Browse Tag: Financial Scorecard

Q3 2019 Financial Scorecard: Slow But Steady Progress Towards Our Goals

amphibian-1850190_1920After a great first half of the year financially, the third quarter of 2019 was less eventful for the ROMT family.

The S&P 500 climbed 1.2% during Q3, which helped offset our spending being a bit higher than normal, as we took a few trips over the summer. Although our progress slowed from the pace we set earlier in the year, we continued to move closer to each of the three goals we are tracking on our path towards early retirement and financial independence – net worth, 529 account funding, and passive income.

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Q2 2019 Financial Scorecard: Halfway To Financial Independence?

IMG_4082After a setback late last year, 2019 has been good for the ROMT family’s finances.

During the second quarter, we continued to make progress on each of the three metrics we are tracking on our path towards early retirement and financial independence – net worth, 529 account funding, and passive income.

The resilient U.S. stock market was the primary driver of our good results. The S&P 500 rose by 3.8% in the second quarter, as strong performance in April and June offset a decline in May. During the first six months of 2019, the S&P 500 climbed 17% – its best first half performance in 22 years! As the second half of the year begins, the U.S. stock market is once again near all-time high levels.

It has been two years since we introduced our quarterly financial scorecard, and with our target early retirement date now just two years away, our recent progress has me believing we may really be halfway to financial independence!

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Q1 2019 Financial Scorecard: Back on Track!

When we last reported on our finances at the beginning of the year, the results were not good. The worst quarter for the stock market in almost seven years resulted in our net worth moving in the wrong direction for the first time since we started posting our Quarterly Financial Scorecards here at Retiring On My Terms.

Fast forward three months, however, and we seem to be back on track.

The S&P 500 Index returned more than 13% during Q1 2019 – it’s best quarter in nearly a decade! While the U.S. stock market is still a bit below the all-time high set last September, the strong returns so far this year have been great for the ROMT family. We made progress over the past quarter on all three of the metrics we are tracking on our path towards early retirement and financial independence – net worth, 529 account funding, and passive income.

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Q4 2018 Financial Scorecard: Moving in the Wrong Direction

Early Retirement

The first six times we reported on our quarterly financial progress here at Retiring On My Terms, the news was always positive.

The three key metrics we’re tracking on our path towards early retirement and financial independence – net worth, 529 account funding, and passive income – all increased every single quarter.

Sometimes the growth was fast, and sometimes the growth was slow, but fairly consistent income, responsible spending, and a generally supportive stock market enabled us to make steady progress towards our goals ever since we started this blog.

Of course, that all changed during the fourth quarter of 2018, when the S&P 500 index plunged nearly 14%. As good as we try to be at saving and spending, a quarterly decline of that magnitude, the likes of which we hadn’t experienced in more than seven years, is bound to leave a mark on just about any investment portfolio.

And ours was no exception, even though, somewhat surprisingly, we still managed to make progress on one of our three key metrics despite the market rout over the past three months.

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Q3 2018 Financial Scorecard: Another Milestone on the Path to Financial Independence

Financial ScorecardDuring the third quarter of 2018 we continued to make good progress in our pursuit of financial independence and early retirement!

Our efforts were helped by the strong stock market. The S&P 500 delivered its best quarterly returns in almost five years during Q3 18, climbing by more than 7% during July, August, and September! The Dow Jones Industrial Average rose by 9% during the quarter, while the Nasdaq 100 rose by over 8%.

Those great returns from the market gave our finances a boost, and we made progress on the Net Worth, 529 Account Funding, and Passive Income goals we are tracking to measure our progress. We even hit one of our short-term financial goals a quarter early!

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Q2 2018 Financial Scorecard: Three Years to Financial Independence?

Retiring On My TermsIt has now been well over a year since I started Retiring On My Terms and began chronicling our quest for financial independence and early retirement.

This marks the fifth quarterly financial scorecard I’ve posted on these pages. I’m pleased to report we made good progress on each of our financial independence and early retirement goals during the second quarter, increasing our Net Worth, 529 Account Funding, and Passive Income.

The S&P 500 climbed by nearly 3% from the beginning of April through the end of June, which provided a nice tailwind for our finances. That said, we still have A LOT of hard work ahead of us if we expect to achieve our Target FIRE date of Friday, July 2, 2021!

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Q1 2018 Financial Scorecard: Volatile Equity Market Takes Its Toll

Early RetirementWhen I think back on our finances for the first quarter of 2018, I have to quote Charles Dickens.

“It was the best of times, it was the worst of times.”

The good times included getting paid my annual bonus for 2017, going on a great family trip to Walt Disney World, and, ultimately, making some modest progress on our Net Worth, 529 Account Funding, and Passive Income goals.

The bad times included paying for that vacation in Florida, missing on some of our short-term financial goals, and a volatile stock market that finally reminded us equity prices don’t always go up!

Although the S&P 500 Index was down only about 1% for the entire first quarter, the market had fallen nearly 10% from its January peak by the end of March.

Market volatility was at elevated levels during the first three months of the year. To put that volatility into perspective, consider this:

The Dow Jones Industrial Average (DJIA) has been calculated since the late 19th century.

Two of the five largest daily point gains in the DJIA’s history occurred over the past three months.

And three of the five largest daily point losses in the DJIA’s history occurred during the first quarter of this year.

Fears of an all-out trade war with China have continued to spook investors in April, and it seems like we are always just one tweet away from a 500 point move in the market!

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Q4 2017 Financial Scorecard: Slow And Steady Wins The Race!

Personal FinanceWith the calendar finally turning to 2018, it’s time to report on the ROMT family’s financial status as of year-end 2017!

We made progress on each of our financial independence and early retirement goals during the fourth quarter, increasing our Net Worth, 529 Account Funding, and Passive Income.

Measuring our progress on a regular basis certainly helps keep our eyes on the prize, but we’ve found there are really no secrets to continuing to move in the right direction.

For those of us who aren’t founders of tech startups, first round NFL draft picks, or lottery winners, slow and steady progress is the surest way to build wealth over time.

Keeping our personal finances in order is largely a matter of doing the basic blocking and tackling on a daily basis.  Trying to save a larger portion of our income, making sure our money is working as hard for us as we are, avoiding unnecessary expenditures, and taking full advantage of any free money that is available, such as 401(k) matches and credit card rewards, may sound boring, but are all tried and true ways to continue moving towards financial independence and early retirement.

And we used all of those methods to move a little closer to our goals during the fourth quarter.

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Q3 2017 Financial Scorecard: 75% Of The Way To FIRE!

Financial IndependenceAs we head into autumn, the leaves are changing colors, the baseball playoffs are underway, and football season is heating up as the weather is cooling off.

Which can mean only one thing for the ROMT family: it’s time to report on our financial progress during the third quarter!

Publicly tracking our progress towards financial independence and early retirement has really focused our attention on the topic. I’m pleased with the progress we made over the past three months on our Net Worth, 529 Account Funding, and Passive Income goals. We still have a lot of work ahead of us, but during the third quarter we were heading down our path to FIRE with all cylinders firing!

Without further ado, let’s take a look at our progress as of September 30, 2017:

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Quarterly Financial Scorecard: Q2 2017

Early Retirement
Could early retirement really be just four years away? We still have a lot of work to do!

Last week, I outlined how I plan to measure our progress during our quest for financial independence and early retirement.

Today, we’ll open the curtain into our finances for the first time, and share where we stand in relation to our Net Worth, 529 Account Funding, and Passive Income goals as of June 30, 2017 – just four years before our target FIRE date of Friday, July 2, 2021.

I. Net Worth: 73.1% of Goal

Our net worth declined by 1.0% during Q2 2017. On the surface, this was a poor performance, as the S&P 500 was up 2.6% during the quarter. Not all of our assets are in the stock market, so the comparison is a bit unfair, but we’d still normally expect our net worth to rise with a strong stock market bolstered by additional savings and investments.

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