October 2020 Net Worth Update

by Evan

After taking a long, covid-market inspired hiatus on providing updates to my net worth on this site, I go and miss my second month back! I updated my spreadsheet but never got around to writing the post, not sure it matters all that much since it isn’t all that clear to me who actually reads these. I don’t provide a ton of information, but it does force me to look at everything every single month, an exercise which I think all adults should do.

Thoughts before Calculating: I like to give a guess as to how I did the previous month before calculating anything. Month over month I am going to be down to flat, as the broad market is also flat to down month over month. The next few months are going to get very interesting for my family and I. I am putting in a pool and pavers which is amazingly expensive, but something we are very excited for next year. I am also starting a new position which will replace my solo practice. Lastly, my online world may change in the next two weeks also!

Calculating my Net Worth

My Family’s Assets

I used to say my assets were pretty straight forward, but over the years I think that has changed becoming increasingly complicated:

  • Cash Equivalents – This includes my emergency fund (which I would like to be a bit higher), as well as some other random accounts.
  • My Trading Account – This one account is both where I invest in my dividend growth companies and risky speculative option trades.
  • My 401(k) – I have toyed with the idea of marketing timing in the past, and I have mostly moved away from that (except the most recent move to cash for some of the account lol).
  • My Traditional IRA – Just some companies that have caught my attention at some point or another.
  • The Wife’s Roth IRA – Again, some companies that have caught my attention at some point or another.
  • Crypto Currency – A handful of years ago during the height of the crypto mania I decided to put a few dollars into BitCoin. It felt like immediately after I made the transfer BTC took a nosedive. At that point, I made the decision just to ignore the account.
  • Life Insurance Cash Surrender Value – I have discussed my choice to purchase permanent life insurance with a growing cash surrender value portion to it many, many times. I found out that my spreadsheet was calculating it wrong and for 2020 this number was incorrect! Nothing I can do about it now, and the idea of going back and fixing the numbers is very unappealing, so I fixed it going forward. As I tell my children often, no blood no foul.
  • Physical Gold – A few years back I decided to start buying physical gold. This month I bought a few dollars worth. I have searched and searched for a way to make the purchase of physical gold automatic, but the “cost” of the service over spot price is frustratingly inefficient.
  • My Rental Property – It has been about a year since The Wife and I decided to pull our house from the market and rent it out. While I didn’t have the liquidity event that I expected It has worked out pretty good so far.
  • My Main ResidenceOur home!

Given the percentages of each asset as they relate to my total net worth I find myself highly correlated to the market.

My Family’s Debt

  • Law School Debt – I still have some law school debt. I was aggressively paying it down, but have stopped. One, I want the cheap liquidity for a pool purchase, and two, I really believe that the U.S. Gov’t is going to provide some relief and I’d like to get a piece of that sweet government hand out.
  • Mortgage and Home Debt – I have a mortgage on each home and a home equity line of credit on the rental property.
  • Revolving Credit Card Debt – The Wife and I pay off our credit cards every month for the most part. Granted we get behind from time to time, but that is the goal, month in and month out.

I think I am going to start looking into refinancing my current home. When I bought the property I received a 3.875% mortgage while paying PMI because the 20-25% down payment was locked up in the previous home that I never liquidated. With current rates, and home prices in my area I think I could save on the rate and getting rid of PMI.

My Net Worth Change

  • From September 1, 2020 to October 1, 2020 my net worth decreased -.24%
  • Year to date my net worth has increased by sad .48%

My guess was correct, which is particularly depressing since I “found” a life insurance policy with cash value that was not counted year to date! Given all that is happening in the world I won’t spend paragraphs complaining a bout a flat month in net worth.

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