Friday, March 09, 2007

February 2007 Quick Networth Update + $21.78k

The following is our February 2007 Networth Update.
We did a bit better than expected, although not as well as the prior month.
March's numbers will not be as nice unless the market losses reverse themselves quickly.

The following is our goals progress. We will max out our retirement plan contributions in March and made great progress in February:

Our asset allocation is as follows. I have endeavored to move our bonds closer to 20%.

Here is the value of our trading account. The real challenge here is that I don't have a more stable value asset such as bonds - not well placed in a taxable account - although one might argue with today's high interest rates my money market accounts act as bonds (and the recent lower returns in the bonds market). This becomes more relevant for rebalancing when most of my foreign holdings began dropping between end of February and into March.

Here is my ETF account:

In contrast here is our other trading account which holds vanguard 2025 target retirement fund. It's a balanced fund and does include bonds. Theoretically it will rebalance itself. It should be less troubled by the international sell-off but also features less international holdings. Here it is:

Overall, our quicken financial plan put our progress as negative compared to the prior month, but I think that was due to my messing with the assumptions. Please note the analysis may be either flawed or merely unattractive to me:

Have a great weekend.


3 comments: said...


Looking at your "asset allocation" you seem to have listed only $40K for real estate - which seems to be the net EQUITY (asset value-debt) for your house? If so, you are graphing equity allocation and not asset allocation! You should measure the total ASSET values (ignoring debts) when working out your asset allocation...


traineeinvestor said...

Great progress given the recent market conditions.

Question: in the goals table in the post, you show $21.8K progress in Feb towards a goal of $100,000 net worth increase. Should that be adjusted to reflect the $37K progress made in January as well?

Anonymous said...

Hi there,

I found some great info on your blog, especially the discussion on index funds and the ultra low fee ones from Fidelity.
As someone just under 30, I'm curious why you have such a large ($120k) cash balance - is that for the double mortgages on 2 houses for several months? How many months of expenses in reserve do you (ideally) want to keep, and how much do you have now (in months of time)? I'm trying to work this out myself, and since I'm on the other side (not enough by most standards) I'm curious why you'd err on the other.

Thanks very much & regards,