December Financial Update

So that was 2017. By any standards from a market point of view it was pretty spectacular with all major markets up by 20% or more. I don’t think this year will be anywhere close to this but clearly this is the kind of results that makes it important to be involved appropriately in the market.

So here is how the markets and our own personal portfolio did in December.

Market Dec-17 Q4 17 YTD
S&P500 0.98% 6.12% 19.42%
NASDAQ 0.43% 6.27% 28.24%
DOW 30 1.84% 10.33% 25.08%
Benchmark Vanguard 2040 Fund -0.67% 2.99% 18.40%
Our Net Worth 1.04% 2.37% 1.92%

2017 FIRE rate = 3.2%

The major markets were up a percent or two. For some reason the benchmark Vanguard Retire 2040 fund was down around half a percent. I’m not totally sure why that is the case. Q4 ended with major markets up significantly as well.

Overall for the year our own net worth rose by about 2%. As mentioned previously I know this isn’t great compared to the markets but there was so much fluidity in the first half of the year it’s tough to make an accurate comparison. Looking at Q4 as whole looks like things have stabilized.

We ended up using 3.2% of our portfolio this year which was higher than planned. We are aiming for 2.5%, but we might not get there in 2018 so our aim for 2018 might be something closer to 2.8% with an aim to reach 2.5% in 2019 (markets permitting).

December in Detail

December itself was a pretty good month with no large expenses. This meant our overall spending was close to the $100 a day for day-to-day expenses. A lot of Holiday expenses haven’t shown up yet though as December’s expenses are based on November’s credit card purchases. I’m still concerned about our grocery expenses as they seem to be way above where we would like them to be. We will definitely keep an eye on this in 2018.

Entertainment expenses were up a bit due to early Holiday shopping also restaurant spending was consistent so I feel like we have a handle on that now.

So 2017 was a good trial run to iron out any kinks, so we should be in a good position to move forward properly in 2018.

 

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