Each month I’ll be keeping track of our net worth on this blog. The reason for making our net worth public is to not only hold myself accountable, but to provide a record so I can review my progress over time. I’ll be giving a brief analysis on our results for the month and what changes I’m thinking of making.
Here’s how our net worth looked for July:
| June | July | Change | % change | |
| Assets | ||||
| Checking | $27,660.95 | $23,152.46 | -$4,508.50 | -16.3% |
| Rental properties | $855,069.00 | $855,069.00 | $0.00 | 0.0% |
| Retirement accounts | $537,631.22 | $542,404.69 | $4,773.47 | 0.9% |
| 529 accounts | $7,052.18 | $8,677.89 | $1,625.71 | 23.1% |
| Private equity | $200,000.00 | $200,000.00 | $0.00 | 0.0% |
| Brokerage accounts | $1,281,404.26 | $1,322,344.12 | $40,939.86 | 3.2% |
| Primary residence | $1,540,000.00 | $1,540,000.00 | $0.00 | 0.0% |
| Assets total | $4,448,817.61 | $4,491,648.16 | $42,830.54 | 1.0% |
| Liabilities | ||||
| Credit cards | $6,810.79 | $2,271.61 | -$4,539.18 | -66.6% |
| Rental mortgages | $529,474.92 | $528,647.98 | -$826.94 | -0.2% |
| Primary mortgage | $780,522.27 | $779,299.24 | -$1,223.03 | -0.2% |
| Liabilites total | $1,316,807.98 | $1,310,218.83 | -$6,589.15 | -0.5% |
| Net worth | $3,132,009.63 | $3,181,429.33 | $49,419.69 | 1.6% |
July was a solid month. We paid down a total of $826.94 of principle on the mortgages on the rental properties and our brokerage account was up a solid 3.2% due to a strong stock market. Due to the size of our portfolio vs the amount we can invest each month, the market will have a much stronger effect on our net worth than any new money we invest.
The 529 accounts, on the other hand, are so small that our monthly deposits in those accounts have a much larger impact than the performance of the market. That’s why those accounts were up a total of 23.1% this month.
As I mentioned in my recent post, the stock market is substantially overvalued. As a result, I will be hoarding cash in my brokerage account (currently at around $10,000 in cash) until I find a compelling valuation in the market. In anticipation of a market correction I am actively looking for ways to dial back the risk in our portfolio. I might sell off a few positions in some stocks with high debt loads or lower credit ratings. Doing so will not only reduce the risk in our portfolio but increase our cash cushion as well.
How did everybody else do this month? Did the markets treat you well?