I can’t believe we are a month into the new year already. January absolutely flew. I am writing this post from a hotel room with my daughter pumped to go skiing in the morning! For the first time in months, if not longer, I looked at my schedule last week and saw that I had zero planned meetings. I immediately blocked off the day and asked if she wanted to go, her excitement was all I needed.
Thoughts before Calculating: I am pretty sure this is going to be a good month. The S&P500 was up in January 2023 about 7%, so that type of tailwind hides the fact that we probably spent way more than we should have. Regardless of whether I am up or down I am disappointed in myself thus far. I gave myself a pretty easy 2023 goal and objective with regard to my automatic savings, spending and debt repayment and I have yet to even start the project.
Calculating my Net Worth
My Family’s Assets
While I have a number of asset categories, I don’t think they are particularly complicated.
- Cash Equivalents – Back in November or December I took the proactive step to re-set up my automatic savings to my pure liquid accounts. I don’t have a particular number in my head just yet, but I know as I write this I do not have a large enough emergency fund. I will circle back in a few weeks after I discuss my automatic savings to define when enough is enough when it comes to cash.
- 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) – this also currently provides me the most stress. Currently, I holding 200 shares of MMM and 200 Shares of INTC on margin, selling covered calls waiting to liquidate at cost basis (or likely higher)
- 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. This has been hurt the most, probably because it is completely correlated with the market and is my largest non-real estate holding. Last month I wrote, “despite 18 months of contributions my balance is back to 2020 levels! I don’t mind this one as much since I can’t touch it for 19 more years at a minimum.” Well now I am back to 2022 levels.
- 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 a few years back 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. The original plan was to just buy a broad-based equity ETF (VOO) and a smaller position in a dividend-focused ETF (NOBL), but I have taken very small positions in individual companies along with those broad ETFs.
- Crypto Currency – This account was basically started for FOMO purposes. It is a shitty reason, but it is mine nonetheless. Looks like I am back to about even with the account, but I stopped the automatic deposits and plan on largely ignoring it for now.
- 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. I have plenty of posts about paying it back and then pulling it back out and then paying it back, but as I sit here in February 2023 I have a loan against it and am aggressively paying it back.
- 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. I accidentally deleted my gold amounts a few months back. 4 months ago I wrote, “while I believe I have the right number I need to audit my “vast” reserves” well I didn’t so should do that sometime soon…I have continued to fail myself here.
- 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.
My Family’s Debt
- Law School Debt – Refinanced a few months back at 2.6%, probably going to ignore the account for a while. While it would be nice to finish these off I haven’t done so to date.
- 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 –
ZeroIt’s fucking back (for now).
My Net Worth Change
- Month over Month my family’s net worth was up 4.9%
- Year to Date would be the same since this is the first full month.
Just as I thought, the market tailwind was extremely helpful. Notwithstanding, I am going to call this a shitty personal finance month since I didn’t even get started on those cash flow projects.