Each quarter, we’d like to give an overall summary of our investment results…it forces us to confront the good and the bad. The results will show performance based on the end of that quarter for the trailing twelve months. Below are our results for the second quarter of 2017. If you want to see more of these reports, click here.
2017 Q2 Investments Summary
|Period||Starting Amount||Investment Deposits / Returns||ROI TTM||% Overall Change||Total Investment|
Overall, we’re pretty happy with the results for this quarter. 15% return is nothing to sneeze at. I do sometimes wonder if we’d be better off investing in just ETFs and/or mutual funds, but I personally take great pride and enjoyment out of researching and picking investments myself.
If you’re considering doing this yourself, we’d recommend you have a fair bit of risk tolerance. Individual stocks are far more volatile than a typical mutual fund would be. That is why we’ve actively tried to diversify into different sectors, and in some cases, out of stocks entirely.
The other thing we’re happy about this quarter is the 52% overall increase in our account value. Our ability to do this was helped out greatly by the fact that we were able to max out both our Roth IRA contributions this last year. For those that don’t know, the max contribution is $5,500 for those under the age of 50, and you can do that for each person in a marriage even if only one of you has earned income.
Being that we did max them out, it will be difficult to continue getting results over time that approach the 50% number. As the accounts grow larger (hopefully!), our max contribution will be a smaller percentage of the total account value.
Ideally, we’ll be able to add more to our 401(k) contributions in the coming years to help keep this percentage high, but we’re not there yet financially.
Key Investments During the Period
During this last quarter, we began to grow a bit concerned with how concentrated our investments were in the stock market. The bull market has been going on now for a very long time. We didn’t want to exit entirely, but we did want to diversify. Because of this, we transferred some our stock investments over to two new accounts:
- We transferred $10,100 into a new peer-to-peer lending account: Lending Club.
- We transferred $10,000 into a private market real estate investment account: Fundrise.
We’ve only been invested in the both of them since right around the end of June, so we won’t be drawing any conclusions at this point, but we think that both could be promising alternative investments. I plan on writing some reviews when we’ve had more time to experience their performance.
We also opened two Roth IRA accounts over the last year through Hedgeable. It is an active investment account manager that attempts to hedge like many high net-worth individuals might. So far we just have $2, 750 invested, but our ROI is around 10%, so it seems to be a decent option after only three months. We’re looking to add more this year with our remaining contributions.
Currently, our five largest stock holdings by dollar amount listed as SYMBOL (share count) are: FB (75), NRZ (525), LC (1,000), HBI (225), and GME (219). This section has actually shrunk in value over the last year as we’ve actively worked to diversify.
We are withholding 3% in our 401(k). That was just cut back from 11% as we found it unsustainable while we continue to pay down debt and get a handle on our housing costs. We don’t get any matching from my employer, so we prioritize the Roth IRAs over investing in the 401(k) at this point.
We hope this summary of our investment activities has been useful and informative. Now that you all know what we’re up to, what types of investments are you looking at?
If you want to know more, please comment below.