2007 Net Worth Update: +19.7%

Posted by Madison

We finished the year with a 19.7% change in our accessible net worth. We fell just short of our 21.6% goal for the year.

dec 07 net worth

Our total net worth change since January 2003 is 1062.5% just missing our dollar plan goal of 1080%.

dec 07 total net worth

Highlights

Our top three individual stocks held all year were:

  • Exxon Mobil
  • Procter & Gamble
  • Johnson & Johnson

We have been slowly eliminating all individually held stocks with only 9 remaining. I would like to eliminate these positions in 2008. (Exxon may be the sole exception). I would prefer to use all index funds and limit individual stocks to our holding in my investment club.

Our top three mutual fund sectors held all year were:

  • EAFE International Index Fund
  • Investment Club
  • Total Bond Fund

This list is somewhat misleading as most funds were exchanged when we adjusted our asset allocation. I thought I would list them anyways.

Why We Were Short

The Total Stock Market index returned 5.49% for 2007. It accounts for a large portion of our portfolio. In addition, I have been on maternity leave since the birth of our second son in September. I haven’t been contributing to my company plan since then as the majority of my leave is unpaid. While it isn’t very significant in terms of our overall portfolio, every little bit counts!

Accessible Net Worth

Only our investment accounts are included in these updates. I exclude home equity and assets because I do not plan to convert them to an income stream in the future. I refer to the modified number as accessible net worth so as not to confuse it with a true net worth (total assets – total liabilities).

Estimates

One fund does not update until about 2 months late with deposits reported 4 months late. In addition, six DRIP plans have not updated. I have estimated these positions with conservative numbers. The total returns will be adjusted as they report in future monthly updates.

Action Plan

While I’m slightly disappointed that we didn’t meet our goals for the year we are close enough that I don’t feel the need to make adjustments to the plan or our 2008 goals. I may consider adding some additional funds to one of the accounts towards the end of 2008 once I see how the upcoming year plays out.

Previous Net Worth Updates:

See how other personal finance writers did in 2007 (I will link to them as their net worth updates are posted throughout the day):

How did your investments do in 2007?






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Comments to 2007 Net Worth Update: +19.7%

  1. Wow Madison, that is awesome growth. Love the charts too. I am going to be more diligent about keeping track of mine this year.

    glblguy

  2. That’s excellent growth! It’s cool to see the past few years included…I only hope mine will look something like that in the future. :)

    Mrs. Micah

  3. @ glblguy: Yeah, the charts really put it into perspective!

    @ Mrs. Micah: It will, just keep at it with your Roth IRA!

    Madison

  4. Boy, I would love for my networth discussion to be dominated by investing. . .not debt.

    rocketc

  5. Just out of curiosity, why do you want to eliminate all of the individual stocks? Did they underperform this year or is it more a philosophical shift?

    Dave

  6. @ Rocket: Keep at it, and soon it will change directions!

    @ Dave: It has nothing to do with performance, but more from a liquidity standpoint. They are all DRIPs and would be a pain to sell quickly. If they were in a brokerage account, it might be different. I have fractional shares though.

    Madison


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