Good week financially (for me)

Despite the stock market "volatility" this past week, my own personal net worth rose by +3.4% for the week. So much for "carnage." I certainly did take a hit for the stock I own, but more than half my assets are in cash and my bi-weekly 401K and ESPP contributions were made this week, so I had a net gain due to new savings and monthly money market mutual fund interest payments. I also made my monthly installment plan payment to the IRS for back taxes, so that incremental reduction in liabilities boosted my net worth as well.

Since I started out with a relatively clean, and empty, slate after bankruptcy in 2005, the bulk of gains to my net worth come from regular savings rather than from investment returns. That's the way it's going to be for me for quite a while, maybe another two or three years.

Since my 401K contribution occurred this week and I have elected to have it be 100% company stock, I effectively did "buy the dip" on Wednesday. So, I did in effect benefit from the decline. I will be a net stock buyer for at least the next five years since I am in heavy duty "catch up" mode. I will probably continue to be a net buyer of stock for another 10 years after that, but at a somewhat slower pace.

Nominally, I expect that I will "retire" at age 70, which is 18 years from now. I would expect that my asset allocation would shift somewhat towards income rather than growth during the ten years before retirement. That means I have eight years of focus on hard-core growth before I incrementally shift towards income. At least that's the theory.

-- Jack Krupansky