The BITAs giveth, the market taketh away.
October was an expensive month.
- We paid the tax man for past stupidity regarding our Indian Stash. This was an expected expense though, and we saved up for it in September.
- We had house guests for two weeks in October and ended up eating out a lot more than we usually do.
On the other hand we finally filed our 2015 taxes and received sizeable refunds from both our Federal and State tax returns.
On the whole, we did an excellent job of saving this month, even if I do say so myself. The market bloody-mindedly attempted to undo all the good we did, and very nearly succeeded.
Adding cash to the financial independence stash
We added a very respectable $19,516.63 in new investments to our stash.
- We saved $11,000 from our income (salary plus tax refunds) and invested it in our taxable account. We weren’t expecting tax refunds, so that was a bonus. When we filed for an extension earlier this year, we used Turbo Tax to calculate what we owed for 2015 and paid the IRS. Then we hired a tax consultant to deal with the holy fuck up lovingly known as our Indian Stash, and as part of that effort said consultant informed us that we had overpaid the IRS in April.
- We started to contribute after tax money to Mr. BITA’s 401k and rolled over those contributions to our newly minted Roth IRA – our first mega backdoor Roth transaction, wheeeee! We saved and rolled over a total of $4300.
- Mr. BITA had some RSU’s vest.
- My company stock paid us a cute little dividend.
That concludes the happy portion of this month’s financial show. Cue mournful background score. This month the market made a sucking sound and the losses we incurred very nearly canceled out our new investments.
Our ‘growth’ in October was -$18633.53. So our Net Worth effectively increased by $883.
Markets vs. The BITA’s determination to get to FI: this round goes to the BITAs, but just barely. We were bloodied, but we are still standing.
The financial independence plan vs. reality
So, how are we doing with respect to the Plan?
According to the Plan, we need to save $20,000 before the end of 2016 (starting in October 2016). Nailed that. The victory feels hollow though, when our NW has barely moved. I understand that we’re playing the long game here, and yay for buying low-ish, but damn if it doesn’t piss me off to save so hard and have almost nothing to show for it.
Financial independence status: Ahead of the game (picture me giving the markets the finger here).
Did you have a good October financially? Did the markets treat you better (I’m going to be pissed if the answer to that is yes. I can’t stand favouritism)?