Monday, November 05, 2007

October Net Worth

Ok, time to do the monthly numbers again. Quicken tells me that my net worth on Oct. 31st was $365,383, an increase of 2.6%. This is excitingly close to my year-end goal, however, it's a bit suspect as when I was looking at it the other day, my 401k showed a higher balance in the net worth report than it did in another screen. Anyway, for now, I'll take it. It makes me feel a little better given how much lower it is today after the recent stock market slump.
A commenter asked me to explain the composition of my net worth in more detail, so here is the full scoop:

Cash & Bank Accounts:

  • Cash $37
  • Chase CD 6 mo. to 3/08 $3,034 @ 3.92%
  • Chase Checking $160 @ negligible interest rate
  • Chase Roth IRA CD 48 month to 4/09 $3,020 @ 4.16%
  • Chase Roth IRA CD 60 month to 2/09 $2,627 @ 3.25%
  • Chase Savings $3,400 @ 0.8%
  • E*Trade 2-Yr CD to 10/08 $5,899 @ interest rate 4.75%?? hard to tell, for some reason E*Trade is making it very difficult to see what my actual interest rate is! But it must be in that range given what my recent quarterly interest payment was (see Rule 17 about doing the math).
  • E*Trade Money Market $5,001 @ 2.5%. I will leave this here for a couple of months, probably, but I plan to close this account soon and invest the money elsewhere. This may result in my being charge a higher fee per trade in my E*Trade brokerage account, but I hardly ever do any trades, so no great loss.
  • FNBO Direct Savings $11,000 @ 5.05%
  • Laundry Quarters $7

Investments:

  • E*Trade $18,142 Return on this portfolio was 11.7% in 2006
  • E*Trade Roth IRA $24,813 Return on this portfolio was 7.69% in 2006
  • 401k $202,314 Return on this portfolio was 11.5% in 2006
  • Treasury Direct & Bonds $4,482 This is all I-bonds, rates 3.63-4.18%

Other:
  • Credit card balance -$2,646
  • Home Equity $84,059

So that means about 60% of my total net worth is in stocks & mutual funds earning 7-11% last year, 17% of my net worth is earning in the 3-5% range or less, and 23% is home equity. If you look at it just in terms of my investable assets, about 77% is in stocks and mutual funds, and 23% is in cash/CDs/bonds, etc. At my age, I suppose I could nudge myself a little further into risky investments like stocks, but not too much further. I like knowing that I have secure, steady investments balancing things out-- but I do need to make sure I pay attention when my CDs mature to make sure I get the best rates available, and also watch my bank accounts to make sure I am maximizing my interest there too. I did some work on that this month, by opening the FNBO Direct account with money I'd had in the E*Trade money market account.

9 comments:

Tina Su said...

What a great idea. I really enjoy the content of your blog. Keep up the awesome work.


Love & Gratitude,
Tina
Think Simple. Be Decisive.
~ Productivity, Motivation & Happiness

Curtis Miller said...

Wow, that seems complicated to keep money at so many different places. But, then again, I guess I've kept debt at about that many over the years. We're simplfying our debt structure and complicating our cash structure to make getting out of debt a little more automatic. Just posted about it here:
http://realworldfinances.blogspot.com/2007/11/our-new-financial-structure.html

SingleGuyMoney said...

Looks like you are doing a great job. I too enjoy your blog.

The Dividend Guy said...

Thanks for your openness on this - I appreciate seeing it.

Only go with as much risk as you are comfortable with. I have gone more risky in the past and have not necessarily been rewarded for it - except for more stress.

Anonymous said...

You mention you have "E*Trade Money Market $5,001 @ 2.5%."

Thei etrade complete savings is 4.7, why not move that $5000 to that?

Madame X said...

Curtis-- yes, I do feel like I've started to have too many accounts, and I'd like to consolidate some of the CDs.

Anon-- I already have an E*Trade savings account, with zero balance at the moment. I don't think it would earn 4.7%-- that might be a rate for new customers, I"m not sure.

Anonymous said...

Hi, The Etrade Complete savings account rate is 4.70% for anyone, not just new customers, and has no minimums.

Anonymous said...

Sorry for the late input, I don't get to check your blog as often as I'd like...

Two things:
1) ING Direct starts you at 5% I think, though mine just went down to 4.75% or so, in the Orange Savings Account. No fees, and you can do online transfers. If I refer you, I get $10 and you get $25 starting incentive. ;)
2) I've been seeing news reports about E*Trade being downgraded to "sell" and possible bankruptcy. I have two accounts there (one IRA, one straight stocks), and that worries me. Do you know if it refers to stock in E*Trade or E*Trade as a brokerage company?

-Lisa

Anonymous said...

Multiple investment is good, but don't you agree that it would be better to optimize them bring most of the money into investment, which are providing the best return?

In spite of that, I would say you are doing well up to know. Congrats!

J.C. Carvill
Email: support@cosmosing.com
URL: http://www.cosmosing.com/jeanclaudecarvill/index.php