May 2013 Financial Asset Roundup

Here are my current financial assets as of the market close on April 10th, 2013:

Asset	Apr 2013	May 2013	Change
Checking	3,185	1,130	-2,055
Money Market	39,675	39,761	86
Savings Bonds	70,628	80,750	10,122
Treasury Bills	0	0	0
CDs	81,250	81,613	363
Brokerage	106,254	107,844	1,590
401k	116,586	122,689	6,103
Roth IRA	71,394	73,625	2,231
SEP IRA	368,532	377,302	8,770
529 Savings	82,512	85,244	2,732
Total Assets	$940,016	$969,958	$29,942
			3.19%

The S&P 500 once again touched all time highs over the past month, up 2.90% since the last update:

(chart courtesy of msn.com)

We've had a 1990's vibe so far in 2013 with the S&P 500 up almost 15% for the year. On the jobs front, the unemployment rate for April fell for the fourth month in a row to 7.5% (once again the lowest since December 2008). Oil prices are up a bit (around $95 per barrel) and local gasoline prices appear to have remained somewhat flat.

On the financial front, it has been amazing to see my assets surpass their previous all time high from April, leaving me roughly 3% away from breaking the $1m asset level threshold. My monthly gain was buoyed by the equity distribution I took from my S Corp's 2012 profit which I used to buy my annual allocation of April 2013 issue Series I savings bonds at treasurydirect.gov.

As for the non-financial, there isn't too much to report. As the weather has gotten warmer, I've been trying to knock a few items off of my things to fix around the house list. :D

March CPI-U numbers released: April 2013 issue I Bonds are worth considering

First and foremost, a thought from a Massachusetts resident about the terrorist attack at the Boston Marathon yesterday.  As a past attendee of the annual Patriot's Day Red Sox game as well as someone who used to watch the Boston Marathon finish line from his office window, my heart goes out to the victims of the horrific attack yesterday. While I'm filled with anger at the perpetrators of such a heinous act, I'm also touched and amazed at the bravery and humanity displayed by the first responders as well as the average person on the street.

Now, on to less pressing matters. The U.S. Bureau of Labor Statistics released the April 2013 Consumer Price Index (CPI-U) inflation data this morning, which increased by 0.26% last month.

As always, now (along with the release of the September CPI-U) is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for April 2013 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from September 2012 (231.407) and March 2013 (232.773) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for April 2013 issue I Bonds:

That means these bonds would earn a rate of 1.76% (using 0% fixed & 1.76 variable) for the first 6 months and 1.18% (using 0% fixed & 1.18% variable) for the second 6 months. Based on this, April 2013 issue I Bonds are a competitive investment when compared to something like the 12 month CD @ 1.15% APY currently being offered by Bank of Internet USA.

The above average rates offered by April 2013 I Bonds over the next 12 months make them a compelling buy in my opinion, and I plan to max out my 2013 $10,000 annual limit at treasurydirect.gov by the end of April.  I also received the bulk of my 2012 Federal tax refund in the form of paper savings bonds using IRS form 8888, which unfortunately is currently the only way to purchase paper savings bonds.  If you have some cash that you're looking to put in a safe place where it can earn a competitive yield over the next year, then April 2013 issue I Bonds are worth considering.  However, I would do so before the end of the month to lock in that 1.76% rate over the first six month period.

April 2013 Financial Asset Roundup

Here are my current financial assets as of the market close on April 10th, 2013:

Asset	Mar 2013	Apr 2013	Change
Checking	884	3,185	2,301
Money Market	40,710	39,675	-1,035
Savings Bonds	67,839	70,628	2,789
Treasury Bills	0	0	0
CDs	81,154	81,250	96
Brokerage	109,736	106,254	-3,482
401k	117,480	116,586	-894
Roth IRA	70,673	71,394	721
SEP IRA	363,420	368,532	5,112
529 Savings	81,030	82,512	1,482
Total Assets	$932,926	$940,016	$7,090
			0.76%

The S&P 500 has once again hit all time highs over the past month, up 2.02% since the last update:


(chart courtesy of msn.com)

Once again, I'm amazed as the S&P 500 has climbed to yet another all time high, up 11% for the year. On the jobs front, the unemployment rate for March fell to 7.6% (once again the lowest since December 2008) although that was considered a disappointing number because it reflected people who had basically given up on finding a job. Oil prices continue to stay around $93
per barrel, although I've noticed local gasoline prices have fallen about 14¢ per gallon.

On the financial front, my assets have once again surpassed their previous all time high from March, leaving me only a 6.4% gain away from breaking
the $1m asset level threshold. I also finalized my 2012 personal tax returns and received a portion of my Federal tax refund as paper Series I savings bonds (currently the only way to purchase paper savings bonds). On a related note, I'm looking forward to the March 2013 CPI-U inflation data release on Tuesday next week to clarify the rate picture on April/May 2013 issue Series I savings bonds as an attractive investment. Unless something unexpected occurs, I will probably take an equity distribution from my S Corp's 2012 profit and use the proceeds to make an electronic savings bond purchase at treasurydirect.gov by the end of the month.

As for the non-financial, I'm excited to have re-upped with my largest client for another year. Having Mrs. Frugalson back in the workforce and knowing that I'll have another year of steady revenue does wonders for one's peace of mind. With the first quarter of the year behind me, I'm looking forward to a happy and productive 2013 and beyond for all.

March 2013 Financial Asset Roundup

Here are my current financial assets as of the market close on March 11th, 2013:

Asset	Feb 2013	Mar 2013	Change
Checking	1,353	884	-469
Money Market	36,719	40,710	3,991
Savings Bonds	67,707	67,839	132
Treasury Bills	0	0	0
CDs	80,944	81,154	210
Brokerage	106,965	109,736	2,771
401k	114,771	117,480	2,709
Roth IRA	69,236	70,673	1,437
SEP IRA	356,570	363,420	6,850
529 Savings	79,109	81,030	1,921
Total Assets	$913,374	$932,926	$19,552
			2.14%

The S&P 500 has continued to climb to near all time highs over the past month, up 2.58% since the last update:


(chart courtesy of msn.com)

Watching the S&P climb about 9% so far this year has been reminiscent of being an investor in the 1990s. I'm not sure what's behind this current case of "irrational exuberance", but the stock market rise and the sense of optimism that is hopefully being signaled are good to see. It has been a fun ride. On the jobs front, the unemployment rate for February was 7.7% (the lowest since December 2008) and anecdotal evidence from an acquaintance who works in the real estate business is that properties are selling of late and inventories are actually getting a bit low. Oil prices are still hovering around $93 per barrel, although gasoline prices have continued to hover toward $4 per gallon.

As for the financial front, I've passively watched from the comfort of my armchair as my assets have surpassed their previous all time high from February as they continue to inch toward the $1m threshold. I don't see the current stock market run continuing for much longer, but it has been fun to watch. Next up is finalizing my 2012 personal tax returns and waiting for the March 2013 CPI-U inflation data release next month to help us evaluate Series I savings bonds as an attractive investment. Stay tuned.

February 2013 Financial Asset Roundup

Here are my current financial assets as of the market close on February 12th, 2013:

Asset	Jan 2013	Feb 2013	Change
Checking	837	1,353	516
Money Market	37,584	36,719	-865
Savings Bonds	67,570	67,707	137
Treasury Bills	0	0	0
CDs	80,712	80,944	232
Brokerage	106,897	106,965	68
401k	111,939	114,771	2,832
Roth IRA	67,911	69,236	1,325
SEP IRA	330,805	356,570	25,765
529 Savings	77,167	79,109	1,942
Total Assets	$881,422	$913,374	$31,952
			3.63%

The S&P 500 has continued to climb over the past month, up 3.05% since the last update:

(chart courtesy of msn.com)

We've just been through a pretty rough time courtesy of the Blizzard of 2013. We lost power during the heavy winds on Friday night and were without power for almost two full days before it was restored on Monday night. Fortunately we were quite comfortable due to the generator setup I had installed last year. While the outside temperatures fell to single digits and neighbors left their homes with a 40 degree indoor temperature for warmer pastures, our generator did an outstanding job of keeping the water pumping and the heat flowing throughout the power outage. This storm hit our town pretty hard, with trees and power lines down and impassable roads throughout (luckily, we only had tree damage at our place). The young Frugalsons haven't had to go to school since last Thursday, so I'm sure they are looking forward to getting back to work tomorrow if and when school resumes (yeah, right!). This storm was a tough test, as we had family staying with us when they went without heat and power and we had to keep an eye on the ladies across the street since their generator tended to stall at inopportune times while they tried to stay warm. All in all, we were lucky and it could have been much worse.

As for a quick update on the financial front, thanks to a full 2012 SEP IRA contribution my assets have surpassed their previous all time high from January while also eclipsing the $900k threshold. Now I just need to focus on recovering from all of the blizzard-related snow cleanup and lack of sleep and then try to get my 2012 personal and business tax returns squared away. Good times.

January 2013 Financial Asset Roundup

Here are my current financial assets as of the market close on January 10th, 2013:

Asset	Dec 2012	Jan 2013	Change
Checking	795	837	-42
Money Market	41,925	37,584	-4,341
Savings Bonds	67,413	67,570	157
Treasury Bills	0	0	0
CDs	72,490	80,712	8,222
Brokerage	99,768	106,897	7,129
401k	107,297	111,939	4,642
Roth IRA	65,347	67,911	2,564
SEP IRA	320,469	330,805	10,336
529 Savings	74,578	77,167	2,589
Total Assets	$850,082	$881,422	$31,340
			3.69%

The S&P 500 has continued to rise over the past month to a five year high, up 3.78% since the last update:


(chart courtesy of msn.com)

It has been interesting watching the stock market run-up since the folks in Washington finally stopped grandstanding and came up with a deal on the fiscal cliff (such as it is). I know of one person who spent their lunch hour getting out of the stock market in late December based on the advice of the so-called "investment gurus" at their company with the intent of getting back in when things settle and "reaping" their gains. Of course, the S&P 500 index is up about 3% since then so perhaps there is something to the "stay the course" mentality after all. I do wonder when these "investment gurus" will advise getting back into the market though. :)

So, on to the next partisan battle over the debt ceiling where Democrats and Republicans will spend so much time trying to screw each other that the end result will be all of us getting screwed instead (thanks guys!). On the jobs front, the unemployment rate for December was flat at 7.8%. Oil prices have risen a bit to $93, as I know all too well when I paid about $500 for half a tank of heating oil last week (which would have been less than $200 a decade ago).

On the financial front, once again my assets have surpassed their previous all time high from December. I should get a bit of a boost to that number in the first quarter when I fund my 2012 SEP IRA contribution, so the $900k asset level could be within reach as long as the stock market continues to cooperate. On a lesser note, I did shift a bit of cash into a Penfed 1 year CD @ 1.25% APY this week. It's a pretty competitive rate in this environment, but it's basically just a way for me to punt into early 2014 and hope that better opportunities for cash are available one year from now.

As for other matters, it's tax time! I've already sent my 2012 S Corp accounting data to my CPA, so I've already started on the road toward working on the annual Q1 burden of business and personal tax returns. One thing I'm curious about is how having Mrs. Frugalson back in the workforce will impact my tax situation. It's been years since we've been in that situation (a nice problem to have), so I have to admit I'm going into this like a babe in the woods. Either way, I'm guessing that I'm not going to be covered in diamonds and furs any time soon. :)

December 2012 Financial Asset Roundup

Here are my current financial assets as of the market close on December 10th, 2012:

Asset	Nov 2012	Dec 2012	Change
Checking	1375	795	-580
Money Market	42,315	41,925	-390
Savings Bonds	67,255	67,413	158
Treasury Bills	0	0	0
CDs	72,275	72,490	215
Brokerage	95,646	99,768	4,122
401k	103,158	107,297	4,139
Roth IRA	63,492	65,347	1,855
SEP IRA	311,884	320,469	8,585
529 Savings	72,165	74,578	2,413
Total Assets	$829,565	$850,082	$20,517
			2.47%

The S&P 500 has risen consistently over the past month, up 2.80% since the last update:

(chart courtesy of msn.com)

Well, we're three weeks away from a new year and yet we still wait for our friends (somehow my fingers want to type "fiends") in Washington are still ready to send us over fiscal cliff. Perhaps they're hoping that the Mayan calendar will prove correct and they'll be bailed out by the world ending on December 21st? On the jobs front, the unemployment rate for November fell to 7.7% (the lowest rate since December 2008). Oil prices have actually been somewhat flat at $86, although I've seen local gas prices drop by about 16¢ during that time.

On the financial front, the most obvious thing to report is that my assets have surpassed their previous all time high from September. Hopefully I will be able to build on that number in 2013 as I finalize the 2012 contributions for my SEP IRA as well as continue to reap the "economic stimulus" of having Mrs. Frugalson back in the workforce. It certainly would be a huge milestone to finally break through the $900k asset value ceiling, that's for sure.

As for other matters, I'm in the process of winding down calendar year 2012 for my S Corporation and looking forward to spending time with family over the Christmas holiday. In the event that that this is my last post of 2012, I sincerely wish a happy and healthy holiday season and a prosperous 2013 to one and all.