by Welcome to our monthly Nuestra Casa Fund (NCF) update! We’re on a mission to fully fund our home purchase before retirement, and we’re excited to share our progress with you.
Spring Has Sprung (Sort Of)
Despite the lingering snow in the northeast, the spring real estate season is in full swing. I’ve been keeping a close eye on the market in our desired area, and it’s fascinating to see the ebb and flow of inventory. While we’re not planning to buy for a couple of years, this observation helps us stay informed about market trends.
Our Journey So Far
We kicked off our house savings journey in late 2016, and last year’s strategic investment sales gave our fund a significant boost. If all goes according to plan, we should reach our savings goal by the end of summer. After that, we’ll shift our focus to bolstering our early retirement funds.
April NCF Update: The Numbers
Our goal is set for August 2018, with an 80% bonds and 20% cash allocation. This conservative approach aims to keep pace with inflation while minimizing risk during market downturns.
Here’s a snapshot of our progress:
| NCF Monthly Progress Since 2017 | |||
| Month | Percent of Goal Met | Benchmark | Percent Increase Towards 100% |
| January 2017 | 23.9% | 23.9% | N/A |
| February | 25.1% | 26.5% | 1.2% |
| March | 28.5% | 29.2% | 3.4% |
| April | 28.8% | 31.8% | 0.3% |
| May | 30.2% | 34.5% | 1.4% |
| June | 39.1% | 37.1% | 8.9% |
| July | 46.1% | 39.8% | 7% |
| August | 49.1% | 42.4% | 3% |
| September (new target) | 78% | 77.2% | 28.9% |
| October | 80.5% | 79.3% | 2.5% |
| November | 82% | 81.4% | 1.5% |
| December | 85.1% | 83.6% | 3.1% |
| January 2018 | 84.9% | 85.7% | -.2% |
| February | 84.6% | 87.8% | -.4% |
| March | 85.9% | 89.9% | 1.5% |
After two months of negative returns, we’re back in positive territory! We’ve made a 1.5% stride towards our goal this month. While we’re still playing catch-up from January and February’s losses and lagging slightly behind our benchmark, we’re moving in the right direction.
Breaking Down the Returns
This month’s total return was $713.20, with bond funds up by $325.35 and income returns of $387.85. While it’s always encouraging to see positive returns, we’re well aware that our bond-heavy strategy comes with its own set of risks. Think of it as choosing the carousel over the roller coaster–less thrilling, but also less stomach-churning in the short term.
Tax-Loss Harvesting: A Silver Lining
We took advantage of the recent market dip to do some tax-loss harvesting with our bond funds. This advanced technique allowed us to write off $3,610.70 in losses, which we can use to offset ordinary income over the next two years. It’s a small victory in the grand scheme of things, but every bit helps on our path to financial independence!
Looking Ahead
May promises to be an exciting month as we wrap up front-loading one 401(k) and continue with the second. This should free up some cash to funnel into our NCF goal, potentially accelerating our progress.
Your Turn
We’d love to hear from you! What financial goals are you working towards this month? How do you stay motivated on your savings journey?
