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|Subject: 2006 FIRE Update||Date: 1/4/2007 5:20 PM|
|Author: whyohwhyoh||Number: 3943 of 5086|
1. Net worth up 23% in 2006 to 5.6 NW/AI (net worth/annual income) versus goal of 19%.
2. Annualized gain in picked stocks (tax/IRA/401k) was 25.5%! vs. 12% S&P500.
3. Biggest winners were BWLD, BMY, WLT, NUAN. Biggest loser SCSS. Go BMW Method + Hidden Gems!
4. Moved portion of my 401k into picked stocks to take advantage of the returns I have been yielding the past ~6 years.
46% Picked Stocks (Top 4: BMY, BWLD, SBUX, NUAN)
14% 401k Mutual Funds (42% S&P500)
33% Real Estate (House Value*0.93-mortgage)
7% Fixed Income (T-bills, CA-exempt MM)
Graph of past few years of net worth progress. Most of our net worth growth this year came in Q1 and Q4.
2007 should be a bit less stressful than the previous year, but I am also fully prepared for a serious pullback in the stock market. We have been spoiled by this market the past few years. Our net worth goal for 2007 is a 17% increase, which would bring us to 6.5 NW/AI.
I really have no prediction of when we will FIRE. It now appears that 10NW/AI won't be enough as I have a son now at age 1, and possibly another in the future. My goal is still at age 40, 8 years from now, which at 11% stock market returns would put us at ~16 NW/AI, a comfortable retirement.
2005 Update: NW/AI=4.5
2004 Update: NW/AI=3.0
2003 Update: NW/AI=1.5
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