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Net Worth Report - End of 04/07

This month was especially busy for me and I didn't make time to research new investments, so I'm still sitting on a lot of cash that's only earning 5%. I got a new batch of restricted stock grants as part of my performance review, and that combined with Intel stock rising 12% last month means that I'm no longer comfortable with my exposure to Intel stock. Counting unvested assets, it's almost 10% of my net worth — too high! I've decided to sell all my ESPP shares (despite the unfavorable tax treatment they'll get) in order to reduce my exposure.

Yes, it's a complete reversal from last month, where I defended holding on to my ESPP shares. :)

Net Worth Figures
Category03/0704/07
Total$534,995.65$573,112.57
Short-term$27,895.70$33,128.20
Medium-term$117,021.14$146,348.77
Retirement$197,071.76$201,416.30
Property$193,007.05$192,219.30

I haven't had time to reconsider the next section. I still think it will be useful for me to break out investment performance from income.

Goal-Tracking Figures
Item03/0704/07
Adjusted Net Worth$503,040.55$521,009.44
Next Month's Target$505,603.75$523,425.96
Estimated Contribution-$237.94-$468.97

No activity on credit card arbitrage this month.

Credit Card Arbitrage Figures
Item03/0704/07
Balances @ 0% APR$19,654.13$19,455.94
Monthly Payment$393.08$389.12

You can keep track of other personal finance bloggers at NetWorthIQ. I've updated my entry there.

Comments: 2

1: Don Lloyd
2007-05-02 11:03:24 UTC

Kyle,

If 10% of your net worth in Intel stock is too high because its perceived risk/reward doesn't justify it, that's one thing, but if 10% is a fixed policy limit, then the policy limit number would seem to need to change as both your age (especially) and your net worth increase.

A 10% position at the brink of retirement is far different than a 10% positiion with 30 years to go, given a similar investment outlook.

Regards, Don

2: Captain Arbyte
2007-05-03 05:53:31 UTC

I felt insufficiently diversified with such a large percentage in a single company.

Amusingly, as I was looking at the numbers I realized that it was a good time to sell. Due to the tax math on ESPP shares, it's possible (but unusual) to have less tax liability by selling them in less than two years from grant, vs. waiting for two years. This was one of those times for two of the three ESPP lots I hadn't already sold.

I decided to keep the third.

The comment period has expired.

Tiny Island