NET WORTH SUMMARY
Our cash went up substantially, largely due to year-end bonuses that paid in February. We've been working on increasing our cash savings, and this helps us get closer to our new goal. We haven't fully decided how high we want the balance to get, but it's probably somewhere around $50,000 so long as the potential for a new vehicle purchase remains on the horizon. We also just had a baby and haven't seen all the bills, but we should be able to cover those expenses using our HSA which is included in the Investments category.
Our investments grew from good stock market performance as well as extra large 401k contributions with the accompanying company match from my year-end bonuses. The S&P 500 notched a 3.72% gain during the month and our largest holding is IVV, which is responsible for over $10k in gains. I added some very small speculative positions in NLY and MORL through my Robinhood account but this won't move the needle in either direction.
Nearly all of our investments are in no-load mutual funds or ETFs that our brokerage firm allows us to purchase with no trading fee. I do place occasional trades but have opted to use Robinhood for most transactions that otherwise would include a transaction fee. In early February, Schwab announced that they were lowering their trading cost from $8.95 to $6.95. This was definitely a win for consumers but the price seemed selected only to be able to say they were cheaper than Fidelity who has been offering trades for $7.95 for several years.
Over the weekend, I was poking around on the Fidelity website and noticed that they were no longer comparing themselves to Schwab, opting to only compare to companies that charged higher commissions like E*Trade and TD Ameritrade. It seemed a bit shady, so I called them out on Twitter and got the typical canned response.
Yesterday I noticed that Fidelity had lowered their trading cost to just $4.95. Not to be outdone so soon after gaining the lead in the race to the bottom Schwab quickly announced that they would be matching Fidelity at $4.95, temporarily calling a truce in the price war. I don't see myself trading more often just because trading commissions are lower, but $4.95 certainly feels a lot cheaper than $6.95 or $7.95 and should be a win for investors.
Sadly, this isn't going to be where I tell you that I hit 200k miles in my car. That update should be coming soon though since I just hit 199,000! While reading through Twitter it sounds like Corolla's are pretty popular in the FI community, and hearing other stories of immortal cars gives me confidence that mine will be able to make it to 250,000 miles or more. I did go to a used car lot that specializes in the type of car I'd like to replace my Corolla with, but only because I'm not normally in that area and I successfully avoided giving myself a case of car fever.
This month, we finally got our mortgage balance under $200k, woo-hoo! It was always part of the plan to throw a good chunk of my bonus at the mortgage and even though $199k is still a lot of money, it's a psychological boost to pass that threshold. This month my oldest was asking me if we could buy something like a 4-wheeler and I explained that I would love to have those types of toys, but not until we pay back the money we borrowed to buy our house. To help visualize what this meant, I created this chart that showed how far we've come and how far we have to go.
Each red square is $1,000 we have still to pay back. The green squares show how much equity we've paid off, including our original down payment. The yellow squares are market appreciation since we purchased.
My projection is that we'll have the house paid off before the oldest is 12 years old, which would be perfect timing to get a 4-wheeler.