Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-24-2012, 12:37 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
Not sure what to make of the calculator, when I put my pre-retirement (age compensated) income in, it was way out. When I added my Wife's income in (1/4 of mine) the net worth jumped by 4x (Example for clarity purposes 100k vs $400k) In actuality our combined net worth was 8x their example.
__________________

__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-24-2012, 01:00 PM   #22
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,373
I see that the calculator says the net worth amount includes real estate, too. Whoa.
__________________

__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 07-24-2012, 01:08 PM   #23
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
It seems really pitiful to me, too.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 07-24-2012, 01:11 PM   #24
Recycles dryer sheets
 
Join Date: Jul 2006
Posts: 102
I think money gives you options, which gives you comfort/less stress but not happiness. For example, my wife can stay home with kids on my salary alone and not juggle between career/kids. I don't have to take that next job with high stress to afford our lifestyle.

Happiness is when my kids give me hugs/kisses after work. It's when my wife and I have good relationship b/c both of us are not struggling with doing both kids/career.
__________________
HatePayingTaxes is offline   Reply With Quote
Old 07-24-2012, 01:22 PM   #25
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,424
Data wonks may be interested in the source for this calculator, the US Census statistical abstract, here Income, Expenditures, Poverty, & Wealth - The 2012 Statistical Abstract - U.S. Census Bureau
All kinds of "gee whiz" stuff here, great way to pass the time when it's too hot outside.
__________________
MichaelB is offline   Reply With Quote
Old 07-24-2012, 01:30 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,401
I missed that footnote in the OP's linked calculator about the net worth statistics including home values. Uh, that will make us all that much "richer".

People here on this forum are head and shoulders above the average Joe and Jane. We always know that. And we keep worrying. How could Joe and Jane live with themselves, having so much less stashed away than we do? Why would they be so oblivious to the misery awaiting them around the corner? What one does not know cannot hurt scare him?

Anyway, back to money and happiness... Here's another quote that I like.

"Money, if it does not bring you happiness, will at least help you be miserable in comfort." - Helen Gurley Brown
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-24-2012, 02:41 PM   #27
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by MasterBlaster View Post
Everyone wants more. That's just human nature. The issue isn't what you want, the issue is what do you have to give up to get what you want.



Ed Diener has studied money and happiness his whole career. There are two separate takeaways from his research. Firstly, Once you get to a point where your basic needs are met (plus a little), then extra money only brings marginal extra happiness. Secondly his research points to a very positive correlation between wealth and income with life satisfaction. So based on Mr Diener's second finding what you posted is not strictly true.
Money is better than poverty, if only for financial reasons.
Woody Allen
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 07-24-2012, 03:48 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,638
Quote:
Originally Posted by NW-Bound View Post
I missed that footnote in the OP's linked calculator about the net worth statistics including home values. Uh, that will make us all that much "richer".
Haven't we had that discussion a few times? Technically, net worth always includes real assets. We just conflate net worth and portfolio around here since we are more interested in how much we can withdraw than in how much our heirs could get.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 07-24-2012, 04:08 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,401
True.

Personally, I am fixated on the portfolio total as reported by Quicken, which sums up nicely the various before and after-tax accounts for me. That, to me, is my NW, which I can then withdraw to help maintain the money pits abodes.

Just now see that I can also enter property values into Quicken. If the market keeps tanking, may have to do that to pump the bottom line back up to give myself a morale boost.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-24-2012, 04:40 PM   #30
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,037
Quote:
Originally Posted by NW-Bound View Post
True.

Personally, I am fixated on the portfolio total as reported by Quicken, which sums up nicely the various before and after-tax accounts for me. That, to me, is my NW, which I can then withdraw to help maintain the money pits abodes.

Just now see that I can also enter property values into Quicken. If the market keeps tanking, may have to do that to pump the bottom line back up to give myself a morale boost.
The only number I focus on in Quicken is the net worth total, which includes property values.
__________________
FIREd is online now   Reply With Quote
Old 07-24-2012, 04:47 PM   #31
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,394
Quote:
Originally Posted by NW-Bound View Post
I missed that footnote in the OP's linked calculator about the net worth statistics including home values. Uh, that will make us all that much "richer".
Well, it certainly can, particularly if paid for.

If I have $1,000,000 net worth not including my house but am paying a mortgage every month then I have to withdraw more more than the same person who has $1,300,000 net worth including a $300,000 paid for house house who doesn't have to withdraw money for a mortgage every month.

This may not be true in every situation but in general a paid for house probably does reduce housing costs and so enables more money to stay in the portfolio making us "richer".
__________________
Katsmeow is offline   Reply With Quote
Old 07-24-2012, 04:48 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,401
Property values have to be entered manually into Quicken, and I have never done so.

On the other hand, most of my investable account balances are downloaded and updated automatically by Quicken.

Perhaps one of these days, Quicken can link to an RE site like Zillow to get estimated RE values too.

PS. Yes, houses have values in their imputed rents, and I keep having to remind myself of that.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-24-2012, 05:11 PM   #33
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,373
I guess when I looked at the calculator in the OP's link I just made myself see it as a "nest egg" and not "net worth" and so was thinking what income the results would generate toward retirement. If the average is what, $250,000 and it includes real estate?, that's not going to generate very much.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 07-24-2012, 05:18 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,401
Come to think of it, people can have a fine living on the smaller NW as above, if they have fixed income.

My own mother lives on just her SS and a small pension. Most of her NW is in the house that she owns and lives in, plus a rental home.

Again, I kept thinking that people needed to have a big NW. No, you don't. It is only if you want to retire early!
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-25-2012, 08:37 AM   #35
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by NW-Bound View Post
Perhaps one of these days, Quicken can link to an RE site like Zillow to get estimated RE values too.
In addition to our Quicken (which does not contain a guesstimate of our home's value), I also use Yodlee, which also links to Zillow.

It makes it easy to give a semi-annual financial update to our elder-law attorney since we have all our investment/banking/etc. accounts on Yodlee to update our estate net worth (minus personal effects, which we value at $0).

Since we have no family members involved with liquidating our estate, it's an easy way to gather/report the info.

BTW, Yodlee is the software used by FIDO ("under the covers") to support their Full View product, used as input to their Retirement Income Planner. If you are a FIDO account holder and use FV, you can also link to Zillow to get a current guesstimate under the "manage accounts" tab. This will also give you a summary of your estate net worth. However, we don't use this option since we don't want to include our bank accounts on FV for future forecasting (just our option).
__________________
rescueme is offline   Reply With Quote
Old 07-26-2012, 01:33 PM   #36
Full time employment: Posting here.
Redbugdave's Avatar
 
Join Date: Apr 2006
Location: Columbia, SC
Posts: 959
If that calc and article is right...our country is in a heap of trouble. Are people that bad about saving...living in the present and self gratification and about as dumb as a box of rocks when it comes to personal wealth and responsibility?
__________________
"I either want less corruption, or more chance to participate in it." Ashleigh Brilliant
Redbugdave is offline   Reply With Quote
Old 07-26-2012, 02:06 PM   #37
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Quote:
Originally Posted by NW-Bound View Post
Come to think of it, people can have a fine living on the smaller NW as above, if they have fixed income.

My own mother lives on just her SS and a small pension. Most of her NW is in the house that she owns and lives in, plus a rental home.

Again, I kept thinking that people needed to have a big NW. No, you don't. It is only if you want to retire early!
Yep. We found we could live on a lot less if we didn't want to see the World. Boyhowdy travel is a budget chomper.
__________________
Notmuchlonger is offline   Reply With Quote
Old 07-26-2012, 02:20 PM   #38
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by Notmuchlonger View Post
Yep. We found we could live on a lot less if we DW didn't want to see the World. Boyhowdy travel is a budget chomper.
Updated to show our situation ...
__________________
rescueme is offline   Reply With Quote
Old 07-26-2012, 02:37 PM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,401
Foreign travel can be less expensive if one is willing to do some extra "leg work". Of course we are all getting older and lazier weaker every year.

My mother has been a travel lover, but now that she starts to complain about back pain and all kinds of maladies she does not want to travel that much anymore. Maybe just a rocking chair in a balcony of a cruise ship. Not my idea of travel... Not yet anyway.

PS. By the way, I checked into Zillow to see the guesstimated values of my homes. Did not like what I saw! I shall leave these out of Quicken. No need to keep reminding myself of these numbers.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 07-26-2012, 09:50 PM   #40
Dryer sheet aficionado
 
Join Date: May 2007
Posts: 46
I always fall for these articles and calculators as well...although I readily admit that I don't really believe any of them are correct. These types of articles sell magazines monthly!
__________________

__________________
UnderTheRadar is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:52 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.