Thursday, January 28, 2010

2009 End of Year Report

With the return of the stock market and monthly savings plan, our portfolio has nearly doubled since the end of 2008 and beginning of 2009.


In Dec 2008 we purchased a townhouse for $215,000. We put 10% down at an interest rate of 5.5%. We also qualified for the first time homebuyers program but in 2008 it was a $7,500 loan at 0% for 15 years which means we got to pay back $500 a year during tax time.

We went ahead and did renovations fixing up 2 full baths, 2 half baths, 3 bedrooms, new kitchen, brand new appliances, the living room, etc. The total bill came out to be around $30k. So for all the housing stuff we payed about $50k into the house. Hopefully we'll get it back when we sell...

(update - housing prices in this area have stabilized and should sell around $250k-270k, the major cause of price decline were the foreclosures and short sales. These brought house prices below $200k as can be seen by our next door neighbor who bought at bargain price for $160k).


In other areas of finance for 2009, we consistently socked away 5% to the Thrift Savings Plan (government version of the 401k) with a match of 4%. At the end of 2008 we had about $30k. We ended up taking $14k loan at 2.75% interest for 15 years for the renovations from my TSP account. I thought it was a low interest rate and since the market was tanking I thought my money was better spent being used rather than sitting in my retirement account.

(update - the market rallied in 2009 my account increased nearly 30%. Had I left the $14k in my account, it would have increased to almost $20k and my TSP would have been nearly $40k. But because I borrowed it from my account, we made a little bit less. As of Dec 31, 2009, we had about 30K in the account, we our total contributions to my retirement account with government matching and loan repayment came out to be about $10k for 2009.)


As for Roth IRA, we contributed the maximum $5000 for 2009.

As for all other investments, we had a nice 10-15% gain making back most of our losses in 2008-2009 thanks to a few end of the year investments in such companies as General Growth Properties, Netflix, Umpqua Holdings.

(update I'll try to update you on our investments in 2010)

All other savings and retirement, we have about $30K in TSP, $15k in our Roth IRA, $3k in Traditional IRA, and $15k in savings and no debt besides the 14k TSP loan and about $185k left in our mortgage.


I was looking at our giving for 2009, and on the surface it looks pretty good, but after going a bit deeper, I discovered some things. According to we gave away almost $9k, about 12% of total income, in 2009. But the question is who did we give to? About $5.7k was given to church tithes and offerings 60% of total giving, $2.5k in gifts we gave people 30%, and the remaining 10% we gave to various other charities.

That's it for 2009! I'll share more of our goals for 2010.

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