Monthly Update October 2014

Monthly Update – October, 2014

In this update: stocks dip, and then rebound, real estate worrisome, but continues along, my LendingClub.com monthly update, an interesting item I spent money on, a business idea, and some good tunes for the Fall.

It finally happened. The stock market that was headed off the rails started to come back. What did that take? A couple of months? If you can’t weather the stock market’s ups and downs for a couple of months, then you need to reevaluate your strategy! I just hope I am able to keep calm during downturns that last a year or longer! As we know now, November is looking ok in terms of stock market performance as well, but the rally on Halloween really helped out my portfolio for October specifically.

Investment Portfolio

Personal Capital has a pretty a fun feature. It tracks “You Index” and tells you how much your investments are up or down as a percentage and compares that to a few other indices such as the S&P 500 and the Dow. Here’s a look at my snapshot for August.

Monthly Update Personal Capital You Index
Look at that HUGE dip in the middle of the month! Good thing I get paid on the 15th and have money automatically invested from there!

The “You Index” is in the positive territory again! In recent months, it has been straying further and further from the S&P index though. I will have to investigate as to why exactly that is, since the vast majority of my investments are in S&P or Total Stock Market index funds. I guess the few other investments I have (from before I was on board with the index funds) are creating some drag.

Real Estate

Disclaimer: Below are the straight income and expense numbers for my real estate investment. Part of the income is being put aside for reserves in case maintenance issues arise or the property is vacant for a period of time. Some months, the cash flow may look extremely rosy, but keep in mind that this is a long term strategy with expected bumps along the way.

Rent Income: $1,025 (paid by turnkey company)

Mortgage Payment (Including Principle, Interest, Taxes, and Insurance): $424.65

Property Management Fees: $102.50

Total This Month: $497.85

Once again, the turnkey company is paying my rent guarantee. I have written about this in detail in my turnkey posts.

Lending Club

So no more charge offs this month, but LOTS of late payments, which makes my annualized return go down! If I wanted to be active and CHOOSE my investments individually, I think I could bump this back up, but at least the current numbers are still very good.

October Interest Received: $101.68

October Late Fees Collected: $0

October Losses (due to defaults): $47.32

Current Annualized Return: 15.38% (interestingly, if you don’t take into account the late payments, my return is 20.10% – all this means is that I can expect a LOT of charge offs coming up soon!)

Current Lending Club Account Value: $5703.71

I will continue to monitor the situation with Lending Club. At this point, it still seems like a VERY good investment at over 15% return. If that continues to fall precipitously, though, I may reevaluate. As always, I’ll keep you posted!

October Spending

October has been the month of spending on my new apartment. We are saving a ton on rent, but it doesn’t mean moving doesn’t come with expenses. After buying new curtains, curtain rods, a new rug, and various other housewares, I am out about $150 in October. Of course, I am saving more than that EACH MONTH on rent, so I am still thrilled, but I am excited to be done with apartment spending for a while.

Business Idea

If you’re just joining these updates, I post business ideas that I have. From time to time, I have ideas that are fun to think about, but I may not pursue due to some specific hurdle, timing, or a host of other reasons. Hopefully, they get you thinking about your own business ideas!

Maybe my latest business idea is influenced because I’ve entered the blogging world, where you meet a lot of entrepreneurial-minded people. However, I have come to believe that more and more young people will start to light out on their own and create their own businesses. These won’t be the high-risk, high-reward businesses you see around like Facebook or Amazon. These are small, lifestyle businesses. People will freelance, sell digital products, and with the rise of 3D printer technology, create plans for PHYSICAL products as well. While it may not take millions of dollars to start these businesses, it WILL take some amount of money – money that young people often don’t have.

This month’s business idea is a company that allows investors to invest in small, lifestyle businesses, usually run by young people. It sounds similar to Kickstarter at first, but there are some KEY differences. It serves a completely different market, the young entrepreneur who wants to get started and the INVESTOR (not backer) who wants to invest in people he/she sees to have promise. This site would create more of a relationship. The investor would also have to pitch his or her experience in the niche and offer mentorship. In the end, here is what both sides would get out of the deal:

Young Entrepreneur Gets

Investment Money
An Experienced Mentor
Platform that Handles All Legal Components of the Deal (he/she probably doesn’t have the resources to do this on his/her own)

Investor Gets

Shares of a New Company
Opportunity to “Give Back” in the Form of Mentorship
Platform that Handles All Legal Components of the Deal (he/she probably doesn’t want to have to spend time with the details of such a “small” deal)

Music

I have two songs for you today. They don’t fit into a theme. The first is one that I stumbled across recently. I am a sucker for a good female singer and a band with a big, driving sound! Take a listen to Wicked Ones by Dorothy.

The second song is VASTLY different. If you aren’t familiar with The Mountain Goats, you should be. And honestly, this song might not be the best gateway song to The Mountain Goats sound. But it’s about fall and a town that I used to live in when I first moved to New York. Instead of moving directly to the city, I followed a job to Port Washington in Long Island. This song is called Going to Port Washington by The Mountain Goats.

That’s all for this month. Have a great November!


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4 thoughts on “Monthly Update – October, 2014

  1. Mel November 10, 2014 at 7:42 am

    I love the Mountain Goats!! Someone introduced me to them recently and I spent hours listening to everything on YouTube. Excellent choice. I’m pretty sure This Year is the anthem of 2014 for me. And the video is delightfully bizarre.

    I really like your Lending Club updates. Peer to peer lending is really fascinating to me and I love how it’s tangibly helping someone out too.
    Mel recently posted: Financially Savvy Saturdays #63My Profile

    • Mr NYBudget November 17, 2014 at 5:42 pm

      This Year is a great song! Love that one!

      Thanks Mel!

  2. Even Steven November 10, 2014 at 3:49 pm

    Real estate looks to be going very well, congrats. What percentage are you looking to accumulate for expenses/emergency fund for the property? How does it work when something does need fixing, do bids happen etc?
    Even Steven recently posted: Closing in on Paying off Student Loans, How Should I Celebrate?My Profile

    • Mr NYBudget November 17, 2014 at 5:45 pm

      I reserve 10% for maintenance issues and 10% for vacancy. It’s early to tell if this will prove accurate, but I believe these are relatively conservative numbers to use.

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