One month after we breached the $800s mark of our quest for net worth accumulation, we are now in the new domain of the $900s. Our bottom-line is happily lifted by a blow-out quarter from my employer and the ensuing multi-year highs of its stock, together with significant gains from my self-managed portfolio.
At $909,656, we have out-delivered our annual net worth growth goal of $230,000 by over $48,000, and we did this two months ahead of time.
While we fully understand that the stock market may turn in opposite directions overnight, we are really happy about where we are and what we accomplished. We look forward to exciting planning process for 2008 to bring our net worth up another notch.
- RECEIVABLE: We received reimbursement for the medical expense we paid in September. Also, we accrued for our upcoming Christmas vacation ... We have booked the hotel and air but these transactions have not hit our credit card yet.
- TAX LIABILITY: There are quite a lot drivers for our tax liability line. First, as usual, we recorded some massive adjustments to properly account for the increased tax exposure of the floating capital gain of our employee stock option and other investment positions. We also (finally) received our 2005 refund check of over $6,000 ... what a long time!
- $12,000 of interest-free debt from Citibank will be due next month. I'm prepared to pay it off by November 20th.
- On the other hand, I have applied for three new cards with attractive 0% APR introductory offers. Time to start another cycle of free money arbitrage.
- I'm working with my tax adviser in KPMG to adjust my payroll tax withholding for the next two months. We expect bigger tax bite in November and December to avoid under-withholding and potential IRS penalty later.
- I'm looking to exercise some of our hard-accumulated employee stock options in the near future. It is probably wise to lock in some gains.
- I'll also perform a year-end check-up of my portfolio to optimize our tax position -- this may mean some loss-reaping sale on the horizon.
- And we will be soon starting our financial planning for 2008. If the sky does not fall tomorrow, we will be looking to add a digit to our net worth some time in the next 12 months.
- The family hasn't had a vacation since June. If we can do things right for the next two months -- we will be happy enough to close the year as we are today -- we will be in remote island in Maldives celebrating the new year!