After several months of astronomical growth, we have a sudden change of luck in February. Our net worth loss of over $7,500, primarily resulting from a loss in our employee stock option account, ended our streak of eight months of back-to-back net worth growth for a total of $210,000. Still, we believe this month is no more than an aberration of our rapid growth of financial assets -- we still grew our net worth by more than $22,000 this year so far and our earning capabilities still remain unharmed.
MONTH-END BALANCE SHEET
COMMENTARY FOR THE MONTH
- Like our last monthly net worth decline in May 2006, our misfortune this month, again, highlighted the fact that thanks to the growing size of our portfolio, our month-to-month growth is more sensitive to the general sentiments of the financial markets. We are now separately disclosing our portfolio management activities every month.
- While my daily job is still turning in reliable cash flow, we had a not-so-stellar month in February in our sideline business. Our monthly booking in February is only a third of January's, and this ranks February the second worst showing in a year. We think this is due to the renewal seasonality of our long-term contracts, and believe it will improve over time.
- The family completed its second trip of the year in Bali, Indonesia. With some incidental expenses during the trip, our monthly expense came in a tad higher than $7,000. It was a wonderful trip, and the cultural richness, nice views and very affordable living cost make the family consider to visit Bali again in the next few years.
- I'm quick this year! It took me less than 5 hours to complete the tax organizer for 2006 and send it to KPMG. Given the convoluted nature of foreign tax implications, I couldn't tell if I am due for a refund, though.
- As disclosed in last month's review, I paid back $9,000 to MBNA for a soon-to-expire 0% APR introductory offer. I'm not sure whether my credit score will slightly recover after the payoff, but I don't plan to apply for more cards right now. The next deadline: $6,000 due in August to Discover and $8,000 due in September to Citibank. (Yes, I did take advantage of many 0% APR offers last summer.)
- I will spend more time on portfolio management, and especially, on the long-term tax planning.