First Quarter Performance Review

The first quarter of 2013 is in the books and it’s time to look back and see what progress we made, if any. First up: net worth.

During the first quarter of this year, our total net worth increased 2.2%. ┬áCompared to the end of the first quarter a year ago, we are up 9.9%. ┬áThese numbers are not fantastic by any means but satisfactory given our low risk investment profile. We did not capture much of the first quarter gains in the stock market because our equity allocations are quite low. I did increase them somewhat by purchasing shares of VTI (Vanguard’s all-U.S stock market index ETF) using funds from a matured CD. During the first quarter we also bought shares in PONDX, a Pimco income fund, also using funds from a matured CD.

I am still not happy with the state of the world economy and see no reason to make a big move back into the equity markets. We can retire securely with what we have allocated now.

I am curious about what will happen with i-Bond fixed interest rates next month. I am anxious to buy more i-Bonds but would like to have at least a little positive interest paid above the inflation rate.

We are still maximizing our 401(k) and HSA contributions and not spending any HSA money on medical bills. That will come later.

I have some more CDs maturing soon and will be considering whether to buy more or allocate the cash elsewhere.

I received some interesting expert commentary recently from other readers about bond investing which I will be sharing with you soon.






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