Wednesday, March 01, 2006
02.2006 - Net Worth Update
Net Worth for February
Assets (Type - Amount - % of total assets):
Cash - $88,813.74 - 44.24%
Stocks - $21,411.86 - 10.67%
Retirement - $90,528.51 - 45.09%
Liabilities:
Credit Cards - $6,964.97 (Mostly 0% interest)
Car Loan - $16,606.39 @ 4.25%
Current net worth: $177,182.75
Analysis
Net change vs last update: $20,607.36
Percent increase vs last update: 13.16%
My net worth increased significantly this month because I am now fully vested in my pension fund. Looking at my assets, I think I have too much money allocated in cash accounts. I would like to target 30% allocation to stocks. Any opinions on what percentage of your overall net worth should be in retirement?
One of my friends once said that he doesn't believe in putting away money for retirement, just the minimum if anything, because he doesn't even know if he's going to be around to spend it. That kind of made me think about it too...but the tax advantage of putting it away makes me continue.
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6 comments:
Thanks Bored.
The % is supposed to represent what percent of my total assets, but I made a mistake and calculated it off of my net worth, which made the % total greater than 100%. :) Fixed it now.
Hey Bored, you're my very first commentor btw! Thanks.
Congrats on an excellent month. You've been included in the February Bloggers' Net Worth Index at http://www.moneysmartz.com/weblog. Your 13.2% increase was near the top and you easily beat the index average.
Thanks MS...I'm hoping a more regular month can still hold up the momentum.
Can you explain why you would carry at 16K car loan at 4.25% when you have 88K in cash?
Since a car loan is not tax deductible you need to get somewhere between 5-6% on the cash in order to over-come the 4.25% you are paying on the car loan.
My #1 rule of personal finance is never carry any debt that is not tax deductible (i.e. house mortgage) unless you have no choice. This seems like the perfect place to just pay that loan off.
I just felt comfortable having more cash in my pocket...but now that you bring it up, I'm thinking about it a little more...I just posted about it...I'll have to think about it more now...
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