We've beaten our 2006 networth goal by 12.8% coming in at $112,764.84, however, the gain may very well be ephemeral due to child delivery expenses and temporary reduction in pay (parental leave).
In November it's possible that neither of us will receive paychecks (depends upon my new job, when they pay, etc...). It will pick back up in December, but only partially. January would have full paychecks.
Here's our goals update for September:
The following is our networth update:
September was an interesting month. We sold one of our cars, which increased our cash, but it sold for less than we had valued the asset, leading to an overall decrease - fortunately, it was offset by decreases in regular spendings and repayment of a $1,000 personal loan.
The following is our Asset Allocation:
Here is a table of our trading account:
Our overall investment performance hasn't been very good compared to the s&p 500 or most other indexes. The India fund suprisingly has done well, especially in the short time we've owned it. RNE - russian and new europe, should have also done well, but it seems political instability in Russia has slowed the economy down. Of course, from a short term perspective we bought most of our ETFs at the market peek between February and April, just before the drop from May - July.
Thoughts for October 2006:
We will have some new expenses this coming month:
- Fees to the investment advisor (to create our investment plan)
- Travel expenses for trips to NY and Chicago
- Expenses for an unplanned vacation (to help mother and baby recover)
- Home decorating costs for the new child
- Fairly major home repairs due to a small accident - about $3,250. Bills will be paid in October or November.
Major events for October that will significantly alter our finances:
I've received the written offer from Big Company. It's more or less what we discussed, however, it lacks a sign-on bonus that had been mentioned. Big Company trends in and out of sign-on bonuses, so it may not be possible for my offer. Regardless, it's a good offer overall. If I accept and start in November there will be significant impact on our family.
November possibilities (assuming I join Big Company):
- Family packs up and visits Chicago to find a new job for my wife and look at houses - big increase in expenses - hotel or furnished apartment rental, increased restaurant and food preparation costs, air fare, etc.... Could cost up to $6,000.
- I start commuting to Chicago for work - assume Big Company foots the bill, however, new boss at Big Company implied I might help cost share. Not sure what this will add up to - need to know before I accept the offer. I wouldn't want the increase in family earnings to be wasted on long distance commute costs.
- I'll receive at least one pay check near month's end, however, may not deposit it until December. I expect to receive two paycheck's per month. I will direct all new earnings for my pay into 401k to meet my maximum $15,000 contribution for the year. Whatever is left over will cover living expenses.
- November will have little cash coming in for our operating expenses from either my wife or myself. We will have to dip into our operating reserve. Unless financial markets sky rocket, we're likely to see a $13k decrease in networth for the month, due to the aforementioned increases in monthly expenses and decreases in operating income - and uncertainty as to when I will receive my first paycheck.
- Thanksgiving will imply additional holiday expenses.
Our personal goals for November are:
- Find a new job for my wife
- Identify where we might want to live
- Establish a successful start at Big Company
Hopefully we will accomplish all of the above.
December does not look much better. My wife will be returning to work, but probably not receive a full paycheck in December. Much of my pay for the month will be directed towards the 2006 401k contribution.
Once I learn if I can accept Big Company's offer - I should know by end of next week, I will outline our plan for moving our entire family, changing jobs, finding a new house and selling our old house.
Have a wonderful weekend,