Home > An OMG bull market

An OMG bull market

June 29th, 2014 at 01:05 am

This is an amazing story about the power of a bull market.

First, a look at my investments (not my net worth) for the past 5 years:

Jan 2009 $315,226
Jan 2010 $434,872
Jan 2011 $486,302
Jan 2012 $461,436
Jan 2013 $519,228
Jan 2014 $587,831
June 29, 2014: $642,770

If I hadn't mentioned "bull market," you may have looked at these numbers and thought wow, she's a great saver. Truth be told, I was not only not saving any money until 2014, but I was also spending sizable wads of cash on some major home improvements (and a new car).

So despite FIVE YEARS of not saving any money, I managed to more than double my net worth!

I was laid off in September 2009, and immediately after that I stopped contributing to savings of any sort. I did, however, complete an already started screened porch-into-sun room renovation and spent $6,176 doing so.

Then in May, 2011, I plunked down $14,000 for vinyl siding and in October of that year, I threw $17,000 at a mortgage prepayment, eager to pay the darn thing off. (I finally did pay it off in 2012.)

In January 2013 I paid off a pesky sewer loan for $2900, and in May, I spent $20,000 cash (no car loan for me) on a new Honda Civic. That summer, I spent another $5,800 for a new roof.

I didn't restart saving until January 2014.

My asset allocation is pretty plain vanilla. I mostly use low cost index funds with Vanguard and T. Rowe Price in the following allocation:

Domestic stock: 45%
Small Cap 12%
Large Cap 33%

Bonds 23%

International Stock15%


Cash 10%

Total 100%

11 Responses to “An OMG bull market”

  1. creditcardfree Says:

    Also and more importantly compounding at its best!

  2. TashaC. Says:

    That happened to me as well! I spent more money than I made but because of my retirement account and real estate appreciation, my net worth has increased- not doubled like yours- but still happy!

  3. wisewoman Says:

    Congratulations! I am in awe of your achievement. I hope to have the same one day. Thanks for sharing.

  4. snafu Says:


  5. rob62521 Says:


  6. Rachael777 Says:

    Very impressed and enlightened. it gives home to the rest of us..

  7. Looking Forward Says:

    Whoot! Big Grin

  8. FrugalTexan75 Says:

    Pretty amazing. Smile

  9. MonkeyMama Says:

    Yup, that is how it works. Mr. Money Mustache nails it on the head. (I know the bull market has been extraordinary but you would still get there eventually).

  10. PatientSaver Says:

    Yes, i must give credit to compounding as well. Smile

  11. PatientSaver Says:

    Yes, i must give credit to compounding as well. Smile
    That being said, I feel a little helpless in defending myself from the next downturn/correction. It will come, at some point. I did make my portfolio a bit more conservative, but I still have 65% of assets in stock. I did divert more money to a short term bond fund ($18K) and a short term investment grade bond fund ($18K) , and put another $8,000 of cash into a fixed rate CD. Just hope I have enough ballast to keep me steady in a storm.

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