I am shocked we are already one month into 2022! It is so early in the new year, that I mess up when people ask me the date or I have to write it down on a memo. Notwithstanding, we are set for another net worth update.
Thoughts before calculating: I can’t imagine this is going to be a good month! I have said it roughly 72 times in the 18 months this site has been in existance but I am very correlated to the market:
With headlines like that, I am positive that this is going to be a down month.
Calculating my Net Worth
My Family’s Assets
I used to say I had an easy balance sheet but over the years I am starting to think that may actually not be the case.
- Cash Equivalents – I got to a comfortable place, and then I thought to myself I could I be a little bit more aggressive with my “emergency fund.” Specifically I wanted to move a small amount of my emergency fund towards my rental property’s HELOC. At worst, if I need liquidity I could take back the “loan” to myself, and at best I shifted some part of an asset earning .50% to reduce a debt paying 3.75%. If I ever feel a lack of liquidity this is my first item to hit up.
- My Trading Account – This one account is both where I invest in my dividend growth companies and risky speculative option trades. Easily my favorite asset, despite not being the biggest (by a long shot). I came out of January 2022 unscathed, but I did have to roll some puts forward.
- My 401(k) – My 401(k) has some terrible investment options that have ridiculous fees, but since I am getting a match at work I fund it to a little bit above the match. Three months ago I wrote, “this was down hard this month“ and then two monthes ago I wrote, “now it is way up!” and here I am saying that it has to be down again! This correlation to the market without any real control is both a struggle and also probably a MASSIVE benefit.
- My Traditional IRA – Just some companies that have caught my attention at some point or another.
- The Wife’s Roth IRA – Again, some companies that have caught my attention at some point or another.
- The Wife’s SEP IRA – The Wife was talking to my father in law early this year who told her that she should have a SEP IRA, and since she is funding it with business proceeds, I was not going to argue. Just going to be sending $100/week to the account. Plan is to just buy a broad based equity ETF (VOO) and a smaller position in a dividend-focused ETF (NOBL).
- Crypto Currency – For the second month in a row I have to be honest and say, “I couldn’t check this month because I got kicked out of the authenticator app with the purchase of a new phone. Going to have to figure this one out over the next 30 days!‘
- Life Insurance Cash Surrender Value – As described I own a number of permanent, cash value whole life insurance policies. Since the cash is accessible I include it in my net worth statement. This money is also accessible via a loan against the cash value. These values now have a loan against the cash.
- Physical Gold – A few years back I decided to start buying physical gold, I am hoping one day to be that crazy guy with a stack of gold I can swim through.
- My Rental Property – Every month I update a spreadsheet I keep for the minority owners of my rental property.
- My Main Residence – My Family’s home!
Currently, I do not include my investment clubs in my net worth. Notwithstanding, over the next 30 days I will provide an update here.
My Family’s Debt
- Law School Debt – Refinanced a few months back at 2.6%, probably going to ignore the account for a while.
- Mortgage and Home Debt – I have a mortgage on each home and a home equity line of credit on the rental property.
- Revolving Credit Card Debt – I usually keep a small relolving debt. I get paid infrequently and in large chunks from practicing law so I just pay this when I can.
My Net Worth Change
- Month over Month my net worth decreased less than 1%
- As we are in the first month of the year my YTD is the same
- Since starting this AccumulatingAssets my net worth has increased $160,000
I thought this was going to be much worse. I’ll take it for Jan 2022!