The Investment Road to Freedom

May 1st, 2012 at 3:48 pm

April 2012 – Month in Review

When I look back on April 2012 it will be the month where I finally went from Negative net worth to a positive net worth amount. Back on February 17th 2012 I took my first look at my net worth and it was negative $8164. Now it stands at $15 and I finally feel that I am going in the right direction. I am amazed how quickly I turned that around in such a short amount of time.

Savings wise April was a month I again fell short of my target of saving $1000 a month – I managed $831.86 which is better than March. I was very happy I met my IRA target of $416 a month again. Do this every month and I will fully fund the IRA.

Individual account breakdowns show that the IRA and Brokerage accounts both had poor ROI for the month, -6.49% for the IRA and -4.49% for the brokerage. Overall for the year the IRA is -8.11% which I need to improve. The Brokerage has a solid 13.58% ROI for the year, flying high on the excellent return from Bank of America (BAC).

Overall the Investment Road to Freedom fund now stands at $7640.77 – an increase of 9.67% ($673.89) from March. I expect to reach the $10,000 mark in July/ mid August.

The month saw one buy – an additional 51 shares of Ford (F) which I purchased on April 24th for my IRA account. I already own 24 shares in my brokerage account.

Dividends and option income for the month were both $0. The dividend income for 2012 so far is $1. For option income it is $85.04. As my fund grows then these two sources of income will increase considerably over the years.

Debt wise I now owe $3931.81 on my car. I am really trying to get this paid down. Credit Card debt stands at $1468.70 and my mortgage balance is $172848.26 and according to Zillow my home is worth $170100. My Emergency Fund stands at $522.53 making overall my Net worth $15.

Work wise I am still waiting on my promotion. I’ve been told it is happening but I just need to be patient. However I did get a merit increase taking my hourly rate from $25.75 to $27.02 (4.9% raise).

Oh and I turned 35 :)

 

Looking ahead to May

I can see May being a tough month. My wife had car problems over the weekend and we decided a new car (Mazda 2) was needed and so I gave her $500 towards the down payment. I can see this making it very difficult to hit that $1000 saving mark but I am going to try my best. I have my eye on a few stock’s but need to build up my cash level before I can pull the trigger. I had planned to purchase a new dishwasher in May but that is likely to be moved to June.

FUNDCURRENT VALUEAMOUNT ADDEDROIROI FOR 2012
FUNDCURRENT VALUEAMOUNT ADDEDROIROI FOR 2012
IRA$1915.22$416-6.49%-8.11%
BROKERAGE$975.96$0-4.49%13.58%
401K$2662.10$415.865.7%
OTHER INVESTMENTS$2087.49
TOTAL FUND VALUE = $7640.77

 

 

 

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  • Dividend Mantra
    4:58 pm on May 1st, 2012 1

    Looks like a solid month to me. Congrats on getting your net income to the positive side and good luck on continuing your march toward financial freedom!

    Best wishes.

  • investmentroadtofreedom.com
    5:30 pm on May 1st, 2012 2

    Thanks DM. I’m very happy with the net worth going into the positive side and it made this a good month! I have some way to go before I reach your levels but I am heading in the right direction.

  • Compounding Income
    4:52 pm on May 2nd, 2012 3

    Outstanding month! Achieving a positive net worth and a raise at work? Homerun!

    Take it easy

  • investmentroadtofreedom.com
    7:36 pm on May 2nd, 2012 4

    Thanks CI!

  • $25000 dividends
    3:31 am on May 4th, 2012 5

    You are making great progress. Going into positive net worth territory is very encouraging news.

    You are also being consistent with your investment portfolio and by the end of the year you will likely to see interesting results.

  • jlcollinsnh
    9:08 pm on May 23rd, 2012 6

    happy b’day and congrats on turning a PNW. nice present to give yourself.

    just for kicks I plugged your numbers in

    here:http://www.daveramsey.com/article/investing-calculator/lifeandmoney_investing/

    Assuming an 8% annual rate of return, $1000 per month and starting with $7641 by the time you’re 50 = $374k

    65 = $1.2m

    Cheers!

  • investmentroadtofreedom.com
    5:01 pm on May 24th, 2012 7

    Cool Thanks Jim. That is a good calculator. $1.2m when I turn 65 is a target I know I can get. I’m going to do everything I can to get there quicker. A tough goal but reachable.

    Thanks for stopping by!