March 2008 Net Worth Update
I’m up quite a bit because I was able to get my Medical FSA reimbursement earlier this month. It’s up 14.2% month over month and up about 15% from March of last year.
The main thing I noticed is that my main retirement account holdings is down 8.88% since the year began. That’s a lot and it’s kind of disturbing since that’s an old 401k plan to which I cannot add new funds to dollar cost average out that low dip. I’m now safely past the 60-day holding period for selling off my funds without penalty so I can roll it over and out of the plan holder’s firm. But I think I’ll wait another quarter anyway just to see if the S&P improves any before selling it off and moving the money. Someone told me I can have the fund shares transferred without being hit with penalties for moving money in and out of a fund to quickly, but honestly, nothing in that account really thrills me. I’d rather sell everything in it and reallocate it all.
I took a close look at my abnormally high cash holdings. Since I get paid on the last day of the month with my new job, I expect that I will continue to have artificially high cash holdings unless I start doing some planned liabilities to offset that amount. It disturbs me because usually I have a mortgage payment waiting to go out of that money right after the new month starts.
At any rate, I think I can almost double my usual credit card payments in April. I have been hoarding cash a little due to my friend possibly needing to borrow money and wanting to buy a replacement laptop. But I think I am going to buy neither right now. I am going to another wedding in Boston in April and I plan on using a credit card to pay for that trip. It’s mostly just a hotel, gift, and a possible car rental. I hope to use cash for all other expenses that weekend since I can look at it as a self-indulgent spending weekend at home in DC. Costs for meals should be comparable.
Brian A wrote:
Regarding your old 401(k) plan that is down this year:
I know it may be emotionally difficult to accept the nearly 9% lost this year but there is no logical reason for holding on to it in hopes it does better next quarter. You already said you are not happy with your holdings there so I think you should cash out now and transfer the money to a rollover IRA (or your current 401(k)) where you’ll have more control.
“Ignore sunk costs in all future decision making”
My 2 cents - not that you were asking
Posted on 03-Apr-08 at 11:25 am | Permalink