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Author: yttire Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: FIRE update 2010 Date: 12/31/2010 10:15 PM
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2010 Update:
Net worth up 14% in 2010. The amount of gain of net worth exceeded our net income. S&P up 13% in this year. Net worth is up 3.0X over what it was 7 years ago.

Current Portfolio:
23% in mutual funds split between bonds/ domestic stocks/ foreign stocks
20% picked stocks (most in SPY and PM at the moment)
15% cash/ money market
32% in real estate (no mortgage)
8% education funds split between target date funds and cash
2% in vehicles

Our income stream is likely to drop this year with the wife's contract coming to closure ending her primary job, although this will really show up in 2012 as a hit. The probable appearance of a new baby will mix up our lives, and possibly encourage us to spend the 15% cash on a new property, possibly renting out the existing property. This is very much a tentative plan and would more likely take place in 2012 or 2013.

I got a nice raise this year and it remains to be seen if any more will be forthcoming, but to be honest I like the amount of effort I am putting in and don't want to be in a very high pressure situation which may come with more money.

Unbelievably we are right on the estimated projection now made around 8 years ago of where our net worth would be. (Within $1,000). I expect we may fall behind, because it posits a constant growth of 8%.

Seeing a number of friends lose their jobs and having extreme trouble finding new work really makes me thankful I have employment, and also question really how long it is going to last. Having a career is like a crazy rollercoaster. Also I am asking myself if/how I should help out my friends who are on tough times.

A number of old friends passed away this year, and with myself coming close to death last year it really is putting into perspective the money thing.

2010 Almost all of the 31% gain came in the last 6 months. S&P500 was up 22% in last 6 months, and I received some very nice bonuses in the last 2 quarters. We increased our cash reserves from 13% further up to 16% this year; and completed a zero cost refinance last quarter lowering our rate from 4.875% down to 4.5% 30yr fixed. I recently sold a large position of XOM that had done very well in the last 6 months, along with ½ my SBUX, and purchased a bunch more WMT. Fully funded my 401k this year and I think 16% cash reserves is about my upper limit, so will start looking to invest a bit more next year in the stock market.

Interesting financial tidbits:

- We finally sunk some money into redoing the siding of the house, we went for the cheap, but not cheapest, solution of repairing the bad siding and repainting and it looks great. This took a chunk of change, but does not even really show up in the net worth. It just got automagically absorbed (or offset by gains I guess)

- Our retirement assets are now once again hitting new highs (it was at a high point just before the crash in 2008, and now savings and gains have now gotten it to a higher point than where it was before the (first?) crash.)

- There have been a lot of other misc expenses recently, with two car crashes, the other car requiring a lot of repair, tickets, and other largish expenses but these too got automagically absorbed.

Last years update:
http://boards.fool.com/fire-update-2009-28210248.aspx
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