June 2018 – Portfolios & Mortgage Update!

401K – Update

Its been a long time since my last post (almost a year) as I had a very busy personal and work life. I’ve been busy at work advancing in my career and most importantly, I am a new father of a baby boy! Even after all that, it has not kept me from my focus of consistently building our dividend portfolios!

The 401K stock has grown quite a bit since July of 2017. I don’t have the exact records to show the difference but the 401K has grown to almost the size of the taxable account that I sold in just under 1 year! However I do have a snapshot of my 401K from January 2017 for comparison. You can find the screen shots below (January 2017 vs June 2018). It’s all thanks to increasing my 401K allocation to 11% up from 6% and with a 6% company match of 100%. Some stocks that I’ve added to the 401K since last July 2017 were: INTC, KMI. Other than those two, I’ve been adding to my positions, which I will continue to do so before adding new stocks going forward.


January 2017

401k may 2018

June 2018

Tranditional IRA – New Portfolio

We’ve also added a new portfolio for our retirement! The traditional IRA was created after my wife had quit her job and moved out of her 401K. She decided to stick to dividend investing so we’ve added a whole slew of new stocks! This definitely helps our retirement by replacing the taxable that we sold last year! Some of these stocks dropped in price since adding them but its OK since we are in it for the long haul. This will be an interesting portfolio to watch as we will not be adding new capital to it but let it compound on its own.

Traditional IRA may 2018

June 2018

Roth IRA – Update

We have been modestly adding to the Roth IRA but not as much as we hoped since we started to ramp down on our Mortgage. Below I have a comparison from January 2017 vs June 2018. We were not able to max out the IRA for 2017 ($2000 shy of it) but our goal is to max it out every year going forward.


January 2017

Roth IRA May 2018

June 2018


The biggest activity that occurred in the last year was in our mortgage. I personally do not have any regrets in selling the taxable account to pay down our mortgage except for maybe that I should have sold later than sooner due to the appreciated value. In hindsight selling at a later date seems to be the better plan but no one really knows what the stock market will do. I really did not want to drive myself crazy and go back to calculate how much more I could have paid off the mortgage by selling now as to last July, but the peace of mind of our the mortgage going down from $218,325.20 to the current balance of $124,637.57 is priceless! Especially the amount of interest that we saved from $702.43 to $402.48. Its like a monthly payment for a Mercedes versus a Honda accord (my 2015 Honda Accord was actually $416.22 a month, which is now fully paid off).

Below is our current journey of our mortgage:

Mortgage- May 2018

As you can see from the chart above, our journey began in July 2017 when we sold the taxable account to pay off a significant amount. We’ve also paid down a lot by gathering any extra money lying around, outside of our emergency fund and a generous yearly bonus from work. I know that some people will not agree with our decision and would rather invest in the stock market but we chose to pay off the mortgage early now and ramp up our portfolios after. To us the peace of mind is more important than the volatile stock market, especially after having a baby! It is our dream of paying off the mortgage early and dramatically decrease our living expense. In a strange way, I feel that financial freedom can be achieved sooner than later by doing this, at least mentally! Imagine paying $650 (property tax + home owners insurance) a month! This would mean that we could potentially only need to earn roughly $8,000 a year just to live in our own house! Of course this is not counting utilities, gas for driving, internet, cell phone, misc, and food.

Dividend investing is our ultimate goal but for the near term, paying off the mortgage is the first step in achieving that ultimate goal. I’ll try to blog more often now that I’ve settled down, until then I’m curious on what everyone thinks?

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