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Home > Another milestone met. Also, roofs and insurance costs.

Another milestone met. Also, roofs and insurance costs.

July 17th, 2024 at 04:44 pm

My portfolio hit over 800k.  It hit the 700k mark back in December 2023, so just over half a year to gain another 100k (including my contributions).  I doubt the second half of the year will be as good.

My total net worth (including assets and debts beyond just the portfolio) is up over 110k so far for the year--a record increase.  

Debts are down to near 63k--they were at 69k in February.  I am really working on paying down the debt this year.  That's why I am delaying acquiring more cats.  I had thought at the beginning of the year that I would get two new rescues over the summer, but then when I realized how much more quickly the debt is coming down without the additional pet expenses, I decided to delay.

Knock on wood and we'll see what happens with the markets, but I'm pretty sure my total net worth will hit a million during the second half of the year.  I will feel like I am "financially independent" when the *portfolio* (not the total net worth, just the investments) is around 1.25 million.  That should come within two to four years as I am saving fairly agressively--20% of my salary, plus at minimum another 3% from my company, and most years a profit-sharing contribution from the company that's aboout another 6% of my salary.

Before I retire, I also probably should pay for a couple of big home expenses (redoing the concrete stairs, which needs to be done in conjunction with the neighbor since we share a twin structure and one staircase leading up to both porches--and I should redo the roof too, plus buy another car (my current vehicle is 12 years old, but with only 66.5k miles), so there are those factors too to factor into the equation.  The neighbor and I have talked and are planning to do the stair project next year.  

Also, talking of roofs, did you know that insurance companies are really weighting those much more heavily these days?  If your roof is over 15-20 years old (depending on the company), they are likely to raise your rates.  EVEN if you have 50 year shingles--it's the actual age of the roof, not the manufacturer's guarantee on the materials, that matters.  Also companies are now using drones and computer imaging software connected to satellites to check on roof condition.  You can find some of this online--I found a site back in May that used satellite imagery to show me a picture of my roof and the measurement and give me an estimate of replacement cost--but the insurance agencies have access to even better software that allows them to zoom in even more.  (My firm had a property & casualty insurance broker in to do an educational session with us on Monday and this was a key take-home point.)

Still, I am feeling like "FI" (financial independence) is finally within sight, at least.  Not close, but at least visible on the horizon.

5 Responses to “Another milestone met. Also, roofs and insurance costs.”

  1. Dido Says:
    1721251408

    Another nugget gleaned from the insurance presentation: don't re-shop your insurance more often than every 3 years. If you change more frequently than that, it is considered a risk and will lead to higher premiums.

  2. PatientSaver Says:
    1721345625

    So I was wondering how you could have a portfolio of $800K with just $63K or so in debt and have only $110K net worth. I'm still glad you're making steady progress, and it really seems magical and effortless how your investments grow (thanks, bull market) the bigger they get in size. It was a lot harder for me to save my first $100K than it was to hit the higher numbers.

    I also used the $1.25 million number as my retirement goal. Seems reasonable.

    Funny you should bring up roofs, becus I was just very recently seeing if I could get better rates since my car/home/umbrella are due to renew next month. I was disappointed my current insurance agent wasn't responding to emails or even answering the phone, so I went to another one here in town and she was very prompt, but gave me a single quote which she said was the best, from The Hartford, and their prices were nearly double what my renewal numbers would b with my current insurer, Progressive. (However, I only have renewal rates for home and umbrella; the new car numbers won't be available til end of month for some reason.)

    So I will likely stay with Progressive another year, despite steady increases. I've read you should shop around every single year but certainly don't jump insurers that regularly. I do like to squeeze in as many discounts as possible, and I always do a safe driver course, even drive around with one of those tracking monitors in the car if it saves me money.

    Someone in one of my retirement FB groups was saying their insurer required a roof replacement or wouldn't renew them, and I had wondered at the time how the heck they would even know how old a policyholder's roof is. The whole idea of drones seems like a huge privacy issue. I'm surprised I haven't read about this somewhere.

    But that question did come up when i was talking to the insurance agent. My roof is now 11 years old, and she said that was fine, but that insurers like to see roofs less than 25 years, which certainly sounds reasonable. She may not be completely up to date.

  3. Dido Says:
    1721736520

    LB, I hope that works. You should definitely tell your agent about the roof replacement--and any other major home improvements you have done. Too few agents ask and too few homeowners know that they should tell about these things!

  4. LivingAlmostLarge Says:
    1721764569

    Congratulations. I too have noticed how fast things are going up.

  5. Dido Says:
    1721772323

    Thanks, LAL

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