How did you do in 2004?

[cute fuzzy bunny]

I poked at her a lot while she was sleeping but that just made her grouchy.

I told her if she didnt deliver by superbowl sunday though we were going in. No way am I watching the game on a little screen without a tivo.

 

[retire@40]

My net worth (not including the house) increased 19.23% from last year.  My moving average since 1996 is 16.20%, so I'm very happy with 2004 results.

In January 2004 I had projected a 7.71% net worth increase for 2004, but extra earnings and savings as well as the 4th quarter market rally gave me an unexpected boost.

My projection for net worth increase in 2005 is 7.23% which will bring my projected moving average to 15.30%.

 

[Calgary_Girl]

Considering that we entered 2004 with some job uncertainty (both hubby and I had just started working on contract) we finished the last 6 months of 2004 fairly decent.

Our net worth increased by 30% in the past 6 months alone due to permanent employment for the both of us, higher salaries and therefore higher savings.

 

[wabmester]

Our net worth increased by 30% in the past 6 months alone due to permanent employment for the both of us, higher salaries and therefore higher savings.

You two must be new here. There's an unwritten rule that employed people aren't allowed to make up goofy IRR numbers that include unstated savings from earnings.

And besides that, just the thought of "permanent employment" is enough to give many of us here a bad case of the heebie-jeebies.

 

[cute fuzzy bunny]

Think of Donald Sutherland at the end of the remake of "invasion of the body snatchers".

We're all point at you and making a shrill sound.

 

[retire@40]

You two must be new here.   There's an unwritten rule that employed people aren't allowed to make up goofy IRR numbers that include unstated savings from earnings.

I'm still in the accumulation phase even though I am semi-retired.  That's why I'm more concerned with net worth change rather than just ROI.  I know where my net worth needs to be by the time I'm 40.

Besides, the topic is "how did you do" not "how did your investments do."

 

[wabmester]

Besides, the topic is "how did you do" not "how did your investments do."

Oh, fine. That game is much easier to win. My 22-month old daughter had $0.05 in her piggy bank at the start of the year. I gave her $3 over the course of the year. Her net worth is up 6000%.

 

[retire@40]

My 22-month old daughter had $0.05 in her piggy bank at the start of the year.   I gave her $3 over the course of the year.   Her net worth is up 6000%.

She's on her way to FIRE! Now if she can make 6000% for the next 4 years, she will have $39 million.

 

[kayelem]

Calgary Girl:
My answer would have been similar to yours, but since I couldn't easily take out savings to get a true return I stayed quiet in anticipation of shrill noises and pointing.

Last year 2004 was our big push before I ER and then my husband in a year or two.

Being that my resignation is still sitting on my desk instead of my boss's maybe we'll continue to accumulate this year.

I am hesitating now that I understand that the SWR is only 2% (I will point out that this is in jest, since you all don't know me that well).

 

[nearly50]

1-1-2002 to 12-31-2003: Net Worth up 72.1%
1-1-2003 to 12-31-2004: Net Worth up 35.5%

This does NOT include home value appreciation, but does account for the amount of mortgage debt paid off through extra principal payments, plus a modest amount of new investments mostly through our 401k's. Home value appreciation over that time period (2002-2004) is estimated at 40%.

Stock equity fund appreciation accounts for most of this growth, but new money saved (and not spent) are a close second.

It's been a good 2 years. We made back all of our losses from the dot.com bust and then some. We just let our investments ride along with the market (70% equities (large cap and index funds), 15% bonds, 15% fixed income).

The last 2 days (1-3 and 1-4-2005) don't have me worried too much. This is just normal profit taking, and I myself participated in this. Let's hope that 2005 is at least as good as 2004.

 

[dm]

If were talking about increases in net worth my numbers are quite a bit different. I still only made about 8% on my investments but my net worth increased 22%. I do not include my home but do include paying off the mortgage. I plan on ER in 140 days but who's counting.

 

[Beachbumz]

We base things on Net worth also. Our Net Worth was up by about 25% this year due mostly to huge appreciation in our real estate, which has now been mostly sold, so we don't expect that again for the future. Finally, our net worth has caught up to our spending. 8)

Hopefully, it will not matter, since wabmester's daughter should be able to support all of us after 4 or 5 more years.

 

[sgeeeee]

Oh, fine.   That game is much easier to win.   My 22-month old daughter had $0.05 in her piggy bank at the start of the year.   I gave her $3 over the course of the year.   Her net worth is up 6000%.

Hi wab,

Will you adopt me and increase my net worth by 6000% this year?

 

[wabmester]

Will you adopt me and increase my net worth by 6000% this year?  

Sorry, I won't be adopting anybody for a while.   I'm still recuperating from last night.    I was a mess.   Ran around naked outside in freezing temps screaming "Permanent Employment!   Permanent Employment!"

My doctors will follow-up with an address to send your well wishes.

 

[sgeeeee]

Sorry, I won't be adopting anybody for a while.   I'm still recuperating from last night.    I was a mess.   Ran around naked outside in freezing temps screaming "Permanent Employment!   Permanent Employment!"

Sorry to hear it. I feel your pain, wab.

 

[haha]

Best investment return of the year:  from an hours work and a 9 month holding period - a 50% return!!
(Our daughter was born in January, and family of 2 became 3)

Wow! A sixty minute man. Way to go!

Mikey

 

[retire@40]

My answer would have been similar to yours, but since I couldn't easily take out savings to get a true return I stayed quiet in anticipation of shrill noises and pointing.

I keep track of both, but since my goal is to achieve around $1mil of net worth, I care more about my net worth amount than I do my ROI.

By the way, my ROI this year was 9.83% not including any added savings. I did much better than that on my equities (around 18%), but I've got a large chunk in cash accounts that dragged my return down.

 

[John Galt]

I track net worth obsessively, but not ROI. Of course,
with most everything long term and fixed, it's not a
hard computation.

Called my broker yesterday as I noticed a little bit of "lazy money" sitting in their MM account and paying me 0.83% (not a typo). He tried (for the umpteenth time) to talk me into dumping this build-up into a
mutual fund. I thought he had given up

JG

 

[haha]

I just figured my return for 2004. I am up 16%. I am fully retired with no income source, so that figure is net of federal taxes paid ($14,000 estimated 2004 and final 2003); and living expense of about $28,000.

I feel quite good about this, as I had over 50% in fixed < 1 yr maturity. Also I made some fairly heavy and so far losing bets on QQQQ puts. Some have or will shortly expire worthless, some live on to fight another day. Another negative was poor results in my gold stock account.

Foreign stocks and US stocks did well, as did foreign bonds.

Day before yesterday I cut further my US equity exposure, incurred some more tax for '05, but I think positioned myself better for what I expect will be a down year.

I don't claim to be guru. But here is how I look at changing my risk exposure. I am walking down an urban street at midnight. I see a couple of young men approaching with a pit bull. I don't know that they or the dog are dangerous to me- They quite possibly or even probably are not. Still, I am going to attempt to cross the street. If I don't, I consider myself a dumb-ass.

Mikey, a dirty market timer

 

[Beachbumz]

John, when they make there share of the 5.75% sales load and residuals, they will probably not give up on the mutual fund idea!

 

[wabmester]

But here is how I look at changing my risk exposure. I am walking down an urban street at midnight. I see a couple of young men approaching with a pit bull. I don't know that they or the dog are dangerous to me- They quite possibly or even probably are not. Still, I am going to attempt to cross the street. If I don't, I consider myself a dumb-ass.

Sorry, Mikey. It turns out those were two horny young women and their french poodle.

 

[Calgary_Girl]

You two must be new here.   There's an unwritten rule that employed people aren't allowed to make up goofy IRR numbers that include unstated savings from earnings.

And besides that, just the thought of "permanent employment" is enough to give many of us here a bad case of the heebie-jeebies.

Wow, tough crowd. I find that by tracking our net worth, it gives us a more realistic picture of how we are doing. We can track our investments all we like but if we are increasing our debt load at the same time, then what's the point? Just my opinion of course.

As for the permanent employment line, I was hoping for a bit of sympathy from you

 

[haha]

Sorry, Mikey.  It turns out those were two horny young women and their french poodle.

C'est la vie Monsieur Wab, n' est pas?

Monsieur Mikey

 

[JohnP]

I'm fully retired - wife works half time - both collect cola'd pensions.  We don't touch retirement savings yet (we're 61 and 64)  We currently save roughly 25% of our income - just practicing till she quits fully in 18 mos.

Portfolio increase (factoring out current savings ) for 2004 was 11.87%

Net Worth increase (not including house value changes) for 2004 was 11.9% also.

I sold about 30% of our portfolio on Dec 30 and moved it to cash - still have 50% equities after the sale.  I've been watching the market move into the neighborhood of all-time record valuations and I see 'buy' signs for most funds I would consider... but the contrarian in me says 'sell' when everyone is in a rush to buy.  The huge deficits, unemployment (we live in Ohio), and wasteful govt spending has me concerned for us FIRE-guys and for the country...

JohnP

Update: looked closer at net worth this morning and determined the 2004 net worth increase was actually +15.2%

 

[retire@40]

I find that by tracking our net worth, it gives us a more realistic picture of how we are doing.  We can track our investments all we like but if we are increasing our debt load at the same time, then what's the point?

That's why I think it's more important to look at the balance sheet rather than the income statement, even though the latter feeds the former. You could have a 20% return on your investments year after year and still go bust.