Wednesday, January 02, 2008

Net Worth 2007 Final Tally

The final net worth for 2007. Was it a good year? I think so for reasons non-financial. But financially not as much. Our net worth for the year appeared to have increased only by $20k. Not much at all. Mostly because we added according to my calculations $13.5k. in student loans. However last December I counted only $4500, but this year I just added $8500 at the beginning of the school year.

So our retirement accounts increased from $34782 to $67786. Nearly doubled, and a bit shy of the $75k I was hoping to have. However we didn't make our Roth IRA contribution yet for 2007, and after reviewing out paystubs I believe we're good to go, so that will happen in January. If you are close to the limits of not contributing to a Roth IRA, I believe you should wait until the next year and do it. Our problem has been DH switching jobs, worrying about any stock benefits that might cause a problem taxwise to our situation. So we decided to wait every year until we see what plays out and try to contribute in December. So I guess in January we'll hit the $75k I had hoped to hit.

We increased our debt from $4500 to $17k for student loans. Ugh. We however paid our house down from $450168 to $441986. I love to see the number going down.

So overall not a terrible year. Also we still haven't figured out DH's new ESPP so we have a bit of unaccounted for money right now probably $5-10k, which will go directly to DH's tuition bills. We use the ESPP as a monthly savings for it.

I guess my goal for next year? Well save $25.5k, so our retirement accounts will be over $100k, I guess with returns I should hope for around $115 in our retirement accounts next year. Wow, that's huge seeing as we started with zero a few years ago.

To everyone out there starting out, there is HOPE! Keep on contributing and working hard. It pays off quickly. I never thought to see our accounts growing so quickly, but it's awesome. I wish I had started earlier, but I used all of our savings to buy a house instead. I wonder if it was a mistake? Ah well, hindsight is 20/20. But honestly at least we are happily in a home and are quickly I feel catching up on retirement savings because we're 28 and 30 years old.

Our returns for the year have been very decent. I calculated in our stock portfolio DH made about 40%, I made 15% for the 4 months I invested = 45% APR if extrapolated for our Roth IRAs, and DH's 401k made 9% for the year. Not bad at all.

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