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ran the numbers

October 9th, 2008 at 04:05 am

Saving log - $1 tip box
Spending log - $13 lunch

I looked at the totals of all of my accounts and compared them to the numbers that I ran on my net worth on 6/30/2008.

I've lost $25.7K since late June.

Today, my dividend stock portfolio, about 4% of my total net worth, is down about 16%. KO is still showing a profit - my average share cost of KO is $42, so it has to drop a bit more before I lose money. WEC is also showing the barest of profit (8$). In other words, both have "the margin of safety".

If KO gets down to $42, I think that's when I will buy more. The rest of the DRPs I will maintain the discipline and dollar cost average. Dip implies a drop and then a rise. Well, while I believe in the rise, it looks far, far away.

In May last year, I re-allocated my 403B holdings to (for me) a very conservative mix - 30% bond, 20% cash, 10% gov bonds, 40% stock. (I was 90% stock, 10% bond). I

Text is blogged and Link is http://baselle.savingadvice.com/2007/05/09/decisions-decisions_25877/
blogged about it quickly, but didn't discuss it much in real life. I figured I would get teased for trying to "time the market". I'm glad I did, and would do it again - I'm down about 10% on the 403B holdings.

The rest is cash and cash equivalents (T-bills, I-bonds). Most of grandma's inheritance is still in a cash money market in Vanguard. Vanguard is participating in the Treasury Guarantee program, so if it "breaks the buck", we'll all be standing around burn barrels to keep warm.

So far I've kept my nose above water and have done much, much better than many. I do want to explore getting out of the very conservative mix of my 403B (stocks are about to get cheap enough for buying on that margin of safety), but I want to do so in a thoughtful, calculated way. I plan on blogging my thoughts, calculations, and analysis. I've been giving advice to others about looking into what they have in mutual funds and making reasonable decisions based on that. Time to practice what I preach.

4 Responses to “ran the numbers”

  1. Broken Arrow Says:
    1223527331

    Wonderful. I feel pretty much the same way. I think people mustn't run from the market if they can help it, but we also need to be well-thought out in our approach. The market isn't very forgiving right now.

  2. baselle Says:
    1223573491

    If you are going to run, run to an opportunity.

  3. Michelle Says:
    1223683581

    Why is your cash in Vanguard and not in a CD?

    Just wondering!

  4. baselle Says:
    1223707206

    Its not in a CD because I was and frankly still am planning to put it into mutual funds and equities. I already have quite a bit in CDs.

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