January Net Worth

I’m starting the New Year strong — after posting approximately a 5 percent increase in my net worth last month, I continued to make gains in January.

On to the numbers …

My overall net worth as of January 4th is $54,334. In sum, it marks a $1,151 (2.16 percent) increase from December.

For the purpose of this post, I’m going to split up my assessment into five different areas: cash, stocks, retirement, stalwarts, and college loans. The percentages and amounts are coming from the calculations in my NetworthIQ profile.

Cash:

This dropped slightly, but it’s not really worth my worrying at all. Most of the $644 decrease was when I pulled $605 from my savings account and contributed it to my Roth IRA. I’ve been making some moves in the past couple of days to boost my cash while decreasing my stock exposure. This will become much more evident in next month’s net worth report.

Stock:

The market continued to remain strong — probably because of the Santa Claus rally — which was to my benefit again this month, as my stocks rose another 4.16 percent. While that’s all well and good, I made a decision to sell two-thirds of that stock (the deal should go through the first full week of January).

I am going to transfer half of that into my money market (satisfying my need for more cash in my portfolio), and the other portion I am going to keep in Schwab until the market dips a bit. Then I will invest that money in some exchange traded funds in order to diversify a bit more.

Retirement:

My retirement accounts — the Roth IRA and company-sponsored 401(k) — continued their rises in December, gaining another 7.96 percent. Most of that was probably due to the contribution I made in the middle of the month.

I have decided to make my contributions to my Roth IRA more regularly in 2010. I set aside money each paycheck, and I am going to contribute it monthly. That way, I can take more advantage of prices if the stock market is down rather than when the prices are at their highest (as they were when I contributed this month).

Stalwarts:

The life insurance and bonds remain as is.

Loans:

This is slowly going down — and I plan on making double payments (or at least $1,200 extra, which is almost a double payment per month) starting this year to try and pay down my federal loan faster. I have a high-level goal of getting rid of my student debt entirely by the time I am 30, so I have five years to go.

Overall:

I’m still progressing toward my goals. With my new job, I have even greater opportunity to move quicker toward the markers I have set for myself. Bring it on, 2010!

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