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RSSAugust 2011 Net Worth Update (-$14,277)
| Assets | Jul-11 | Aug-11 | Change | % |
| Cash & Savings | $ 47,851.18 | $ 21,959.35 | $ (25,891.83) | -54.11% |
| Taxable Brokerage Accts | $ 163,383.13 | $ 157,123.53 | $ (6,259.60) | -3.83% |
| Roth IRAs | $ 79,978.05 | $ 75,902.91 | $ (4,075.14) | -5.10% |
| Pre-tax Retirement Accts | $ 281,904.48 | $ 266,158.46 | $ (15,746.02) | -5.59% |
| Stock Options | $ - | $ - | $ - | |
| ESPP | $ 922.87 | $ 949.65 | $ 26.78 | 2.90% |
| Property #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | 0.00% |
| Property #2 - Rental | $ 128,225.00 | $ 128,225.00 | $ - | 0.00% |
| Property #3 - Primary | $ 300,000.00 | $ 300,000.00 | $ - | 0.00% |
| Property #4 - Rental | $ - | $ 163,000.00 | $ 163,000.00 | |
| Receivable (Payable) | $ - | $ - | $ - | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 1,162,264.71 | $ 1,273,318.90 | $ 111,054.19 | 9.55% |
| Liabilities | ||||
| Credit Card Balances | $ (2,525.04) | $ (5,410.58) | $ (2,885.54) | 114.28% |
| House #1 Mortgages | $ (89,616.85) | $ (89,038.70) | $ 578.15 | -0.65% |
| House #2 Mortgages | $ (7,377.28) | $ (7,303.91) | $ 73.37 | -0.99% |
| House #3 Mortgages | $ (252,494.51) | $ (252,136.89) | $ 357.62 | -0.14% |
| House #4 Mortgages | $ (122,250.00) | $ (122,250.00) | ||
| Rental Deposits | $ (4,697.72) | $ (5,902.72) | $ (1,205.00) | 25.65% |
| Additional Tax Liability | $ - | $ - | $ - | |
| Other Liabilities | $ - | |||
| Total Liabilities | $ (356,711.40) | $ (482,042.80) | $ (125,331.40) | 35.14% |
| $2million Goal Progress* | $ 758,047.82 | $ 743,412.99 | $ (14,634.83) | -1.93% |
| Net Worth | $ 805,553.31 | $ 791,276.10 | $ (14,277.21) | -1.77% |
Highlights for August
- 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.
- August is the third significantly negative net worth monthly change since Sept 2010. Our losses are mostly associated with equity declines.
- Our properties are listed on our balance sheet based on their cost basis, not current market value. I believe real estate is too illiquid to list based on recent sale transactions.
- With real estate prices continuing to fall we purchased another property in one of our rental neighborhoods with a purchase price inline with its 2002 value. We were able to get the house rented out within 3 days of purchase.
- With the market in a free fall we made a number of small investments in August including Bershire Hathaway (BRK-B), Markel debt (MKL), Dryships (DRYS), Genworth (GNW), General Electric (GE).
- Our investment portfolio faired better than our benchmark (VTI) in August (-5.42% vs -6.09%). I'll post additional details of our investment activities in August later this month.
- I took a high level stab at what our income will look like when we are financial free.
by 2million on
09/06/11
| Comments (5)
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Comments (5)
Another DRYS investor that has been suffering as I am. I thought I was all alone. Ultimately, I think it is a longer term play on a recurrence of inflation provided that shipping supply becomes more constrained.
Posted by cashflowmantra | September 7, 2011 7:00 AM
Wow, you've made great progress in 10 years. I've been working about 7 years and am nearly at a $250k net worth. I'm now concentrating on growing that and using a blog to help keep me in line.
Posted by Paul | September 7, 2011 9:30 AM
Any concerns about being too real-estate heavy? ~725k tied up, all of which I assume is located in the very same state, and even the same town.
With your rental cash-flow, maybe it is less of a risk that one might assume. Maybe I am just jealous I am not willing to take the risk/perceived burden of buying a leasing property.
Posted by Matt | September 8, 2011 7:15 PM
Matt, Sure I'm a bit concerned - our most recent real estate investment was not planned, but fell into our lap. However it was an opportunity and we jumped on it - time will tell if it was the right move.
Posted by 2million | September 8, 2011 8:21 PM
Speaking of real estate... I'm planning to convert my current home into a rental once we're ready for a bigger/different place. What is the best process to do this that you have found? I'm interested to hear how you did it. I would welcome an email response if it's long, or even links to blog entries that may describe it. You have a lot of archives to search through :)
Please ignore if busy, I don't want to take up too much of your time.
Posted by Paul | September 11, 2011 9:08 AM