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Investment and Net Worth Update

our beach tripHappy Friday everyone. I’ve been trying to make up for being on vacation last week by working all five days. Let me tell you, a 40 hour work week is for the birds. It makes me really want to buckle down so that I can be on vacation all the time (or at least not in the office). I’m thankful to have work, but working part time has certainly spoiled me. Because I want to keep dedicated to the idea of financial independence and all the freedom that comes with it, I thought it was a good time to share some numbers regarding our investments so far this year and the direction of our net worth. Plus, I really want to be in the Million Dollar Club at Budgets Are Sexy. Do you get a t-shirt with that?

I don’t expect anyone to compare themselves with us. We’re all on our own path. If you haven’t planned for which direction you want your path to lead, today is the day to start.

For a recap of our net worth from last October, you can check out in this post.


Cash: $64,288. We’ve been hoarding cash for a tax bill that I though was finished buy may not be done quite yet. By next report, I expect to have our cash reserves down to around $20,000 for emergencies and rental repairs with the rest in a better income producing product.

Retirement Accounts (401k, IRA’s, 403b): $215,313

HSA: $8169

Non-Retirement Investments: $6136

Daughter 529 plan: $8292

Daughter Roth IRA: $11,111 (how cool is that number?)

Business Loan: $290,000. I’m not sure where to classify this. When I sold my practice, we did seller financing, so essentially, I am the bank for the life of the loan. This is the principal balance, but it does earn interest as well. I guess as this balance lowers it will rise in other areas when we invest the income. If the buyer  defaults, my business returns to me as well, so I guess it is an asset.

Home: $375,000

Residential Rental Property $80,000

Commercial Rental Property: $275,000

Vehicles: $27,284 (from Kelley Blue Book)

Total Assets: $1,296,297 

Hike in Torry Pines

Ocean Hike in Torrey Pines



Home mortgage: $149,407

Residential Rental Mortgage: $45,966

Commercial Mortgage: $198,000

Total Liabilities: $393,373

Net Worth: $902,924, Up 20.52% from last October

I don’t think you can hope for a net worth increase of over 20% every six months, but the stock market was good to us, and we did sell my business. We also unloaded our terrible flip house project, which eliminated a large chunk of debt and made a small profit. Without the rentals, we would have owed a truck load more taxes, so I am very thankful to have those in the portfolio.

As for investments, we are on fire. So far this year, I’ve added just over $13,000 to my new solo 401k. We maxed out Siena’s Roth IRA for 2013 in January (You can hire your children if you own a business. Great way to lower your income and save on taxes). We did a 2013 backdoor Roth for Jim this week because the business sale put us over the limit to contribute normally. It was too complicated for me to do a Roth this time because I have other  tax deferred IRA’s and ran out of time to figure it out in regards to avoiding the pro rata forms. We are dollar cost averaging to max out our HSA for this year, and putting $200 a month into the daughter’s 529 and $250 per month into stocks, which isn’t going to make us rich fast, but it does add some diversity. Our main focus right now is maxing out the solo 401k.

I’m also on track for a personal goal of donating 5% of my income to worthy causes. So far, I’ve chosen Pauline’s school support project and my daughter’s school PTA as recipients. I suck at being in the PTA, but did try to get behind the scenes a bit by going to some meetings. I don’t support all of their fundraisers, but the school would be in lots worse shape without them. They have pretty much supplied all the computers, playground equipment, and audio visual technology for the last few years. In a perfect world, we wouldn’t need to sell magazines and popcorn to have adequate school supplies, but that’s a thought for another day.

We still aren’t sure of Jim’s job situation yet, but when we have that figured out, it will be time to invest some of that cash that is earning us about a fifty cents a month. I think we’ll keep enough to pay our estimated taxes for the rest of the year plus the emergency fund, but I’m not sure what to do with the rest. Maybe you can help us choose.

A) Invest in stocks. Still waiting for a good correction before dumping in a big sum or we could dollar cost average.

B)Invest in a new residential rental. Prices are going up, but we could still snag one for under $100K if we do it pretty soon.

C)Keep hoarding it or put it into a CD for about 2%.

D) Go to Vegas!

Please state your reason for the choice.

How is your net worth? Any big deals on the horizon?




About Kim Parr

Kim Parr is a private practice optometrist, freelance writer, and personal financial blogger. You can follow her journey to 20/20 financial vision at Eyes on the Dollar.


  1. I like B and D, and even A! I think you mentioned you already have a Vegas trip planned so maybe just ‘invest’ a little in the Blackjack table? Just kidding of course haha. But seriously I am becoming a bigger fan of real estate. Would you consider renting it out? Might be a good source of income.

  2. Love it when the net worth numbers increase. We have had a healthy run in the stock market. Option B all depends on how much you want to be a landlord. If you want a more hands-off approach, better go the stock market route. Being a landlord requires time and energy as I’m sure you know.

    • We are pretty lazy landlords because we have a property manager, but someday, we’d like to take over so I’m not sure how many we want. Stocks would certainly be easier.

  3. Way to rock it, Kim! That’s awesome. Love that you’re “the bank” w/ your business selling to – def. tricky where it goes in the ol’ net worth, but I think in both cases it’s fine. Whatever makes the most sense to you since you’re the one tracking it (and who cares the most, haha…).

    Going now to make sure you’re on both my Millionaire List AND Blogger Net Worth Tracker one too over at my other site!


    Keep killin’ it! (And yes, you get Millionaire T-Shirts once you cross over ;))

  4. Very nice work Kim! We’re definitely need to look at hiring our daughter so we can take advantage of the Roth for her. My vote is for either A or D. With the market doing what it’s doing I think it could be ripe for getting in at a good value and I love Vegas!

    • You could certainly hook your kids up and put them to work. They won’t understand it for a long time, but what a great gift to give if you can.

  5. Good job, Kim! I think you should go to Vegas! =)

  6. Wow, I am beyond impressed (and feeling way behind in life).

    • I wouldn’t feel behind. There are two of us and we are able to pretty much save one income entirely. It adds up pretty fast, and we were fortunate with our home and business purchases to buy at the right time. If we’d been smart all along, we could be retried for good by now, but you can only move forward.

  7. Love that your daughter has a Roth already. She is going to be so ahead of the game retirement-wise with that thing.

    • I hope she turns into the kind of kid who appreciates and will use the foundation we give her wisely. Otherwise, I’ll roll it all into my account before she’s 18!

  8. I’m super impressed by all of this (net worth increase, your daughter’s Roth IRA, etc.) Right now I focused on investing in stocks. As much as I’d like to invest in another property right now, I’ve realized that I really don’t have the time. Keep up the amazing work! You’re an inspiration.

    • Thank you for the nice words. I think we will probably just dollar cost average into the stock market unless an amazing property comes up.

  9. Great numbers, Kim! You should feel pretty darn good! I vote for A and D (or any other place you want to go). B is definitely a viable option. It would just depend whether you want to deal with another rental and/or flip.

  10. Ha! Where the responsible part of me would say A, the carefree part of me says “Vegas Baby!” I feel as though I can’t do anything truly “fun” though until my son is through college. My hubby and I both had our colleges paid for by our dads and feel we can’t give our son any less than we had. I just hate how expensive it is. Maybe he will take up a trade and then I will go to Vegas big time! 🙂

  11. You guys did awesome, and I bet your daughter has one of the highest net worth of her class.
    I’d go for the residential rental, with a little money for fun.

    • I would have to agree that she probably does have the highest net worth in the first grade, although that has absolutely no importance at all to her. She’d rather have the largest My Little Pony collection!

  12. Incredible job Mrs Millionaire! I’m impressed by how small your liabilities are. My vote is to go with stocks or another property.

  13. Kim,

    Awesome, awesome results! I never even considered setting up a 401K for our kids, that’s a far out idea that makes a lot of sense 🙂

    I’d vote for option A, but I wouldn’t DCA it. If you have the lump sum, just drop it in the market. Don’t try to time things, you could easily do more harm than good by waiting.

    • I’m not sure they can do the 401k, but they can certainly set up a Roth or traditional IRA with earned income. The Roth seemed to make the most sense to us.

  14. Wow, great job and progress! I’m also hoping to snag one more residential property this year… You’re right, prices are climbing up fast!

  15. Wow, been a while since I’ve stopped by, but HECK YES! Super cool that you sold the practice for a tidy sum, and you are almost at the $1M mark! Well done! Super inspiring!

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