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Tantalizingly close to a big milestone

April 28th, 2015 at 06:36 am

I did my monthly expense and investment report a few days early and am pleased to see that I'm just $20,000 short of $1 million in total assets. I currently stand at $980,006.

That includes my home value but the rest is savings and investments. My investments for the month of April were up $16,000 from the previous month, and the current value of my investments alone is $699,727.

While this is all very nice, the REAL milestone for me will be when I hit $1 million in investments alone, not including the house value, which I think is cheating a little since you have to live somewhere.

I recently rejiggered my asset allocation to be a tad less aggressive, given I'm approaching my 56th birthday.

My current allocation is:

Total stocks: 58% (Domestic: 43%/Intl: 15%)
Bonds: 32%
Cash: 10%

In the domestic stock category, I also reduced my small cap exposure to just 5% as I keep hearing volatility will increase this year. I may also increase my international exposure as the Street says domestic stocks will be very mediocre compared to abroad.

That's the nice thing about having money in IRAs; you can move things around among IRA accounts without tax consequences.

11 Responses to “Tantalizingly close to a big milestone”

  1. creditcardfree Says:

    Oh how exciting!!

  2. Househopeful Says:

    What a wonderful milestone! Let us celebrate when you hit it!

  3. CB in the City Says:

    You'll be the millionaire next door!

  4. JulieAlbright Says:

    Oh Congratulations.

    We finally went over $500K here a couple of weeks ago. It's a great feeling to hit those milestones.

  5. MonkeyMama Says:

    Exciting!

  6. Ima saver Says:

    That's Great!!!

  7. Tabs Says:

    Wow that is simply amazing. Congrats!

    I am sure you have a good handle on your finances, but yeah, I would personally consider leaning more and more towards a conservative portfolio.

  8. VS_ozgirl Says:

    Great news!

  9. snafu Says:

    Congratulation, for many who create a monthly Net Worth statement, it's typical to include value of vehicles, 'investment' jewelry, items of value if you were liquidating the estate which easily identify you as The Millionaire Next Door. We create three separate sections, non retirement portfolio, retirement portfolio and illiquid assets.

    I'm puzzled about your decision to hold 10% in cash in a retirement portfolio since you are losing buying power to inflation. You've experienced the 30% loss of value 2008-2010 and stayed the course to enjoy the resultant reward. I feel so bad for people whoo panicked and sold into the downdraft.

  10. FrugalTexan75 Says:

    Sweet!

  11. Dido Says:

    Congrats at nearing a milestone. Each one reached helps! For what it is worth, my firm recommends two years' living expenses in cash to start off retirement...in case of a market drop, you are buffered. Then a bond ladder for years 3-10. Of course, that is just generic advice and YMMV.

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