Christmas day - new tradition (series 3 of 10)

Dec. 25, 2019

Introduction

It is my new tradition in Christmas day. I like to review my investment account, and then think about what I should do next at the end of 2019. I like to work on my Par Tech 401 K plan, I had the account starting from 2007, and my original investment is $8000 US dollars. Blogs are found using keyword 401 K, link is here. I like to spend 30 minutes to review my portfolio.

Par 401 K 

I like to present the return, and also spend time to explore Charles Schwab all funds performances in my retirement plan.

What I like to do is to review all available funds in the 401 K plan, and I like to check the return in 2019.

Here is the statement of Sept 30, 2019.

Asset allocation

31% bonds, 28% large capital, 21% small capital, international 12%, special 8%

Personal performance

Here is performance provided by Charles Schwab.

Interest paid $62.25, dividends/ capital gains $185.32, market change is $354.08. The return is close to $600 US dollars.

More reports 

The website is designed by biggest brokerage firm in USA. So it is the first time I will review the features in this website.

Net positions
Cumulative returns
PRR Barchart
PRR Table 1
PRR Table II
Investment Summary
Balance History
Allocation history

PRR Barchart
There are four options, standard, yearly, quarterly, monthly.

Q1 2019   01/01/2019-03/32/2019 PRR 1.17%
Q2 2019   04/01/2019-06/30/2019 PRR 1.47%
Q3 2019   07/01/2019-09/30/2019 PRR 1.13%

Jan          0.56%
Feb         0.15%
March    0.45%
April      0.42%
May      -3.46%
June       4.66%
July        0.74%
August  -0.68%
Sep         1.08%
Oct         1.69%
Nov        1.94%

PRR table 

PRR table II

Here is the table. 

Allocation history 

April 27, 2019

May 1, 2019

It is such great feature to look up daily balance. 

Allocation by asset class

Activity details by position

Actionable Items

I put together a complicated portfolio in May 2019. My return is 9.70%.

One of ideas is to push myself to take more risk, but then I will have to catch up more investment when bear market hits in 2020.

Here are highlights:
1. Make sure that I download all statements in 2019. Check in my Github personal finance folder.
2. I have to read each statement, and ask at least three questions in each statement; What I do not know, what I should look into.
3. Understand my asset allocation right now, it is 30% bond, 70% equity.
4. Wait until Dec. 30, 2019 for the last statement in 2019.

There is no fee to rebalance. The Charles Schwab is the biggest brokerage firm in USA, and the website has very good performance analysis report.

As a project manager of my 401 K portfolio, I have to spend at least one hour to review the website, and then I should find out some problems in my portfolio, and then think about how to make improvement.

Here is the blog to show that 10 years from 2009 to 2019 capital preservation. I just could not believe that I do not think about or talk about my retirement fund 401 K 10 years. Living as a single person, I have so much challenge to manage my own finance. Ignorance and lack of self-learning is such a big issue over my adult life from 2001 to 2019.

Case study: personal finance bad habit associates with impulsive shopping

April 19, 2019

Introduction

It is my personal finance research. I found out that I did not spend time on my par tech 401 K from 2007 to 2019, I do not do monthly or quarterly or annual rebalance, I do not do the fund analysis or basic follow-up. I do not spend time to look into research about investor psychology. There are so many issues in the management of the account. This is all related how to value the time, value the community, value the money, value the research, value to reinvent myself. I believe that this is associated with my impulsive shopping problem and emotional problems, my decision making process.

Case study

I think that frugality study helps me to learn to separate wants from needs. 24 hours or 72 hours rule helps me to learn how to delay gratification. I also learn how to identify the short enjoyment of holding those clothes or items and short time period sense of ownership. I do not bother use them after the purchase.

I also learn from minimalism life style. When I did shopping coats, one time I drove my SUV and cross border to Bellingham, I bought six coats on sales.

I have to find ways to release my stress, or my social needs. Those emotions went to enjoyment of shopping from 2010 to 2017.

I also heavily shopped when I took vacation in China. My siblings were also very cooperative to allow me do this gifts shopping costing thousand Canada dollars in 2012, 2014.

I think that the way I understand what money is used for is so shallow. I allow myself to spend unnecessary extra coats, jeans, handbags, sneakers. I only wear off one pair of tennis shoes, I cannot wear any off another five pairs of tennis shoes. I do not know that I can just play tennis using my normal sports shoes.

I wrote the wechat post to reflect on the mistakes I made to treat my par tech 401K account.