no kids, don’t plan on it (i the youngest child, i have 4 nieces and a nephew who i love, but i’m too selfish for kids), i’m 37, i hope the Caps win tonight, i plan on buying a new phone (1k) and new grill (500?) as my only rewards to myself for being a good human…

i’ve read all about dollar cost averaging vs investing in a lump sum and how dollar cost averaging loses almost every time…if i were to DCA (into vtsax, of course, i know where i am right now), i’d likely do so where i’d invest something like 9k every month, or 4500 every two weeks until the end of the year until my checking bottoms at 10k, then once per month in perpetuity i’d throw more into the brokerage account to end up at 10k again

please tell me how i’m right (our president is insane and could start a war anytime), or how i’m wrong (the markets are doing so well, hop in), what i really should be doing, how excited you are about the Caps tonight, and please don’t be shy with insults, i used to work in TV, i’m used to getting yelled at

My wife says “NO” :)

Hey – gotta cross $18,000 before $1,000,000 :) We were all there once!