Here is my updated net worth for February 2019. I continued the momentum from January into February, boosting my net worth even higher
Net Worth for February 2019:
Huge overall increases across the board this month again, and not just from the market either. I finally cashed out my taxable account (a lot of it was promotions to start an account and I just didn’t want to deal with it anymore). I would rather max out my 401k and my IRA before dealing with taxable accounts. I also use my HSA as an investment vehicle, so there’s not much money left to invest at that point – the taxable account was only because of the initial bonuses that I got.
This also means that I’ve finally hit another all-time high on my net worth, which is always nice to see after several months of treading water. First time over $150,000 as well!
So let’s see how far my assets would actually take me at this point in time. I’m going to calculate that using my average spending over the last 12 months. I’ll then multiply that by 12 months to get the total spending for the year, and then divide my total net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$2655 average spending last 12 Months * 12 Months = $31,860 spending in a year
$152,512 net worth / $31,860 spending per year = 4.79 years worth of spending
I also thought it would be cool to see the opposite, how much would I be able to withdraw each month? I set the rate of return at 4% as a conservative guess, and the retirement time period would be for 30 years.
I’d be able to withdraw $725 a month for 30 years which is 27.3% of my average monthly spending.