Yearly Summary: General
- I was working full time at the start of the year
- I finished converting my van around 3/8/16 and started focusing on the last house work needed to get it ready to sell
- I moved into my van 3/26/16
- I got my house ready for sale around 4/10/16
- The house sale finalized at the end of May. That day I called my boss, told him I can’t work full time any more, and started negotiating a part time work arrangement. The next day I left St. Louis.
- On 6/10 I started part time work
- By the end of June I had decided to quit. I told my boss so on 6/30
- My last day of work was 7/15
- I set off for adventure on 7/17
- Nearly died on 8/21 (**details below)
** Ok, just kidding about that one
Yearly Summary: Financial
Net worth evolution:
- Start of year: $443k
- After quitting: $535k
- End of year: $543k
This gives a pretty clear summary of my finances over the past 6 years.
(In this chart, my post tax income from work is shown as either spending or saving. The blue investing numbers represent investing income plus realized and unrealized capital gains)
Long term net worth evolution:
On a shorter timeline you can see the growth slow after quitting. If I worked the rest of the year I’d have another $30-40k. Right now I’m glad I quit when I did.
Now I have my net worth projection at 3% growth per year (but my results are likely to be less accurate vs. the projection before, because the savings component is gone)
Yearly Summary: My Investing Performance
Ok. Here’s the embarrassing part. Look how much I suck at investing:
The numbers for my performance aren’t 100% accurate, they’re more like ‘back of the napkin’ estimations. But they are pretty close. I like to believe that the main reasons for ‘poor performance’ compared to the index are:
- I was using the Permanent Portfolio for the first couple years. That strategy had worse performance those years than it normally does vs pure stocks
- My 401k fund choices sucked
- I hold some cash
Of course, it’s surely not that I suck at investing, right? Now that the first two reasons are gone, I expect my 2017 performance to be much closer to VTI. When I did a comparison about a year ago, my post-tax investing accounts (the ones I can control fully) outperformed VTI. So… we’ll see.
Here’s a look at my investing not going as planned:
When I quit and converted my 401k money to income producing stocks in a traditional IRA, I didn’t get as much income as I expected. I think the main reason is that stock prices went up faster than the dividends in recent years and I wasn’t adjusting my expected yield downward. Also, I’m using index funds in my Traditional IRA and I believe the yields aren’t as good as individual stocks. So over time I believe I could convert the index shares to individual companies and get a bit more yield.
I’m not worried by either of these investing stumbles. Low spending creates resilience. I can easily spend less than my current income. I expect my hobby income to increase. With my spending low, it only takes small successes for hobby income to cover all my spending.