by As we approach the final stretch of our house savings goal, exciting questions arise. Will we meet our deadline? How should we invest our future returns? Join us as we reflect on our progress and consider the road ahead in our journey towards homeownership and financial independence.
Our House Fund Journey: More Than Just Numbers
Time is flying by, and we’re just a couple of months away from reaching our Nuestra Casa Fund (NCF) goal. For those new to our journey, we’re saving to fully fund our home purchase before retirement. While we don’t plan to buy immediately after retiring—we’ll travel and scout locations first—having this fund gives us flexibility and peace of mind.
2018 is shaping up to be a bright year for us personally. We haven’t been blogging as much because we’re truly living in and enjoying the moment. Remember, while having your financial life in order is crucial, it comes second to living the life you want with the people who matter most.
June NCF Update: Steady Progress Continues
Let’s dive into our progress for May:
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% | -0.2% |
| February | 84.6% | 87.8% | -0.4% |
| March | 85.9% | 89.9% | 1.5% |
| April | 86.2% | 92% | 0.3% |
| May | 88% | 94.2% | 1.8% |
We made steady progress in May, advancing 1.8% towards our goal. While the percentage might seem small, it represents a significant amount of savings. With upcoming work bonuses looking promising, we’re confident about meeting our August 2018 target.
NCF Returns Breakdown
- Total return for May: $897.89
- Bond funds increase: $482.68
- Income returns: $415.21
Looking Ahead: Investing Our Future Returns
As we near our goal, an important question arises: What should we do with the future income returns from the NCF? We estimate around $450 in monthly income after reaching our savings target.
Currently, our NCF funds are invested as follows:
How the NCF Funds Are Invested (as of 5-31-18)
| Type of Fund | Allocation Percentage | Average Duration | Risk Potential |
|---|---|---|---|
| Money market | 20% | 46 days | 1 |
| Ultra-short-term bond | 3% | 1 year | 1 |
| Short-term investment-grade bond | 39% | 2.6 years | 1 |
| Intermediate term bond | 38% | 6.1 years | 2 |
We have flexibility with this income and don’t need to cash it out immediately for the house purchase. Should we:
- Reinvest in the existing bond and money market funds?
- Explore new investment options?
- Start a new investment goal?
Reflecting on Our Journey
Blogging about this goal has been incredibly rewarding. It’s created a financial journal we can revisit to see how we accomplished saving for our first home. Do you track your financial goals? We’d love to hear about your methods and progress!
What’s Next for You?
As we wrap up this update, we’re curious about your financial journey. What personal finance goals are you focusing on this month? Share your thoughts in the comments below!
Stay tuned for more updates on our FIRE journey and house hunting adventures!
