November Net Worth Index Update

The November net worth index update now contains the equity value of my new investment property. I have been looking forward to closing this deal for the past few months and have been working on buying a new investment property for a year or so. Also this month, there has also been a significant increase in the Dow Jones Industrial Average (DJIA) which resulted in a positive move in my net worth. With my extreme investing approach, I expect that changes in the DJIA will cause significant changes to my net worth, for good or ill.

Let’s take a quick look at some of the big changes. I’m excited about the positive movement and hope you are also seeing the benefit to your stock portfolio as well.

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Dow 150,000 Coming Sooner Than You Think

I believe the Dow Jones Industrial Average is headed to 150,000 very soon.

Does anyone remember the book Dow 100,000 Fact or Fiction? This book was cool based on the title alone. Or how about the somewhat less exciting and provocative Dow 40,000? Both of these books came out in 1999.  The 90’s were such a great time for stocks.

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October Net Worth Index Update

It’s that time again, time for another Net Worth index update.  This should get more and more interesting as time goes on and there is more data to chart. Over the coming months I am sure a story will develop. Because I am a proponent of extreme investing, I believe that these updates will be very interesting at some point. That is just a function of the leverage that I’m using. Hopefully, the leverage will work for me in a positive way and not a negative one!

This month there is a lot going on even though the index value is fairly stable.

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Extreme Investing

I am still young and can take big risks when investing. Or at least I like to think so. But hey, I’m also still of the opinion that I haven’t hit middle age.

The point is that from an investing standpoint, most people who are younger than forty should be focusing their portfolio on growth and that means taking measured risks.

Risk is something that I have always loved. I’ve always been interested in snowboarding, skateboarding, biking, and all types of extreme sports.

I like taking big risks and have done so in the past

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September Index Update

I have returned! Yes I know I have taken a few months off from posting content but duty calls! The new job has been a great challenge and we have been having wonderful family time lately with our immediate family and with extended family. Trips to Florida, Ohio, and the Carolinas have been great.

Thankfully we missed Hurricane Hermine and ended up having a great week at the beach which included tremendous waves. I never get tired of the Outer Banks of North Carolina.

But now for an update of my Net Worth Index!

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Allocation Shift

I wanted to give a quick update on some things I discussed in the post where I discussed my net worth goal. If you remember, I didn’t reveal the dollar amount of my net worth goal but rather created an index to measure the change in my net worth. This will allow me to share my goal and progress without having to reveal the details of the actual dollar amounts.

I also discussed in that post my net worth allocation. I don’t always see other net worth posts reveal this so hopefully that will be an interesting thing to read about as well. Looking forward to the feedback on that.

I wanted to talk about the allocation in today’s post.

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Net Worth Goal Revealed: Increase 10X In 10 Years

It is impossible not to notice that within the personal finance blogging community there is a practice of reporting Net Worth periodically. I find these posts incredibly interesting. It’s like tagging along with a professional athlete, seeing their daily eating schedule and workout routine, and then following their reports of performance improvements.

It’s also like getting the benefits of a mentor who shares their current progress and the reasoning behind their choices. What’s better is that you can get the benefit of multiple mentors at different Net Worth levels. Some people are out there tracking a few thousand dollars each month while others are showing increases in the tens of thousands! It’s really exciting to see how things progress over time for various people and their various strategies.  Continue reading “Net Worth Goal Revealed: Increase 10X In 10 Years”

How Would the “Future You” Want You to Invest Now?

If someone were to ask you in 2046 how you should have invested your money in 2016 what would you say? I think this is a really helpful question.

I’ve been thinking about this a lot lately and it has really been a helpful thought experiment. Asking yourself this questions leads to other questions which help focus your goals.

For instance, how old will you be in 2046 and what will your lifestyle goals be at that time? What kinds of things will be truly important to you then? Being able to help your children and grandchildren? Being financially independent? Giving to a non-profit that is special to you? Creating an endowment or a scholarship in honor of someone you respect? Or how about creating a trust for your grandchildren to fund their education or for them to purchase a house?

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Is the Stock Market Ready For Liftoff?

Is the Dow Jones Industrial Average ready for a large move upward? I believe it is. Look at the below graph:

The Dow has vastly underperformed historic norms.
The Dow has vastly underperformed historic norms.

The upward sloped line is an exponential trendline based on 11% average return which is not too outlandish for the Dow Jones.  However, the sad blue flat line on the bottom represents the actual return.

Yes this is simplistic – but I believe a reversion to the mean is coming soon with a large and sustained move upward.  We’ll have to make up some ground to get back to where we “should” be on the Dow.