How to Overcome Red Halloween? A Massive Financial Surprise in October!
Yep, stocks trended downward on the last day of October 2024. All United States indices dropped on bloody Thursday; the S&P 500 fell 1.9 percent, the Dow Jones dropped 0.9 percent, and the Nasdaq composite tumbled 2.8 percent. To make matters worse, election confusion is pending.
The U.S. Vice Presidential candidates opened the month with a welcome surprise of civility. That part lasted about a week. Celebrities and Billionaires activated like internal operatives from Elon’s Dark MAGA to Beyonce’s Non-Musical, I think people forgot about the wars and conflicts overseas. Inflation eased however prices are still up. Our expenses aren’t going down anytime soon.
All this to say, it’s been a very spooky Halloween month. At least we were featured in Business Insider’s A Millennial Couple explains how they went from being in debt to having a net worth of $1.5 million.
Table of Contents
Are You New to TNFG? Welcome!
If you are new, this article is part of the Net Worth series. This blog showcases the TNFG monthly Net Worth Breakdown for October 2024.
You will read about our Highs and the Lows. Additionally, there are always usable financial nuggets that might help you along the way. I’ve also been known to be the most transparent financial literacy person on social media, you can even peep out how much you should be investing monthly to become a Millennial Millionaire (below).
While it might sound farfetched, it’s possible if you are intentional. It’s a process and it does take time. Especially, if you are a parent or taking care of a dependent, this might be far more daunting. The best advice is to be KIND to yourself. You can’t do everything all the time and all at once. Some days, you have to do enough and be happy with it. As such, the journey to financial freedom isn’t one of money (which would be helpful), it’s one of purpose and fulfillment.
My wife and I started with $150,000 in student loan debt (2012). I had $125,000 with monthly payments as high as $1,000. I have to emphasize that it takes time. We were able to become millionaires in less than 10 years. It started with drafting a great financial plan.
Now that we achieved our first benchmark, we are shooting for more benchmarks. Wealth has afforded our household with distance and well-being. Millionaires still wake up and go to their 9-5 jobs. We still hold off on unnecessary purchases while valuing quality time over quantity of stuff.
If you aren’t there yet; keep going. It’s not the money at the end of the road, it’s peace of mind. That part is priceless.
Compounding Efforts Meet Compounding Growth for October 2024
The Game is constantly Changing. Complaining about it won't Help.
Based on my Instagram posts or stories, some people misconstrue that we are day trading. That's further from the truth. We are proactively engaged in the process of building wealth. Instead of the Index-and-Chill approach (which works well), our financial plan allows us flexibility. The market is turbulent, and that's fine. In theory, any form of volatility opens the door to disequilibrium, which creates additional opportunities. Inequality (in a sense) creates wealth.
Whether the market goes down or up, focus on the long-term game. Try not to listen to the crowd. Continue to Dollar-Cost-Average (DCA). Buying low is part of the fundamentals. It feels counterintuitive and very uncomfortable. However, we found prosperity when others were fear-filled. Later, those same people will run into the fire when the stocks are red hot.
This is why you should tune out excess information. I hear so much about estate planning from people who don't even have a savings account. Recently, I've been in discussion about the Mega Backdoor ROTH. Something that's only effective for the top 5 percent of the population. Your attention on them is costing you, your life. Be clear of mind and isolate what works for you in your income bracket.
I encourage you to listen to the Minority Mindset video below and take notes. It's become harder to be financially illiterate. Prices will increase. You can still do something about it today. Why?
Turns out:
- Companies are giving 3% raises to stay afloat and competitive,
- That 3% raise is being overtaken by 3% price inflation annually, And
- Your Zero percent isn't keeping up with a +5% increase in home prices and a +2.5% increase in medical costs.
TNFG Wealth as of October 31, 2024 UPDATE
While September wasn't stellar, October was a solid survival horror. Don't worry, the female lead made it out to fight another day. There is almost nowhere to hide when it comes to making money. Yet Warren Buffet is selling off Apple stocks and planning to buy post-election. The volatility is here to stay through 2026.
High Yield Savings Accounts (HYSA) and Treasury Bonds fan clubs are back. You can grab as much as 3.11 percent on $10,000 on iBonds from the government (TreasuryDirect). Or keep 3x-6x months' worth of expenses in a HYSA for as much as 4.51 percent.
Check Bankrates.com for the latest offerings.
Nearly 191% Investment Growth since October 2019 through October 2024
As you can see below, our household investments blew through our expectations. Even with the month going sour, our 2024 net worth YTD is north of 40 percent. The best part is that our investment peaked at $1M but settled at $989,472 (43.45 percent YTD). Don't let nearly $300,000 in cash growth confuse you. These investment wins aren't counted in the short run. It's the long run that counts.
While the market might close out around 24 percent in 2024, our average annualized returns for the last five years are north of 38 percent.
See the screenshot below.
Nasdaq.com insights - October 2024 presented a compelling example of certain sectors surging early followed by a late-month correction driven by profit-taking, earnings misses, and investor concerns about the upcoming US presidential election. The performance of Carvana, Reddit, and Brinker provides valuable insights into the potential for significant stock price gains driven by a combination of solid earnings reports and positive analyst sentiment.
This news solidifies the need to stay invested in the long run. With that said, I'm a big fan of profiting slightly here and there. Here are my recent notes on our stock sell points by year-end:
The beauty of investing is to come up with a strategy that works for you.
You can always stick to the basics when you can. Like most people, we didn't start with much. However, we are working to leave more in the coffer for the next generation. We recommend that you start with $VOO or $VTI. No need to sweat the details, buy the index ETF and ride the wave. Especially, if you hear "correction."
It's like buying stocks 10 percent off.
With nearly $1,000,000 in invested assets, we are implementing phase two (see Table 1 below). While I can't speculate the flow of the game until retirement, I'm an AGILE player. I stay flexible with the cards that are dealt. Besides you never know what will happen next.
Table 1. TNFG Financial Planning by Phases
| Phase 1.5 (for 2024) Financial Foundation | Phase 2 (2025 - 2032) Fin-Progression |
| 1. Investing to match in the 401k, 2. Paid down credit card debt, 3. Max 401k contribution (limit $23k), 4. Max ROTH IRA (limit $7k), 5. Max Health Savings Account (HSA)(limit $4.15k), 6. After-Tax Investment minimum $10k avg. annually, and 7. Aggressive Portfolio Allocation 90/10 | 1. Acid Emergency Plan with $12.5k saved, and $50k in High Interest Savings Account (2030) 2. Credit Card Debt Free (2025), 3. Max 401k contribution (limit $23.5k for 2025), 4. Max Traditional or ROTH IRA (limit $7k for 2025), 5. Max HSA (ie limit $4.33k for 2025), 6. New Portfolio Allocation of 80% equities, 20% Cash Reserves, 7. After-Tax Invsting min. of $15k avg. annually, and 8. Cash flow Generation of +$15k annually |
Net/Max Financial Style - Debt Pay Off + Investing by QTR
Year-End Closeout Goals from November to December
We've been investing while paying off debt, but it hasn't been easy. Life is always throwing the next curve ball and we are rolling with the waves. Most people are more concerned that the challenges will take from them but in truth, you have to dig to find the lesson.
That's the piece that you need on your quest.
The investment contribution goal for the year is about +$90,000. But things happened so, we readjusted to $84,000. Investing has a secondary bonus; it reduces our tax liability. We are slated to move while taking about $60,000 in pay cuts.
For context, my wife and I make a gross income of $200,000 annually in our 9-5s. Reducing our taxes is pivotal. We invest to the max in our investment accounts. It's all about how much of your money you keep and how old money creates new wealth.
Table 2. TNFG Wealth Cash Flow Year to Date (YTD)
| Total Debt Repayment i.e. Credit Card, Mortgage Principal, etc. | Investment Contributions | Total Added Back to NW | |
| QTR 1 | $34,446 | $21,399 | $55,845 |
| QTR 2 | $26,119 | $21,650 | $47,769 |
| QTR 3 | $117,278 | $19,367 | $136,645 |
| Estimated QTR 4 | $24,114 | $19,584 | $43,698 |
Total | $201,957 | $82,000 | $283,957 |
Here's the Quick Summary:
What Happens Next!
The overall increase in October was +1.67% percent (a cash value of +$26,416).
Our investment dropped the last week of October but settled on $29,508. The financial experts say that the S&P will drag through 2026. Grab the win while you can. Right now, it's all about coiling up Wealth potential using the Net/Max financial plan.
What did Our October Expenses Look like?
Our monthly food and dining costs are unrecognizable. For two adults and a dog that's nearly $1,000. Before 2020, I didn't think more than $700 was possible. Time and inflation are undefeated. Auto & transportation costs continue to surprise me ($1,000 with Gas).
Housing costs are going up due to repairs and moving. Along with the mortgages and HOAs, we poured in $6,500 in carpeting, furniture, etc. Somehow maintaining three homes is more expensive. Go figure. Which brings up a good point. Instead of penny-pinching the small items, also consider lowering your housing size to help with utility costs. You don't need the luxury hotel rental with amenities that you can't use because you are working to keep up with rent. My wife vouches for valet trash pickup though.
At this point, Amazon $AMZN is part of our family (at $212.94). But at least it's lower than our monthly average of $500 in 2023. We've been donating to this company religiously. Instead of fighting against it, we now own more shares of the retail juggernaut.
Our net/max plan is still holding up. Our expenses for the month beyond the transition fees, were acceptable.
For 2025 and beyond, we might need side income. I would suggest that to everyone. With the recent health scares, we bumped our emergency savings up. And will continue to do so through 2027.
What is the Next Step for Us?
Two more weeks of deep work and then time to vacation.
Beyond that here are our overarching goals for Year End 2024:
- Creating a new recession-resilient plan for 2026. "Once you put in the work, then it's time to enjoy some much needed down time"
- Get to $100,000 in M1 Finance by 2026.
- Focus on Growth and Dividend Income that generates at least $2,500 in passive income.
- Check out the portfolio. If you like the platform and want to start investing, I have the $20 for $20 referral if you need it – https://m1.finance/SYdqDJ2SyADC.
- We are shooting for a $2 Million Net Worth by YE 2025.
- To help monitor your savings, cash flow, net worth, investments, retirement, and more FREE with Personal Capital! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
- Work on the Financial Griot Podcast content with my co-hosts to enrich the lives of our listeners. The wealth-building community is growing.
- Easing off of toxic social media information and reconnecting with Nature and People.
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