My random thoughts,useless and useful informations I gather, my financial thought process, investments, research, general knowledge, frugal consumerism ideas, Best deals - a mixture of all these are in my blog entries

Friday, January 06, 2006

Tis the New Year ! Networth Update !

The year 2005 on the rear view mirror, the networth increased from 206,886.16 to 273,316,21.
I am happy about the progress, infact I exceeded my target's well. I have been too cautious about the market direction with interest rates increases becomes a regular federal reserve exercise. I sticked with a conservative approach , mainly my investmenst were in index funds, balanced funds, Large caps and a very little on midcap and international.

Overall my 401k Mutual funds provided a 9.8% return, IRA stocks returned average 20% and Non retirement mutual funds returned an average 12%. The 12% is mainly due to a lucky market timing, otherwise those funds has an average annual return of 6.5% for 2005.
I am planning to increase my investments, but after seeing the bulls jumped out the gate in newyear I am not very sure if I should be jumping the band wagon. Bulls got a shot in the arm with the minutes from fed's - the wording has changed, but I am not so sure if I should be cheering that much. Initially my plan was to immediately contribute to 2006 Roth IRA, but now I think there will be a small market correction.
Another thought, I would like to move some funds to international, not just european but to other emerging markets of India and China. Have not decided if I should move money from a maturing CD or exchange from existing funds.
For the past few years I have been laddering CD's which is a good time tested strategy. From Jan 2005 I am enjoying the great rates from GMAC in comparison with my Credit unions savings rates.


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