Although I have been slow posting in recent months (now being remedied), I have continued to track my net worth as I move ever closer to retirement. (I say “ever closer” despite not having selected a retirement target date.) I have also made some recent changes in my investments with others planned in the coming weeks. The objectives for these changes are to a (a) increase certainty of income in future years and (b) simplify. I will write more about these changes next week.
Looking specifically at my retirement investment accounts, the market value of those is up 2.1% so far this year. Collectively my investment accounts are up 5.5% over the past 12 months.
Most of these increases are due to adding funds to my retirement accounts and not losing much to market changes. My investment returns are low compared to the markets in general because I have remained conservative.
I am a liability-focused investor. This means that my highest priority is to secure a minimally acceptable retirement income, with inflation protection, so that I will have a place to live, not starve, have decent health care, and own basic transportation, no matter what happens and without having to beg my sons for help. This means a combination of Social Security, I-bonds and TIPs for those obligations.
For my “liabilities” beyond basis sustenance (e.g., the moderately fun stuff), I am willing to take more risk. I don’t need to take a lot of risk based on my current financial condition so I won’t. I do not need to hit any home runs. I have figured out (finally) that more money at this stage in life will not necessarily bring me more enduring happiness. I like where I am and I am not willing to add stress to my life to put more money in my pocket.
My net worth will probably take a hit this month because of all the money I have put into the house I am now trying to sell. Hopefully, most if not all of that investment will be returned in the eventual selling price. Only the real estate market knows if that will happen.