So 2024 has finally come to a close and it was a year that was kind to my finances. A majority of the months saw the market make solid gains, and my portfolio was able to match all of those gains. I don’t think I’ve shared in a while, but all of my investments are in index funds. I don’t have time or the expertise to pick individual stocks and based on my retirement date, timing the market isn’t really helpful either. The goal is to stick with the average S&P 500 gains and those should be enough to fund my retirement. This month in particular wasn’t great, as all my investment accounts dragged me down to close the year out.
December Liquid Net Worth:
I took a little hit on my cash accounts this month with Christmas spending, but the big losses this month were in my retirement accounts. The market had a tough month and my investments followed that trend.
December Total Net Worth:
Unfortunately I came up short on my net worth goal of $700,000 for the year as you can see. December did not turn out to be anything like November, but that’s still okay with me. I continue to contribute to my retirement accounts and stick to the principal that time in the market is more important than timing the market.
So let’s see how far my assets would take me at this point. I will calculate that using my average spending over the last 12 months. I’ll multiply that result by 12 months to get the total spending for the year, and then divide my liquid net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$4380 average spending last 12 Months * 12 Months = $52,560 spending in a year
$468,643 net worth / $52,560 spending per year = 8.9 years’ worth of spending
Photo by Matthew Stephenson on Unsplash
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