Here is my monthly networth update. We're now worth $544,650.44.
That's a 0.3% improvement over last month, however, when considering the significant new expenses and outlays related to the purchase and move into our new house, it's much better than expected. I had actually planned on a networth decline of between $4,000 - $8,000 versus an increase of $1600.
I've also updated my networth at pfblogs.org. They really need to improve the chart, but it is better than nothing.
Key factors regarding this month's networth changes were as follows:
- purchase of new house
- packing expenses
- moving expenses
- some furnishing expenses
- window treatments
- some decorating
We were able to defer some furniture and decorating expenses for the new house, primarily due to:
- too busy unpacking
- shocked to learn that reupholstering our favorite love seat would cost $800
- too busy to decide what new furniture to buy
- unsure how much to invest in new furniture and decorations if we move within another year
I am hoping we can cashflow any additional decorations, new furniture or improvements. This may result in decreased monthly savings, but hopefully not have a negative impact on networth. Overall what we spend on the house will retard networth growth (outside of investment performance) until I start earning more money, which I hope to happen circa August.
A short term networth increase may come this month, if my wife's company does well enough to distribute a profit share. They have been investing in capacity improvements, so I think it might not happen for a while, though I would be pleasantly suprised.
I'll also have continuing education expenses hit us this month for about $3k. Not fun, but important for the future.
We will have family visit us in June. I expect it will be quite expensive to host them, however, we're considering it a reverse vacation and will spend money on hosting them as if we were spending it on visiting them. I would like to keep the costs under $4000, but it could go up to $6000. It will be a heavy hit.Our retirement investments appreciated at 1.5% this month - almost entirely in Schwab's 2040 lifecycle product (SWERX). That's an 18% annualized rate, so I'm pleased with the results for that account.
Our brokerage accounts, which are invested in diversified ETF's increased 2.9%, which is an annualized 35%, I'm quite pleased with that. It's not the staggering 8% or more of some momentum investors, but it's doing well. I've outlined my ETF investment strategy in an earlier post. I have not yet rebalanced and I am still working on fully funding it. I am delayed while waiting to cash out my whole and variable life policies. When I cash them out, I'll experience an almost $10k hit in fees - bandits!! That will also lower my net worth, but at least I'll have better insurance and investment options.
The bulk of my cash savings is a high interest on-line money market account earning 4.5% at emigrant. The majority of the balance is in a local bank money market paying about 4%. The last bit is in a local checking account earning about 2% interest.
My immediate cash allocation plans are as follows (excluding liquidation proceeds from insurance):
- Rebuild operating cash reserve - I'd like to save about $24k more
- Test alternative short term cash investments like treasury bills and possibly short term municipal bonds (once interest rates stabilize)
- Incorporate more foreign investments into my ETF strategy, probly russia and india
- Consider loaning small amounts of money $50-$100 increments in an overall $2000 - $4000 portfolio in prosper.com.
Here is my current allocation:
Have a wonderful Monday,