Portfolio growth exceeds income

[disneysteve]

Ah, the power of compounding. I just updated our portfolio spreadsheet. Year to date, our portfolio has increased in value by more than my YTD gross income and by nearly double my YTD take home pay. It took years to get to this point but it's pretty nice seeing those sorts of numbers at this stage.

For those of you just starting out, keep at it. Early on, most of your portfolio growth will come from your contributions, but over time that balance will shift. At some point, your earnings and growth will outpace your contributions and that's when the magic really starts happening.

[james.hendrickson]

Can you share the rough figures?

[disneysteve]

Can you share the rough figures?

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

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

YTD change in portfolio: $215,140

[Jluke]

At the end of 2018, my 401k was up $4,000 from the previous year. Thanks to the “crash” in the market at year end.

this year I am looking at a 100k increase in my 401k (with a $19000 contribution).

here is hoping the market cooperates.

[Jluke]

BUT if I look at 2018 peak I’m up about 50k. With close to19k of that as contributions

so that December drop last year skews the evaluation.

at least I’m making money.

[bjl584]

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

[kork13]

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

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

YTD change in portfolio: $215,140

That's fantastic! How much of that change was growth vs. contributions?

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

[disneysteve]

That's fantastic! How much of that change was growth vs. contributions?

I don't know exactly offhand. I think we're at about 30% savings so somewhere around 60K in contributions give or take.

[rennigade]

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

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

[disneysteve]

My portfolio is up $100,402.91 as of 10/1. Ive only contributed $8,987...the rest is growth. Thats with $570k thats actually invested.

Pretty similar to us percentage wise. We've got about $1.2 million so just over double and we're up just over double you. Great job.

[mommyof4]

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

[disneysteve]

Can I ask what your asset allocation is?

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

61.16% stock
26.67% bond
12.17% cash

[mommyof4]

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

61.16% stock
26.67% bond
12.17% cash

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

[disneysteve]

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

We were at 69% stock at year end 2018. We've been accumulating more cash lately, especially now that the mortgage is gone. I didn't realize the stock allocation had dropped quite that far. I don't want it under 60 so I'll probably tweak the new contributions a bit and push it up closer to 65.

[jIM_MI]

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

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

YTD change in portfolio: $215,140

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

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