Welcome to our very late, and probably brief, June 2024 Financial Update. Better late than never I guess!

We were hesitant to even write this blog given how close we are to another month end. However, with everything we have going on there is no telling when we will be able to get to that month end blog either. So we are using this brief window of free time to give our update.

Since our last update we have traveled back and forth between Utah and Texas twice. Both trips required a lot of our attention as our home build is really getting down to the details. This stage is both exciting and a little scary. Our design choices starting to get implemented into the house so hopefully everything comes together as planned. The problem is that we are now 1,200 miles away and can’t be there to make changes on the fly if something doesn’t pan out. Hopefully when we get back there we don’t have an “oh shit” moment.

All of this travel has us considering different options that would allow us to be in Texas permanently. It would be great if we could be on site for the last month(s) of the build. The problem is that it would really expensive to stay at a hotel or an airbnb for months on end. We are already forking out a lot of cash to cover the construction loan installments on top of everything else. So we need to try a be a little patient.

We are in constant contact with our builder and are starting to get a better idea of our timeframe. At some point in this process the cost of staying in Texas permanently vs. commuting will be worth the expense. Hopefully we hit that point soon so we can pull the trigger and stop this madness. Until then we are stuck in Utah, which is really getting old to be honest. We love Utah as a place to visit family, but not so much as an extended stay.

Alright, let’s take a look at how our portfolio did for month ending June 2024.

Our Portfolio Performance June 2024:

Portfolio = $1,536,152

Our Portfolio Increased By $19,798 or 1.31% From The End Of May 

Year-To-Date Our Portfolio Has Increased By $107,798 or 7.55%

Net Worth = $1,413,362

Our Net Worth Decreased By $30,645 or 2.12% From The End Of May

Year-To-Date Our Net Worth Has Decreased By $167,194 or 10.58%

As a reminder, our net worth number is being dramatically skewed by our home build and the process required to make it happen. Currently our numbers only reflect one side of the home build transaction. These are the draws being made to finance the construction process which is a liability to us. The only asset related to our home build that is included is the property, which we own outright.

We have purposly not included the estimated value of our completed home since we technically do not “own” it yet. Once construction is finished and we get the final appraisal we will make an adjustment and include the entire asset. At that time we expect the net worth decrease that is reflected in our numbers to reverse which will then reflect our true net worth number.

One great thing that has happened throughout this process it that the markets have been mostly positive. Now, we don’t expect that to keep up considering how far they have run this year, but it sure helps! As we tap funds to keep everything moving in the right direction it’s nice to feel like our accounts have replenished themselves. Again, we don’t expect this to keep up for the whole year, but if it did until our home is completed we wouldn’t complain!

As we move towards the endgame of our home build we will have some decisions to make. When we started this process we narrowed down our options to three choices for the final financial step.

1. Pay for it all and be done. We have the money, but this could possibly have large tax consequences.
2. Pay a large amount and finance a little. This choice could still have possible tax consequences, but any mortgage payment would be easy.
3. Pay just enough. We could avoid any tax possible consequences using several withdrawal options. But, this would require more financing which is not something we really wanted to do. On the bright side we keep more money growing which might be better for the long run.

It might seem like a no brainer to some folks to avoid tax consequences or even penalties at all costs. However, there is more below the surface that needs to be considered before making that decision.

Over the last few years we have been very good at offsetting taxable events with tax deductible transactions. In fact, for the last three years we have received tax refunds which never happened when we were actually working. It’s crazy how the tax system works, but this how the politicians set it up.

Contrary to what some lunatics and leftwing lemmings think, it’s our job, if not our duty as free people, to navigate the laws of our tax code and minimize our tax burden. A citizens “fair share” of taxes is what is owed under the current laws and not a penny more.

If you don’t agree then feel free to write a check to our corrupt government and piss your money away. There is nothing stopping these people from paying more to the treasury and turning that rhetoric into action. Of course this will never happen and all reasonable people know why. Anyway…………..

Building / purchasing a home is one of those events that we could possibly use to our advantage. We need to run the numbers and see if it’s possible to tap into funds that would otherwise not be available. We might not be able to do this without consequence, but maybe we can minimize any burden and put ourselves in a better financial situation. Things like interest payments on a construction loan, a mortgage and eventually property taxes might be just enough to offset any tax burden and/or penalty of making a larger draw.

This is where our trustee tax accountant comes in. We will need to get clarity on our different options before we pull the trigger.

Spending numbers for June 2024:

Monthly Budget = $5,000

May Spending = $6,974

May Over Monthly Budget = -$1,974

YTD Over Budget  =  -$19,097

After last months spending bloodbath we were able to get back on track somewhat. While we were still over budget by almost $2k that number includes construction loan installments. When we break it down further to just our core spending we were only over budget by $146. Considering how much we traveled in rental cars and paid for hotel stays that’s not as bad as expected.

While this whole process has been very exciting we are ready for it to come to a conclusion. To say we are exhausted would be an understatement! The commute from Utah to Texas is long, dull and boring. We are also tired of sleeping in rest areas or on the side of the road.

In the RV this was all fine because we were in our own bed. In a car it sucks and not very comfortable. We do this to try and save a little cash, but we also get very little sleep which makes the drive even worse than it already is. With any luck the next time we make that drive will also be the last time we make that drive.

We look forward to the days where we are steady and stable again. When all is said and done we have some exciting projects on tap. There are some things we have always wanted to do but never could in our previous lives. Back then our work schedules made everything difficult and then living in an RV made some things impossible. Now that we are transitioning back into a house and have some land all things are possible again.

That’s about it for this update. Thank you as always for reading our blog and hanging in there with us during this transition. We always try to be consistent with the timing of our updates, but until we get settled that is going to continue to be a challenge. We will do the best we can under the circumstances.

See you on the road, or maybe just around town.

Joe

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