BLOODBATH! – Net Worth Nov 2018

Well at least by the time I counted it all up it was bloodbath with a lower case ‘b’.

October 2018 turned out to be truly scary!

But, we here at OthalaFehu know that the markets fluctuate. Our portfolios are designed to weather such storms. That doesn’t mean that they don’t suck. They do.

But we will ride them out for it is always darkest before the dawn and peaceful seas never made skilled sailors.

A further earmark of the soundness of our current strategy is that there were not even course corrections to make. I kept right on plowing money into stocks and did not alter any of my fund selections.

Although I did not like the cut of this month’s jib, we batten down the hatches, strike the mizzen mast, and look to ride it out.

At its height, we looked to be down over $55,000. Yikes. But with great assets come great swells.

My Dad is sitting pretty on his pile of laddered CD’s, but I am still young  not old yet and should have exposure to the markets.

Maybe we will delay updating our Net Worth over at RockStar Finance 🙂

Remember younglings, those of us old salts who remember October 2008 can tell the difference between a correction and a route. Stay Strong, this too shall pass.

Bloodbath Net Worth equals total Assets minus total Liabilities.

Total Assets: $2,171,186 down – $ 37,824 from last month.

Accounts receivable, This is a floundering business deal from 2014

Boat & Cars, Depreciating assets, but cars newish in 2015

Real Estate 2nd home/vacation rental

Primary Residence

Retirement accounts; 2 people, 2 jobs each, 4 accounts total

Brokerage account; Dividend Portfolio

College Funds; Prepaid tuition and 529 accounts or 2 kids

Bonds; ‘I bonds’ bought through Treasury Direct

Cash & Metals; 4 accounts and a security deposit box

Health Savings Acct., Started in 2015

Total Liabilities; $399,972 down – $ 475.00 from last month.

Mortgage on House; Bought in 2005 Interest 3.75%

Mortgage 2nd Home; Bought in 2012 Interest 3.5%

Student Loan Paid off!

HELOC; Current APR 3.49%

TOTAL BLOODBATH NET WORTH $1,771,214

Tracking your own net worth is perhaps the second most important thing you can do to improve your financial picture. Budgeting your expenses to see where the money goes is probably still number one.

Budgeting is like paying attention to ball game while tracking net worth is like paying attention to the baseball season.

Months can goes up or down, you need a longer picture to evaluate your progress. You are either bringing in more money than you’re spending or you are losing money each month. Tracking Net Worth is easy, useful, and addictive.

Don’t Forget; “Comparison is the Thief of Joy”

14 thoughts on “BLOODBATH! – Net Worth Nov 2018

  1. Hey Othala, nice update and yes October was brutal but as you said, this too shall pass. I think I was hit for about $50k down for the month.

    On a happier note. I’m wondering what software/service you use for your graphs. They do not appear to be either Quicken or Personal Capital. Are you doing them manually in Excel?

  2. I think we all feel your pain. Our net worth dropped 5% for the month, and that was actually better than I thought it was going to be!

  3. i checked out the portfolio. i have a bunch of those OHI shares, about 13k bought below 30 bucks. i like seeing real holdings and i just put out our entire portfolio earlier this year too. we own a bunch of preferred stock etf’s, over 100k worth that are throwing off over 600/month. i love that they pay out monthly but don’t like the price declines as much. i think our hit was something like 65k but we’re up for the year a few percent even with that.

    nice maritime post! feels like a costume party. arrrrghh.

  4. Had a great laugh out of the Portfoliogon picture! The scary part is not so much a 5-10% drop. What’s scary is that every 50% drop starts initially as a 5-10% drop. Now, that would a bloodbath with all capital letters! Let’s hope for the markets to recover again!

  5. HODL! I believe in the world market/economy, therefore I am glad I didn’t do much when my funds started plummeting. Now, they are crawling up again. I actually think a tiny economy crisis would be beneficial for me, because then I’d be able to buy cheap shares that’ll hopefully (most likely?) rise in value when my FIRE-time comes.

  6. It is amazing that once you have a certain amount of money in play, the slightest correction can make for some truly eye popping numbers. In 2 weeks I lost more than my entire portfolio in 2008. It was essentially a fully loaded Tesla that vanished in a blink of an eye. I did not panic and will stay the course. It helps when you have a more balanced portfolio like I do where a good portion is in real estate which thankfully doesn’t share the same volatility.

  7. LOL on “portfoliogon”! I took a hit of about $25k in Oct for similar portfolio because I had tapered down my equity from near 100% a year ago to about 60% now. This is hardly a blip in the larger scheme of things, not worth even smaller case ‘b’loodbath. When the market gets 20% down, it probably qualifies for that word. But nice article keeping it real.

Let's get things nice and sparkling clear