August 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.

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 (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.

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.

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.

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.

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.

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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: $1,701,144

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