Before I get to tracking my financials for the close of 2020 would it be cliché for me to state that 2020 was unprecedented? That’s what many people say at least. Is it though? In actuality, as a human race, we’ve experienced a lot of this stuff before, just not many people alive today have experienced any of it. Personally I had a good year, in many ways. I only worked eight of the twelve months, so I had a lot of time to think about what’s important and what I want to do. Even when I was working I got to see my family in Michigan a lot and I got spend quality time in Vienna with my girlfriend, now wife. I suppose I got married too, hard to believe.
I hope all of you choose to reflect on this past year and figure out what needs to change in your life, if anything. I’m going to focus on:
- Getting my wife transitioned to America
- Getting a new job
- Building more passive income through rental income, book sales, and the podcast
- Surrounding myself with great professionals, particularly interested in finding a quality accountant and lawyer
To help me journal I made a new journal which is now on Amazon:
With that let’s start with some of the financials. My liquid assets have gone up quite a bit because of Bitcoin continuing to go up.
10-day BS Refresh
Analysis Intelligence
The Opening NW in the 12/31/2020 column is the closing NW from the 12/20/2020 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 12/31 column are the changes that I estimated on 12/20). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. I was expecting to get reimbursed for a few things that I haven’t yet. I also didn’t sell as much stock as I had originally had planned. The story line for the last ten days has been the continued growth of Bitcoin, driving the ‘Gain from Currencies’.
If you are an avid follower you may have seen that I recently read Rich Dad Poor Dad by Robert Kiyosaki, and it had me questioning some of my numbers for my net worth. It’s always good to keep reading because sometimes you see something that makes you reframe how you’re currently thinking. Kiyosaki had a point that he cringes when people usually go spouting off their net worth numbers because if you had to sell a lot of the assets that go into net worth you’d most likely hit a capital gain, which means more tax.
And it didn’t just make me think of taxes, it also brought me back to the issue with my retirement accounts. You can see below that my retirement accounts make up about 34% of my reported net worth, at about 183k. That whole amount is in a 401k. You may have heard me speak on the Roth conversion I’m planning on doing with that money. As of now that money is kind of guarded money, and if I wanted to get access to it I’d have to pay the taxes on it plus a 10% penalty, because I’m less than 59.5 years old.
The Roth conversion will allow me to get my hands on that money before I’m 59.5 years old and without paying the 10% penalty, but it’s not an overnight thing… Not even a two year process. Long story short, if I wanted access to my retirement account money NOW I wouldn’t get the full 183k, it’d be much lower.
Crystal Ball
This is the first time in a long time that my Loan Paydowns’ component is not significant on the 10th of the month. This is because my Michigan properties are now paid off! This makes me so happy.
Ideas for increasing NW/Learning
- Start analyzing how affiliate programs really work
- Signed up for a seminar on what it would take to be a financial coach on the side
- Revisit Tax Liens
- Learn about Salesforce
- I’ve had a friend ask me multiple times now to write macros for her. I was able to help her again last night and maybe should keep this idea open for as a way to help people and make some good money.
- Seriously considering taking out my liquid trading account to put all into Bitcoin. More analysis to come.
- Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well. Should I just control the book sales in the same corporation as my real estate in Michigan?
Notes:
- I thank you for reading the post and if you liked it I hope you’ll subscribe to my email list. If you think someone may benefit from its information please pass it along. I want to help people and like interacting with people attacking this goal.
- If there are any topics you’d like me to research and report back on please let me know!
- If you want the excel workbook that I use to help me track just message me at jackallweil@gmail.com. I’m also happy to go through any calculations. I don’t charge anything!
- Make Better Bets: https://www.amazon.com/gp/product/B0893K72LZ?pf_rd_r=34RMC5D4WCM4606VD3PE&pf_rd_p=edaba0ee-c2fe-4124-9f5d-b31d6b1bfbee
- 15 Weeks to Pass an Actuarial Exam: https://www.amazon.com/15-Weeks-Pass-Actuarial-Exam/dp/1734895632/ref=sr_1_2?dchild=1&keywords=jack+allweil&qid=1601417120&sr=8-2
- Journal: (Tape Name Here)’s Journal for (Tape Year Here): Reflect Towards an Intentional Life: Allweil, Jack: 9781734895643: Amazon.com: Books