Retirement Nestegg Report – September 2011

Retirement Nestegg Report – September 2011

Well I had a hunch this month was going to be ugly and well I was right. Overall the market fell 7.42% on top of the 7.79% that it fell last month so things are getting pretty exciting as far as being able to invest money at lower cost basis, but the bad news is this month I broke my streak of of seven straight months of besting the SP500 index and well I broke it in stunning fashion losing by 3.48% overall this month and my stock portfolio losing by 5.60% just this month. There is a pretty logical explanation for all of this and his name is Reed Hastings 🙂 My best performing stock and also my largest individual stock holding Netflix fell about 50% just in the last month which has has a significant impact on my portfolio’s performance this month.

The good news I think is that I believe I have come a somewhat seasoned investor and having my largest single stock investment fall by 62% in a few short months and my overall retirement nestegg fall by nearly 20% from its all time high in April really gets no other reaction out of me other than a slight chuckle and some excitement that I might get the chance to make some very attractive investments in the next few months. I still very much feel like I am on the exact right track and I have kind of dealt with a somewhat worst case scenario (not saying thing won’t go lower), but things are sort of hitting the fan again in the market, my largest stock holding by far gets cut in half in a single month, and my retirement nestegg is still $100k larger than it was the last time things went to pot just a little over two years ago.

Also while Netflix was my largest stock holding it never really accounted for much more than 10% of my individual stock portfolio and maybe roughly 5-6% of my overall retirement nestegg so while I certainly felt things it didn’t permanently wreck my portfolio which I think is a good experience to go through and now going forward I will have a better understanding of how to handle diversification. And while it sucks to be down 60%+ on a stock in just 2 months its hard to get too upset when I’m still up nearly 450% on all of my Netflix investments and I personally feel the sky is not falling and Netflix still has a lot going for it and will very likely be a good performer moving forward.

So as to what I am going to do – I will probably follow the market a little closer than I did when it was constantly going up and will look to contribute more funds as the market is falling. I do have a stash of about $10k in cash in my 401k account kind of waiting for an opportunity like this and well I may put my house/land savings on hold if the market presents me with some attractive prices as I currently have $112k saved up for our next house so feel I can probably start diverting more money back towards our retirement nestegg going forward and still have the flexibility to jump on a land purchase if it presents itself. Overall with the worsening stock market and worsening real estate market I feel like I have put myself in real good shape over the last 5+ years to put myself in an even better position 5+ years from now.

Traditional Rollover IRA – $13,209.23 (-8.80%)
My Roth IRA – $44,930.66 (-10.54%)
Wife Roth IRA – $19,431.03 (-20.60%)
Current Traditional 401k – $80,286.67 (7.93%)

Roth/Traditional % = 40.77 % (tax free)

Total Retirement Nest Egg $157,857.59 (-10.50%)

Monthly Contributions $693.10 (401k)
SPY Performance -7.42%
My Monthly Investment Performance -10.90% (-3.48%)
My Monthly Individual Stocks Performance -13.02% (-5.60%)

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