It the beginning of another month, and so, as I always do, I sat down this weekend to do an update of all my accounts and determine my net worth. Before pulling all the numbers I figured things would be up, but I have to admit I was pleasantly shocked by the jump in Net Worth this month. After very nominal gains in the past two months, this month was a rockstar! This was of course in huge part due to the continued success of the stock market. All of my retirement accounts were up significantly and my non-retirement investment accounts too. Unfortunately, I did not do nearly as well as I could have as I continue to sit on about $30k in cash in IRA and Roth IRA accounts. I sold a number of winners back in May, believing that the market was overvalued. If I had stayed in, I’d probably have made an additional $2k-$3k. Damn! I still the the markets are due for a downturn after this long bull market run, but I’ll still be slowly reinvesting some of the money as the cash just isn’t doing anything. Still, this will likely be a slow and cautious move. As it is, I did put $5k in just last week, so there’s that….
We also did a good job saving this month and as always, we continue to pay down debt. All in all a great month. Still, as our retirement and investment accounts grow more an more, it becomes so readily apparent just how much the fluctuations of the market can have on our net worth….if the market goes well, we do great. If it doesn’t, we don’t. Still, we’re in it for the long term, so we just need to keep that in mind.
Here’s how we stand as on Aug 3, 2013.
Cash ($3568): I got a raise at the beginning of the month, which I mentioned in an earlier post. The entire raise is being directed to savings, and equates to about $400 a month. In addition, we continue to save as always and were able to keep expenses pretty low this month. With the wife away doing military duty, I haven’t been eating out much or really doing a whole lot other than working out, running, biking, and enjoying the pool. All great things to do over the summer, and all essentially free. As my cash continues to grow I continue to reconsider what I’m doing with this money. It’s a pretty healthy emergency fund at this point, and arguably a little to a lot more than we need. The money could be put to better use somewhere else, but for now I’m holding it. The fact that I see few current values in the stock market contributes to this thought process…
Taxed Stock Accounts (up $748): This includes non tax sheltered (retirement) accounts. Money here is not necessarily dedicated to retirement, rather simply trying to make our money work for us. A good portion of this is dedicated towards the purchase of a future car. Seeing this rise is good, but only a 2.2% increase is pretty small considering the S&P 500 did over 5% last month….
Retirement Accounts (up $14,426): This includes my 401k the wife’s 403b, my IRA, my Roth IRA, the wife’s Roth IRA, and a couple work retirement accounts that are similar to a 401k. All together, awesome month here! Still, this is a tricky area because if the market drops, we’ll have to be ready to stomach big losses in this category too….
Rental Property Value ($0): For the purposes of calculating our net worth I don’t update this number frequently as prices tend to move to radically and at the end of the day, it doesn’t matter until we decide to sell it.. I will probably do so at the beginning of the next calendar year. Based on what I’ve seen in the market recently, this is probably fair. Maybe $5k too high.
Home Value ($0): Same story here as the rental, I don’t update this number much but will probably do so at the beginning of the calendar year. This one seems low to me based on comparable properties in the area.
Other ($0): This category is a bit of a grab bag. It includes estimated values for my car and the wife’s car. It also includes some gold and silver coins that I invested in a while back. As with the two categories above, I only update this once in awhile.
Home Mortgage ($-1,052): We refinanced this thing down to 4% and are currently paying an extra $350 a month to whack away at it. I’m considering upping this amount sometime in the near future. If nothing else, it’s a guaranteed 4% return on investment.
Rental Mortgage ($-426): This mortgage is at 4.5% , but the tenets basically pay it! We’re also paying an extra $100 per month on this one and I’m also considering upping the payments on this for the guaranteed return and to work this down quicker.
Other Loans ($-554): This includes we wife’s student loans (at a piddly 1.875% and my car loan at 0%)