Picking up Nickels

Tuesday, August 11, 2009

August 2009 Financial Asset Roundup

Here are my current financial assets as of the market close on August 10th, 2009:

Asset July 2009 August 2009 Change
Checking 595 457 -138
Money Market 27,252 34,603 7,351
Savings Bonds 20,445 20,528 83
Treasury Bills 0 0 0
CDs 119,721 120,198 477
Brokerage 80,403 81,501 1,098
401k 66,452 75,752 9,300
Roth IRA 27,556 30,961 3,405
SEP IRA 159,224 177,180 17,956
529 Savings 33,730 37,022 3,292
Total Assets $535,378 $578,202 $42,824

It's been a fun ride over the past month as the S&P 500 index has surged 14.56% since the last update:

(chart courtesy of msn.com)

Hints of the recession coming to an end are starting to appear. Unemployment actually went down to 9.4% and a few talking heads have already called an end to the recession (much to the dismay of the Federal Reserve, I'm guessing). Still, I think we need a much larger improvement on the jobs front before declaring victory.

Along with the rise in the stock market, crude oil has jumped to above $70 per barrel again. I've definitely been seeing that reflected in increases at local gas pumps over the past couple of weeks. On another note, the partisan whining about health care reform is ironic (not to mention disappointing) considering the Democrats are proposing a plan not unlike the one implemented in Massachusetts by former Republican governor Mitt Romney. For Pete's sake, I wish both parties would stop whining and do something about the annual double digit price increases in health insurance premiums that I have been seeing for this entire decade.

As for money moves, I took advantage of the stock market bounce to sell my position in home improvement retailer Lowe's Companies Inc, (LOW) that I've held for the past nine years. I figured it was time to lock in my profit considering the stock price was up near YTD highs and I don't see the housing market ready to boom any time soon. I'm still unsure what to do about my first Penfed 6% APY CD maturing next month, although I'm actually considering dumping the cash in a one year 2% APY Penfed CD. Yuck...


  • Any thoughts on the Everbank Marketsafe BRIC CD?
    ( http://www.everbank.com/001CertificatesMSBRIC.aspx )

    I'm considering throwing some liquid cash there.


    By Anonymous Bear, at 8/16/09, 6:31 PM  

  • I've never done any currency speculation, so it's hard to say. I'm certainly leery of investments like this after the beating that Icelandic Krona CDs took.

    The link you provided says this product is FDIC insured, but that only insures you against bank failure and not the risk of loss of principal. I would definitely proceed with caution.

    By Blogger Frugal Frugalson, at 8/17/09, 8:34 AM  

  • Yes, it is FDIC insured against bank failure however, that is not the 'marketsafe" part as I read it. The terms offer "PRINCIPAL PROTECTION -
    MarketSafe CDs, if held to the Maturity Date, will have a guaranteed return of the Deposit Amount together with interest, if any, linked to the value of the Reference Index as described in the Term Sheet ("Principal Protection"). Principal Protection is not available if you for any reason withdraw funds from the MarketSafe CD prior to the Maturity Date. Please see "PENALTY AND LOSS OF PRINCIPAL PROTECTION FOR EARLY WITHDRAWALS" for additional details and limitations."

    That's why I thought it might be a safe way to get in some on those currencies. I don't believe the Krona ones offered this protection. Thanks!

    By Anonymous Bear, at 8/17/09, 12:11 PM  

  • Good luck but be wary. As someone once said on Fatwallet.com, "Neverbank with Everbank". :)

    By Blogger Frugal Frugalson, at 8/18/09, 9:38 AM  

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