February 2008 Net Worth Update: -1.8%

Our portfolio declined by 1.8% in February. It brings our year to date total for 2008 to -5.6%.

The total percent increase (not to be confused with total return) of our portfolio since the beginning of our dollar plan is 989.6%, dipping under 1000% for the first time since last July.

Feb 08 total net worth graph

The Good News
Despite the declining balance we have a few items that are worth celebrating:

Our 457 plan lowered the expenses. For our current balance it will result in .03% less in fees. As our balance grows the savings will be even larger because they also implemented a cap on the fees.
Our decision to add bonds to our portfolio during our overhaul last fall is helping offset some of the decline.
Now that I’ve returned to work I will resume contributions to my retirement account. It will now be directed towards my Roth 401k.

February Performance Highlights

Individual Stocks

Best: Exxon Mobil continues to lead the pack.
Worst: Fifth Third Bank. I’m ready to sell this stock and take the loss. It took forever to get our certificates added to the DRIP plan so that we could sell everything in one transaction.

Mutual Funds

Best: Vanguard Emerging Markets Index
Worst: EAFE Index Fund

Here’s some of the YTD returns for the US Market for comparison:

The S&P 500 is down -9.38% for the year.
The Dow Jones Industrial Average is down -7.53% for the year.

Action Plan

While it’s disheartening to see our portfolio drop by over $25,000, I’m still comfortable with our decline. Our contributions are very small in relative value to our portfolio value at this point so there isn’t much I can actively do to change the impact of the market. I am comfortable with our asset allocation and plan to sit tight, as we are investing for the long term.

Previous Net Worth Updates:

Check out how others did in February:

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8 Responses to February 2008 Net Worth Update: -1.8%

Thanks for the mention. Don’t worry about minor setbacks, it’s all about the big picture.

FT
MillionDollarJourney
March 3rd, 2008 at 9:53 am
I’m like you, I invest for the long-term. These dips in the market just mean that I’m buying at a discount. I like your detailed net worth update. You are really on top of your money!
Jeff@MySuper-Charged Life
March 3rd, 2008 at 12:13 pm
@ FT & Jeff: Yeah, it’s ironic. Before starting the website, I didn’t even track it by month so I normally was oblivious to the dips.
Madison
March 3rd, 2008 at 1:23 pm
Congrats on just keeping track of everything. THAT’S my biggest hurdle.
Ron@TheWisdomJournal
March 3rd, 2008 at 3:57 pm
I’m impressed by the 1000% increase in 5 years. Some say we are in for a very rough 2008. Guess we’ll see!
No Debt Plan
March 3rd, 2008 at 7:17 pm
I have to second what was said. The gains are the impressive part! This is why you always need to look at total track record and ignore those one-year wonders!
RacerX
March 3rd, 2008 at 10:35 pm
Shouldn’t you have a hedging strategy for down markets? $3 trillion in hedge funds can’t be wrong!
Lost Cause
March 4th, 2008 at 3:06 am
@ Lost Cause: Hedge funds are something I’ve never researched since I’m such a boring asset allocator. Want to educate me on them?
Madison
March 6th, 2008 at 9:23 pm