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April ‘06 Net Worth Monthly Review

Net Worth: $121,598.88 (+8.73%)
Retirement Assets: $59,613.50 (+4.23%)

April, like March, was a great month for several reasons:
1) Blog – Again, the blog accounted for a nice part of the 8.73% networth increase. When I started doing all this I told my girlfriend all I wanted was for it to pay for a vacation a year, it’s done so much more and I’m thankful to all the folks who spend time each day reading.
2) Tax Refund – I bought a house nearly a year ago and I’ve been paying more than my fair share of taxes (only a little more). I can thank Uncle Sam’s honesty for a nice boost a few weeks ago.

I think I’m really messing up my retirement assets (Roth specifically) by playing around in the stock market. You see that the retirement assets amount has increased by 4.23% and you are led to believe that it’s been a good run (and it has been) but a large part of that is because of my heavy allocation in emerging markets (and it’s strong performance). What you don’t see is that I keep screwed myself over by playing around with the money in my Roth.

My Roth consists of four holdings right now, two of which are underwater.

The two I’m underwater on are Amazon (AMZN [3]) and Ford (F [4]). In work emails, my friends often write ‘f’ instead of the full four letter, more colorful, equivalent; sometimes I feel like Ford is seriously f’ing me. I bought Ford after it tanked a few weeks ago thinking that it had finally hit its low and was going to make a comeback. I felt that auto was last year’s airlines and since Ford was profitable as a whole and sitting on a ton of cash, it was a much better play than General Motors (GM [5]). I’m down -15.76% on Ford as of today.

Amazon, however, is a different story. I’m a fan of the company and I’m an Amazon Associate so they pay me a nice little check every quarter. The reason I bought into them is because I like Amazon, I buy a lot of stuff on Amazon, and they reported a bad quarter and were, in my opinion, punished unfairly for it. Since then they’ve been up and down and as of today I’m down -9.56% on Amazon.com.

Of the two that have been profitable…

The first is Cap Rock Energy Corporation (RKE [6]), a special situation investment I bought into after test trying Fat Pitch Financial’s Contributor Corner [7] (it’s pretty sweet honestly, George writes about his investments after the fact for those interest). You can win a month simply by being the most active member of Fat Pitch News [7], a Digg-like site for financial news. Honestly, RKE was a sure-fire win because they’re buying back shares at $21.75 and I bought them at $20.45.

The other company I hold is Disney (DIS [8]). I bought them prior to their Q1 earnings announcement, which were favorable, and I’ve held them since. I’m up +10.57% on that trade.

So why do I say I’ve been screwed myself? I could’ve saved myself all the heartache (not that much heartache, it doesn’t bother me when Ford tanks 7% in one day because I don’t have that much money in it and I don’t plan to touch it for 40 years) by investing in an index fund like every other intelligent person.

At least my 401(k) is kicking ass instead of kicking my ass…