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.


Target

Actual



Dec-06

$328,800

$299,100

Missed by $29,700


Dec-07

$395,800

$377,100

Missed by $18,700


Dec-08

$476,400

$355,400

Missed by $121,000


Dec-09

$573,400




Dec-10

$690,200




Dec-11

$830,800




Dec-12

$1,000,000






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

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