Financial Update: September 2018

Hello and welcome to the latest entry in my financial update series, where I update you on my two biggest financial goals: saving for a new home and saving for retirement.

Let’s get right into it.

Investment Update

September was another positive month for my investment holdings, as they grind on higher. It really is encouraging to see this chart evolve as the month's pass, showing a steady climb from my 401(k) contributions and market returns.

My asset allocation has remained roughly the same. For new readers, that is:

  • 50 percent in US Stocks (currently overweighted to large-caps, but will slowly change this to reflect roughly Vanguard’s Total US Stock Market index, or “VTI”).
  • 25 percent in International Developed stocks (VEA)
  • 25 percent in Emerging Market stocks (VWO)

The biggest drag to the portfolio has and continues to be VWO, which was off around 2 percent for the month. International developed and US stock holdings were much better, up roughly 2 and 1 percent, respectively.

Housing Fund Update

September saw progress with our savings, but not as much as we would have hoped to get us into a position to purchase a new home next summer. We made a $500 contribution to savings and earned $27 in interest on our balances.

The Federal Reserve gave our savings account a boost, raising interest rates another 0.25% at the end of September, which should follow through to our savings account in the coming weeks (though, we’ll eventually take it on the chin with higher mortgage rates that are soon to follow).

The lower savings was a function of more conservative contributions, especially considering some costly auto repairs that needed to be done in September, along with expected repairs we have to save for on our current home to prepare it for sale.

That’s life though, and that’s it for this month.

See you back here at the end of October. Have a great month.

If you enjoyed reading this, please feel free to read my other personal finance and investing related musings.