If anything, May has been cruel to me. The global stock market decline knocked out more than $14,000 of my portfolio, adding to the pain is another $8,000 haircut of my employee stock option balance. Even though our savings continued to run very strong at $12,000 a month, our family net worth still declined $5,500 in the month, marking the first down month since November 2003.
Anything to be learned from the break of the 29-month winning streak of continuing monthly net worth growth? For one thing, our financial performance is no longer dominated by how much we spend, and to a lesser extent by how much we make, but to a greater extend by how our investment performs. Six months after the relocation, our monthly cashflow is stable at $19,000-$21,000 in income, $5,500-$6,500 in expenses and $3,500-$4,500 in taxes -- this gives an almost guaranteed $10,000 cash inflow. On the other side of the equation, without any real estate commitment (we don't own our place to live here), any 2% change of value in our $460,000-strong portfolio -- admittedly not fully invested -- will almost create a five-figure movement of our net worth. This kind of volatility is probably something we have to endure if we want to believe in the the value of long-term investing.
IMPORTANT PERSONAL FINANCE ISSUES IN MONTHS AHEAD
Call me a procratinator, but I still haven't got time to focus on the corporate finance of my small company. Corporate tax time is looming -- our fiscal year ends in June and tax will be due in October.