Ok, the time for the next financial update – what progress has been made towards achieving Early Retirement?
April was one of those months when the market kept going down and down and down… The only thing we can do in this situation is to continue contributing to the accounts, paying down the mortgage and hope that the market eventually cooperates 馃檪
The gap to close shows what we need to accomplish by May 2023 to be able to retire early. Altogether, due to market declines, we took a BIG step back and LOST $140K in April, erasing some (not all) progress we made towards our goals…
Mortgage
This is the largest item in the table above. We want to retire without any debt, and the vacation house mortgage is the last debt item we have.
As of July 2021, we had $315,827 in principal due to the bank. In April we continued contributing $3,780 towards closing the gap. We weren’t able to put away additional $3.5K (as I would normally do) because we had to pay our income tax bill and property taxes on two properties in April, so I’ve been saving extra cash for those expenses.
Cumulatively, since July 2021 we reduced the mortgage gap by $108.2K, 34% of the gap. This is the only goal that is not dependent on market fancies, the gap just continues closing, and that’s the most important piece of the puzzle right now.
Post-tax accounts
Post-Tax accounts include cash and stock we own in our Brokerage Fidelity accounts. They also include the value of contributions I am making towards ESPP purchases.
In April, the value of our post-tax accounts decreased by $44K, despite ESPP purchase of stocks at 15% discount in early April and the continuing contributions to ESPP fund (now for purchase in early October).
Pre-tax accounts
Pre-tax accounts include 401K plans with our current employers and Traditional IRAs.
In April the value of our pre-tax accounts have declined by almost $100K, despite our regular contributions of about $4K in 401K (including the employer’s match).
Conclusion
In summary, he market rollercoaster continues. Declines in February, gains in March, now declines in April, hoping for gains in May 馃檪 At this point, we closed the gap by $115K (as I said earlier, a huge step back). That represents about 22% of the gap we need to close. We continue to chip away at our financial goals and hope that the market cooperates in the next couple of years! Markets can go up or down, we will still reach our goal 馃檪
Stay tuned to the future updates!
It铆s nearly impossible to find well-informed people for this subject, however, you seem like you know what you铆re talking about! Thanks
Thanks! Let me know if you have any questions regarding financial adventures we are having, and I am happy to respond!