Last Digit Of Pi

[LastDigitOfPi]

Happiness is living life in the moment


May was dominated by two significant health/quality-of-life risk events. The first occurred when my dad had a set of small strokes. I found out the week after he experienced them because my parents did not want to worry me. Of course I went up to help them out during the extended Memorial Day weekend. During my visit I helped fix a problem with the ac unit, worked on the vacant family home which is looking a lot better and drove my dad around town for several errands as he was not allowed to drive for two weeks by doctors’ orders. I think his father passed from a stroke when he was in his 50’s so while longevity runs in my family this might be a weak link I will need to look into.*

The second scare happened with my vision when I experienced a fluctuating wavy pattern of lights throughout my field of view. I need further evaluation to make sure I don’t suffer from a condition where the retina can detach from the eye causing permanent blindness unless treated within minutes. Very scary to say the least.

If my eyes get a clean bill of health I think I am going to take July and August off like I did last year but this time I want to go on a road adventure with my dog. Fortunately she is healthy but I was inspired by this story
https://gma.yahoo.com/york-man-takes-dy ... 09101.html . My expanded responsibilities at work do not begin until the end of August so this will be the perfect time for a vacation.

Earlier in the month I began an email/phone conversation on a semi-professional level with someone who was at the top of their industry for a number of years. I was a big fan for the last ten, maybe I will be able to meet them IRL if the trip happens.

One thing I need to do before I begin my summer trip is my 2013 and 2014 taxes, I think I will be getting back 2k to 3k, I just need to stop putting this headache off and sit down and do them.

*This reminded me of the discussion here viewtopic.php?f=4&t=6403 … as a teen and up to my early college years I competed in both Olympic style weightlifting and powerlifting and held state records in my age and weight class (both snatch and clean and jerk as well as combined total in Olympic style and squat, deadlift and combined total in powerlifting) all while having extremely poor grip strength relative to any other form of strength. Strike two against me I guess, lol. Those wrist straps and chalk really helped me get the state deadlift record when I was a teenager.

Goals Updates
1) Just barely fell short of NRA goal of 400k by a few hundred dollars (ironically because of the PP – would have been over 400k if CDs were left in cash). LNW of 625k achieved and now at 669k.
2) Done
3) Charitable giving was good this month, on pace for record by year end. I gave a bit extra to an animal shelter in memory of my dog who passed last May.
4) Financial gaming is still slow. Expected 500 instead of 200, need to follow up with brokerage bonus.
5) Estimating less than 10% chance scuba and sailing classes will happen in 2015.
6) HOA eerily quiet and apparently not enforcing many aspects of its new code. Hoping it stays that way. Have not sent letter requesting refund of the more ridiculous fees paid last month (yet).


May Income
Net Salary 12615 (extra month + excess performance bonus)
Roommate Rents 1350
Rental Property 600
Interest 45
Financial Games 200
Side Income 0
***Total: 14810

May Retirement Account Funding
State Defined Contribution 327 (missing 654 – must look into why it is not showing up)
457 Plan 400
***Total: 727 (Not included in income or savings rate – should be 1381)

May Expenses
PITI 850
HOA 195
Electric 190 (ugh – one roommate likes to keep my house like ice cave Spring through Fall)
Water-Sewage-Trash 25 (Last credit from November 2014 prepayment used)
Gas 140 (Trip to visit parents bumped this up)
Car Insurance 65 (15 more than normal due to bank improperly refusing payment)
Internet and Cable 100
Eating Out 60
Groceries 165
Pet food and expenses 35
Gift for parents 150
Charities 300
***Total: 2275

Savings Rate
Non-retirement savings: 12535 (85%)

Assets
Liquid Non-Retirement Accounts: 399k (3.1% increase)
Retirement Accounts: 224k (0.4% increase)
RE Values: 275k - 105k mortgage = 170k (9.0% increase – is this the housing bubble all over again?)

Networth Values
NW = NRA + RA + NREV = 793k (3.4% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 669k (3.7% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 638k, 647k, 588k (+3.9%, +3.5%, +2.6%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

Monthly Income, Spending and Savings Graph

Asset Graph

Net Worth Graph


And the important one in terms of FI. The average monthly spend since August 2014 is inflated by some atypical items like large gifts to charities, job related expenses, rare or unique one-time expenses and hefty tax overpayments.

Spending Versus 3% of LNW, LNWxH1, LNWxH2, LNWxH3


My takeaway for this graph is that in every scenario of liquidating and investing all assets (except living in current primary home) I am FI at 3% SWR if average withdraw stays under 1600 which I have no doubt I could do if I moved. In the event I stay in my current primary home I am FI if I can keep net withdrawals under 1400 (extremely easy as long as I have roommates).

[LastDigitOfPi]

The day after my last journal entry my oldest dog passed away. This was the saddest day for me in a very long time. She lived a long life and brought happiness and love into our family for nearly 14 years. She remained full of energy and vigor until the last six months. The construction of a beautiful extension to the pet memory garden at my parents house (where she is buried next to my other dog) helped us deal with her passing.

The vacation has begun. We (my Dachshund and I) began our road trip on June 19th. On our first outbound leg we returned to my parent's town where I am staying at the vacant family property. I've done some minor repairs but will wait to help my dad (who seems to have fully recovered from his mini-strokes) with some bigger jobs when we return later next month. Since I have not had any further symptoms of pulsating waves of light in my field of vision for several weeks I have decided to wait until the end of my vacation /road trip to have my eyes examined.

After seeing a trailer for the Ridley Scott film based on Andy Weir's novel "The Martian" I read the book. It is safe to say that it is very likely that I will have a new all time favorite movie come October. "Hard" sci fi was the only type of fiction I read in my teen years and this looks like the most realistic sci fi movie Hollywood has ever made. It's not perfect (e.g. eva suits you can put on by yourself and hurricane force winds in a 1 kPa atmosphere) but if they remain faithful to the novel I doubt I will see a more technically realistic sci fi movie on this side of the retirement divide. While reading the book I kept thinking that the protagonist would be the ultimate ERE renaissance man / survivalist badass / prepper.

I have a new favorite movie quote too, check it out at 1:25 https://www.youtube.com/watch?v=Ue4PCI0NamI

Goals Updates
1) Done. Liquid non-retirement accounts exceed 400k. Liquidated networth exceeds 625k (currently 674k).
2) Done.
3) Charitable giving in memory of my dog has made this an exceptional month for donations.
4) Financial gaming yielded zero this month. It may be difficult to realize this goal.
5) Officially declaring this goal as failed/cancelled.
6) HOA continues in hibernation mode.

June Income
Net Salary 2290 (partial month income - began 2 month vacation in June)
Roommate Rents 750 (one roommate asked to pay next month - I said ok)
Rental Property 600
Interest 45
Financial Games 0
Side Income 0
***Total: 3685

June Retirement Account Funding
State Defined Contribution 1061
457 Plan 0
***Total: 1061 (not included in savings rate)

June Expenses
PITI 850
HOA 195
Electric 185 (time to invest in password protected thermostat)
Water-Sewage-Trash 55
Gas 145 (June, July and August this will be elevated due to road trip vacation)
Car Insurance 85 (second billing error in a row leads to 25 dollar fee)
Internet and Cable 125 (going up to 145 to keep roommate happy)
Eating Out 35
Groceries 205
Pet food and expenses 75 (now includes vet insurance)
Gifts for dad / friend 140
Charities 380
Memorial Garden Expansion and Burial for my oldest dog 400
***Total: 2875

Savings Rate
Non-retirement savings: 810 (22%)

Assets
Liquid Non-Retirement Accounts: 400k (0.2% increase)
Retirement Accounts: 222k (0.9% decrease)
RE Values: 281k - 105k mortgage = 176k (3.5% increase)

Networth Values
NW = NRA + RA + NREV = 798k (0.6% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 674k (0.7% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 644k, 651k, 585k (+0.9%, +0.6%, -0.5%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[LastDigitOfPi]

Last month I had to return home earlier than planned for a brief partial day of work overseeing the move of an office I will be working with starting in September. It put the July and August road trip plans off but not the vacation. We’ve checked out some great nearby state and national parks I’ve never seen before, including some islands. There are a number of dog friendly beaches too and they have become regular local destinations. We’ve helped out / participated in some charity fund raising events. Time has just flown by. It makes me long for an endless summer. My Dachshund is now friends with a popular local surfing Bulldog. Unfortunately she has decided that surfing is not her thing. Right now we’re back at the vacant family home to help with the more extensive renovations. It should be pretty nice in a month or two.

During this second visit I found my childhood collection of comic books, some of which are quite valuable. What a blast from the past that was. As a kid I enjoyed collecting them between the ages of 7 and 10. It was fun to compete with my friends to see who could get the best deals/trades. That was a neat surprise. I can’t think of a reason to keep them so I will probably either donate or sell them. Most likely I will sell the really valuable ones after a little research and donate the rest to a kids hospital or something like that.



A random thought that recently occurred to me* was that I should be very thankful to climate change ‘undecideds.’ They may be helping to prop up my property values and they help allow banks to continue offering 30 year mortgages on locations that will likely be partially submerged during high tide by 2045. My house is about a mile from the ocean. ** As I think about this more I believe that I will need to factor in growing public awareness of the impact of sea level rise in future considerations for changing jobs/careers and relocations beyond a 10 year time scale.

* Really due to how much I have been in and around the ocean lately.

** But still more than 11 meters above sea level – if water and electrical service could be rerouted my place should be good for another 50 years absent a doomsday global methane spike scenario. On the other hand the state is in the legislative and executive grip of a group of people who SEE NO climate change, HEAR NO climate change and literally command government employees to SPEAK NO climate change so it might be a while before we actually get our infrastructure act together. https://www.youtube.com/watch?v=d8IBnfkcrsM



Today the journal is one year old. My goal when I started it was to determine how close I was to being able to call myself FI. GTOO and Susswein gave some good input. I’ve decided that the answer is yes provided that I either (A) move to my rental; (B) move to the vacant family home; or (C) stay in my current home with roommates. To speed up the process of becoming more robustly FI I was also considering some interesting and potentially lucrative alternate opportunities, climbing the ladder at my current employer and even a supplemental part time job. However, since I have been fortunate enough to get my dog back after she was lost I have decided that I want to spend more time outside of work enjoying life via (in part) mini-adventures with my canine kid.



There were also six resolutions that I set for myself at the beginning of the calendar year. Soon all of these goals should be determined one way or the other.

Goals Updates
1) Achieve 400k+ liquid NRA (now 401k) and 625k+ LNW (now 677k). These are successfully completed.
2) Deploy 250k in CDs into investments. This was completed successfully.
3) Exceed annual charitable giving record by at least 10%. I have added two more charities (an animal shelter I am familiar with and a very effective animal welfare/rescue organization) to my monthly donations that will achieve that goal by year’s end.
4) Exceed 2014 financial gaming. That should be successfully completed within a week or two. Some big scores will finally be monetized in August.
5) Learn basic scuba diving and sailing. This goal will not be achieved this year.
6) Fight the HOA changes. They are not enforcing the rules insofar as I can determine. I will call this a success for now.

Some ideas I am considering for the near future include funding a 403b and increasing my 457b contributions to between 25% and 100% of my salary. Journal entries might include some thoughts regarding my spending too. We’ll see.

July Income
Net Salary 200 (one fractional workday’s pay)
Roommate Rents 1950 (includes a deferred 600 from one roommate from June)
Rental Property 600
Interest 45 (includes demand deposit interest but not investment dividends or interest)
Financial Games 200
Side Income 25
***Total: 3020

July Retirement Account Funding
State Defined Contribution 180
457b Plan 0
***Total: 180 (not included in savings rate)

July Expenses
PITI 850
HOA 195
Electric 250 (wtf? I’ve never had a bill this high before – what is(are) my roommate(s) doing while I am out of town?)
Water-Sewage-Trash 55
Gas 105 (June, July and August this will be elevated due to vacation)
Car Insurance 70 (higher than normal, need to figure out why)
Automobile Maintenance (Tire Replacement) 65
Internet and Cable 210 (one month anomaly, I am supposed to get credited back 70 – we’ll see)
Eating Out 95 (parents anniversary dinner)
Groceries 200
Pet food and expenses 150 (includes vet insurance and once a year vaccinations)
Charities 200
***Total: 2445

Savings Rate
Non-retirement savings: 575 (19%)

Assets
Liquid Non-Retirement Accounts: 401k (0.2% increase) [up 45k from a year ago]
Retirement Accounts: 224k (0.9% increase) [up 24k from a a year ago]
RE Values: 284k - 105k mortgage = 179k (1.7% increase) [up 64k from a year ago - Zillow is likely on crack]

Networth Values
NW = NRA + RA + NREV = 804k (0.7% increase - I'm in the global top 1% of the world, only 70,000,000+ others like me in the world )
LNW = NRA + 0.6*RA + 0.79*NREV = 677k (0.7% increase) (the NREV coefficient has been reduced to 0.79 for capital gains taxes and Zillow runaway extrapolation)
LNWxH = NRA + 0.6*RA + 0.79*(NREV - NHVx) = 648k, 653k, 586k (+0.6%, +0.3%, +0.1%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[LastDigitOfPi]

Summer vacation was great but we did not go on the extensive road trip originally planned. Nonetheless it was a very memorable time. Now it is back to the challenging, high impact and rewarding undertakings known as work. Earned a little less than half a full months pay and only 100 went into the 457b.

Financial gaming had a huge payout in August, giving me 4500 in proceeds. If only I could do this on a regular basis. Might have a 2.5k – 3.0k USD day later in the year. Just opened another card and I am using it to prepay insurance and utilities to hit the spend requirements. I will almost hit 5 figures in financial gaming this year. Goal complete.

The vacant family home renovation is past the halfway mark, it will be a nice asset when done. My help was rewarded with most meals being provided by the parents during the month.

Eye problems continue, getting a little worse, will see a doctor soon. It could turn serious in a short period of time so I need to stay on top of this.

The PP has held up incredibly well during the market turmoil. I had said I would start to divert into an equity heavy portfolio at 10% or more drop of the wider markets so it is time to re-evaluate the plan. Continue with PP or get ready to deploy capital into a TR or DG portfolio of stocks?

This month I begin estimating what I am calling core expenses which is what I think I could easily get my minimum spending down to if a little belt tightening was required. These values could be reduced further if I focused and made a real effort to live once again like a graduate student. Many of these numbers are far from ERE level but I feel would be challenging in my current situation with roommates. For example, my electric bill could easily be 100 without roommates versus 160 with roommates. Internet and tv would be more like 50 without roommates versus 145 with roommates. That is the cost of doing business as I see it.

Goals Updates
1) Successfully completed.
2) Successfully completed.
3) Will be successfully completed by December 2015
4) Successfully completed
5) Failed.
6) Successfully disposed.

August Income
Net Salary 1715 (partial month’s pay)
Roommate Rents 1350
Rental Property 600
Interest 45 (includes demand deposit interest but not investment dividends or interest)
Financial Games 4500
***Total: 8210

August Retirement Account Funding
State Defined Contribution 0
457b Plan 100
***Total: 100 (not included in savings rate)

August Expenses
PITI 850 [850] - [brackets denote core expenses - what I think I could do easily if I had to cut expenses back immediately]
HOA 195 [195]
Electric 160 [160]
Water-Sewage-Trash 360 (approximately 6 months prepaid) [60]
Gas 75 (June, July and August were elevated due to vacation) [50]
Car Insurance 180 (paid through November) [60]
Internet and Cable 145 [125]
Dining/Take Out 85 (includes mom’s birthday) [50]
Gift for Mom 125 [25]
Groceries 55 [100]
Pet food and expenses (includes vet insurance) 75 [65]
Charities 200 [0]
***Total: 2505 [1665]

Savings Rate
Non-retirement savings: 5705 (69%)

Assets
Liquid Non-Retirement Accounts: 405k (1.0% increase)
Retirement Accounts: 208k (7.1% decrease)
RE Values: 277k - 105k mortgage = 172k (3.9% decrease)

Networth Values
NW = NRA + RA + NREV =785k (2.4% decrease)
LNW = NRA + 0.6*RA + 0.79*NREV = 665k (1.8% decrease) (the NREV coefficient has been reduced to 0.79)
LNWxH = NRA + 0.6*RA + 0.79*(NREV - NHVx) = 639k, 642k, 579k (-1.4%, -1.7%, -1.2%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[LastDigitOfPi]

Apparently I am a straight shooter with upper management written all over me. Yet again I’ve been asked if I would like to take a step up in the organization structure. And again I have graciously turned the offer down. At some point I wonder if my determination to remain happily where I am at work will have negative consequences. Objectively I have accomplished all of my goals and exceeded expectations over the past several years so my bosses should be happy to have me where I am. That does not mean that I would be just as successful managing people and programs. Yet every few months now I seem to get invited to an opportunity to have less free time, do less of the work I enjoy while doing more of the kind of work I do not enjoy and add more than the optimal amount of stress to my job. Many people seem willing to make this move up to the next salary level and a more prestigious title. Personally I do not feel that it is a win for my net life happiness so I continue putting coversheets on TPS reports (actually my job is anything but mundane or unrewarding). Furthermore, I took the leadership position of a program I joined a couple of years ago as a side assignment. We really blew out the stops on the goals when they followed my suggestions so now I get to sit in the captain’s chair on that effort.

A financial services firm has been contacting the staff at work to set up meetings to go over retirement options and offer planning and investment services. The person who met with me was very nice but I was amused when she said that my primary financial issue is that I don’t spend enough (well my savings rate dropped to 42% this month). She also said that I was more financially astute than any of her other clients. Maybe she was just trying to butter up a potential new customer.

“The Martian” did not disappoint! Now, when I come to one of those annoying multifactor authentication processes with security questions that only seem to ask subjective interrogatives that can easily change and/or be forgotten like “What is you your favorite food?” or “Who is your favorite superhero?”, I will be good to go if one of those questions is “What is your favorite movie?”

My car has faithfully served me well for nearly 11 years now. It is over 14 years old with very few repairs needed (water pump, wheel bearing and front end assembly that was my fault), adding up to less than $1400 over that time span (not including tires and oil changes). So I am not complaining that it had a major breakdown in early September, especially considering how many miles I have put on it over the years. It has now travelled well over the distance to the moon. Ignition control module, air pump, tune up and some miscellaneous unrelated service work set me back almost $1300 this month. Since those repairs the car’s mileage has dropped from 38+ mpg highway to about 33 highway but that is acceptable to me. Hopefully it will continue going strong into the twenties.

Just when I thought I could put the HOA issue to bed I get a certified letter claiming I owe them $500 but they provide no reference as to what the charge is for nor how or when it was incurred. Furthermore I have a letter from THEIR lawyer saying that I paid up the extortionist level fees, penalties and interest as of April of this year and I have the online images of all the cancelled checks showing all dues have been paid on time for the last two years. Furthermore I have not been notified that I have been in violation of any HOA rules and there has been no notification of special assessments either present or pending. My attorney said not to sweat it. I will let him write up the response and ask for all financial and legal documents of their actions over the last year. This should be good as they have violated several state statutes according to my attorney. Grab some popcorn and pull up a chair to see what happens.

Most importantly my vision issues seem to have once again stabilized. In any case I will be seeing a specialist in about 30 days. Even if things don’t get worse I definitely want to them to improve. Some research says that if the situation isn’t one of the worst case scenarios that it will slowly improve.

[Monthly Spending – Terms in brackets represent the number that I believe I could easily reduce the expense to if the goal of decreasing spending became a priority. I do include variable costs and expenses which will necessarily occur at some undetermined date –like car repairs- but I do not include surprise savings unless I am confident that I can reproduce the savings in a controlled fashion.]


According to globalrichlist.com 1% of my wealth could feed a Somalian family of four for 11 years. Puts things in perspective and helps me realize how lucky I am to be living at the time and in the country in which I find myself.

Goals Updates
1) Successfully completed.
2) Successfully completed.
3) Successfully tracking for December 2015 completion
4) Successfully completed.
5) Failed.
6) Successful so far, new issue due to HOA incompetence (most likely) or malice or maybe both.

September Income
Net Salary 4035
Roommate Rents 760 (one roommate asked to pay in October – I said ok)
Rental Property 600
Interest 45 (includes demand deposit interest but not investment dividends or interest)
Financial Games 125
***Total: 5565

September Retirement Account Funding
State Defined Contribution 565
457b Plan 200
***Total: 765 (not included in savings rate)

September Expenses
PITI 850 [850]
HOA 195 [195]
Electric 160 [150]
Water-Sewage-Trash 0 (prepaid in August through January or February) [60]
Gas 55 [50]
Car Insurance 0 (prepaid in August through November) [60]
Car Repair 1300 (ICM, Air Pump, Air Filter, Spark Plugs, Plug Wires, Tune Up, Other) [1100]
Internet and Cable 195 (should drop significantly next month) [125]
Entertainment 15 [0]
Eating Out 60 [50]
Groceries 120 [100]
Pet food and expenses (includes vet insurance) 70 [65]
Charities 200 [0]
***Total: 3220 [2805]

Savings Rate
Non-retirement savings: 2345 (42%)
Assets
Liquid Non-Retirement Accounts: 407k (0.5% increase)
Retirement Accounts: 213k (2.9% increase)
RE Values: 278k - 105k mortgage = 173k (0.6% increase)

Networth Values
NW = NRA + RA + NREV =793k (1.0% increase)
LNW = NRA + 0.6*RA + 0.79*NREV = 671k (0.9% increase)
LNWxH = NRA + 0.6*RA + 0.79*(NREV - NHVx) = 641k, 647k, 588k (+0.3%, +0.7%, +1.6%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[LastDigitOfPi]

Well, I guess I now have a part time job that should cover a good fraction of my monthly living expenses. I only accepted it because it will take just a few hours of my time each week and I will telecommute so I can be home with my doggy while working the occasional evening.

So one of my roommates is active in the dating world again and is seeing the recent ex of an someone who works often with one of my favorite directors. Now how do I leverage this tenuous connection?

The other roommate seemed to be having financial issues despite making 6 figures annually. Evidently his situation wasn’t as stable as I had earlier thought. But at least he has caught up on the rent after missing last month. Research on Craig’s List suggests that I could be asking a fare bit more than what I am getting right now so I do not expect a problem replacing him quickly if it comes down to that. In that case I could even consider a slight increase in rent.

Although I have not broached the subject with either of my roommates I have toyed with the idea of renting out the office room as it is technically a small bedroom. Even if I lowered the other rents of the existing roommates a small amount to reflect the inconvenience of another person living in the house I could make a good bit more rental income. In such a situation I might possibly be FI without even needing to touch my invested assets or their dividends. Right now though it is just a speculative option for a very unlikely scenario such as me losing my job.

My tenant had a few plumbing issues at the rental house. Two of the three items that needed to be addressed were probably caused by the tenant according to the plumber. As a courtesy I will cover the cost this time but ask her to cover the next occurrence if one of the problems she (probably) caused happens again. The plumber set me back nearly 200 for about an hours’ worth of work. I would have tried to do the repairs myself if I was closer but they are a 7 hour drive from me. That cost will show up in next month’s numbers.

A friend of mine asked if I would loan her the money to replace her laptop that had recently died. Of course I said yes. It might even turn into her birthday present. She is in a tough position after ending a long marriage where her husband basically ran them into the ground financially, ruining her credit in the process. She saw the writing on the wall years ago but only recently decided she could not and did not have to put up with it any more. She has a small bit of equity in her marital house and land and a very supportive family so hopefully that turns out ok. I offered to let her stay at the still vacant family 3/2 with her dogs and asked only that she cover utilities but she graciously declined.

Awaiting response from HOA on supposed unpaid fees. I believe they realize that they made a mistake (either an honest one due to carelessness or disorganization or a dishonest one in thinking I would not challenge them).

No news to report on the vision issues which have stabilized over the last few months. Due to the fact that I have switched primary care physicians and the way my HMO works there is a delay in rescheduling the visit to the eye specialists.

October saw the one year anniversary of me finding of my lost dog. I located her after searching every day remotely from hundreds of miles away for nearly a month, not knowing for sure what happened to her. It consumed me and was a pretty challenging time emotionally. I still remember listening to that message telling me that she was found and I can honestly say that I have never been made happier by a voicemail in my life.

[Monthly Spending – Terms in brackets represent the number that I believe I could easily reduce the expense to if the goal of decreasing spending became a priority. I do include expected but irregular costs and expenses which will necessarily occur at some undetermined date –like car repairs- as well as irregular and unexpected costs if they could possibly occur again but I do not include irregular reductions in expenses unless I am confident that I can reproduce the savings in a controlled ongoing fashion. I may consider a second number representing the bare minimum I think I could reduce the cost to if optimizing spending became critical.]

Goals Updates
1) Successfully completed.
2) Successfully completed.
3) Successfully tracking for December 2015 completion
4) Successfully completed.
5) Failed.
6) Successful so far. Still waiting on HOA response. Can’t wait to see there reply.

October Income
Net Salary 3700
Roommate Rents 1960 (one roommate paid double since he skipped last month’s payment)
Rental Property 600
Interest 55 (includes demand deposit interest but not investment dividends or interest)
Financial Games 50 (plus 50k Chase UR points – will likely be monetized by December)
***Total: 6365

October Retirement Account Funding
State Defined Contribution 520
457b Plan 200
***Total: 720 (not included in savings rate)

October Expenses
PITI 850 [850]
HOA 195 [195]
Electric 150 [140]
Water-Sewage-Trash 0 (prepaid in August through January or February) [60]
Gas 50 [40]
Car Insurance 425 (prepaid in October for December through May) [70]
Internet and Cable 105 (credit of overcharge from previous month) [125]
Dining / Take Out 75 [50]
Groceries 160 [100]
Pet food and expenses (includes vet insurance) 100 [65]
Unreimbursed Work Expenses 35 [35]
Loan to a friend 250 [250]
Charities 200 [0]
***Total: 2595 [1980]

Savings Rate
Non-retirement savings: 3770 (59%)

Assets
Liquid Non-Retirement Accounts: 411k (1.0% increase)
Retirement Accounts: 220k (4.8% increase)
RE Values: 276k - 105k mortgage = 171k (1.2% decrease)

Networth Values
NW = NRA + RA + NREV =802k (1.5% increase)
LNW = NRA + 0.6*RA + 0.79*NREV = 678k (1.2% increase)
LNWxH = NRA + 0.6*RA + 0.79*(NREV - NHVx) = 647k, 656k, 596k (+1.1%, +1.7%, +1.7%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[El Duderino]

At some point I wonder if my determination to remain happily where I am at work will have negative consequences.

By the time those consequences would start to take hold, you'll be long gone.

"Hard" sci fi was the only type of fiction I read in my teen years

This statement reminds me of Roman from Party Down. Martian was a decent film and I'm looking forward to reading the book. I wasn't gaga on the movie mostly becuase of these same reasons.

[LastDigitOfPi]

At some point I wonder if my determination to remain happily where I am at work will have negative consequences.

By the time those consequences would start to take hold, you'll be long gone.

Yes, if I decided to transition to the next phase of life and career sooner rather than later which could very well happen. Plus there is a good chance that I might change my mind at some point. I may be too aware of the Gervais principle despite the fact that it does not seem to apply in a straightforward manner to my organization. Many times I have feared that something would change for the worse at work but generally changes turn out to be fine or slightly improved.

"Hard" sci fi was the only type of fiction I read in my teen years

This statement reminds me of Roman from Party Down. Martian was a decent film and I'm looking forward to reading the book. I wasn't gaga on the movie mostly becuase of these same reasons.

Thanks for the Party Down reference, I will have to check out that series. It looks like it would be fun and Martin Starr is great. I really dig Gilfoyle on Silicon Valley and Roman sounds like a similar character. (Plus I've rocked the same appearance as he and the Dude in the past.)






You'll probably enjoy Weir's novel a lot if you liked the movie. My major complaint was that Drew Goddard's screenplay adaptation left out a really great part of the book that takes place during Watney's journey to Schiaparelli crater. But I understand the reason why he removed it. It would have been hard to incorporate those scenes into the movie without slowing it down or making the run-time too long. Too bad there isn't an extended version with that sequence for the aftermarket release.

[LastDigitOfPi]

November is always a busy month between work and the holidays. I travelled a bit and incurred some expenses that will hopefully be reimbursed in December. I did not go home for the holidays as I usually do because I had so much catching up to do when I got back into town.

A close friend of mine is moving across the country to take a job in a place she has always wanted to work. Although I will miss her very much I am very happy for her. I wish her well as I fondly remember the last move I made to begin a new career. This was my musical theme during that journey: https://www.youtube.com/watch?v=4nMksTi7u3A

The part time job that starts in January will not be quite as lucrative as I was originally told (glad I am not counting on this to help make ends meet like I am sure some do). On the positive side the amount of time I thought it would take up is even less than initially planned.

There was a limited response from the HOA (although it took them much longer than the 15 days my attorney gave them). They are loath to admit that they made a mistake while ‘looking into it.’ It will be interesting to see what they come up with. Maybe they will even provide the administrative, legal and financial documents they are required to provide to all association members by state statute.

Financial gaming should have brought in close to 1000 this month but a little snag was hit in the monetization process. I think I can get it done by December. Only 150 this month but it took less than 20 minutes of effort.

Speaking of things to do in December I really need to make a note to myself: PLEASE DO YOUR TAXES BEFORE IT’S TOO LATE! I think I have somewhere in the 2-3k range of taxes due back spread out over the last two years but have been avoiding the drudgery necessary to file. I now have a little more than 4 months before I lose anything owed to me for 2013. Why do I do this to myself?

Charitable giving is ramping up as it always does for the holiday season and I am very happy to have successfully completed my New Year’s 2015 resolution/goal (of exceeding my previous annual charity record by 10%). Technically the goal was reached after November was over but I am counting it here because it is true as of this writing.

Two sizable expenses for the rental hit this month. The plumbing work from October and the annual taxes added up to 1100 and dropped the savings rate to a very disappointing 40%.

[Brackets in spending item lines are conservatively estimated levels that I could fairly easily reduce each expense to if I had to re-run the month and could not count on any unusual reductions but had to deal with unexpected increased costs. I am not going to include a second estimated “rock bottom” cost that I was previously considering as it involves too much speculation.]

After seeing that the first and second derivatives of property values have turned unjustifiably (IMO) positive again following a few months of reasonable contractions I am lowering the real estate liquidation coefficient from 0.79 to 0.78 below. This affects my liquidated net worth (LNW) and liquidated net worth ex home (LNWxH) calculations.

Goals Updates
1) Successfully completed.
2) Successfully completed.
3) Success! Charitable giving exceeds 110% of previous calendar year record.
4) Successfully completed.
5) Failed.
6) Successfully tracking to completion next month as HOA fumbles along.

November (Non-investment) Income
Net Salary 3700
Roommate Rents 1360
Rental Property 600
Interest 55
Financial Games 150
***Total: 5865

November Retirement Account Funding
State Defined Contribution 520
457b Plan 200
***Total: 720 (not included in savings rate)

November Expenses
PITI 850 [850]
HOA 195 [195]
Electric 135 [110]
Water-Sewage-Trash 0 (prepaid in August through January or February) [60]
Rental Repair: 195 (plumbing issues fixed in October) [195]
Rental Property Taxes: 905 [905]
Gas 45 [35]
Car Insurance 0 (prepaid in October for December through May) [70]
Internet and Cable 170 (they refuse to honor contract; legal action is being considered) [125]
Dining / Take Out 70 [40]
Groceries 180 [120]
Pet food and expenses (includes vet insurance) 85 [65]
Unreimbursed Work Expenses 285 (reimbursement in December or January) [0]
Furniture 200 (friend’s moving sale) [0]
Charities 300 [0]
***Total: 3615 [2890]

Savings Rate
Non-retirement savings: 2250 (40%)

Assets
Liquid Non-Retirement Accounts: 418k (1.8% increase)
Retirement Accounts: 221k (0.4% increase)
RE Values: 279k - 105k mortgage = 174k (1.8% increase)

Networth Values
NW = NRA + RA + NREV =813k (1.4% increase)
LNW = NRA + 0.6*RA + 0.78*NREV = 686k (1.2% increase) (NREV coefficient reduced to 0.78)
LNWxH = NRA + 0.6*RA + 0.78*(NREV - NHVx) = 654k, 664k, 604k (+1.1%, +1.2%, +1.3%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[LastDigitOfPi]

Where has the time gone? It seems like just a few days ago I was creating my goals and resolutions for 2015. Well, the first full calendar year of my journal has concluded and I feel like a lot has happened in this journey so far. My thinking and attitudes have evolved as well. I’ll begin by covering December, then look at the resolutions for 2015 to discuss the successes and failures, and follow that with a review of the year in general. Finally, I’ll look forward to the upcoming year, the possibilities, hopes and new goals. Also, at least for this extended entry, I’ll be putting in section headers to help improve readability. If you read this entry you get a gold star! Certainly I get more out of writing it then anyone would reading it.

December 2015 Events

A Health Scare and Some Sad News

My mom was rushed to the hospital in the middle of the month after waking up in the middle of the night feeling upset and passing blood in the bathroom. Soon after she arrived at the hospital her heart stopped for a few seconds but the staff quickly resuscitated her. This led to a stay in the hospital where they did a battery of cardiovascular and GI tests with no conclusive findings. She stayed in for a couple of days for close monitoring before coming home. My parents decided not to contact me until she was stabilized which was just a day before my planned holiday trip to drive up and see them so I did not leave earlier then I had originally planned. It is scary not knowing what happened exactly but she will be seeing specialists over the next few weeks to see what can be discovered with more extensive testing.

Longevity runs on both sides of my family so this was the last thing I was expecting to hear. With my dad’s mini-stroke earlier in the year I need to start considering how I will handle caring for my parents if the need arises in the next few years.

Two of my closest friends lost their moms suddenly and unexpectedly in December. One passed from a heart attack with no prior signs of heart problems and the other from cancer that was just discovered a few weeks ago.

All of these events have made me appreciate the preciousness of the relatively short period we have to experience life. In the face of such close calls and sad losses it is natural to reexamine what is important to us and what we want out of this life. My personal reflections have led me to consider some changes which I will discuss in the near future.

Job Milestone

Last month I secured a higher level of seniority after passing performance and tenure parameters with a glowing review from my supervisor. Things are going about as well as I could hope at the job. Plus one bit of research I have been directing has started to reveal a lot of promise. If it turns out that our early expectations pan out it could be one of the landmark achievements of my career to date. The first six months of 2016 should determine whether these possibilities are realized or not. It will be an exciting time.

Trip Home for Holidays – Family, Friends and Old Flames

Every December I go home for at least a week between Christmas and New Year’s Day. I am glad that they fell on Fridays this time around. That allowed me and my canine kid to have an extra weekend with family and friends.

It was good to see my mom and dad, especially after my mom’s health scare. She seems to have a pretty positive attitude towards the situation even though we still do not know conclusively why there was blood in her GI tract or why her heart stopped momentarily (needing ER staff to resuscitate her). It is good that she was at the ER when her heart stopped. My dad would not have known how to administer CPR but hopefully they both will learn now.

We had a few different holiday dinners (at home and at friends) over the Christmas weekend. Most of the gifts I gave cost only credit card cash back points or gift cards earned through financial gaming. This allowed me to save over $600 in spending on Christmas gifts and I have to say I gave some great gifts, at least in my humble opinion.

I met with some old friends that I had not seen in years. One I had not seen in over a decade but I finally got to meet her daughter, my godchild. What a smart and multi-talented little girl. She is home schooled and I think that this would be a great option if I ever had a (human) kid. She will also probably be on the silver screen in 2016 or 2017. It almost happened twice this year as she was a backup/standby actress in two major releases (but never was needed to perform). Maybe she will adopt me when she hits it big.

A couple of old flames contacted me after hearing about my mom. They are both close to her even though I do not keep in close contact with them. One was in town and … it was good to see her.

Car Repairs

For the second time in four months the car went into the shop for a major repair and maintenance. This time I spent 780 for 3 tires (two with very little tread), balancing, road hazard warranty, left tie rod, alignment, and another brake light. Oh yes, I received a $70 gift card for spending over 2k at the auto shop in four months.

It is getting to the point where I may need to consider if the ongoing maintenance cost rate is high enough to justify obtaining a newer vehicle. If 2016 maintenance costs are less than 1k then I believe keeping the car will be the right decision. At some point if I need to obtain a newer car I may try out joining Uber for fun and profit.

Part Time Job

So much has changed in the last six or seven weeks that I may not take the part time job. The fact that it is 95% telecommuting made up for the slightly lower rate of pay. But now I am not sure if it is worth my time which has become much more valuable to me due to recent events. A final decision has not been made but it needs to be made soon. I give the chances that I go forward with the job 30 to 40 percent.

Financial Gaming

It was not the financial shenanigans blow out month I expected but I still made 450 USD on a total time investment of less than 3 hours. This year I was going to get close to five figures in financial gaming but started 2015 out slow and did not monetize big gains in November and December. That will be done some time in 2016. You could easily make 4k to 6k in a year for less than 40 hours of effort.

The credit card reward discussion in the money forum became a bit overheated unfortunately (due to the strident tone of the OP in my opinion). But credit card rewards take almost no effort to completely automate. Set and forget. Collect your points/miles/cash back. No fuss no muss.

Personally I do not feel the regular rewards are that significant. They are ICING on the cake but the CAKE is the opening account bonuses.* Opening account bonuses do require a little more effort but the additional work necessary is usually marginal if you know how to set up the account properly at the beginning. Typically it takes me 10 to 20 minutes to fill out the application (taking screen shots at each step along the way), 5 minutes or less to setup online access if necessary, 5 minutes to setup phone/text/email alerts and automated payments (if applicable) or billpay (if applicable) or trades (if applicable). Then maybe 5 to 10 minutes to setup a short description of the account, requirements, deadlines and completion dates in excel and my outlook and/or google calendars. At that point everything is on autopilot for the next 1 to 3 months.

*I know for others the CAKE is the free rental insurance, or the free private lounge access, or the free annual hotel stays, or currency exchange rates, or zero foreign transaction fees or something else but these have little to no value to me. I try to monetize all non-monetary rewards and bonuses at the highest rate possible through points/miles brokers.

For anyone looking for a small supplement to their income it is hard to beat these opportunities. You won’t get rich and they don’t scale** but I don’t know of an easier way in the US for nearly anyone to add several thousand dollars to their annual income with such a high dollar per hour return.

**If you have the time and energy and want to learn the black arts of manufactured spending you may be able to scale rewards to a six figure income as some have but there are very few individuals who have achieved this level of success for more than a year or two.

10k Jackpot, 1 week loan

A friend of mine has a job with infrequent but large payouts. He used to make 250k+ per year for many years but in recent years has been skimming along the zero net worth line. He will make 20k one month and a few weeks later ask me for a 500 loan for few days. Every time he gets a large payday I tell him to put half away and the remainder should sustain him for 8 to 10 weeks which should cover him until his next big check but he says he doesn’t want to live like a pauper. Part of the issue is he will not compromise on lifestyle and the other is a gambling problem. In December he hit a 10k+ jackpot at one of the casinos he frequents, immediately gave 1k to his wife, a few hundred to his son and a week later needed me to cover him again for a few days until his next paycheck. I am not worried about him paying me back, he is one of the most honest and trustworthy people I have ever known but it is just hard to watch the unnecessary swings his life goes through due to his anti-ERE ways and his gambling.

Taxes and Procrastination

December saw me fail once again to get my taxes done, even though I am only a few months away from losing my 2013 refund that I estimate to be about $750. I was planning to complete this task over the summer during my vacation but managed to rationalize putting it off that entire time. Of course on a day to day basis it is easy to tell yourself you have time and will get to it tomorrow or in a couple of days. I need to give myself a very unpleasant consequence to stop procrastinating. Maybe I will create a deadline and if I fail to meet that deadline then I have to make a large contribution to a person or cause I despise, like the Michael Vick fund.

2015 Goals Wrap Up

Five of the six goals/resolutions I made at the beginning of 2015 were completed successfully.

1) Increase liquid non-retirement net worth to 400k and total liquidated net worth to 625k. Goal completed successfully in the late summer. Currently the liquid NRA level is 424k and the total liquidated net worth is approximately 695k.

2) Diversify majority of maturing CDs into a well-balanced equity portfolio for total return and possibly dividend growth. Keep at most 100k in a 3%+ CD. Completed successfully. Deployed CDs into PP near midyear.

3) Increase charitable giving to 10% more than in 2014. Achieved goal in early December.

4) Increase financial gaming income beyond the 2014 values. This goal was attained mid-summer with a 4k+ month in August.

5) Learn basic scuba diving and sailing. Failed, but may try one of these in 2016 although it will not be a resolution/goal.

6) Fight my HOAs rules and regulations changes and make them follow the by-laws and legal requirements they seem to have ignored. Successfully completed. The HOA appears to be a bit incompetent and their bark is worse than their bite. Although they still have not supplied the legal and financial documents they must produce at a homeowner’s request they have quietly stopped saying that I owe them any past dues, fees, assessments, etc.

2016 Goals

So it is time to create goals for 2016. Some goals will be similar or carried over from 2015, others will be completely new.

1) Assets and Networth – Liquid NRA will exceed 450k and LNW will exceed 710k.

2) Taxes - I will submit my 2013 taxes before April 15th, 2016.

3) Giving - I will contribute at least as much to the causes and charities that are important to me as I did in 2015.

4) My Dog’s Healthy Weight – My dog will slowly lose 15 pounds to get down to a healthy weight.

5) My Health - I will have my eyes/vision and general health checked thoroughly and pursue any necessary restorative or preventative treatment or protocol necessary. This includes tracking exercise and nutrition/diet.

Looking Back at 2015

Return of My Dog

The most important and significant event that occurred in my life in 2015 was getting my dog back and bringing her home to live with me. Nothing else could have brought as much joy to my life as she has this past year. Every day I try to make her as happy as she has made me. Unfortunately, I have overindulged her in terms of her diet but I will seek to make her both happier AND healthier this year.

Losing My Oldest Dog

The most difficult experience of 2015 was losing my oldest dog on June 2nd. She was a source of love and happiness in my family for 14 years. I still clearly remember that day I rescued her off the streets. My parents took her for what was supposed to be a temporary period while I was moving but soon found they could not bear to see her leave their home. In the intervening years we made many happy memories and she enjoyed life as a cherished member of the family. She was happy and healthy and energetic for most of those years but started to decline fairly soon after we lost my second oldest dog in May of 2014. I wished I could have been there for her in her last hours but she at least had my parents with her. It helped a lot emotionally to create a beautiful resting place for her in our pet memorial garden.

Unexpected Deaths

It was sad to have two close friends suddenly lose their moms to cancer and heart attack in the last few weeks of 2015. One friend’s mom I knew well and still find it hard to process that she went from seeming good health to passing so quickly in less than 2 months. It makes one think about how fleeting life can be and how much we should cherish the time we do have on this planet. We really should try to minimize the negative experiences in our lives and the lives of others as much as we can.

Health Scares

My dad’s mini-strokes, my mom’s GI bleeding and brief flat lining, and even my transitory vision problems have reminded me that I have taken my health and well-being (and that of my parents and friends) for granted for most of my life and that from now on I need to be mindful of what I need to do to maintain my good health.

Financial Metrics (NW, LNW, LNWxH, [Lowered Costs])

In 2015 I added several metrics to my financial data: Net worth (which has little value unless all assets are post tax liquid savings); Liquidated net worth (which is essentially the total value if all assets were liquidated, taking into account transactional costs, taxes and early withdrawal penalties); Liquidated net worth ex Home (which excludes the value of a property I would live in from the liquidated net worth – each of three possible properties gives a different value); and later in August an estimate of [Lowered Costs] (easily achievable averaged lowered cost of each item in spending line items as well as total lowered spending).

December (Non-investment) Income
Net Salary 9250
Roommate Rents 1360
Rental Property 600
Interest 60
Financial Games 450 (plus 30k HHonors points plus $35 Amazon giftcard)
Gifts 320
Employer Reimbursement 305
***Total: 12345

December Retirement Account Funding
State Defined Contribution 800
457b Plan 500
***Total: 1300 (not included in savings rate)

December Expenses
PITI 850 [850]
HOA 195 [195]
Electric 115 [90]
Water-Sewage-Trash 0 (prepaid in August through January or February) [60]
Gas 45 [35]
Car Insurance 0 (prepaid in October for December through May) [70]
Car Repair (Left tie rod, alignment, 3 new tires with balancing, brake light,70 USD gift certificate) 780 [700]
Internet and Cable 95 [125]
Dining / Take Out 40 [0]
Groceries 180 [120]
Pet food and expenses (includes vet insurance) 105 [65]
Charities 300 (Matched to 600) [0]
***Total: 2705 [2310]

Savings Rate
Non-retirement savings: 9640 (78%)

Total 2015 Post Tax Non-investment Income 86415
Total 2015 Spending 35115
Total 2015 Savings 51300 (5500 transferred to Roth) (Savings Rate 59%)

Assets
Liquid Non-Retirement Accounts: 424k (1.4% increase)
Retirement Accounts: 216k (2.3% decrease)
RE Values: 286k - 105k mortgage = 181k (4.0% increase)

Networth Values
NW = NRA + RA + NREV =821k (1.0% increase)
LNW = NRA + 0.6*RA + 0.77*NREV = 693k (1.2% increase) (NREV coefficient reduced to 0.77)
LNWxH = NRA + 0.6*RA + 0.77*(NREV - NHVx) = 661k, 672k, 605k (+1.1%, +1.2%, +0.2%)
where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 105k mortgage

[IlliniDave]

Sounds like you had a good year and are in pretty good shape overall. I was interested to see that you keep metrics like "LNW" above. I've long kept an metric that I call my "cash out net worth" which I define as my best estimate of what I'd have net of taxes, penalties, and transaction costs, to stuff into my mattress if I sold all my assets immediately. You are the only other person I've noticed who discusses maintaining a similar calculation. I don't know that it is a critical metric but given the prevalence of people that predict doomsday scenarios of one form or another (I'm not among them), I'm surprised more people don't keep an estimate of what it would cost them to disengage from the system, though their unit of measure may be ounces of gold or something instead of dollars.

[LastDigitOfPi]

True. Since my particular current NW includes real estate and retirement accounts it is a poor metric to determine FI status in the unlikely scenario I decide to live solely off of invested assets and nothing else. LNW (or LNWxH) is just a more accurate measure (I think) to help determine a scenario in which I could be FI based on some SWR level.

As you have rightly point out, a number of the ERE journal keepers track their NW simply by subtracting liabilities from nominal asset values and base their (S)WR on this number. But if NW includes retirement accounts are they planning on using 72t/SEPP? If they are including property values (or some other non-liquid asset) is it based on selling the asset and ignoring transaction costs and taxes? Or adjusting the (S)WR because of the imputed rent/rental income rate? It is a good question.

You are also correct that LNW would be useful for those anticipating TEOTWAWKI on a fairly short time scale, assuming one liquidated early enough. I should say that I share your opinion that I do not see the clouds of financial Armageddon (or worse) amassing on the horizon. But maybe they are standing on a higher elevation and can see further than me.

[LastDigitOfPi]

Managing People

January was a fairly good month. At work I had to remove someone from my project. That was the first time I’ve had to make a call like that but his attitude was toxic and behavior was unacceptable. I did handle it in a way that minimized the fallout with his primary duties so I think he appreciated that.

Huge Drop In Net Worth – Or Huge Improvement In Valuation Accuracy?

Why does Zillow always seem to inflate property values so much? It has gotten out of hand with my primary residence so I have stopped using it and consequently I have severely reduced the estimated value of my property. This has lowered all but one of my net worth values by a large amount. Primary property downward evaluation: 231k down to 167k.I need to consider how to

Dollars And Points And Toys, Oh My

Financial gaming yielded not only $400 this month but some other perks as well, including 77000 HHonors points, a Polaroid Cube+ 1440p WiFi camera, an HD dashcam for the car, some micro SD cards and a 2-way AC/DC power inverter, which I have been wanting to get for my car for some time. Yaaay cash and points and toys.

More Fun With Financials

After considering some ideas brought up by IllinDave’s comments last month I’ve decided to include another form of financial valuation: net worth excluding real estate. So this month I am calculating: NWxRE which simply excludes all real property values from net worth and LNWxRE which is the liquidated net worth excluding all real estate assets. The most likely scenario for producing income if I stopped working a “traditional” job is to have both rental income and investment income. So the rental income would reduce the amount needed to withdraw from invested capital

Goooooooooooooooooooooal

In order to meet goals 4 and 5 for the year I have been taking my dog on lots of outings to explore new places and get some exercise. I enjoy these excursions much more than going to the gym or biking by myself or really just about anything else.

2016 Goals

1) Only 20k away from the liquid NRA goal of 450k. I think that won’t be a problem to achieve this year. On the other hand the goal of reaching a LNW of 710k currently has a very low probability of success due to revising my primary home value down by 64k now that Zillow has lost touch with reality.

2) Does thinking about doing my taxes count? Absolutely no progress on this front except that receiving all of those 2015 1099’s reminds me that my 2013 taxes and the likely 750 refund has yet to be done.

3) Off to a good start with 200. With the additional giving that usually occurs in February, May, and June I’ll be ahead of schedule by the third quarter.

4) Yaay! One pound down, fourteen to go.

5) No progress on vision or general health issues but on a positive note the eye situation is improving slowly it seems.

January (Non-investment) Income
Net Salary 4275
Roommate Rents 1360
Rental Property 600
Interest 60
Financial Games 400 (plus 77k HHonors points plus a Polaroid Cube+ plus an HD Dashcam plus 2-way car AC/DC power inverter USB charger)
***Total: 6695

January Retirement Account Funding
State Defined Contribution 590
457b Plan 200
***Total: 790 (not included in savings rate)

January Expenses
PITI 850 [850]
HOA 195 [195]
Electric 115 [90]
Water-Sewage-Trash 0 (prepaid in August through January or February) [60]
Gas 40 [30]
Car Insurance 0 (prepaid in October for December through May) [70]
Internet and Cable 150 [125]
Dining / Take Out 50 [0]
Groceries 150 [120]
Pet food and expenses (includes vet insurance) 125 [65]
Charities 200 [0]
***Total: 1875 [1605]

Savings Rate
Non-retirement savings: 4820 (72%)

Assets
Liquid Non-Retirement Accounts: 430k (1.4% increase)
Retirement Accounts: 202k (6.5% decrease)
RE Values: (167k primary – 103k mortgage) + (43k rental) + (84k family * 0.33) = 135k (25.5% decrease) **

Networth Values **
NW = NRA + RA + NREV =767k (6.6% decrease)
NWxRE = NRA + RA = 632
LNW = NRA + 0.6*RA + 0.8*NREV = 659k (4.9% decrease) (NREV coefficient reset to 0.8 after conservative downward revision of estimated property values)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 625k, 636k, 608k (-5.4%, -5.3%, +0.4%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 551k

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high at 231k. Consequently I have re-estimated the primary property extremely conservatively at 167k.

[LastDigitOfPi]

What Would You Do?

The most noteworthy personal event that occurred in February involved a close friend potentially becoming suicicdal.* This was the friend I referred to back in my New Years Day post who has lifestyle/income issues. He could easily be worth 3 or 4 million today if he took an ERE approach with the wealth that has come into his life over the past 15 years but he never wanted to stop living the baller lifestyle nor address his gambling issues seriously even when his highly variable income had prolonged droughts. He has even asked to borrow a few hundred from me from time to time, but has always paid me back as soon as he could. When he does have money he is generous with it to a fault but it slips through his fingers like water soon after every big “score.”

Things apparently came to a head when his most recent employer was raided by a government agency. He still has not told me about it but soon after it happened he called me to ask if he could borrow a thousand dollars for his rent. I could tell as soon as he asked for the money that something was different this time. He seemed really desperate for it and said that his landlord was not giving him any slack. He had always been honest with me in the past about his situation so I told him I would get it for him the next day. In an unusual display of desperation he called me 6 times over the next 12 hours to check to see if/when I could get the money to him. I joked with him that his drug dealer should relax, he knows that my friend will always come up with the cash. But I should have really stopped and inquired about the truth of his story. I did get the money to him the next day but I did not have time to talk to him as I was in a hurry for work.

Then the following day his wife called me to tell me that she found a suicide note he wrote (he did not realize she found it - she took pictures of it but left it where she found it). She showed me the images and while it did not explicitly say that he intended to end his life it was clear that was the implication. This was when she told me about the office raid and him being out of work all week and drinking and staying up all night worried about the legal implications of his employer’s shutdown. His son told me that the note could have been a result of him being ashamed of his circumstances and how people would think of him if he went to jail. As far as I know he did nothing illegal himself but I am not a lawyer and could be wrong even if it doesn’t seem to me like he had anything to worry about.

So for the next week, his wife, his son, I and some other friends kept close tabs on him, staying positive and pointing out all the great possibilities that life and the future may hold. We never directly confronted him or involved mental health services, thinking that could end up with him responding rashly. Everything seems back to normal but who knows. The loan is really not my worry, he will pay me back once he can but I hope he has truly been able to conquer whatever demons he was wrestling with.

*Yet one more person I will never direct to the ERE pages (unless I take down all traces of my journal). There have been many people I have considered referring to the website and forums but because I did not want to reveal information contained in my journal that many would connect to me or others close to me I have refrained from sending people this way. Has anyone else come to this decision?

It May Not Be Gravitational Waves But …

We have encountered very intriguing preliminary results with one of the research projects I am overseeing at work. This could be leading to something big. Or not. March or April we should know. I have been thinking recently of the Haldane quote about the world being stranger than one could imagine.

It seems that I have cemented a firm foundation at work with this project and my other one which has also had great successes recently. At least that is the word at the top from what I am being told.

A Side Job – What Is Its Real Value?

So I had originally decided against the small part time job I was contemplating back in December even though it required so little time. But they asked me to reconsider and so I decided to do it as a favor for a friend. The value of the connection is a little form of professional social capital as I see it. I may never need to use it but it doesn’t hurt having it and it requires an almost infinitesimal amount of time each day now that it is set up correctly.

One Year Anniversary of Reuniting With My Dog – Best Year Ever

It seems like this past year has just flown by. That is most likely because my baseline happiness is the highest I can recall it ever being since I returned home with my dog 12 months ago. Certainly I have never experienced this kind of positive long term emotion/mood shift with family, or friends or love interests. Either in magnitude or duration. In all other cases my general attitude eventually reverted to a somewhat lower level after a spike or moderate elevation. Maybe some people experience this with their human kids but not in the same way to my knowledge. I hope this continues for many years to come.

2016 Goals

1) It looks like the LNW of 710k part of goal one is out of reach but you never know. Since it was based on a crazy Zillow inflated property value I think I should adjust it down to the amount it would have been if I used my current property valuation at the time I set my goal. In which case, LNW achieved and exceeded, currently at 669k! The 450k NRA goal is still within reach but I closed only 10% of the gap this month and have 18k to go. If all goes according to plan I should hit that part of the goal mid-Summer.

2) If goal two does not happen in the upcoming seven days the probability of me achieving this one is going to plummet drastically. Here’s to hoping I find the wherewithal to get those 2013 taxes done and filed by the ides of March.

3) February is always a good month for donations, although I had originally planned to give a fair bit more than 350.

4) Oh no! Going the wrong direction! Actually she is heavier than we started 2016 by a few pounds. More outdoor adventure time and less snacking time for my canine.

5) Except for getting deathly ill with a stomach virus while out of town on business this past weekend, there have been no changes on the long term health or vision front or in addressing any issues. Step one should be to change PCP to a more conveniently located office. To that end I have acquired a list of doctors close to home and to work. Now to pick one.

February (Non-investment) Income
Net Salary 3700
Roommate Rents 1360
Rental Property 600
Interest 60
Financial Games 35
Side Job 1500
Reimbursement 485
***Total: 7740

February Retirement Account Funding
State Defined Contribution 520
457b Plan 200
***Total: 720 (not included in savings rate)

February Expenses
PITI 810 [810]
HOA 195 [195]
Electric 75 [70]
Water-Sewage-Trash 50 (prepaid in August through January or February) [50]
Gas 40 [30]
Car Tag and Decal 45 [45]
Car Insurance 0 (prepaid in October for December through May) [70]
Internet and Cable 155 [125]
Dining / Take Out 80 [0]
Groceries 165 [120]
Pet food and expenses (includes vet insurance) 100 [65]
Charities 350 [0]
Loan 1000 [0]
Work Expenses 375 [0]
***Total: 3440 [1535]

Savings Rate
Non-retirement savings: 4300 (56%)

Assets
Liquid Non-Retirement Accounts: 432k (0.4% increase)
Retirement Accounts: 214k (6.0% increase)
RE Values: (170k primary – 103k mortgage) + (41k rental) + (85k family * 0.33) = 136k (0.7% increase) **

Networth Values **
NW = NRA + RA + NREV =782k (2.0% increase)
NWxRE = NRA + RA = 646k (2.2% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 669k (1.5% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 637k, 647k, 618k (+2.1%, +1.7%, +1.3%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 560k (1.6% increase)

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k from the Zillow estimate of the primary.

[LastDigitOfPi]

An Opportunity Arises On The Opposite Side Of The Continent

The friend that I mentioned at the top of my December post contacted me mid-month and asked me to consider a position that recently became available in her workplace. I must admit that this is a very tempting opportunity and I told her that I will strongly consider it. It would involve a significant increase in effective salary but I like where I am now so much that I am not sure what to do. My current job successes, work environment, proximity to friends and family (as well two of my three properties), and the region of the state that I live in would be very hard to leave behind. I know that growth comes from change and new challenges but I do not think I have fully realized the possibilities in my present life situation. What to do? My decision might have been made by new developments at work.

It May Not Be A Dyson Sphere Forming Around A Distant Star But …

We are definitely on to something in my main research project. Monte Carlo simulations and recently acquired data tell us that there is in excess of a 99.99% chance of a hypothesized phenomenon actually existing in nature. This could lead my career in a whole new direction but at the very least it will open a new chapter in the subject area. I feel like a 15th century explorer who has been sailing mare incognitum for months and has just spotted what looks to be a giant landmass on the horizon.

A Side Job That Might Not Be Worth It

The side job I took for non-financial reasons seems to be having a payroll problem. Well, I will give them one month to correct the error, otherwise I will be done with this place. Even though the compensation is low it provided professional development experiences as well as the chance to get to know people and access resources that might be useful to me someday in the future. But I can find a better option if this persists.

Everything Back To Normal With The Previously Troubled Friend

The friend with the job-finances-lifestyle issues seems to be back to normal. I still have not mentioned to him the fact that his wife and son and several close friends were concerned about him intentionally harming himself – possibly fatally. I guess in due time he will tell me what he wants me to know. I remain the ever positive friend pointing out all the great things in his life and he seems receptive. Now we just need to get him another job as he had to again borrow a little more money from me this month.

Two Tornados In Four Weeks

Last month I was in a building that was side swiped by a weak F1. We had a less than a 2 minute warning during which time the wind went from calm and light rain to about 70 or 80 mph winds and horizontal rain for about 15 to 20 seconds (although it seemed much longer). Then a few weeks later while I was coming home from work I experienced really strong wind and rain followed by light hail as I pulled into my neighborhood. According to the NWS an F0 or weak F1 passed through my neighborhood at that exact time although I did not see a funnel cloud. There was a lot of small debris on the streets and the greens. At least I didn’t have any damage to my roof or windows.

2016 Goals

1) Moderate progress was made toward the goal of a liquid Non-Retirement Accounts value of 450k. It is currently at 437k. Still projected to be met by mid-Summer. As I mentioned previously, I will not achieve the part of the original goal that specified a LNW of 710k this year but the corrected value of 662k has already been accomplished. LNW is now 672k.

2) It is not looking good. I must have some kind of psychological issue with doing my taxes. Well, I have less than 11 days now to get it done. I really hope I can overcome the mental inertia to get my 2013 taxes filed (and get my $750 refund).

3) Had a slightly above average month with 220 in charitable giving.

4) Well I am making an effort to take my dog to parks and beaches and other outdoor areas more often but I am negligent in monitoring her total caloric intake as she has yet again managed to gain weight. My fear is that this might be a thyroid issue but maybe it is just a discipline issue on my part along with a normal appetite for her breed mix. I hope for her sake and mine we can get those pounds off by year end. She needs to lose over 10 kg at this point.

5) Changes are occurring to our health plan at work so I have decided to wait until the dust settles before getting a new PCP and scheduling my eye exam and general health checkup.

March (Non-investment) Income
Net Salary 3800
Roommate Rents 1360
Rental Property 600
Interest 70
Financial Games 700
Side Job 140
Gift 50
***Total: 6720

March Retirement Account Funding
State Defined Contribution 320
457b Plan 200
***Total: 520 (not included in savings rate)

March Expenses
PITI 810 [810]
HOA 195 [195]
Electric 80 [70]
Water-Sewage-Trash 55 [50]
Gas 45 [30]
Car Insurance 0 (prepaid in October for December through May) [70]
Internet and Cable 155 [125]
Dining / Take Out 65 [0]
Groceries 210 [120]
Pet food and expenses (includes vet insurance) 100 [65]
Charities 220 [0]
Loan 180 [0]
Work Expenses 30 [0]
***Total: 2145 [1535]

Savings Rate
Non-retirement savings: 4575 (68%)

Assets
Liquid Non-Retirement Accounts: 437k (1.2% increase)
Retirement Accounts: 220k (2.8% increase)
RE Values: (163k primary – 103k mortgage) + (40k rental) + (87k family * 0.33) = 133k (2.2% decrease) **

Networth Values **
NW = NRA + RA + NREV =786k (0.5% increase)
NWxRE = NRA + RA = 657k (1.7% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 672k (1.5% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 640k, 649k, 624k (+0.5%, +0.3%, +1.3%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 569k (1.6% increase)

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k from the Zillow estimate of the primary.

[LastDigitOfPi]

Staying Put For Now

Last month a good friend of mine asked me to join her organization on the opposite side of the country. I carefully considered it but decided against it. We are making a lot of progress at work and I would like to see this through to maturation or at least until it is more fully developed. Also, the offer is not quite as financially attractive as I had originally thought. There will be other opportunities in other places to come along and I’ll evaluate each one carefully. Sometimes change for change’s sake is not the wisest decision.

It May Not Be A Proof that P != NP But…

Our discovery is being recognized by experts in the field across the globe. Who would have thought? The idea had come up in casual conversation over 3 years ago and lay dormant for over a year before I decided to pursue it when some people and services became available last year. My lead researcher and I were asked to give a presentation to our board. Maybe I can leverage this result to pursue some potentially even bigger projects. Mwahahahaha.

A Side Job That Is No More

Because my time is becoming a more precious commodity at work I will (at least temporarily) end the side job I was doing (mostly) for networking and skill building purposes. It certainly wasn’t for the pay. I can go back if I want to in a few months but I probably won’t.

A Friend Indeed?

My friend with the unstable income and unregulated lifestyle and gambling issues has asked to borrow more money. His wife could support both of them in their basic needs with her job but he seems to suffer from an ego that won’t let him allow that to happen while he looks for his next big money making adventure. I have decided not to enable his thinking on this but gave him a small good faith loan of $200. He managed to annoy me even in doing this by telling me not to worry, he is keeping track of what he owes me and when he stated the amount it was less than what I know it to be.

New Roommates

Someday I may be FI without roommates but for now the situation must continue. After 24 months and 18 months respectively my roommates are moving out at the end of May. My biggest concern is to find two new people that are both going to like my dog or at the very least treat her well. I will miss my one roommate’s dogs and have offered to watch them whenever he needs a puppy sitter. Hopefully this will be a smooth transition.

Wow, Just Now As I Sit Outside Writing This…

Two F-35’s flew over my house. They must have been flying at 200 m altitude low and slow at a 30 degree angle of attack. A friend at Lockheed Martin works on the JSF program, I’ll send her an email saying her product seems to work. I almost forgot that there is an air show at the beach today, I think I’ll go check it out.

I am coming back to this paragraph a few minutes later because now I see the Thunderbirds off in the distance and what I think is a P-51, I can probably watch the show from the roof of my house. Time to go get my binoculars.

2016 Goals

1) Less than 10k away from the portion of the goal targeting a liquid Non-Retirement Accounts value of 450k. Currently the balance is about 441k. This is actually good considering I funded my 2015 IRA with 5.5k and paid an estimated 900 in 2015 taxes owed from my NRAs this month. If there is an extended gap with no roommate income that will either be pushed back later in the year or I will need to figure out another source of income. That is unless investments start to pick up significantly. But that will be difficult at the moment because there is still a lot of cash in my NRAs. The portion of this goal targeting an adjusted LNW of 662k is met. Current LNW of 681k. I might hit 700k by year end.

2) Success! It only took 3 years but my 2013 taxes are “done.” As a reward for overcoming my inertia I discovered that I overpaid by 1250, not 750 as I was thinking earlier. Yaaaay, goal completed and found another $500. But that will be applied to 2014 taxes, lol.

3) Had a slightly above average month with 250 in charitable giving. I feel my giving itch demanding to be scratched. May and June are big months for charity and good causes so this level should rise in the near future.

4) We have been headed in the wrong direction since February. My doggie seems to be always hungry. This could be a thyroid problem. Or maybe it is just a typical Dachshund-Beagle appetite. I’ll give it until early June before seeking a vet’s advice.

5) Changes are still in process so I will wait until the PPO/HMO dust settles before scheduling general and eye checkups.

April (Non-investment) Income
Net Salary 3800
Roommate Rents 1360
Rental Property 600
Interest 70
Financial Games 110
Side Job 120
***Total: 6060

April Retirement Account Funding
Roth IRA 5500
State Defined Contribution 320
457b Plan 200
***Total: 6020 (not included in savings rate)

April Expenses
PITI 810 [810]
HOA 195 [195]
Electric 125 [100]
Water-Sewage-Trash 65 [50]
Gas 45 [30]
Car Insurance 0 (prepaid in October for December through May) [70]
Internet and Cable 155 [125]
Dining / Take Out 35 [0]
Groceries 220 [120]
Pet food and expenses (includes vet insurance) 75 [55]
Charities 250 [0]
Loan 200 [0]
2015 Taxes 900 [0]
***Total: 3075 [1555]

Savings Rate
Non-retirement savings: 2985 (49%)

Assets
Liquid Non-Retirement Accounts: 441k (0.9% increase despite 5.5k transferring to Roth and 900 in taxes)
Retirement Accounts: 226k (2.7% increase due mostly to 2015 Roth IRA funded from NRA)
RE Values: (164k primary – 103k mortgage) + (40k rental) + (90k family * 0.33) = 131k (1.6% increase) **

Networth Values **
NW = NRA + RA + NREV = 798k (1.5% increase)
NWxRE = NRA + RA = 667k (1.5% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 681k (1.3% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 649k, 657k, 632k (+1.5%, +1.2%, +1.3%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 576k (1.2% increase)

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k from the Zillow estimate of the primary.

[LastDigitOfPi]

Summer Vacation Planning

Last Summer I had a great time traveling within a few hundred miles of home with my dog. I plan on doing that again in July. Wait. What if I went overseas for vacation but called it work? Which brings me to …

It May Not Be A Revolutionary Middle-Out Data Compression Algorithm But …

My lead assistant is taking a few months to visit several European and UK groups doing research related to our main project. He has even set aside some time to go to CERN. He’s from Sweden so he will spend some time there too before returning. Maybe he knows people who know people in the Royal Swedish Academy of Sciences.

Just When I Thought I Was Done With Side Jobs

My interest in part time work that can be done remotely from anywhere and that leverages some old and new skills with minimal input but high income to input ratio (e.g. micro-consulting) was piqued over the last few months so now I guess I will be doing this semi-regularly or maybe semi-erratically..

When Is It Time To Say ‘Enough’ With Loans To Friends?

The broke gambling/baller friend borrowed a small amount again. He was probably just seeing whether or not the spigot was frozen shut. He did watch my dog for me this month when I went out of town for a couple of days and for that I am grateful. And he has found another job that might just possibly let him score a big win again. Of course that would mean that he would be able to pay everyone back and for a time go back to the luxurious and wasteful lifestyle he became accustomed to while growing up in his wealthy family. Almost surely, even in this case, he will eventually be back to borrowing from friends again. Rinse and repeat.

Another friend contacted me this month in a similar vein. Generally when I hear from her it is to purchase a property for her or something of the sort. Now she is asking me to pay the back taxes on one of her brother’s rental properties. He has not paid these taxes since 2004. Consequently his house is about to be auctioned off by the county at the request of tax lien certificate holders. Her brother supposedly owns seven figures worth of property total and makes over 200k per year (extrapolated from her statements) but she still needs me to help her pay his taxes (the property isn’t even in her name). She seems to now expect me to do this for her because … well I’m not sure why she thinks I am the financial solution to all of her six figure money problems. The saga continues through June.

New Roommates … Eventually?

Both roommates were moving out for different reasons at the end of May but in mid-month both asked to stay until the end of June. The one with two dogs is even reconsidering moving out and may decide to stay. If he moved and left his dogs that would be fine by me. Being the nice roommate and landlord that I am I’ve given him a few more days to decide.

A Bit Of Good News About My Doggie

Despite the fact that she has been gaining weight, the second time derivative of her mass is negative and the first derivative is almost zero now. A vet tells me that she should be tested for thyroid issues (she will be) but she looks healthy despite her excess weight and if managed properly she could live another 7 or 8 years in good health. This was the best news I’ve received of any kind (about anything) since October 2014.

I think there should be a dogs* of ERE meetup. Maybe Frank could organize it.

*nonhuman companions?

2016 Goals

1) Soooooo close. After an exceptional month for income the non-retirement accounts are only a few hundred dollars away from 450k. I guess June will be the month it happens. On a somewhat disappointing note, I’ve only increased the NRA values by 50k in the last twelve months, about 20% less than I was hoping for. Oh well, I am in no hurry to retire but still I would like to speed up the time to become FI without roommates in my current living situation. The portion of the goal specifying an (adjusted) LNW value of 662k was met three months prior and is now at 691k. Although not part of the goal, I am now hoping for a LNW of 700k before end of year which should be likely if markets don’t have a significant downturn.

2) Completed successfully (2013 taxes done, ha).

3) Charity in memory of my dog who passed two years ago in May was good at 350 this month. June may be even larger.

4) As mentioned above the nominal weight goal has moved further away from us yet again but hope is not lost and we have a very good chance of getting my dog on a safe and healthy path to at least a doubling of her current age (her current age is estimated to be about 8).

5) No progress in May. Chances to meet health screening goals go up a bit in June and even more in July but it all depends on Summer vacation plans.

May (Non-investment) Income
Net Salary 12015 (performance bonus and excess pay)
Roommate Rents 1360
Rental Property 600
Interest 80
Financial Games 100 (plus 3500 AAdvantage miles plus 86000 HHonors points)
Side Job 1765
Job Reimbursement 265
***Total: 16185

May Retirement Account Funding
State Defined Contribution 320
457b Plan 400
***Total: 720 (not included in savings rate)

May Expenses
PITI 810 [810]
HOA 195 [195]
Electric 120 [100]
Water-Sewage-Trash 200 [45] (paid May through August approximately to meet credit card spending requirement)
Gas 25 [30]
Car Insurance 450 (prepaid through November) [75]
Internet and Cable 160 [125]
Dining / Take Out 40 [0]
Groceries 140 [120]
Pet food and expenses (includes vet insurance) 105 [55]
Charities 350 [0] (In memory of my dog who passed in May 2014)
Loan 100 [0] (lol, same friend as last time)
Work expenses 80 [0]
***Total: 2775 [1555]

Savings Rate
Non-retirement savings: 13410 (83%)

Assets
Liquid Non-Retirement Accounts: 449k (1.8% increase)
Retirement Accounts: 232k (2.7% increase)
RE Values: (163k primary – 103k mortgage) + (39k rental) + (90k family * 0.33) = 129k (1.5% decrease) **

Networth Values **
NW = NRA + RA + NREV = 810k (1.5% increase)
NWxRE = NRA + RA = 681k (2.1% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 691k (1.5% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 660k, 657k, 643k (+1.7%, +1.5%, +1.7%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 588k (2.1% increase)

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k from the Zillow estimate of the primary.

It would be really nice if the forum supported tables in the BBcode, I think it would dramatically improve the readability and appearance of posts.

[LastDigitOfPi]

Summer Vacation is Five by Five for Launch

As I mentioned last month I will be taking most of July and August off for another Summer vacation with my canine sidekick. These vacations are unquestionably worth the extended time (1 to 2 years) to achieve full FI status. Some of the time we will be travelling within the region but I also plan to spend some of the time

1) Engaged in some DIY maintenance around the house;
2) Learning to cook a greater variety of vegan dishes;
3) Refreshing and relearning QM and GR;
4) Participating in amateur astronomy –maybe even astrophotography- such as can be done in this megalopolis dominated location spewing obscene amounts of light into the magnitude 2 night sky (maybe we’ll take a longer trip to a place with darker skies – some not too far away islands are actually looking good for that – magnitude 6 skies here we come!).

A (Really Awesome) New Roommate

So my older roommate finally moved out to take advantage of an opportunity in a nearby city. He spent over 18 months at my house and was a great fit due to how quiet and conscientious he was during his time here. My other roommate with two dogs has decided to stay on indefinitely. I am very happy about that mostly because I am very attached to his dogs. They have now been living here over 2 years.

Two days before my older roommate moved out I posted an ad on Craigslist and had 14 legitimate responses (and 8 spam or scam responses) within 24 hours. A bit of research shows I am charging about 25% under market rate for that room. The next day the first person to come by for a look fit the profile of my ideal candidate and returned about an hour later with the deposit for the room. Yesterday was her first full day here and it would be hard for me to be more excited about it. I think I can say that she is the most compatible and easy to live with person I’ve ever known. For now I will just say that she recognizes how awesome my dog is and fell instantly in love with her.*

*Yes, it is genuine and not the roommate honeymoon phase and almost certainly not affectations.

2016 Goals

1) Finally completed successfully, no thanks to Brexit. On that note my equities have just about completely recovered since EUgeddon II and the PP sub-portion actually increased in value – it held fast like a champ on the day of reckoning. Liquid non-retirement accounts are above 456k and my liquidated net worth is above 703k.

2) Completed successfully (2013 taxes done). Maybe I can find some time to work on my 2014 taxes during my Summer vacation.

3) This month charity surpassed May levels at 400 due to memorial giving for two of my passed beloved dogs.

4) The time derivative of mass has finally become zero. With the help of the new roommate I hope it goes negative in a way most acceptable to my kid. Frank obviously takes good care of himself, maybe he can give my dog some advice.

5) Vision issues have diminished significantly, just as I read they should in the best case scenario. Most vitals were exceptionally good at the health fair clinic at work. Maybe I can find time to go for full checkups during my Summer vacation.

June (Non-investment) Income
Net Salary 4110
Roommate Rents 1360
Rental Property 600
Interest 80
Financial Games 400 (plus two free hotel nights)
Side Job 225
Job Reimbursement 1305
***Total: 8080

June Retirement Account Funding
State Defined Contribution 530
457b Plan 0
***Total: 530 (not included in savings rate)

June Expenses
PITI 810 [810]
HOA 195 [195]
Electric 140 [100]
Water-Sewage-Trash 0 [45] (paid May through August in May)
Gas 50 [30]
Car Insurance 0 (prepaid through November) [75]
Internet and Cable 155 [125]
Dining / Take Out 30 [0]
Groceries 165 [120]
Pet food and expenses (includes vet insurance) 80 [50]
Charities 400 [0] (In memory of my two of dogs)
Loan 0 [0] (first time in 5 months I haven’t made a loan to a friend)
Work expenses 35 [0]
***Total: 2060 [1550]

Savings Rate
Non-retirement savings: 6020 (75%)

Assets
Liquid Non-Retirement Accounts: 456k (1.6% increase)
Retirement Accounts: 231k (0.4% decrease)
RE Values: (169k primary – 103k mortgage) + (39k rental) + (91k family * 0.33) = 135k (4.7% increase) **

Networth Values **
NW = NRA + RA + NREV = 822k (1.5% increase)
NWxRE = NRA + RA = 687k (0.9% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 703k (1.7% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 672k, 679k, 650k (+1.8%, +1.7%, +1.0%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 595k (1.2% increase)

**Note that I have ditched the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k from the Zillow estimate of the primary. I recommend anyone with a large fraction of their net worth in their home equity look at 2nd and 3rd opinions to Zillow’s valuations.

Spare Change Corner

Out of curiosity and because I have never estimated my total illiquid or non-monetized assets and never include them in my financials I decided to try to get some conservative idea of the liquidated values for these:

Credit Card Points + Airline Miles + Hotel Points: 3000-ish
Online Poker Bankroll: 250
Telescopes: 1200-ish
Miscellaneous Stuff (Bikes + TVs + Electronics): 900-ish
Matured EE bonds: 300
Marketable Current Technical and Text Books: 400-ish
Comic Book Collection (Graphic Novels): 1300-ish (maybe significantly more?)
***Total: 7350-ish (not including car, clothes, computers, furniture or household items)

[LastDigitOfPi]

Lift Off - Two Years Ago Today

How time flies. That first entry seems like it was written just yesterday in some ways. Yet a lot has happened since then. Progress has been slow but it reflects the fact that I am in no hurry to get to my ultimate financial goal (FI @ 3% SWR or less without roommates) as I enjoy life and career (yes, it is possible with the right undertaking IME).

Pitch Over - Summer Vacation

During the month I’ve done a lot of minor repairs around the house from toilets to sliding glass foors. In the kitchen I’ve also added curry and ginger to my culinary tool belt as I begin a possible transition from vegetarian to vegan.

Outside the house I’ve finally seen Mercury and Venus during the middle of the day. Not coincidentally I have cleaned the mirror and aligned the secondary on my truss tube Dobsonian.

Maximum Dynamic Pressure – A Roommate too Good to be True?

I am worried that my roommate is too perfect. This is the first time I have had a new roommate since I brought my dog to my current home. My dog loves her. She loves my dog. I love her dog (but I am one of those strange people that loves most animals). And I think we may like each other. It is not clear to me where we go from here. Maybe nowhere.

Throttle Up - House Valuation, Retirement Funds and Various Net Worths Jump

Zillow is still crazy in its overestimation of my home’s market value but two properties equivalent to mine (actually I think mine is slightly nicer in some ways) in my neighborhood have sold for 12k more than my best estimate last month. Retirement funds are also up 5 figures. So in a month where I have not worked my net worth has taken its biggest jump ever by over 20k to 842k. LNW jumped by 14k to 717k.

Booster Separation – All You Silly Political Debaters Do Not Realize Who The Best Candidate for President Is

The best choice is painfully clear if you think about it for even a minute. Clinton and Trump can’t hold a candle to him. Please don’t waste your vote for anyone else. Right now America needs Frank Fisker to steer this country in the right direction.

MECO – It Probably Won’t Replace the Martian as My Favorite Movie but

It will probably be one of a few worth seeing this year … https://www.youtube.com/watch?v=oXGm9Vlfx4w

Payload Deployment - 2016 Goals

1) Completed successfully. In July. LNW even blew past my original* goal for 2016. NRA goal met previous month. On the other hand the value of the NRA's are up only 100k from my first post made two years ago. I hope they increase at a faster rate in upcoming years.

*before severely revising down my primary home’s Zillow value by 64k.

2) Completed successfully. Have not yet started on 2014 tax returns.

3) Well on track to have best charitable giving year to date by November or December.

4) This goal seems to be the most elusive. I will be happy just getting her down to what she weighed in January at this point. I feel frustrated and guilty for letting this happen. The only hope I have right now is to regulate her thyroid or (if that is not the issue) figure out an appetite suppressant. I’m really desperate here.

5) I will be setting an appointment to see an ophthalmologist in August for both eye health and to get a new prescription for my corrective lenses.

July (Non-investment) Income
Net Salary 760 (residual payment – I did not work in July)
Roommate Rents 1360
Rental Property 600
Interest 80
Financial Games 205
Side Job 160
***Total: 3165

July Retirement Account Funding
State Defined Contribution 1400
457b Plan 0
***Total: 1400 (not included in savings rate)

July Expenses
PITI 810 [810]
HOA 195 [195]
Electric 190 [150]
Water-Sewage-Trash 0 [165] (paid May through August in May – actually water consumption took a 165 bite out of credit balance due to leaky toilet)
Gas 25 [25]
Car Insurance 0 (prepaid through November) [75]
Internet and Cable 195 [125] – My fault for forgetting when my discounts were up. Upcoming price drop.
Dining / Take Out 10 [0]
Groceries 205 [120]
Pet food and expenses (includes vet insurance) 95 [50]
Charities 200 [0]
Work expenses 75 [0]
Gifts (Roommate welcome gifts and parent anniversary gifts) 230 [45]
***Total: 2225 [1760]

Savings Rate
Non-retirement savings: 940 (30%)

Assets
Liquid Non-Retirement Accounts: 456k (0.0% increase)
Retirement Accounts: 239k (3.5% decrease)
RE Values: (180k primary – 103k mortgage) + (40k rental) + (90k family * 0.33) = 147k (8.1% increase) **

Networth Values **
NW = NRA + RA + NREV = 842k (2.4% increase)
NWxRE = NRA + RA = 695k (1.2% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 717k (2.0% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 685k, 693k, 655k (+1.9%, +2.1%, +0.7%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 599k (0.7% increase)

**Note that I no longer use the Zillow estimation of my primary because IMO it is unrealistically high. Consequently I have subtracted 64k 53k from the Zillow estimate of the primary. I recommend anyone with a large fraction of their net worth in their home equity look at 2nd and 3rd opinions to Zillow’s valuations.

[LastDigitOfPi]

Return to Work

The Sumer vacation has concluded. I did expand my cooking repertoire, fixed a lot of minor issues around the house, cleaned the telescopes and aligned the reflector (but did not manage to get to any relatively dark skies or do any astrophotography) and went on some short day trips to state and national parks and nature preserves. It was energizing but went by way too fast. On the other hand it is nice to get back to some projects I began to miss working on and overseeing.

Roommate

My new roommate is at a difficult financial place in her life right now. It stems from her giving up a great career to take care of her sick parents through the end of their lives and then being taken advantage of by several people. Through it all she lost her very nice home, her savings, her inheritance and her parents’ land and home. Somehow she has been able to survive all of these setbacks without becoming a bitter person angry at the world. In fact, as I have stated before I have never known a nicer person that is easier to get along with. Maybe I can help her write a new and much happier chapter in her life.

Car Repair

The car is once again showing signs of its age. The cost of continuing repair still remains the best option for now but that may change in the next 12 to 18 months. I suppose that it will not be able to make it to the next decade as I had hoped. But the odometer is so close to passing lunar apogee. I wanted to see that for more than a year now. I think we’ll hit that milestone by year’s end.

Rental House

My rental house was in the path of Hermine. I was starting to second guess my decision to self-insure as the neighbor’s giant oak tree has a hulking limb that he insists is healthy and not a threat but that would take out the southwest quadrant of my house if it fell. No word from the tenant (who changed her phone number and has not given me the new one) so I am having a friend in the area go by and look at it tomorrow. Presumably if there was any significant damage the tenant would have called to have it fixed (unless there is damage to the roof where she cannot see). Maybe I will go back to insuring the property by paying oversized premiums. Hopefully I get through this unscathed. My rental neighbor might inadvertently but effectively be insuring my property at least partially in the event that limb falls before he decides to remove it.

A Meaningful Life - Making A Positive Difference

When I think about what gives my life the most personal meaning after my “kid” it is without a doubt the charitable causes I support. It seems that my new roommate feels almost exactly the same way. If/when I transition to the next phase of life I want to put everything I have into these causes. Whether you expect slow or fast decline of civilization (or maybe a fusion powered future of solar system colonization), making the world a better place in some way than it otherwise would be gives many individuals a focused drive like nothing else quite can. It certainly does for me.

2016 Goals

1) Successfully completed. NRA 457k, LNW 720k.

2) Completed successfully. Have not yet started on 2014 tax returns.

3) On track for personal record of annual charitable giving by November or December.

4) Not getting worse but this one is almost certainly going to be a failure by year’s end. My goal has shifted to just making her as healthy as possible.

5) Failed to set appointment with ophthalmologist and primary. Still 4 months to go before this one goes in the fail column.

August (Non-investment) Income
Net Salary 2400 (partial month’s payment)
Roommate Rents 1510 (one roommate is paying last month’s rent in installments)
Rental Property 600
Interest 80
Financial Games 100
Side Job 45
Work Reimbursement 525
***Total: 5260

August Retirement Account Funding
State Defined Contribution 55
457b Plan 100
***Total: 155 (not included in savings rate)

August Expenses
PITI 810 [810]
HOA 195 [195]
Electric 205 [150]
Water-Sewage-Trash 0 [65] (paid May through August in May)
House Repair and Maintenance 40 [40]
Gas 50 [25]
Car Insurance 0 (prepaid through November) [75]
Internet and Cable 205 [125]
Dining / Take Out 200 [0] (New roommate and birthdays / anniversaries)
Groceries 500 [120] (Helping out new roommate and her dog)
Pet food and expenses (includes vet insurance) 100 [50]
Charities 200 [0]
Gifts (Roommate birthday and mom’s birthday) 275 [50]
***Total: 2780 [1665]

Savings Rate
Non-retirement savings: 2480 (47%)

Assets
Liquid Non-Retirement Accounts: 457k (0.2% increase)
Retirement Accounts: 240k (0.4% increase)
RE Values: (183k primary – 103k mortgage) + (39k rental) + (91k family * 0.33) = 149k (1.3% increase)

Networth Values
NW = NRA + RA + NREV = 846k (0.5% increase)
NWxRE = NRA + RA = 697k (0.3% increase)
LNW = NRA + 0.6*RA + 0.8*NREV = 720k (0.4% increase)
LNWxH = NRA + 0.6*RA + 0.8*(NREV - NHVx) = 689k, 696k, 656k (+0.6%, +0.4%, +0.2%) where x=1 is the rental; x=2 is (1/3) of the family house; x=3 is the primary with 103k mortgage
LNWxRE = NRA + 0.6RA = 601k (0.3% increase)

To Be Counted As An Asset Or Not To Be Counted As An Asset, That Is The Question

Recently I considered whether or not I should include under illiquid assets my outstanding loans. This is my own personal Lending Club basically. Make that my own personal Kiva. They are not that much right now* but they have been much larger in the past.** If I did then I do not think I should include the face value of the loans but rather a face value times the probability of repayment. Or maybe a weighted sum using an estimated probability distribution of repayment at various fractional amounts. Too much work for the levels in question right now and I tend to be a bit over-conservative in my valuations which would mean assuming some friends are more likely to be deadbeats than I have reason to believe. I’d rather not let that possibly subconsciously affect how I feel about them. Ay, there’s the rub.

*That and the fact that these loans are to friends I feel I can trust means they are unsecured and earning 0% interest.

**In the past they represented 10% to 15% of my net worth.