January Net Worth Update (up 1.84% to $932,372)

Another decent month -- not a blow out, probably because I am holding a significant amount of cash right now (more than 15%). Overall, my stock gains were up 2.44% and retirement accounts up over 4%, likely due to my REIT holdings blowing through the ceiling. Following are more details:

1. Investment gains were great given the overall bull market sentiment. I did take some profits off the table because I believe, as I've said recently that the market is richly valued right now. My cash holdings moved up to over 15% as a result of the selling. I'll be looking to put this cash back to work as the market corrects. Yes, perhaps a bit of market timing here, but as a value investor, I don't see a lot of value right now. Value should peek it's head out in the next month or two and I want to be positioned to take advantage of it. If a correction doesn't materialize in the first quarter, I'll be happy with my 5% money market interest and look for opportunities to deploy the cash as the year wears on.
   
2. I paid down the mortgage more in January and am on track with my mortgage goals for the year. As a reminder, the current plan is to pay double mortgage payments for the next 4.5 years with the result being a fully paid off home. Double payments are being made possible by reducing expenses, not through savings withdrawals. The ending mortgage balance goal for this year is: $135,000, and I'm on track.
   
3. On the Prosper.com front, I have $3000 principle invested into 15 loans, and all loans are current. Over the past three months, this money has returned $10, $16 and $42 per month, respectively, as the loan payments have been paid. Once I reach steady state next month, I expect to see a sustained interest return of about 1.33% per month, or about 16% per year.

As I'm watching my net worth increase, one thing I am starting to realize and get excited about is the possibility that in the next few months, if all goes well, I should find myself above the $1MM mark in net worth. Some might think this is a bit of a stretch, but one thing I haven't been including in my numbers are my stock options. I currently have nearly $40,000 in stock options at the current market value, post-exercise and tax. One reason I haven't been including these is because I'm not sure if I should be including inherent value (ie. Black Scholes) or the value post-exercise and taxes at current market value. I'm sure I will get some feedback on this and should probably update my numbers to reflect them.