Thoughts Before Calculating: Going to be a relatively flat month. I believe spending/debt is way higher, but the markets rebounded after May’s blood bath.
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 – 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. May be at a place where I put some more of my cash reserves to this account.
- 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 became very active in April of 2022 with the volatility.
- 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. It is mostly correlated with the broad financial markets so when some lunatic invades another country this account takes a nose dive.
- 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. 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 –
For the second THIRD 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!‘Finally got into the account and updated the balance. It is still largely unimpressive.
- 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. I accidentally deleted my grab amounts on my spreadsheet this month! So at some point this month I need to audit the reserves.
- 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. Last three months I wrote, “…over the next 30 days I will provide an update here” but I failed to do so.
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 revolving 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 increased by 1.88%
- Year to date my net worth is now down only about -1.8%
Not a particularly crazy month. It was nice to see the rebound in the markets. I need to get spending under control!