February 2008 Net Worth Update: -1.8%

Posted by Madison on March 3, 2008

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:

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:




You can get my latest articles full of valuable tips and other information delivered directly to your email for free simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.

Email:

Print Print   |  Email Email   |   8 Comments

Comments to February 2008 Net Worth Update: -1.8%

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

    FT

    MillionDollarJourney


  2. 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


  3. @ 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


  4. Congrats on just keeping track of everything. THAT’S my biggest hurdle.

    Ron@TheWisdomJournal


  5. 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


  6. 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


  7. Shouldn’t you have a hedging strategy for down markets? $3 trillion in hedge funds can’t be wrong!

    Lost Cause

  8. @ 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


Previous article: «
Next article: »