October 2009 Net Worth Update (-$591)
October ended a strong run of monthly net worth gains as extra expenses and losses in the market outpaced our income for the month. Given the size of our portfolio and the reduction in our family income (single income) I think our monthly swings will be largely dependant on the market.
| Assets | Sep-09 | Oct-09 | Change | % |
| Cash & Savings | $ 20,328.62 | $ 9,487.98 | $ (10,840.64) | -53.33% |
| Taxable Brokerage Accts | $ 93,930.10 | $ 97,755.00 | $ 3,824.90 | 4.07% |
| Roth IRAs | $ 42,181.54 | $ 43,705.85 | $ 1,524.31 | 3.61% |
| Pre-tax Retirement Accts | $ 186,764.04 | $ 188,972.59 | $ 2,208.55 | 1.18% |
| Stock Options | $ 22,920.00 | $ 21,808.00 | $ (1,112.00) | -4.85% |
| ESPP | $ 20,651.30 | $ 20,446.62 | $ (204.68) | -0.99% |
| House #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | 0.00% |
| House #2 - Rental | $ 128,225.00 | $ 128,225.00 | $ - | 0.00% |
| House #3 - Under Contract | $ 104,110.00 | $ 104,110.00 | $ - | 0.00% |
| House #4 - Primary | $ 300,000.00 | $ 300,000.00 | $ - | 0.00% |
| Receivable (Payable) | $ - | $ - | $ - | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 1,079,110.60 | $1,074,511.04 | $ (4,599.56) | -0.43% |
| Liabilities | | | | |
| Credit Card Balances | $ (3,563.90) | $ (1,977.99) | $ 1,585.91 | -44.50% |
| House #1 Mortgages | $ (135,345.94) | $ (135,345.94) | $ - | 0.00% |
| House #2 Mortgages | $ (34,244.93) | $ (32,244.93) | $ 2,000.00 | -5.84% |
| House #3 Mortgages | $ (86,875.95) | $ (86,875.95) | $ - | 0.00% |
| House #4 Mortgages | $ (238,882.55) | $ (238,882.55) | $ - | 0.00% |
| Rental Deposits | $ (4,657.72) | $ (4,657.72) | $ - | 0.00% |
| Additional Tax Liability | $ (8,709.60) | $ (8,287.04) | $ 422.56 | -4.85% |
| Other Liabilities | | | $ - | |
| Total Liabilities | $ (512,280.59) | $ (508,272.12) | $ 4,008.47 | -0.78% |
| $2million Goal Progress* | $ 505,712.56 | $ 505,121.47 | $ (591.09) | -0.12% |
| Net Worth | $ 566,830.01 | $ 566,238.92 | $ (591.09) | -0.10% |
Highlights for October
- All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts. We paid off the last of our 0% balance transfers in January. The well has dried up for now, but we are ready to take advantages if any offers come our way.
- We track our real estate properties according to our cost basis (with the exception of House #3).
- House #3 is under contract! We should close in November if all goes well, I believe netting slightly more than what we have indicated on our report.
- As I mentioned last month - from a cash flow perspective things are tighter than before. Down to a single income with a bigger house and bigger family are making monthly expenses higher and there isn't a pile of cash left over at the end of the month. I think its clearer this month with the market down slightly quickly pulling us into the red for the month.
- October wasn't a great month for our stock investments either as we did not beat our benchmark. I'll post our October investment update soon. We purchased additional stock in several holdings in our taxable brokerage accounts towards the end of the month.
- We paid $2,000 towards our IELOC balance on House #2. Our current focus is to elimate this debt as quickly as possible to improve our cash flow. Cash from the sale of House #3 will also be used to paydown this laon.
Comments (2)
Are you actively moving out of cash due to the inflation it is reported we are doomed to have?
Or is it just coincidence?
Posted by Matt | November 12, 2009 10:22 AM
The large cash move is allocating the cash gain from the sale of IBM stock at the end of September. I ended up reinvesting most of it into new stock holdings.
Posted by 2million | November 16, 2009 3:56 PM