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| Thursday, October 05, 2006 |
| How did I grow my Net Worth by almost $64,000 in 12 months? Part 3 |
Now that I have saved as much as I can and maximized my earnings to the best of my ability, the last piece of my Net Worth puzzle is focusing on investment gains.
I have a small taxable brokerage account which I hope to someday funnel some more money into and invest for some long term goals. Right now I am focused on saving as much as I can in my tax free or tax deferred accounts (IRA's & 401(k) accounts). My various accounts added a little over $9,000.00 to my Net Worth (that $9,000.00 is pure investment gains and dividends and does not count my contributions or my employers matching contributions).
Subtracting my contributions the gains break out as follows:
Account Yield Result
Brokerage -0.92% ($6.77)
401(k) 18.87% $2,699.61
Roth IRA 7.16% $301.81
Rollover IRA 15.87% $5,178.37
SEP IRA 8.17% $983.43
Total 14.32% $9,156.45
An overall +14% gain across all of those accounts is pretty good. However, I do have too much cash in some of those accounts. I need to work harder this year on keeping all that money in investments.
But as you can see, putting money into (hopefully) appreciating assets pays off in the long term. I hope this series of posts answers those reader's questions of how I grew my Net Worth by almost $64,000 in 12 months :)
[Click image to see larger]
If I break down my Net Worth gains by category, I see that just paying my monthly mortgages on my primary home and investment condo contributed 8% toward my Net Worth gain. Non-retirement savings contributed the bulk of the increase at 54% and Retirement savings contributed 38%. That looks out of whack to me. I think I need to figure out a way to funnel more of my savings into the retirement category and less in the non-retirement accounts...
- How did I grow my Net Worth by almost $64,000 in 12 months? Part 1
- How did I grow my Net Worth by almost $64,000 in 12 months? Part 2 |
| posted by Boston Gal @ 3:45 PM *
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| 10 Comments: |
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That 54% increase in non-retirement accounts was all that cash you're stockpiling. Your cash accounts increased over $35k this past year. If your "spending" savings account is really for spending like you say it is, than start spending! :)
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Wow you returned over 18% in your 401(k)? If you don't mind sharing - what has been your investment strategy?
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Excellent, excellent, excellent summary!! I have to go back and read part II (missed it yesterday), but this has all been so informative. You've shown me real life results of standard personal finance advice. Someone who actually puts their money where their mouth is. Inspirational!
Thank you for putting so much effort into writing this series of posts and an extra thank you for sharing your private details.
You are fabulous!
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Thanks for sharing. I've really enjoyed this series. It is great to see invesment advice playing out in a real life senario.
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That was great. Thanks for the summary.
To use Single Ma's words "You are fabulous!"
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Thanks for sharing the information!
I'd be interested in hearing about your asset allocation within your investment accounts (retirement and otherwise).
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Is the 401k increase including some sort of employer match?
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Hi Henry,
As I tried to explain in this post - the $2,699.61 is just the investment gains - I backed out my contributions and my employers contribution.
To see the total 401(k) increase (including my contributions and employer contributions) see my "blogoversary" Net Worth table (it is the second one).
Hope that is clear!
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You said " I need to work harder this year on keeping all that money in investments." You should learn how to invest in real estate- you can take some of your money and provide people solutions while growing your money/networth much more and much faster! You have a great solid base to work from!
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That's great! Thanks for posting it - serves as a motivation for others.
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That 54% increase in non-retirement accounts was all that cash you're stockpiling. Your cash accounts increased over $35k this past year. If your "spending" savings account is really for spending like you say it is, than start spending! :)