January 2011 Net Worth Update (+$15,167)

Assets Dec-10Jan-11 Change %
Cash & Savings $ 38,476.06 $ 50,791.30 $ 12,315.24 32.01%
Taxable Brokerage Accts $ 133,217.90 $ 135,342.73 $ 2,124.83 1.60%
Roth IRAs $ 69,432.40 $ 71,562.11 $ 2,129.71 3.07%
Pre-tax Retirement Accts $ 259,037.05 $ 261,926.33 $ 2,889.28 1.12%
Stock Options $ 26,715.00 $ 13,734.00 $ (12,981.00) -48.59%
ESPP $ 17,685.84 $ 19,217.60 $ 1,531.76 8.66%
House #1 - Rental $ 160,000.00 $ 160,000.00 $ - 0.00%
House #2 - Rental $ 128,225.00 $ 128,225.00 $ - 0.00%
House #4 - Primary $ 300,000.00 $ 300,000.00 $ - 0.00%
Receivable (Payable) $ - $ - $ -
Other Assets $ - $ - $ -
Total Assets $ 1,132,789.25 $ 1,140,799.07 $ 8,009.82 0.71%
Liabilities
Credit Card Balances $ (3,282.00) $ (2,353.62) $ 928.38 -28.29%
House #1 Mortgages $ (96,986.23) $ (96,038.48) $ 947.75 -0.98%
House #2 Mortgages $ (10,189.74) $ (10,189.74) $ - 0.00%
House #4 Mortgages $ (254,961.71) $ (254,613.09) $ 348.62 -0.14%
Rental Deposits $ (4,697.72) $ (4,697.72) $ - 0.00%
Additional Tax Liability $ (10,151.70) $ (5,218.92) $ 4,932.78 -48.59%
Other Liabilities $ -
Total Liabilities $ (380,269.10) $ (373,111.57) $ 7,157.53 -1.88%
$2million Goal Progress* $ 707,481.86 $ 722,300.59 $ 14,818.73 2.09%
Net Worth $ 752,520.15 $ 767,687.50 $ 15,167.35 2.02%

Highlights for January
  • We like to take advantage of 0% APR balance transfers earning interest in my savings accounts, but that well has dried up for now. We are actively looking at taking advantage of new offers on 0% APR on purchases as an additional arbitrage opportunity.
  • We had strong investment gains from our large position in IBM via stock holdings and employee stock options. We sold off a significant portion of our stock options this month to lock in some of our gains (the options expire in August 2011).
  • We got hit with a shocking 50% increase in our propane bill in January. As a result I spent additional time investigating ways to reduce our energy costs including air sealing our home.
  • Our investment portfolio barely beat our benchmark in January (2.06% vs 2.05%) even with our out-sized gains from our IBM holdings. The large gains were offset by a number of holdings that performed poorly. I'll post additional details of our investment activities in January later this month.
  • My view on the stock market has become increasing more pessimistic and the market continues to rally and valuations quickly return to where they were back in 2007. As a result I am continuing to sell some stock holding and increasing our cash holdings.

Related in Net Worth Archive:

May 2012 Net Worth Update (-$28,098) (Jun 10, 2012) Highlights for MayWe like to take advantage of 0% APR balance transfers and other credit card offers for free money. We are actively looking at taking advantage of new credit card arbitrage opportunities. Our properties are listed on our...

April 2012 Net Worth Update (+$2,763) (May 09, 2012) Highlights for AprilWe like to take advantage of 0% APR balance transfers and other credit card offers for free money. We are actively looking at taking advantage of new credit card arbitrage opportunities. We received $1,000+ in rewards cash...

March 2012 Net Worth Update (+$22,032) (Apr 11, 2012) Highlights for MarchWe like to take advantage of 0% APR balance transfers and other credit card offers for free money. We are actively looking at taking advantage of new credit card arbitrage opportunities. We are close to earning ~$1,000...

Comments (6)


Any reason why you don't payoff the mortgage on house 2 at this point?

The very first column, cash, is very impressive and I think everyone should take note. Since the enonomy is slow and unemployment is high, consumers should bump up their savings now more than ever. Your credit card balances are also at a very nice percentage....enough so that your credit score will stay relatively high I'm guessing b/c you are using credit on a regular basis and not closing accounts. This table is a great example of what people should do at home. Sometimes it helps when people see their finances on paper in an organized fashion such as this one. Great job, keep up the awesome work!

Andy,
Yes - here is a better breakdown of our mortgages although just slightly dated. The net is the loan on House #2 is an equity line currently at 4.25% and Im focusing on paying down the higher fixed rate debt at the moment. However as the economy picks up speed I planning on shifting repayments to the equity lines.

2million,

I am an x-IBMer, fellow type 1 diabetic, and fan of your blog. Your accomplishments are clear proof of how much can be acheived by setting goals and sticking with them. Congrats to you and your family !

One curiosity - Does the "additional tax liabilities" include the taxes that will eventually be due on your pretax retirement account??

Roger,
Good question - it probably should, but the additional tax liability row today only covers the expected liability from the stock options. I added that to help reduce the valuation swings month to month.

Have you thought about diversifying away from the dollar?

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About 2millionblog.com

A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,574,185

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