Who is Bill Maher to Give Me Relationship Advice?

Here is some good advice for anyone in an abusive relationship:



I wonder how many people would need to follow this to actually make an impact?

My Net Worth Update for 2009 and Goals for 2010

Back in 2005 I calculated that my net worth would reach $1 million by the end of 2012 if I could manage a steady 20% yearly increase. I have been tracking my progress ever since. In 2009 which was year 4, my net worth increased by 32.9% or $116,800. That is unfortunately not enough to make up for the major setback that was 2008.

	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	$472,200	Missed by $101,200
Dec-10	$690,200
Dec-11	$830,800
Dec-12	$1,000,000

In 2009 I was able to max out my 401k and my IRA contributions. I also contributed $3,000 to a 529 plan. Where I failed to execute was on the trading side. I remained too cautious after the stock market bottom was in, siding with the “non-believers” that the rally was for real.

My goals for 2010 are:
-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 $690,200 net worth as possible

On the real estate side, I will keep an eye open for any good opportunity to invest. But not before the $8,000 incentive for first-time home buyer has expired. Once the incentive will be gone, the housing prices are likely to correct further.

My Investment Portfolio Return for 2009

My portfolio was up 20.8% in 2009. In comparison, the S&P500 was up 26.5% including dividends (23.5% before dividends).

In the accounts I actively trade, I started the year mostly in cash. I have been tiptoeing back into the market, but not aggressively enough, which explains my lackluster year compared to the S&P500.

I have been diversified across 3 different strategies:
-Buy-and-hold currently represents 30% of my portfolio
-Trend following using ETFs
-Swing trading on stocks which has not been working so well

In 2010 I will reduce the amount of swing trading and increase the share of my portfolio dedicated to trend following.

Pay Period Leap Year

2009 is a pay period leap year at my company. We will have 27 pay periods instead of 26. The company did not adjust the bi-weekly pay, which means that we will effectively receive a pay increase this year. So far HR has not communicated anything to the employees or taken any credit for it.

I had calculated my salary deferral to have my 401k contributions maxed out on the 26th pay period. I will therefore miss out on the 4% company match on that extra 27th pay period.

The pay period leap year happens every 11 years. I’ll have to remember to be more careful in calculating my 401k salary deferral in the year 2020!

2010 Retirement Plan Contribution Limits

The IRS has announced the retirement plan limitations for 2010. The limitations of interest to me remain unchanged for 2010.

2010 Contribution Limits
401K - $16,500
Roth IRA - $5,000 if Modified Adjusted Gross Income below $105,000 ($167,000 if married filing jointly)

2009 Contribution Limits
401k - $16,500
Roth IRA - $5,000 if Modified Adjusted Gross Income below $105,000 ($166,000 if married filing jointly)

Stock Market Snapshot as of May 21, 2009

All major indices have just made a lower high and are now sitting very close to the previous lows.
If they are able to print a lower low, this might be a good opportunity to try a trade on the short side. I am watching the following levels:

S&P 500 - 878


Russell 2000 - 470


Nasdaq 100 - 1339


Any break below those levels could be a good entry point.
I would place a stop above the previous higher high and size my position accordingly.

S&P/Case-Shiller Home Price Index Update

The latest data for the S&P/Case-Shiller Home Price Index were published today and they were not pretty. Home prices were down 19% in the 12 months ending in January 09.

When I first looked at these data back in December 07, I was upbeat about the Atlanta market which did not seem to have experienced a real estate bubble. Since then, the Atlanta home prices have fallen hard and are now below their 10-year average. Same for the Los Angeles market which I use to show the bubble effect.



While home prices are still heading south, I see no reason to rush into buying a house.
Why not wait for the dust to settle and home prices to stabilize?