Net Worth Update – February 2009

The numbers came in for the last month and unfortunately, we weren’t able to keep up the momentum that we had built last month, where we gained almost 10%. Oh, well. I guess in this market, we’re going to expect some ups and downs. Probably a lot more downs than ups until things get better in the economy.
Anyways, our numbers look like this:

  • Assets fell 1.0% in value. The biggest reason for this was that our home value reported further falls, and a down stock market. It actually could have been worse (see below)
  • Debt fell 0.49% for the month. We did pretty good here, and I’m proud to say that we’ve knocked off over $20,000 in debt from February 2008.
  • Overall, our net worth slipped by about 2.3%.

It doesn’t look that bad, but it really should have been worse. We got a significant boost by the fact that I became vested in my company 401(k) matches.
I was officially hired in by my company in May 2007. They are quite generous with their 401(k) match, as they match 100% up to the first 6% of salary. However, the vesting schedule was as follows:

  • You are 40% vested after two years of service
  • You add 20% more after year three, four and five, at which point you’re 100% vested.

By that math, I shouldn’t have been at all vested until this May, and not fully vested until 2012. So, did I somehow invent time travel? No. Did I find a way to interrupt the space-time continuum? No.
Unfortunately, it was nothing so glamerous.
In addition the schedule above, there was a stipulation that if the division I worked for was sold, that full vesting takes place. Well, last year my company ownership transferred, so we became fully vested at once.
So, I had previously held off reporting the non-vested portion of my 401(k) plan, but now I added it in. This is a nice one-time boost, and it will also help moving forward, as all future contributions (up to 6%) will be matched and vested.

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