Fueling by substantial gains from our investment portfolio, and sustained cashflow from regular income streams of job and sideline business, our net worth grew another $29,210 to over $575,000. If 2006 ends today, I will have no regret on our yearly financial performance -- we have achieved both financial goals we announced earlier this year:
Goal 1: Annual Net Worth Growth of $150,000: By now we have checked in $175,000 growth in net worth in 2006. Not bad considering we still have two months left to push the bar to $200,000 annual net worth improvements.
Goal 2: Annual Investment Gains of $40,000: So far this year, we have achieved over $48,000 in investment gains on an average portfolio size of $485,000, which is in line with the 10.1% advance in S&P 500. On top of that, my employee stock option portfolio, after enduring a rollercoaster ride, appreciated $23,500 as MSFT stock price advanced to 52-week high. Overall, stock market has been very generous this year, and I can only pray we can sustain the gains in the next two months.
MONTH-END BALANCE SHEET
HIGHLIGHTS OF THE MONTH
• Our investment portfolio didn't disappoint us. With $15,500 portfolio gains, we have made a total of $55,600 in the stock market in the last 12 months.
• Thanks to the growing belief that MSFT is still a deep value play heading toward the launches of the decade, my basket of stock option gained another $12,000 in the month, making it the third straight month of five-figure option appreciation.
• I also started to test water in the China stock market. My portfolio only sizes $9,000 now, but it will grow over time.
• We saved about $8,000 from our job and business income after living expense and tax. Especially, it is a nice surprise that we walked into October with almost zero sales pipeline in our family business and it turned out to be an above-average month in the end.
• And we had a great vacation in Southern California. It is always nice to stay in good hotels like Renaissance Hollywood, Omni San Diego and Hyatt Grand Champions in Indian Wells. It reminded us what we are working for (and led to some interesting discussion about when I should retire).
• I had to ask for an extension in our corporate tax return, but it is on my priority list now.
• I'm waiting for my KMPG tax advisos to finalize my 2005 tax, and I will be able to make a before-tax contribution to my Individual 401(k) account at Fidelity for the tax year of 2005.
• Planning time is coming. I'm doing mental exercise about our Financial Plan 2007 these days.