December 2006 Net Worth Update (+$13,690)
A great way to wrap up 2006. My net worth shot up $13,690, ending the year with my 3rd highest monthly gain ever. If only these kind of gains were the norm!
| Assets | Nov-06 | Dec-06 | Change | % |
| Cash & Savings | $ 62,388.13 | $ 66,940 | $ 4,551.50 | 7.30% |
| Taxable Brokerage Accts | $ 53,288.43 | $ 53,888.90 | $ 600.47 | 1.13% |
| Roth IRA | $ 28,695.69 | $ 30,131.03 | $ 1,435.34 | 5.00% |
| Pre-tax Retirement Accts | $ 113,987.02 | $ 118,827.71 | $ 4,840.69 | 4.25% |
| Stock Options | $ - | $ 3,040.00 | $ 3,040.00 | |
| ESPP | $ 26,041.59 | $ 27,523.29 | $ 1,481.70 | 5.69% |
| House #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | |
| House #2 - Primary | $ 128,225.00 | $ 128,225.00 | $ - | |
| Receivable (Payable) | $ 300.00 | $ - | $ (300.00) | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 572,925.86 | $ 588,575.56 | $ 15,649.70 | 2.73% |
| Liabilities | | | $ - | |
| Credit Card Balances | $ (47,524.62) | $ (48,224.37) | $ (699.75) | 1.47% |
| House #1 Mortgages | $ (117,097.20) | $ (116,904.98) | $ 192.22 | -0.16% |
| House #2 Mortgages | $ (103,489.95) | $ (103,381.58) | $ 108.37 | -0.10% |
| Rental Deposits | $ (600.00) | $ (1,400.00) | $ (800.00) | 133.33% |
| Additional Tax Liability | $ - | $ (760.00) | $ (760.00) | |
| Other Liabilities | | | $ - | |
| Total Liabilities | $ (268,711.77) | $ (270,670.93) | $ (1,959.16) | 0.73% |
| Net Worth | $ 304,214.09 | $ 317,904.63 | $ 13,690.54 | 4.50% |
Highlights for December
- All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts.
- I ended 2006 with a $110,913 net worth increase; well above my 2006 net worth goal.
- I received a small bonus from my employer for some patent activity. I love pay for performance!
- I started looking at my current and future income streams.
- I also measured up my 2006 net worth with my benchmark for hitting $2 million by the time I am 45.
Additional Stock Investments for December (Outside of 401k & ESPP):
- $50 in Pfizer DRIP
- $650 in Vanguard Roth IRA
- $500 in Lowes DRIP
- $100 in USG DRIP
Comments (7)
Great job. Love the DRIPs.
Posted by Nagel | January 8, 2007 7:16 PM
Great month, 2mil. Have you thought about accruing a tax liability to reflect the taxes that will need to be paid to cash in your pretax retirement accounts? For example, your 401(k) is over $100k, so you might want to set up a $25k tax liability to show the account at its actual market value. Over time the number will become more significant; in 10 years when you have $500k in your pre-tax retirement accounts, you're talking about a $125k tax liability.
Posted by CPA1298 | January 8, 2007 7:44 PM
I am a bit surprised to see how high your credit card balances are. I am also surprised to see that you are putting money into after-tax investments rather than trying to pay off that massive debt.
Posted by mikealao | January 9, 2007 12:25 AM
Hi again,
Just reread your post and realize now that your "massive" credit card debt is in the form of 0% credit card balance transfers - very nice indeed. Apologies for the previous post where I expressed my surprise at what I thought was purely credit card debt.
Posted by mikealao | January 9, 2007 12:28 AM
Gotta love the cash-rich month of December. The only thing you need to decide is what to do with all that cash. Nice one, 2mil.
Posted by fin_indie | January 9, 2007 12:52 AM
I feel most of the cash is hands off because its from 0% balance transfers - I am willing to put it into liquid risk free investments like a savings account or money market accounts, but because I have a definite short-term pay back date and no sure new balance transfers to replace them I have little interest in doing anything risky with these free loans.
Once you factor them out of my cash, I only have about $15k mostly from my IBM stock sale. With the large expenses coming - wedding, honeymoon, possible reduction in income if my fiancee stops working, new house - I don't think I have enough cash yet :-)
Posted by 2 million | January 9, 2007 5:24 PM
CPA - I have thought about it - but I guess I haven't done it because it would throw off comparisions and since I know I won't be withdrawing this money tilll way in the future - whos knows how much tax or what my circumtances will be. Its a good idea - but Im a little gun shy. The only tax liability I am currently trying to track is for my stock options and I am doing this mainly to help smooth out the volitility of the value so it doesn't through off my net worth reports.
Posted by 2 million | January 11, 2007 11:09 AM