Monthly Review - October 2003 ($124,556, +$4,663)

Contributed by mm | November 1, 2003 04:55 PM PST

SUMMARY

Fueled by a sizable investment gain, I'm closing October with a net worth of $124,566 (increase of $4,663) and liquidation value of $99,177 (increase of $4,691). This brings Month-to-Retire to 152 or June 2016.

MONTH-END BALANCE SHEET

	Sep-03	Oct-03	Change	Change %
Cash & Equivalent	$ 1,799	$ 1,622	$ (177)	-10%
Saving	$ 11,905	$ 6,484	$ (5,421)	-46%
Brokerage	$ 13,171	$ 21,248	$ 8,077	61%
Roth IRA	$ 7,604	$ 8,143	$ 539	7%
401(k)	$ 9,209	$ 9,858	$ 649	7%
Stock Option	$ 1,710	$ 430	$ (1,280)	-75%
ESPP	$ 5,484	$ 6,775	$ 1,291	24%
Home Equity	$ 64,146	$ 64,893	$ 747	1%
Other Assets	$ 10,225	$ 10,050	$ (175)	-2%
Payable (Receivable)	$ 1,248	$ 1,868	$ 620	50%
Reserve Funds	$ (405)	$ (755)	$ (350)	86%
Loans	$ (2,164)	$ (2,731)	$ (567)	26%
Tax Liability	$ (4,029)	$ (3,319)	$ 710	-18%
Net Worth	$ 119,902	$ 124,566	$ 4,663	4%
Liquidation Value	$ 94,487	$ 99,177	$ 4,691	5%

INCOME STATEMENT

My wife's two week part time job somewhat complemented the total income. Monthly operating expenses slightly went up to $4,706 partially due to the desktop purchase. I also started to accrue bonus since this month.

Pro forma saving from ordinary operation is $1,996 for the month, partially pressured by the additional income tax withholding of $700. Investment income is around $2,668 for the month.

BALANCE SHEET

Most net worth increase is in multiple investment accounts, which increased a lot after I covered my short position in AMZN and the whole portfolio appreciated a lot thanks to good news from CI and RJR. The increase is partially offset by my sale of CI position.

Tax liability declined somewhat after additional income tax withholding while partially offset by stock gains.

INVESTMENTS

S&P 500 gained 5.5% to close at 1,051 in this month. My regular portfolio raked in $2,194 and my Roth IRA $539. On the other hand, my MSFT stock option lost $1,280 after unfavorable news of MSFT.

I'm still keeping most of my 401(k) portfolio in money market as I have no confidence in taking any positions. For the month of November I might consider to exploit potential MSFT weakness due to JPMorgan's dumping of MSFT (in association with its involvement in Microsoft SOTP plan).

IMPORTANT PERSONAL FINANCE ISSUES

- My cash flow problem is much relieved with the help of ShareBuilder Visa card and liquidation of CI position.

- I temporarily changed back additional income tax withholding to zero for the month of November. However, I'm still monitoring my tax liabilities and will take additional withholding again in December.

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