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|Subject: 2009 FIRE Update||Date: 2/3/2010 3:22 PM|
|Author: whyohwhyoh||Number: 4804 of 5088|
Net worth up 5.8% in 2009 to 3.8 NW/AI (net worth/gross base annual income).
23% Picked Stocks
27% 401k Mutual Funds (75% S&P500 index fund)
37% Real Estate (House Value*0.93-Mortgage)
13% Fixed Income (Savings, CA-exempt MM)
2009 Well we followed through with our plan and sold our house to purchase a larger one this year. We managed to get a nice 4.875% fixed 30 yr loan, but buying and selling homes incurs severe expenses to one’s net worth. We fully funded my 401k and HSA, and we are now out of range to fund Roth’s anymore. We decimated our cash on hand with the house purchase in June (so we could put down 25%), so since June we have been accumulating cash back up to 13% of net worth for safety. 2009 was an excellent year career wise, and I am struggling to come up with a good metric to track net worth. Both annual income and annual expenses are so all over the map year to year, and too hard to predict going forward. I will continue to use gross base annual income, though this is typically much lower than true AI, but is more stable and is how we base our family budget.
2010 will be another interesting year. I’ll be turning 36 and have 2 little ones, one heading into kindergarten this year, most likely private school. We plan to fully fund my 401k and HSA and continue to build up cash on hand.
2008 Update: NW/AI=3.7
2007 Update: NW/AI=5.3