Saturday, January 3, 2009

My Net Worth Update for 2008 and Goals for 2009

My net worth shrank in 2008 by -5.7%. My steady income and savings efforts were not enough to offset major losses in my investment accounts.

On the plus side I was able to sell my condo in August for a break even financial operation. Given the state of the real estate market, I am considering myself lucky.

I am now standing way off my goal of reaching $1M net worth by age 40.






Missed by $29,700




Missed by $18,700




Missed by $121,000









With only 4 years left, this goal is not looking so good. But who knows? The stock market could rebound nicely before 2012, right?

I'd also like to keep an eye open for a good real estate opportunity, i.e. a single family home in a desirable neighborhood at a discounted price. But there is no urgency as housing prices keep on falling. The bottom is not in place yet.

So here are my goals for 2009:
-max out 401k and IRA contributions
-contribute $5,000 to the 529 plan
-grow my investment portfolio by pursuing trading and investing opportunities in order to get as close as a $573,400 net worth as possible

Thursday, January 1, 2009

My Investment Portfolio Return for 2008

My portfolio suffered some major losses in 2008, down -18.8% to be exact.
The biggest losses came in the buy-and-hold accounts (401k, Janus and the 529 plan).
These accounts are long-term investments (15 to 20-year time horizon), so I am not concerned by what the market is doing in the short-term. I was able to max out my 401k contributions which should pay off in the long run.
In the actively traded accounts (Brokerage, Rollover and Roth IRA) I was mostly in cash for most of the year.

For the year 2008 the S&P 500 was down -37% after dividends (-38.49% before dividends).