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No. of Recommendations: 3
2008 Update:
Net worth down 30% in 2008 to 3.7 NW/AI (net worth/gross annual income).

Current Portfolio:
36% Picked Stocks (Top 4 holdings BMY, BWLD, PFE, MMM)
2% Stock Options
19% 401k Mutual Funds (75% S&P500 index fund)
30% Real Estate (House Value*0.93-Mortgage)
12% Fixed Income (Savings, CA-exempt MM)

Graph of past few years of net worth progress.

2008 was a tough year, watching the S&P500 drop 38% (1468 to 903), and our home value dropped around 17%. In addition, stock options fell 50% in value. I did make it through a 20% layoff despite being off on a 3 ½ month vacation late this year, but things could get worse this year. And the other tiny bit of good news is that I continued to accumulate cash this year, by not investing as much, bringing my cash to 12% of net worth. Thank goodness I kept this cash out of the markets.

2009 will be an interesting year as we are planning to sell our house and purchase a larger one in the next few months. Interest rates are low, and housing prices have fallen, particularly on the larger homes in our area so we are going to try and take advantage of the current housing market. We have good credit and enough equity and cash to easily put down 20%.

Who knows when we’ll FIRE…

2007 Update: NW/AI=5.3

2006 Update: NW/AI=4.6

2005 Update: NW/AI=3.7

2004 Update: NW/AI=2.5

2003 Update: NW/AI=1.4

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