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.
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| 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 |
|
|
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| Dec-11 | $830,800 |
|
|
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| Dec-12 | $1,000,000 |
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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.
