Our family net worth is growing again! With the $16,000 uptake in the month, our Q1 net worth improvement reached north of $48,000, or 32% of our annual target of $150,000 growth. Apart from regular savings, our portfolio benefitted tremendously from the favorable market conditions -- the $8,700 monthly investment gain pushed year-to-date portfolio gain to over $14,000, or 36% of annual target.
Our income in March actually retracted from the high level we've seen in the preceding two months, primarily due to less income from the sideline family business. Still, with $61,000 quarterly earned income, $14,000 from investment income and close to $8,000 from stock option gains, the quarterly income of $83,000 is in line with the best scenario of our 2006 financial plan.
IMPORTANT BALANCE SHEET MOVEMENT DISCUSSION
• Cash & Savings: Our regular savings beefed up our cash positions -- they are earning 4.75% at ING Direct now until 4/15, and by then they will be swept to other high yield savings accounts or investments.
• Investment Accounts (Brokerage, 401(k), Roth IRA): My portfolio beat benchmark S&P 500 by about 1 percentage point. My heavy-weight international equity positions delivered nicely thanks to upbeat economy in Japan and favorable foreign exchange rates.
• Tax Liability: $2,581 increase reflects increased tax liability due to floating investment gains.
IMPORTANT PERSONAL FINANCE ISSUES IN MONTHS AHEAD
• Tax Issues: I finally retrieved all tax documents sitting in my U.S. mailbox. While I have KPMG at my disposal to file my tax, and due to my unique situation my 2005 tax form will not be filed until maybe 2007, I still have to figure out quickly: 1) whether to take a defensive stance to pay a bit more estimated tax due to uncertainty (and my lack of experience) in the complex tax accounting for abroad income, and 2) how much to contribute to my self-employment 401(k) account to maximize tax deferral.
• Tax Reading: I bought TheTaxBook lately -- a great resource that I expect to use to kill many long hours on international flights.
• Portfolio Check: By the end of March, I still have about 30% of portfolio in cash. I want to spend some time to examine whether I can put the cash to better use (although near 5% risk-free return right now is pretty yummy), and whether I should rebalance my portfolio after a good Q1.