Comments on: Networth Review for 2006 & Dec 06, 38% up for my best buys http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: Frugal http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/comment-page-1/#comment-2154 Frugal Sat, 06 Jan 2007 21:54:52 +0000 http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/#comment-2154 I do max out my 401K every year (except my first year). I don't have a Roth IRA initially because I didn't want to have too much money tied in retirement accounts. But for the past few years when I can really afford to stash away more money, I am not qualified to put ANY money due to my high AGI. I do have slightly more than $100K in my retirement account after maxing out throughout past decade. You should be able calculate and see that such amount cannot impact my net worth or portfolio by too much. I do max out my 401K every year (except my first year). I don’t have a Roth IRA initially because I didn’t want to have too much money tied in retirement accounts. But for the past few years when I can really afford to stash away more money, I am not qualified to put ANY money due to my high AGI.

I do have slightly more than $100K in my retirement account after maxing out throughout past decade. You should be able calculate and see that such amount cannot impact my net worth or portfolio by too much.

]]> By: Ray http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/comment-page-1/#comment-2148 Ray Fri, 05 Jan 2007 18:27:49 +0000 http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/#comment-2148 Frugal are you saying, that even after maximizing your 401k over the years, it does not have a signifigant impact on your overall portfolio? Do you feel you can make more money trading than by taking the tax breaks now with the 401k? I assume you are maxing out your Roth IRA also? Just curious as to why your non-retirement portfolio is dwarfing your retirement portfolio. Frugal are you saying, that even after maximizing your 401k over the years, it does not have a signifigant impact on your overall portfolio? Do you feel you can make more money trading than by taking the tax breaks now with the 401k? I assume you are maxing out your Roth IRA also?

Just curious as to why your non-retirement portfolio is dwarfing your retirement portfolio.

]]> By: Frugal http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/comment-page-1/#comment-2145 Frugal Fri, 05 Jan 2007 15:52:22 +0000 http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/#comment-2145 I lump everything ALL together into my performance calculation. My 401K is small compared to my entire portfolio. Whether it did -20% or +20% will not matter significantly to my portfolio. The biggest loss obviously came from my employing company holdings (options, shares, etc), down by 39.25% in the last 8 months. That has always been the biggest swing factor for me. The next is certainly my own portfolio. I keep some money as home equity in my home to reduce the crazy volatility. I lump everything ALL together into my performance calculation. My 401K is small compared to my entire portfolio. Whether it did -20% or +20% will not matter significantly to my portfolio.

The biggest loss obviously came from my employing company holdings (options, shares, etc), down by 39.25% in the last 8 months. That has always been the biggest swing factor for me.

The next is certainly my own portfolio.

I keep some money as home equity in my home to reduce the crazy volatility.

]]> By: Ray http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/comment-page-1/#comment-2144 Ray Fri, 05 Jan 2007 13:13:19 +0000 http://www.1stMillionAt33.com/2007/01/networth-review-for-2006-dec-06-38-up-for-my-best-buys/#comment-2144 Frugal says: "I hope it will not happen in the future, but I can literally go down to below one million net worth in less than a month. In fact, in about two months between 5/9/06 and 7/21/06, I lost 28.4% of my net worth mainly due to my company stock options. It was certainly very hard to stomach such a horrendous loss. In fact, I probably won’t be recovering majority of that loss anytime soon." Without going back and reviewing, what were your biggest losses in? I checked my personal rate of return from 5/1/06 through 7/30/06 in my 401k and I was down -8.48%. I was able to recover and ended substantially in the green. My entire portfolio was up around 17% for 2006, and I'm averaging very good returns for the past 3 years in my 401k. 401k Personal Rate of Return (as of 12/31/2006) 3 month YTD 1 year 3 year 3 year avg 9.17% 17.02% 17.02% 48.85% 16.28% Roth IRA Q1 Performance -2.67% Q2 Performance 7.22% Q3 Performance 1.92% Q4 Performance 8.36% 2006 YTD Return 15.24% Do you have the rate of return for your 401k / IRA broken out from your trading account(s)? I'd be interested to see how your retirement accounts compare. Now I don't have the rate of return for my trading account, but I'm fairly sure it's in the negative. I trade on some speculative stocks with this account, and I had some bad things happen last year. Some things could happen in 2007 which could have a significant positive effect. My personal trading account has only a relative small affect on my wealth, so I tend to have some very large swings. As I get older I will reweigh some of my holdings and bring down the volatility. Luckily as you can see I do not employ the same investing attitude in my retirement accounts as I do my personal trading account. Frugal says: “I hope it will not happen in the future, but I can literally go down to below one million net worth in less than a month. In fact, in about two months between 5/9/06 and 7/21/06, I lost 28.4% of my net worth mainly due to my company stock options. It was certainly very hard to stomach such a horrendous loss. In fact, I probably won’t be recovering majority of that loss anytime soon.”

Without going back and reviewing, what were your biggest losses in? I checked my personal rate of return from 5/1/06 through 7/30/06 in my 401k and I was down -8.48%. I was able to recover and ended substantially in the green. My entire portfolio was up around 17% for 2006, and I’m averaging very good returns for the past 3 years in my 401k.

401k
Personal Rate of Return (as of 12/31/2006)
3 month YTD 1 year 3 year 3 year avg
9.17% 17.02% 17.02% 48.85% 16.28%

Roth IRA
Q1 Performance -2.67%
Q2 Performance 7.22%
Q3 Performance 1.92%
Q4 Performance 8.36%
2006 YTD Return 15.24%

Do you have the rate of return for your 401k / IRA broken out from your trading account(s)? I’d be interested to see how your retirement accounts compare.

Now I don’t have the rate of return for my trading account, but I’m fairly sure it’s in the negative. I trade on some speculative stocks with this account, and I had some bad things happen last year. Some things could happen in 2007 which could have a significant positive effect. My personal trading account has only a relative small affect on my wealth, so I tend to have some very large swings. As I get older I will reweigh some of my holdings and bring down the volatility.

Luckily as you can see I do not employ the same investing attitude in my retirement accounts as I do my personal trading account.

]]>