Third Quarter Performance Review

Time again for a brief update of our retirement portfolio performance and net worth progress. Monitoring and quantifying these changes is my way of systematically evaluating whether we are improving the financial aspects of our retirement readiness.

In the third quarter of this year, our net worth increased 3.4%. Compared to this time last year, our net worth is up 9.6%. This increase is due to a combination of continued maximized retirement plan contributions, an increase in the value of our house (per our recent refi appraisal), and positive investment performance.

The value of our total retirement investments increased by 3.1% over the last quarter and by 12.9% over the past year.

Our year-to-date personal rate of return on my 401k account (which represents the largest portion of our retirement nest egg) is 4.93%. Not great by any measure, except the measure that says I am not interested in experiencing volatile swings in value.

Our best performer remains LTPZ (up 2.9% in the 3rd quarter and 10.3% YTD).

We have a few retirement investments that are not performing (staying flat or worse). I will be looking at possibly selling a couple of losers at the end of the year to harvest some losses for tax purposes.

I updated the data used by the Financial Engines retirement plan evaluator. It still tells me that we are “extremely likely” to hit our retirement income goal if I were to retire at age 66.

In summary, I am pleased that we continue to show slow but steady financial progress.

How did you do in the third quarter?


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