April Highlights and Lowlights
- 2013 Financial Goals – Not much progress in April. I’m waiting for some pullback before adding money to baby RB40’s 529 account.
- Rebalance – I rebalanced our portfolio to be more conservative because I think we are due for a market correction soon. See more detaisl below.
- Rental Income is negative this month because we finally paid for the big drainage repair. Things are still not going well on this front. We need to complete an exterior paint job at the rental home this summer and it’s not going to be cheap.
- P2P income from Prosper is still below target this month at $47. This is actually from the March statement and I’m seeing fewer defaults and late payments. I’m pretty sure we’ll see around $100 income in the next statement.
- Tax – I found out we don’t have to pay estimated tax in 2013 because we can use the accumulated rental losses to offset other incomes. That’s great because I won’t have to add to my tax fund the rest of this year.
Net Worth (+7.35% YTD)
The stock market was quite volatile in April and I sold most of the equities in my IRA. I’m pretty happy with the gain so far and I’m willing to sit on the sidelines for a while and test the Sell in May and go away theory this year. I mostly left my dividend stock portfolio in my after tax account the same though.
Even after selling most of the stocks in my IRA, we still have quite a bit of stocks left. Here is our asset allocation now.
- US stocks 37%
- International core stocks 11%
- Emerging market stocks 9%
- Bond 20%
- Cash 18%
- Alternatives 5%
I’m just more comfortable right now in a more defensive position. I’ll rebalance later to get back into stock. Yes, this is market timing and it might not work out well, but sometime you just have to learn the hard way.
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Saving (+$6,538 so far)
The negative rental income really put a damper on our cash flow this month. Luckily, this was a 3 paycheck month for Mrs. RB40 so we manage to pull out a positive cash flow month.
Our saving for March is only $406. We’ll allocate $300 to Baby RB40’s college education and split the rest between travel, fun money, and additional investment/slush fund.
Piggy Bank 2013
- 529 fund: + $300 = $2,000. The market seems a bit frothy right now so I’m keeping this fund in our savings account. I will send it over when I see a good buying opportunity.
- Travel fund: +$50 = $1,300
- Fun money: +$50 = $800
- Investment/Slush Fund: +$6 = $2,337
- For Uncle Sam: -$432 = $3,058. I finished tax in last month and figured out that we won’t have to pay estimated tax this year. We had to send the government a few checks on April 15 though. I’ll just deduct it from the tax fund.
Income (target > $4,500)
Ugh, what a come down from our great income month in March. That’s the problem with self employment, you never know what’s going to happen month to month.
- Rentals: We paid $2,500 for the drainage repair and that is hard to overcome. This year is actually not looking very good. We’ll have to repaint the rental home and that is going to put another dent in our rental income.
- P2P lending is still a bit slow as mentioned above. Our ROI went up from 8.07% to 8.83% in April though. I’m pretty sure the next statement from Prosper will be much better. Here is an update I wrote recently – Peer to Peer lending isn’t as passive as I thought.
- Dividend and interest: Looks normal this month.
- Online income was good in April. It was actually a pretty slow month. We’ll see if it picks up in May.
Expense (target < $4,000, not including tax)
Our expense was in line for April and I don’t see any trouble on the horizon. We’ll probably spend a bit more in the summer, but that’s alright because we have a travel fund.
Wrap Up April
April could have been much worse if we didn’t see the extra paycheck from Mrs. RB40, but I’ll take it as a win. May should be better.
How about you? Did you have a good month? Any progress on your New Year Goals and Resolutions?