Milestone Reached And A Huge Bummer

Today I was expecting to write about how exciting it was to finally see our portfolio cross the seven figure mark, at least for now. But on Friday, as we were in line to fuel our RV for a weekend getaway, our joy and excitement took a pause when a trucker backed up into our coach and caused some significant damage.

Now, I know the natural reaction from people will be that it was an accident and accidents happen. Or that it’s just some damage that can be repaired and it’s more important that we are ok. And I agree with these sentiments. They are true and correct. However, the feeling we have goes beyond a vehicle repair because this is not just a vehicle to us, it’s our home. And when you are sitting in your home and see a truck coming and then hear and see your home being destroyed before your eyes the feeling cuts a little deeper than a car accident. It was a very upsetting moment for us.

The initial estimate is expected to be over 10k as there is a lot more damage than is visible in this photo. Aside from the windshield and visible damage to the fiberglass, the front end is pushed back and the tray that the generator sits on is damaged. Who knows what else will be found once the shop starts digging in. Needless to say, we are really bummed out about this whole situation.

On the bright side, we did finally crack the seven figure portfolio mark on Thursday. While this is a great milestone for us we need to try and not get too far ahead of ourselves for a couple of reasons. First and most important, the market can take just as fast as it gives. Second, while our business is picking up we don’t get paid for contract jobs for at least 30 days. And even then the amount of receivables we currently have is not enough to fully offset the lost wages from my previous job. So until business reaches the point of income replacement and cash flow starts coming in, its not time to celebrate just yet.

On another front, now that I am past the company match period from my former employers 401k it’s time to do some consolidation. I had previously opened a Vanguard Rollover IRA a few years back and moved an old 401k into it to reduce expenses and get better investment options. Now that I have the full matching contribution in my latest 401k I will be moving the money into the rollover IRA and allocate the funds in line with my investment strategy.

This will also help set up future moves we are looking into like Roth conversions. BTW, a special tip of the hat to Matt at Money on F.I.R.E. for bringing this gem of an idea to our attention. If you are like us and spent most of your life saving large amounts of money in pretax 401k’s it could be a option for you also. At this time we are not sure we will ever need to access to that money before we reach the 59 1/2 age floor, but I love having options.

Next up will be our October financial update as we close out another month. It would be nice to close out the month strong and maintain a seven figure portfolio. The way this market is behaving I would say it’s about 50/50 that will happen.

Thanks for reading.

Joe

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