Networth Review in July 06
Posted by Frugal on August 3rd, 2006
For the last month from 06/30/06 to 07/31/06,
- Networth is down by 9.67%.
- Value of my company holdings (stock options, ESPP, etc.) is down by 55.38%.
- Everything else excluding my home and cash is up by 3.47%.
- If including cash in #3, it’s up by 2.80%.
- My savings of the last month were pretty much 0.1% of my total networth, or 82.5 years to replace all of my networth.
For the past three months, 05/09/06 to 07/31/06,
- Networth is down by 23.51%.
- Value of my company holdings (stock options, ESPP, etc.) is down by 76.59%.
- Everything else excluding my home and cash is down by 2.03%.
- If including cash in #3, it’s down by 1.31%.
- My savings since 5/9/06 were 0.79% of my total networth, or 31.65 years to replace all of my networth.
This month, I adjusted my mortgage balance so my networth got a little boost. I didn’t do much for my cash positions. I regretted not having put my cash into use at my second call for the gold market short term bottom which was right on money so far. For my own managed portfolio, I have recovered most of my losses. Unfortunately, my company stock goes from being very bad to very very very bad. It has been down almost 60% from the peak, and my stock options lost close to 90% of its value. That is the primary reason for a poor showing of my networth this month again. I hope that I don’t need to repeat it one more time. Actually, the worst it can get is to lose 100% of its value. 10% more to go now.
Special note: returns were calculated by subtracting 3.00% APR return of my cash position.
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August 3rd, 2006 at 6:36 am
Yep. Same sad story for me. I work for a huge tech company (No, it\’s not Micrsoft — I wish), and our stock has taken a dump. I feel your pain!
August 3rd, 2006 at 12:41 pm
As close as I track my financial situation, I can easily add “net worth” and each time I do, I take it out, because it doesn’t seem to be meaningful to me. Of course you’ve got a web log title to achieve. Unvested options… what can ya do?!
August 3rd, 2006 at 1:00 pm
Actually, most of my options are vested. So they are VERY meaningful to me. Yeah, and I lost pretty much everything on my options. Actually, the remaining values are mostly in terms of shares that I have bought through company ESPP programs. Yeah, stupid me that I didn’t sell.
In any case, it is what it is. Earlier in the year, I was simply too busy doing everything else, except taking a close look at my option values.
By the way, all the values that I post on my website have taken taxes into account for “potential” option exercises. The only taxes that I have not accounted for are my capital gain taxes on my stocks, and potential taxes in my 401K account. Although the percentage of those are quite small to my overall networth, they’re growing bigger. At some point, I will probably take a cut and account for the unpaid taxes.
August 3rd, 2006 at 1:35 pm
Wow, sorry about those company holdings. Jeez, a 55% drop is pretty significant…
I do like that you take into account taxes already…helps create a much more realistic idea of value…
For what its worth, I have stock options that are priced at about 150% of current stock value. So yeah, I might as well put those in the shredder.