------------------------------------------------------------------------------------------------------------------------
Welcome to My Personal Finance Journey! If you are new here, please read the "About" or "First-Time Visitor" pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
------------------------------------------------------------------------------------------------------------------------
Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition
Overall, the 1st half of 2011 continues to go very well.
The market continues to trend upwards, and investors are enjoying some nice gains in their portfolios. Here in Virginia, it feels that summer is almost upon us (inspired picture at right). You can smell the barbecues cooking on your way home, and neighborhood pools are beginning to open. For me, summer means a couple things - trail running, hiking, camping, and road biking!
However, I'm getting off track here. You all stopped by for the net worth growth update!
Let's take a look at the pertinent details....
Net Worth Growth (not including condo)
From April 1st, 2011 (when the last portfolio update was published - see link below for more information) to 29-April-2011, the S&P 500 index went up by 2.85%. Pretty nice little run for a month, eh?! Let's hope it keeps up!
My Personal Finance Journey - January-March, 2011 Portfolio and Net Worth
During that time period, my net worth (excluding condo ownership) increased by 2.55%.
I think that the reason that the market outperformed my net worth growth this past month was due to the fact that I had to pay my 1st half 2011 condo property taxes ($500). However, I'm pretty satisfied overall with the month.
Condo Equity Growth
Currently, I have 10.7% home ownership in my condo (up from 9% at the end of December, 2010), with this accounting for 26% of my real net worth (so net worth subtracting the condo loan - this is different from the net worth above).
Condo Equity Growth
Currently, I have 10.7% home ownership in my condo (up from 9% at the end of December, 2010), with this accounting for 26% of my real net worth (so net worth subtracting the condo loan - this is different from the net worth above).
Update on Financial Goals for 2011
I have now achieved the following financial goals in 2011. I have done quite well I think - thanks to everyone's help for keeping me motivated and accountable!
I have now achieved the following financial goals in 2011. I have done quite well I think - thanks to everyone's help for keeping me motivated and accountable!
- Am maintaining a my target of 6-9 months of expenses in a cash reserve fund in my Dollar Savings Direct high yield online savings account.
- Have rebalanced my mutual fund portfolio to meet my asset allocation target %'s (75% equity, 25% fixed income overall)
- Have donated $1,300 to Multiple Sclerosis Foundation in 2011 (5% of income).
For a detailed list of my short term, mid term, and long term financial goals, click on the link below:
My Personal Finance Journey - Financial Goals
Review of Current Asset Allocation (excludes condo)
- Overall Fixed Income / Equity Allocation
- Currently, 24% of my net worth is invested in fixed income instruments (cash or bond funds), and 76% is invested in equity.
- This is almost perfectly aligned with my targets for these categories of 25% (fixed income) and 75% (equity).
- Equity Allocation
- In the equity portion of my portfolio, 73% is invested in US Domestic Equities with the remaining 27% being held in international equities.
- This is almost perfectly aligned with my equity breakdown targets of 71% and 29%, respectively, for US Domestic and international holdings.
While the overall percentages for these categories looks pretty good, a detailed look (table below) at the allocation breakdown reveals the real story and provides for better analysis of the current state.
Remember: a red flag goes off if your current % allocation in a category is greater than +/- 5% off of the target allocation. This is my trigger that I need to rebalance that aspect of my portfolio.
% Cash (money market target 5%) 7%
% non-inflat Bond Funds (target 15%) 14%
% TIPS Bonds (target 5%) 3%
% International Equity (Target 11%) 11%
% International Emerging Markets (Target 11%) 10%
% Domestic Large Cap (Target 8%) 8%
% Domestic Small Cap (Target 8%) 9%
% Domestic Small Cap Value (Target 14%) 15%
% Domestic Large Cap Value (Target 13%) 14%
% REIT (target 10%) 9%
Analyzing my current asset allocation percentages, it appears that I am lucky enough to be exactly on target with all of my asset classes (within +/- 5% banding) .Therefore, no rebalancing is required. Always a good thing!
My next moves for the May-June, 2011 time frame will be to do the following:
- Continue contributing to my Roth IRA for the 2011 year. I only need to contribute $1450 more to fully fund it for 2011.
- After fully funding my Roth IRA, any extra money I have will most likely go towards paying off my condo loan and obtaining even more equity in that investment. The only other option I would have is to invest in my individual mutual fund (taxable) account. But, I feel that it would be a more efficient use of my time to build up more equity in my condo. What do you all think?
- Continue investing $41.67 each month in microloans to help the working poor in Peru. This is part of my 2011 goal of having $500 in microloans.
- Try to reach and pass my $5000 fundraising goal for the Multiple Sclerosis bike ride I am doing in June of this year. Currently, we have reached $5,000 (including company matches), but let's keep it going! If you are interested in making just a $10 donation, click here.
Wish List
- At some point, purchase the Vanguard Total Stock Mkt Idx (MUTF:VTSMX) to replace S&P 500 index fund. This gives better, broader diversification to the US stock market.
- Install a stacked washer/dryer combination unit in to my condominium. This one will be a long shot, but it just may be possible! More than likely, this will be something that I will do in 2012.
How about you all? How did you progress with your net worth in April 2011? What are your thoughts about the strength of the market?
Share your experiences by commenting below!
