Monday, January 02, 2006

2006 Goals

1. Average a 10% annualized return on investments. My 401k personal rate of return last year was 10.5% which isn't bad but my brokerage account returned only 5.5% pulling the average down. I would like to do better.

2. Increase net worth to 250k by end of year. My current net worth is just around 192k. This would mean a savings goal of almost 58K which is ambitious given my current standard of living but if I can meet the investment return goal, reduce spending some more and get a decent bonus it's attainable.

3. Relax more and spend less. This encompasses all areas of my life from going out to staying in to work. This year I would like to slow down. It seems like I am always in a rush. To do more, buy more, spend more. And although I am getting better I am not quite where I would like to be. I have a good start with my project to cull my possessions. I have to commit to finishing it.

3 Comments:

At 1/04/2006 9:04 AM, Blogger Alsymer said...

A nod of gratitude for goal #3 ... if you don't mind, I'm going to add that as my biggest goal for 2006. Life can easily become a blur these days - financially, socially, intellectually and emotionally. Time to slow down in all areas. Way to go!

Oh, and if you like Billy Joel, you might also like Mark Schultz's Running Just to Catch Myself off of his "Stories & Songs" album. Kinda sums it all up with a bit o' humor.

 
At 1/05/2006 8:47 AM, Anonymous Jay Gatsby said...

The reason your 401(k) did better than your brokerage account is because the people running the mutual funds in your 401(k) are better stock pickers than you are.

 
At 1/05/2006 11:15 AM, Blogger mmb said...

alsymer, by all means, use it. I haven't heard the Mark Schultz song so I may have to check it out. Thanks.

jay, I don't have individual stocks in my brokerage. I do have several index funds though whereas my 401k is all actively managed mutual funds. Oh, and some BRKB which started going down right after I bought it and ended the year at a loss.

 

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