Year End Financial Results 2024

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Unfortunately, this year was a disappointing repeat of last year (Year End Financial Results 2023), so not much of an update. My investment results were actually 1% better in 2023.

So, since my portfolio didn’t match the performance of the typical S&P 500 index ETF, I actually slipped a bit compared to most of my peers. So even though my net worth increased over 2023, I still feel a bit behind, especially when considering the inflation increase that happened in 2023 and 2022. At least this year I broke even on my  Secret Wealth Goal versus the past few years.

Sadly, Lifestyle Creep is still creeping up for me, but not at a horrible pace. This year we all went on a short one week vacation to Iceland, which was amazing and certainly worth it. To right my financial boat, I’m not taking a big vacation in 2025 and I’m definitely staying in the US if I do go somewhere!

Financial Pyramid

So in conclusion, I only slipped a little but I’m still in the lower half of UMC. In 2023, I said “This year, I’m a bit less than about 50% into the UMC that I was in 2021. It’s still nice to be in the light green area though, even if it’s just one toe in.”, and the same is true this year, but my toe is my “little” toe this year.

Hopefully, 2025 will be better!

MR guy

Basic Strategies to Grow Wealth

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Let’s delve into the financial strategies that differentiate the wealthy from the middle class when it comes to acquiring assets.

  1. Mindset Shift:
  2. Income-Producing Assets:
  3. Diversification:
  4. Real Estate Investments:
  5. Tax Planning Strategies:
    • The rich leverage tax-efficient strategies to minimize their tax burden. They understand the tax implications of their investments and structure their holdings accordingly.
    • This includes utilizing tax-advantaged accounts, deductions, and credits to their advantage.
  6. Professional Financial Advice:
    • Wealthy individuals seek guidance from experienced mentors, financially savvy relatives or friends, financial advisors, accountants, and estate planners. They make informed decisions based on expert insights.
    • Other less wealthy classes individuals may lack access to financial advice, which can impact their financial choices.
  7. Retirement Planning:
    • The wealthy prioritize retirement planning early on. They contribute to retirement accounts, build pension funds, and create a safety net for their golden years.
    • Middle-class individuals often delay retirement planning or rely solely on employer-sponsored plans.

In summary, moving from the middle class to a wealthier class involves having a paycheck and a multiple income streams. The key lies in buying income-producing assets first and indulging in luxury items later. It’s a mindset shift that can transform financial outcomes. 

Financial Pyramid

It’s okay to start small, the key is to just start.

MR

Year End Financial Results 2023

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At the end of 2022, I called out that 2023 was going to be rough for me, and it was. While most of my friends had market gains of over 25%, I was up only a bit over 15%. For those that might be curious, I had a few financial institution stocks that were hit hard… From a “my portfolio” versus the S&P 500 index, I believe this is actually my worst year ever.

My Financial Pyramid Results

I recapped my losses from 2022, so that now I’m higher then my previous highest account balance set in 2021. So there is that, but from a Secret Wealth Goal, I’m still down 7 percent from the 2021 percentage position..

Thinking about it now, I did experience a certain about of Lifestyle Creep too. Perhaps the trip to Maui should have set off alarm bells in my head, but I justified it as a “one off”. Unfortunately, I have a desire to travel more lately, so I’m suddenly realizing I might have quite a few “One offs” in the future. 🙁

So what is my grade for 2023… B- I’m still in good shape, but I dropped in certain areas. Especially the piece I wrote last year:

“I feel comfortable saying that in 2021 I was about 50% into the upper-middle-class (UMC) level at the end of 2021 in the pyramid below, at least from a net worth perspective.”

This year, I’m a bit less than about 50% into the UMC that I was in 2021. It’s still nice to be in the light green area though, even if it’s just one toe in.

Financial Pyramid

Hopefully in 2024 I’m make up for lost ground, but who knows… Starting the year feeling financially numb…

Thanks,

MR guy

Year End Financial Results 2022

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Not much changed from the end of the 2021 post: Year End Financial Results 2021

Mid-summer, I did go to Maui for the first time ever, but after coming back from that vacation (which was great), I got hit with very bad family issues that I’m not going to talk about. In fact, from a net worth perspective, I slipped down quite a bit.

My family issues caused me to become unfocused (totally neglected finances in fact), and my portfolio showed it.

Looks like some rough years ahead…