$150 Investing Challenge - June 2019 Report

$150 Investing Challenge - June Report

I have been doing the $150 Investing Challenge since January 29th, 2018. This is the results of investing $150 each month for over a year.

A little background if you stumbled upon this Challenge Report. I started these challenges in 2018 as a way to show everyday people how investing and saving for your future is as easy as putting a little money aside and growing it using investment securities. As I developed these challenges, I wanted the amount that was saved to be affordable to anybody who was reading these reports. In the $150 Investing Challenge, I commit $150 per month to four index funds. The $150 would be split evenly in a Large Cap, Medium Cap, Small Cap, and International Index Fund. The goal is to keep it there for as long as it takes (30 + years long). This isn’t my retirement plan, but in order for readers to actually see it work, I have to make this longer than just 5 or 6 years. So as long as blogs and websites are still a thing 30 years from now, I’ll keep reporting on it month by month.

Results

As of 6/28/2019 investment date (all $150 Investing Challenge investments are made between the 26 - 30th of each month):

Investment Month Number: 18
Amount Invested Each Month: $150.00
Funds: Large Cap Index Fund, Medium Cap Index Fund, Small Cap Index Fund, and International Index Fund
Total Amount Invested: $2,700.00
Total Account Value: $2,849.09
Total Expected Value: $2,750.02 (See below for discussion)
Total Annualized Rate Return: 7.54%

Commentary

During the month of June, we saw a ton of news regarding interest rates and the confidence of investors on the future of the economy. The biggest news for June was the Federal Reserve indicating that a possible decrease in interest rate in the future. Due to this news, we saw incredible increases in the stock market. This is what caused the annualized rate of return jump from 0.13% last month to 7.54% this month.

As an investor who is in the long game, these swings don’t really matter because one week you’re up and another week you’re down. The key is consistency in the investment. By investing $150 a month, not only have we seen a return of $149.09 ($2,849,09 - our investment of $2,700), but we also saved $2,700 for our future (whether retirement or just play money in the end).

All of our challenges are done in tax efficient Roth IRA plans. Income limitations may occur if you are trying to do this in a Roth IRA, seek professional tax help to understand ramification of opening up your own Roth IRA account.

Summary

So June was a great month and it is awesome to see growth in our investment, but we don’t celebrate yet. We just keep on trucking along and save a little bit of our money to hopefully achieve millionaire statue 30 - 40 years from now.

If you want to read more about this challenge, make sure you check out the $150 Investing Challenge page here.

To see more of our challenges, click on the challenge name below:

Until July, see you later.