Category Archives: Investing

Update On My Friend Who Pulled $100K Out Of The Market

My post regarding my friend who pulled $100,000 out of his investments when the Dow plummeted last week received a lot of comments. Therefore, I felt an update was warranted. I spoke with my friend yesterday and it turns out that he reinvested the money almost immediately. He might have lost a few bucks, but the bulk of the money is back in the stock market. Obviously, I was really happy that he made that decision. We ended up having a pretty good talk about money. I appologized for butting Read more [...]

In A Panic, My Friend Pulled $100K Out Of The Market

My best friend inherited $100,000 when we were in college over 10 years ago. He blew through the money quickly and ended up with nothing to show for it. A couple of years ago, he received a 2nd inheritance of ~$160,000 and swore not to make the same mistakes. He immediately worked with a financial planner, investing $100,000 and depositing the remainder into a savings account. During our conversations over the past couple of years, I got the impression that he was slowly spending the money in Read more [...]

Stock Options Package

The company I work for split into two companies a couple of years ago and both are still privately owned by the same person. Since the split, the Owner has hinted that some key people in management may receive stock options down the road.My company has provided stock options in the past, but not while I have been with them. The recent splitting of the organization resulted in a new Board of Directors and a fresh look at offering a stock option plan. I found out last week that seven of us received Read more [...]

What A Difference A Year Makes

Last August, I posted about how our financial situation had significantly changed for the better from two years prior. What’s interesting about that post is that 10 days later, my wife was laid off from her job and we faced a potentially challenging time. Less than a week after being laid off, we were blessed with her receiving a new job, saving us from what could put our financial situation in dire straits.Well, now I’d like to take a look at August 2007 compared to August 2008 (see below). Read more [...]

Balancing Act

My wife and I are trying to find the balance between long term investing (retirement) and short term savings (emergency fund, house, etc.).I tend to focus too much on investing for retirement, and am eager to put all of our spare money into either our Roth IRA’s or 401(k). The power of compounding is amazing and time is the most important element. The more money we can invest now, the better off we should be later. This simple table demonstrates that a person who invests early and for just eight Read more [...]

What A Difference A Couple Of Years Make

Over the weekend, I was looking at an old copy of our financial spreadsheet from 2 years ago. It brought me back to a time of financial struggle and uncertainty.At the time, we were renting an apartment, in a lot of debt (my fault), and had little in the way of assets. Comparing the numbers from 2005 with 2007 reminds me how greatly we have been blessed. Here is a brief breakdown of where we were financially in August 2005 and were we are today:August 2005Liquid Assets$5,157.00 401(k)$1,547.00 Cash Read more [...]

Market Ups and Downs

I update our net worth in our spreadsheet almost daily, but only post updates to this blog on the 1st of every month. That being said, it drives me a little crazy when the stock market does great all month, and then, just as I get ready to post our new net worth on the 1st, the market drops. I know it doesn’t matter long term, and in fact, it is better for us because we are buying mutual funds at a lower price. However, I wish it would just wait until after I post the update on the 1st. The Read more [...]

Investing Plan – Update

We have made good progress with our Investing Plan, and have tweaked it a bit along the way.401(k)Our 401(k) is currently at $13,184.13. We have increase our contribution from 2% to 3%, effective July 4. To better diversify our 401(k), we have reduced the percentage allocation of each mutual fund, and added a couple of additional funds. Our current holdings are:16% - JH Lifestyle Aggressive (1.47% expense ratio)16% - Pacific Rim Fund (1.46% expense ratio)16% - Real Est. Securities Fund (1.19% expense Read more [...]

Pride of Ownership

I don’t want to put words in her mouth, but I think my wife is now as obsessed with watching our investments as I am.One of the first things I do each morning is to check the status of our investments. Not to react to the ups and downs of the market, just because I enjoy seeing how things are going.While my wife has been very interested and active with our investments, she hasn’t been as OCD as am I in terms of checking them daily. At least, not until recently. . .She just opened a Roth IRA account Read more [...]