2008 Net Worth Analysis
On December 31, 2007 assets that constituted our net worth were broken down into three categories:Real Estate Equity: ~49.3% of total assets
Includes personal residences and investment real estate.
Non-Taxable Accounts: ~33.4% of total assets
All tax-sheltered retirement accounts: my 403b, 457, IRAs, and DH's 403b and Roth IRA.
Taxable Accounts: ~17.3% of total assets
All liquid assets: stocks, mutual funds, money fund, savings accounts, and CDs. The stock portfolio was ~48% of the 17.3% in this category.
Status of our net worth on December 31, 2008:
Overall net worth: Down -5.6% compared to December 31, 2007. This is the first time in 30+ years that my net worth has dropped from the previous year.
Real Estate Equity: Down -16.6% overall (Category is now ~43.5% of total assets)
Mortgage pay down increased equity, offsetting loss in values.
Non-Taxable Accounts: Up +13.7% overall (Category is now ~40.2% of total assets)
Dh and I made maximum contributions and funds are in conservative products that preserve principal.
Taxable Accounts: Down -11.7% overall (Category is now ~16.2% of total assets; stocks are now only ~32% of the category)
The stock portfolio was the big drag (down 41%). We saved approximately 20% of our income, offsetting losses, but we still lost ground.