Naked With Cash is the year-long series on Consumerism Commentary where seven readers’ households share their financial progress on a monthly basis. I’ve partnered with financial planners who will offer some guidance along the way. Read this introduction to learn more about the series.
SteveDH is retired, and he and his wife have two grown kids. By the time he retired in 2008, he had reached his retirement asset goal of $500,000. His goal now is to ensure his savings last as long as he does. Read his bio to learn more about SteveDH. SteveDH is on Team Roger, with Certified Financial Planner Roger Wohlner.
Keep reading to see his net worth report, updated for June 2013. Following the analysis from SteveDH, Roger Wohlner will offer his own thoughts and guidance from his planning perspective.
Roger Wohlner, CFP appears courtesy of The Chicago Financial Planner.
Analysis from SteveDH
We began June looking forward to the cruise, and ended the month in the Atlantic headed for Grand Turk. Most of the expenses for the cruise will show up in July since we started out on the 27th.
I established the Pre-Paid Expenses account as a means of carrying over expenses from one year to the next (booking the expense when it was used) but I really don’t see a lot of utility in that anymore. Accrual accounting for these types of expenses seems as unnecessary as accrual accounting for car or home insurance. In July, the account will be depleted and I think I’ll quit using it at all.
For the record, we had a great trip not only on the cruise but on the road along the outer banks of North Carolina, Virginia Beach, Williamsburg, and throughout Virginia, West Virginia, and Pennsylvania. Amazingly we were asked to be at a certain area at 8:00 am to get off the ship and were on the US 17 out of Charleston by 9:05 am. This was an unbelievably fast and easy disembarkation.
Cash-flow for June was worse than usual, as we spent 99% of our fixed income. An unplanned repair (the air conditioner) and replacement (the television) consumed more of our fixed income than we had budgeted. Coupled with pre-trip spending and a few days on the road our general expenses added up quickly.
Since June ended the second quarter of 2013, we saw a typical rise in income due to quarterly dividends, but those were masked by poor market performance. Looking back over 2013, we’ve spent 83% of fixed income and 70% of total income and we’re good with that.
From the valuation standpoint the decrease was primarily from market fluctuations as we didn’t pull anything from our savings and spend it. Although disconcerting, it is what it is, so we just hope for better results in the near future.
Our net earnings number for the first half of 2013 sits at just over $12,000 and we’re good with that too.
Looking forward to July. We have a fairly expensive home improvement project scheduled in July but other than that things should get back to normal retirement living for a while.
Feedback from Roger Wohlner, CFP
Overall you continue to manage your monthly expenses well. As far as the dip in your investments during June I agree there is no reason to get worked up over this. Bonds took a hit due to the Fed’s announcement and interest rate fears. Most everything has rebounded so far in July and it will be interesting to see what transpires the rest of the year.
Feedback from Jacob Wade
Again, I have to applaud your meticulous accounting and frugal lifestyle. You seem to be maintaining a healthy level of spending vs. income and your money will easily support you throughout retirement. A tip of the hat to you, sir.
Updated July 31, 2013 and originally published July 26, 2013. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.