Thanks a lot, coronavirus. Thanks a lot.
I don't have to explain to you about the dramatic reversal in net worth. Thankfully I never strayed far from 50% equities so the carnage wasn't as abysmal (personally) as others have suffered. In fact, on the last trading day of this month I took a portion of the SEP IRA (which has been sitting in 100% money market funds forever) and "recalibrated" into 5 of Fidelity's popular index funds. Obviously I don't know which way the market is headed at this point so don't want to throw in all that dry powder at once. But I figured get a little extra skin in the game at a 12% discount! If the market drops further then additional "recalibrations" will be made until the coveted 85/15 AA is reached (where I should have been all this time). But I've been playing it safe for a reason, and Mr. COVID-19 was the catalyst I needed to jump right in.
With interest rates smashing through the floor, it's tempting to think about refinancing, but I'm almost 10 years into a 30-year at 4.0%. If I'm gonna reset the clock, I need at least a no-cost 3.25% rate before pulling the trigger. Obviously I would keep payments the same and therefore pay off the loan faster, but not knowing how much longer I'll be at my current residence (6-8 years maybe??) is an unknown variable that must be considered.
Apart from all that drama, 2019 tax returns are complete, with a hefty refund coming in, due to paying unnecessary estimated taxes during the past year. Getting all that back and then some. I've contributed the max to my SEP so we're good there. Side work is picking up nicely so I'm hoping for a profitable March.
That is, if the world can get a grip on itself. |