May networth update

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:

1. purchase of new house
2. packing expenses
3. moving expenses
4. some furnishing expenses
5. window treatments
6. some decorating

We were able to defer some furniture and decorating expenses for the new house, primarily due to:

1. too busy unpacking
2. shocked to learn that reupholstering our favorite love seat would cost $800
3. too busy to decide what new furniture to buy
4. 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):

1. Rebuild operating cash reserve - I'd like to save about $24k more
2. Test alternative short term cash investments like treasury bills and possibly short term municipal bonds (once interest rates stabilize)
3. Incorporate more foreign investments into my ETF strategy, probly russia and india
4. Consider loaning small amounts of money $50-$100 increments in an overall $2000 - $4000 portfolio in prosper.com.

Due to my focus on increasing cash and the new home, my investments are not too exciting right now - actually I prefer profitable over exciting. I think things will pick up over the summer.

Here is my current allocation:

It's nice to be diversified with some additional asset clases - like real estate in this case.

Have a wonderful Monday,

makingourway