Net worth Update March 2018 $297,880 (+$4,233)

Markets troubles in March coupled with significant income and low expense leads to an increase in net worth to 297,880.04 (+4,232.94).

Let’s see how each account made.

Vanguard (401k): $60,762 (-$461)

Whoa, what’s going on. There was panics on my news feed in early February. “Market Crash”, “Did you sell ?!?”, “OMG”. Uh, I’m not sure what people are talking about. The markets reverted to the values they were 2 months ago. Hardly something to notice. I had ~$3,500 spare cash in a money market account; I bought more VTSAX with it. I wish I had more and I wish the markets crashed further to have a better prices.

Vanguard Brokerage: $50,274 (-$485)

Same as above. Markets were bouncy in February!

Vanguard Roth: $16,483 (-$171)

Bonds are actually going down since interest rates are rising. I’m not sure if bonds are that useful in a low-interest world. Warren Buffett is skeptical about them, saying they have negative rate of return.

“It is a terrible mistake for investors with long-term horizons – among them, pension funds, college endowments and savings-minded individuals – to measure their investment ‘risk’ by their portfolio’s ratio of bonds to stocks, […] Often, high-grade bonds in an investment portfolio increase its risk.”

While I agree with Buffett, I don’t understand what diversification I should use instead. 100% stocks? Munis? Bitcoins? 😛

Fidelity Roth (Spouse): $16,403 (-123.80)

More bonds in another ROTH since their interest are tax-free.

Cash: $26,917 (+$2,390)

I started Churning Bank Account bonuses. The first account I’m testing is the CitiBank. I’m using my Churning tips from DoctorOfCredit. It requires a $15,000 deposit for 60 days. There are no fees if a minimum balance is kept. Once the requirements are met, the bank will deposit a $300 bonus. Then I can close the account and start again with a different bonus. There is also a $700 bonus, but this requires a $50,000 deposit, I don’t feel it’s worth it.

Debt

Mortgage is going down to 711,493.59 (-$1,255). Car loan is down to $6,193(-$163). And credit card debt are at $5,175, down from the high of $7,000 in December. The low CC balance reflects the minimal expenses of this month.

Leverage Ratio: 70.82% (-0.39%)

Nice to see this ratio in the lower 70% .Will I be able to make it reach 60% before the end of the year? We’ll see! Total liabilities $722,862.12 are while assets are $1,020,742.16.

Income

Total income on February was $12,091.92, not including income from investment, CC bonuses, etc.

Expenses are minimal at $4,874.81, this includes more than $1,500 for mortgage interest. So less than $3,000 for a family of 5 living in one of the costliest place on Earth.

The main source of expenses are: Home, Food, Children, Utilities and Cars (!). I could reduce car expense further (~$400/year) by getting rid of one car. This would also help with the depreciation. Furthermore, I used the ‘Trim’ service which slashed $10 of my Comcast (Internet) bill.

This gives our family another great saving rate of 64.83% for the month of February. The 12 month saving rate is now at 46.43%, up from 41.34% from last month. We are getting closer to the 50% objective.

See you next month!

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