HomePersonal SituationNet Worth Update September 2017

Net Worth Update September 2017

Wow, this year is flying by.  This feels like an odd net worth update since it marks the end of summer and the beginning of fall.  This summer was unbelievably fantastic in terms of spending time with my children, and it is a little disheartening that we are just that much closer to 4:30 pm darkness and cold.  But such is life.

I like to give a prediction of how I did for the past month prior to actually calculating my net worth.  I think my net worth will have increased because of somethings that have worked out at work and my side hustles, however, I have taken some huge hits on my positions in Limited Brand and American Outdoor Brands Corp (the old Smith and Wesson).  I am not selling either position anytime soon, but their one month charts do not look great at all.

Had a lot of financial things happen this past month:

  • Some awesome things at work
  • Closed some cases up with  my small law practice
  • Decided to get back into Undervalued Dividend
  • Decided to take less risk with my 401(k) for the time being
  • Finished the process on getting a HELOC (although I haven’t used any of the money thus far).

My Net Worth Calculation

Creating a net worth statement is pretty simple.  All one has to do is honestly add up your assets and minus your liabilities.  If you build your net worth calculation on lies, what’s the point of even doing the exercise.  I know calculating my net worth helps me keep track of my decreasing liabilities while seeing if my investments are growing like they should be.

My Assets

My assets are pretty simple:

  • Emergency Fund – It is a little less than where I would like it, but I don’t calculate it in terms of monthly expenditures.  Rather I think to myself how much cash would I really need if an emergency happens.
  • My Dividend Growth Account – It is small and been dormant this year.  Starting this month I am getting back into undervalued dividend growth investing and I am very excited!
  • My Wife’s Roth IRA – Nothing special – just a mixture of cheap index funds and individual companies that capture my attention.  I have started to sell covered calls within this account.  Just boosts my investment capital – small (read: very tiny) droplets of capital I wouldn’t have had otherwise.  This is where LB and AOBC are.
  • My 401(k) – My 401(k) is terrible with high fees for garbage mutual funds, but where else am I getting a match on my money.  I am not one to turn down free cash.  I just decided this month that I am going to change my allocation to brace for the inevitable bear market.
  • Wife’s Mutual Funds – This was an amount that was given to my wife from her deceased grand parents.  They were horribly mismanaged until I stepped in, putting them in low expense vanguard mutual funds.  She and I both look at this account as a super emergency fund.
  • My House – This is the first year after buying the house for 4 years where I increased the value of the home.  I increased it an nominal 3% in 4 years.  I don’t plan on reviewing this dead money asset for another year or two.  I also just took out a HELOC but haven’t used any of it.
  • My Traditional IRA – Just a few stocks that have captured my attention. Similar to my wife’s Roth IRA I will often sell covered calls on holdings to generate nominal amounts of cash flow.
  • Investment Account with my Brother – The Wife and my brother invested a nominal amount ($1,200 each) to try and give my brother confidence with his stock picking ability.

My Liabilities

  • My Law School Loans – Despite being almost 35 years old I have a significant amount of law school loans left. They are locked in at 3.5%, so what’s the rush to pay them off?
  • My Mortgage – I live on Long Island (and its on not in), so the odds of me ever prepaying this down, especially with a 3.375% 30yr fixed is unrealistic.
  • Credit Cards – My favorite card is my American Express Premier Gold Card, whose fee I fight every year.  I also have some minor outstanding balances that I’ll just pay down slowly.

My Net Worth Increase/Decrease

  • From August 1 to September 1 my net worth increased 1.36%
  • My net worth increase YTD has increased 17.80%

I am absolutely disappointed in this result, however, in playing with the numbers a bit I could have done much better.  For example, I put a significant amount of money in my vacation fund which I do not count since I am prepaying an expense (10 year anniversary trip).



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