I took the last couple of weeks off for the holiday, but now with things getting back to normal it’s back to the normal schedule.
So 2018 is in the bag, it was a bit of a rollercoaster year of ups and downs. In the end though the markets all took a battering by year end. This is reflected in our own finances It will certainly be interesting to see how things go from here. Have we reached bottom or will the markets drop further, say another 20-30%?
Today i’ll review our normal end of month and end of year numbers and then next week i’ll review our 2018 performance indicators, and finally our objectives for 2019.
|Benchmark Vanguard 2040 Fund||-8.50%||-13.29%||-9.67%|
|Our Net Worth||-5.99%||-11.42%||-10.65%|
FIRE Rate for 2018 = 2.70%
First of all it’s clear that all markets were down 5-10%, and our own net worth was down about the same.
With our overall spend sitting at 2.7% (of which around 50% is dividends and 50% is draw down) where are getting towards our stated goal of settling around 2.5%. Of course with our net worth contracting this means that we have to spend less in order to maintain the same level percent spend.
December was a high spend month. We paid our property taxes in November but they only show up in December’s numbers due to the credit card cycle. Also with Christmas spend we spent way more on “Entertainment” than normal. There was also a car insurance payment as well as a payment towards a trip next summer.
We had a good month on groceries and some of the other ancillary expenses, but really December is an atypical month so it’s tough to really evaluate exactly how we did.
As we move into 2019 we can definitely see some places where we can economize a bit more to become more frugal and more engaged in our way of life.