From March 6th (when the last portfolio update was published - see link below) to April 7th, the S&P 500 index went up 5.3%.

My Money Blog - March 2010 Portfolio and Net Worth

During that time period, my net worth increased 7.8%. I have now achieved the following financial goals in 2010:

• Achieved my short term target net worth for this year 
• Contributed the maximum contribution level of $5000 allowed for my Roth IRA for the year 2010 (and 2009 as well)

Currently, 26% of my net worth is invested in fixed income instruments, and 74% is invested in equity. This is just off of my targets of 25% and 75%, respectively, for these categories. These proportions are the same as they were last month.

While the overall percentages for these categories are looking good, a detailed look (table below) at the allocation breakdown reveals that I still have some room for improvement.

Remember: a red flag goes off if your current % allocation in a category is greater than +/- 5% off of the target allocation.

% Cash (money market target 5%)      10%
% non-inflat Bond Funds (target 15%) 15%
% TIPS Bonds (target 5%)                  0%
% International Equity (Target 11%)    13%
% International Emerging Markets (Target 11%) 8%
% Domestic Large Cap (Target 8%)    25%
% Domestic Small Cap (Target 9%)     9%
% Domestic Small Cap Value (Target 13%) 8%
% Domestic Large Cap Value (Target 13%) 7%
% REIT (target 10%)                            6%

In the past month, I've been continuing my efforts from March to move money to my emerging market mutual fund account. The progress can been seen because I now have 8% of my net worth in that category. This is a good thing!

Additionally, since I maxed out my contributions for 2010 to my Roth IRA account, I have committed a large amount of funds to contribute to my Domestic Small Cap Value mutual fund holdings. This can be seen as that component of my asset allocation is now 8% of my net worth, up from 6% in March.

Also, as mentioned before, I currently have a VERY large percentage of my portfolio in Domestic Large Cap stocks. This is due to the fact that I was contributing 100% of my 401k contributions purchase S&P500 index fund shares for 1.5 years.

Towards the end of March, I began moving money from the S&P500 fund to a domestic small cap fund in my 401k. This progress can be seen by the fact that the domestic small cap funds now make up 9% of my net worth, up from 6% at the beginning of March.

My next moves for the April/May time frame will be to do the following:

• Since I am looking at buying a condo/townhouse in the summer/fall time frame, I will be trying to build up cash reserves in my high yield savings account for the downpayment.
• Purchase an inflation adjusted bond mutual fund (TIPS)
• Begin contributing to the large-cap value funds in my taxable Vanguard mutual fund account.
• Move several additional net worth % points from the S&P500 fund in my 401k account to the domestic small cap fund.