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No. of Recommendations: 4
2010 Update:
Net worth up 31% in 2010. (S&P +13%) (Net worth up 3.6X in past 7 years)

Current Portfolio:
23% Picked Stocks (9% net worth in WMT, JNJ, PFE)
28% 401k Mutual Funds (75% S&P500 index fund)
16% Fixed Income (Cash Savings, Money Market)
134% California Real Estate (Our House Value*0.93)
-101% Mortgage 4.5% fixed 30yr

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.

Financially things are now getting more challenging. Although my promotion this year has brought a significant increase in salary, both my kids are now in private school (Preschool and Kindergarten) draining $30k/year in cash. I can now foresee that retirement is going to be a ways off, as I’m facing the reality that I’ll likely put my 2 kids through 16 years of school. We’ll just keep saving and growing our net worth so we can have options to change our lifestyle going forward, maybe take a year off between jobs or something. I am to the point now that if I move from the Silicon Valley or if my industry goes under I’m facing a 50% pay cut. I’m hoping for another 5 years in this lucrative industry then sell the house and head to Europe or something.

2009 Update: NW +6% [S&P +23%]

2008 Update: NW (-31%) [S&P -40%]

2007 Update: NW +15% [S&P +6%]

2006 Update: NW +23% [S&P +14%]

2005 Update: NW +46% [S&P +3%]

2004 Update: NW +82% (mostly home value increase)

2003 Update: Net worth (NW) baseline = 1.0

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