Hey friends,

My goal for 2022 is to write an update at least once a month. When I created this website I thought I would write every couple weeks, but now that all my automated systems are established I’m finding it is more about keeping myself entertained and engaged in regular life. The investment and financial management tends to take care of itself and there isn’t really anything for me to actively do with my finances.

2021 was a crazy year! Who remembers chats with friends about the quickly approaching roaring 20’s?!? I thought once the vaccines hit the market and everyone fully embraced them, 2021 would be a continuous celebration. Enter the 2×4 upside the head that was 2021 and we are still living in a slightly less pandemic obsessed world from 2020. While 2021 didn’t live up to the roaring 20’s hype it did have some very surprising financial returns.

INVESTMENTS (401k, brokerage, HSA)

I started January 2021 with a combined investment balance of $243,941. This includes the 401k I’ve been contributing to since I was 22 years old, my taxable brokerage account, and my self-directed HSA where I invest the balance in a TD Ameritrade brokerage. I didn’t expect much growth in 2021 considering the insane growth that occurred in 2020, but boy was I wrong! I think 2021 is a perfect example of why you should never try to game the market. Who would have anticipated the insane growth that would continue through the end of 2021, certainly not me! My combined investment balance on December 31st, 2021 was $366,336, that is an increase of $122,395 for 2021.

My 2021 401k contributions were about $25,000 which includes both my contributions and the matching contributions of my company.

I set a goal to invest $1,000 per pay period in my taxable brokerage account in 2021, or $26,000 total. I was mostly successful, but had to cancel the investment on 4 separate occasions due to home project expenses. In 2021 I invested $22,000 in my taxable brokerage account.

In 2021 I maxed my HSA by investing $3,600 as soon as I received my annual bonus. This money must be set aside for medical expenses, but it can be invested in the market. I invest my HSA money in index funds through a linked TD Ameritrade & HSA Bank account.

To summarize, my new investments in 2021 were around $50,600 which includes the HSA, Brokerage, and 401k accounts referenced above. If you deduct the investments from the 2021 growth ($122,395 – $50,600 = $71,795) the result is an investment growth of $71,795 or 29.4% from January 1st, 2021.

REAL ESTATE (HOME)

At the end of 2020 my Real Estate Tracker shows the value of the house at $576,167. Since December 2020 two of my immediate neighbors have sold their homes and left the area. As of December 2021 the average of the midpoint on RedFin & Zillow is $652,500. Assuming the average of the midpoint is accurate this means my house gained $76,333 in 2021 or 13.25%.

SUMMARY

Never in a million years would I have anticipated the insane growth that occurred in 2021. I keep waiting for the other shoe to drop, but I’m still committed to the concept of index investing and preparing, mentally, for a future downturn. I’ve documented my investor policy statement to guide my actions when a downturn finally happens, but until that day I continue to dollar cost average my investments, work on home renovations, and plan for the future.

According to my Net Worth on the Numbers page of this website, my Net Worth grew in 2021 from $476,969 to $652,322 which is a difference of $175,353.

Cheers