If you scroll down to the bottom you’ll see why ;) BABY J$ now has his own net worth – woohoo!
After reading your comments and thinking more about whether to include it in OUR net worth or not, we decided to separate them out and give him his very own spreadsheet to manage down the road when he’s ready for it all. And here’s why we went that way:
- That money is not ours, it’s the baby’s. And if he can’t end up using it for whatever reason (maybe he gets a full ride? :)), it’ll then be allocated to baby #2 or #3 or #10. Or maybe we’ll cash it out and then divide it up equally among them later to help them start their young lives (after we ofcourse get our a$$ handed to us in fees and penalties and what not, ugh)
- I’d rather take the hit NOW on our Net Worth than later and watch it drop and drop and drop every month as we make those payments, haha… better to think of it as a college “expense” right now than an “investment,” at least in this case.
So that’s what we’re gonna roll with for now, and we’ll evaluate it as time goes on. There’s never a right or wrong way of doing things here if it fits within your goals, so we do our best and then tweak later if needed. All your opinions really did help last week, so thank you so much! We got some great perspective out of it all – even those who told us to include it :) We were pretty tempted!
Here’s How The Month of October Broke Down:
MONSTER CASH (-$12,275.78): After months and months of selling that property of ours and making a nice profit, we finally decided to use a portion of it to max out both mine and the mrs. Roth IRAs at $5,000 a piece. It wasn’t as sexy as re-investing the money into a PHYSICAL property like I had initially wanted (or really, I just wanted to SAY. Cuz I mean, how could would that be? To say you traded an online property for a real one? :)) but in the end the Roths did make more sense in the end.
As for the remaining $2,000+ loss this month, it all went into the baby’s new savings and 529 college account along with a little more. I made a bigger profit this month that previous ones, so the extra cash helped to soften the drop by a little bit which was a nice surprise.
GOLD & SILVER ($507.35): We also changed this category up a little and I’m now tracking all my physical gold and silver coins that I’ve been collecting over the past few months. The actual value of the coins themselves are much higher than their pure *metal* value, but to keep things conservative and more liquid (‘cuz you can trade gold or silver to ANY shops these days and get at least 90%+ of it in cash right there on the spot), I’m only adding in the metal values here. Which fluctuate on the market just as stocks and mutual funds do too – making it even easier to stay on top of and get a more accurate report on a recurring basis. So you’ll see this number go up more when I add in new coins to my collection and/or the market goes on some wild swings as it’s been known to do ;)
IRA: SEP (-$1,716.09): Haven’t put anything extra into this category lately, and we won’t for a few more months until end-of-year business profit has been determined and what not (That’s what the SEP is attached to). So for now it just goes with the market flow!
IRA: ROTH(s) ($8,898.88): A nice increase indeed, but not when you realize we just put in $10,000! Haha… That was a fast way to lose a grand ;) It’ll be back up in no time though, I ain’t worried… We’ve got 40+ years until we need to tap retirement!
IRA: TRADITIONAL(s) ($1,676.20): Nothing new has been added to these guys either – just keeping my eye on them and waiting to have the energy to write up a report on how this little test has been going so far ;) For now though, here’s how they’re fairing (they each started out at $60,000):
- IRA #1 (NOT Managed): $62,593.32 **Still in the lead
- IRA #2 (Managed, USAA funds): $60,278.42
- IRA #3 (Managed, ALL funds): $61,134.46
AUTOS WORTH (kbb) ($120.00): Another weird month of our cars going up in value ;) I’ve given up trying to understand it, haha… It doesn’t really matter until it’s time to sell them anyways.
HOME VALUE (Realtor) ($0.00): Same $285,000 as it’s been for the past three or four months ever since we dropped it $15k (booooo)… but until someone else sells in our neighborhood, or the market goes crazy up or down, we’re gonna keep things as-is and concentrate on knocking it down more in the meantime. Have I ever mentioned how I dislike home ownership? ;)
Last month was the first time in a while that we didn’t pay any of our $2,000 Mortgage Killer money :( But luckily our normal payments already budgeted in knocked off some principal there, so at the very least we’re shaving it down as the months go on… I’m hoping we’re back to slaying it again come next month though. Here’s how they break down:
- 1st Mortgage: $282,475.38 – 30 year conventional @ 5.5%
- 2nd Mortgage: $38,899.39 – Maxed out HELOC @ a variable 2.8%
And now, time for Baby J’s Net Worth update! :)
You might have already seen it last week when we first talked about this stuff (nothing’s really changed since), but just in case here it all is again:
That about wraps it up for the month… How did you guys do? Did you beat my $5k loss? ;) Either way, we move on and work toward improving things for next time! Always be closing.
PS: I’m serious about him blogging here one day – How cool would it be to watch the thought process and progress of a little kid learning about money? Who knows what the booger will be getting into! :)