After a 28% net worth increase in 2017 due to eliminating all debt, a robust stock market and being able to save the majority of my income the last two months of the year, 2018 has started off a bit more slowly, with only a 1.6% net-worth increase for the first 4 months of the year (with the majority of this being new investments to offset market losses). However, there are a few bright spots to consider:
· Having reached Flex F.I., where my savings/investments would cover all of my expenses based on the 4% rule, I’d still be on track to generate more income than I’d spend based on a projected 4.8% return this year.
· We’ve started 2 additional automatic investments this year on top of what we already had, with a third coming this summer. I consider these additional income streams for the future….check out my man Tyrone over at East Point Investments, LLC… http://www.eastpointinvestmentsllc.com/
· I’ve started looking at potential real estate investment opportunities, which will be another source of passive income to create a more diversified portfolio.
On a side note, downturns in the markets are opportunities to buy stocks and mutual funds at a discount, not a reason to panic and sell, which all but guarantees a loss. Stock market investing is a long game. If you believe in America and understand our history, you know that there are corrections (10% downturn) on average every year, and a bear market (20+% downturn) every 3-5 years. And in the vast majority of years that bear markets hit, the next year sees a pretty dramatic increase. Just knowing this allows us to recognize that the market realigning itself is opportunity, not a reason to freak out…..