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View Poll Results: How much of your net worth does your home represent?
Less than 5%. 16 5.48%
Equal to or more than 5%, but less than 10%. 66 22.60%
Equal to or more than 10% but less than 20%. 104 35.62%
Equal to or more than 20% but less than 30%. 55 18.84%
Equal to or more than 30% but less than 40% 18 6.16%
Equal to or more than 40% but less than 50%. 9 3.08%
Equal to or more than 50%. 6 2.05%
"Other" - - I don't have a main home, I rent, or I just need an "other" category for whatever reasons. 18 6.16%
Voters: 292. You may not vote on this poll

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Old 11-11-2014, 07:09 AM   #141
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Originally Posted by daylatedollarshort View Post
So I'm guessing you'd rather live where you don't have to pay $1.8M for a former hoarder house?

Hoarder House In Palo Alto Is On the Market for $1.8 Million
Reminds me of a house for sale in Pasadena CA during the bubble that was made out of a water tank.

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...
We used to live in Thousand Oaks (Ventura County) back in the mid-1980s. Loved the place (back then). Very crowded now that it's the home of Amgen.
We lived in Newbury Park back in the 80s. We really enjoyed it.
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Old 11-11-2014, 08:52 AM   #142
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Originally Posted by imoldernu View Post
Your story about buying land fascinates me. Would really like to hear more. As we live in a farming area, many of the residents of my community (CCRC) farmed right up to retirement... and now seem happy and secure, still owning and leasing their land. As an aside to this, over the years they tell me that they invested in more land, which left them relatively untouched through changes in the stock market.
I'm not sure what you want to know. I love dirt. We purchased the 94 acres in a remote location in Tennessee where dirt is relatively cheap - but not as productive as somewhere like Iowa. But I'd much rather live in Tennessee. Weather is nice, no state income tax and I love the rolling green hills. I plan to raise cattle so I think it will work out well. We are already talking about buying more land (attached to ours), but first we have to get the land we already own under control - also need to recover from building the house.

Most people talk about retiring and and traveling. I don't want to go anywhere. We spend most of our efforts trying to get people to visit us instead.

As far as the financial investment aspect of land - it does offer diversification to a portfolio of stocks and bonds. Most people invest in real estate with rental houses or apartments. I prefer dirt.
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Old 11-11-2014, 10:47 AM   #143
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I'm not sure what you want to know. I love dirt. We purchased the 94 acres in a remote location in Tennessee where dirt is relatively cheap - but not as productive as somewhere like Iowa. But I'd much rather live in Tennessee. Weather is nice, no state income tax and I love the rolling green hills. I plan to raise cattle so I think it will work out well. We are already talking about buying more land (attached to ours), but first we have to get the land we already own under control - also need to recover from building the house.

Most people talk about retiring and and traveling. I don't want to go anywhere. We spend most of our efforts trying to get people to visit us instead.

As far as the financial investment aspect of land - it does offer diversification to a portfolio of stocks and bonds. Most people invest in real estate with rental houses or apartments. I prefer dirt.
Thank you... That's exactly what I was wondering about.
Now that we've had a chance to be with "farmers" for many years, I see a different part of life that I was never exposed to. Almost to a person, my current friends are more laid back and happy with their lives. Not only the retirees, but their children and their families. Overall, healthier, less stressed and more secure. Not that it's a simple life, or the stereotype "okie", because they are exceptionally well educated and culturally adept... just a little closer to the earth, and living in communities with a basic heritage of honesty and social responsibility. Something that's had to put a dollar value on.

wish you well and a healthy, happy retirement!
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Old 11-11-2014, 10:54 AM   #144
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I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?
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Old 11-11-2014, 11:06 AM   #145
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I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?
Take the amount of years you estimate you have left to collect it. (now to last year of life)

Then multiply that number of years by the amount you are collecting (or going to collect). you can adjust the yearly amount by COLA, if you wish.

Then take the product of the numbers you multiplied and do a net present value of that figure.
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Old 11-11-2014, 11:07 AM   #146
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I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?
Simple. It's the NPV of the pension cash flow between two dates - when you start and when you stop. All you need are the two dates and a discount rate.
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Old 11-11-2014, 11:58 AM   #147
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I have always considered making such a calculation an unnecessary exercise that tends to generate inaccurate assumptions.
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Old 11-11-2014, 12:02 PM   #148
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Originally Posted by imoldernu View Post
Thank you... That's exactly what I was wondering about.
Now that we've had a chance to be with "farmers" for many years, I see a different part of life that I was never exposed to. Almost to a person, my current friends are more laid back and happy with their lives. Not only the retirees, but their children and their families. Overall, healthier, less stressed and more secure. Not that it's a simple life, or the stereotype "okie", because they are exceptionally well educated and culturally adept... just a little closer to the earth, and living in communities with a basic heritage of honesty and social responsibility. Something that's had to put a dollar value on.

wish you well and a healthy, happy retirement!
It is funny you should mention "... living in communities with a basic heritage of honesty and social responsibility". We just had some friends visit us from the Chicago area. They just found and purchased their retirement property about 15 minutes away from where we live. They reminded me of a lot of "legal" type things you think about coming from the city that just aren't as relevant here. Don't get me wrong, I still think it is important to have things like an umbrella policy in place. But if some kid wanders on to my property and gets hurt, it is more likely that their parents will "take them to the wood shed" than sue me.
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Old 11-11-2014, 12:17 PM   #149
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Plus the house came with new wife.
Damn.....that's one hell of a package deal!
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Old 11-11-2014, 02:07 PM   #150
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8 or 9% best guess. Plus the house came with new wife. My old house is up for sale - soon I hope.

heh heh heh -
Congrats on a house coming with the wife, unclemick!
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Old 11-11-2014, 02:43 PM   #151
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7.5%, no SS or pension.

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How do you add Social Security to your net worth since NW is usually assets on hand minus liabilities? Do you take the SS amount and multiple by 25-30 (years)?
As MichaelB says, it's a net present value calculation. You can make a column of numbers in Excel and do an =NPV on it.

Yea, but none of those links have an online calculator, afaict. It would be an easy thing to write. Maybe I'm just missing it, but I looked the other day (I googled it myself without the smart alec-y lmgtfy), and didn't find a calculator.

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Simple. It's the NPV of the pension cash flow between two dates - when you start and when you stop. All you need are the two dates and a discount rate.
But we all would need to agree on the same discount rate and the same CPI inflation rate. Both of those are needed since some of us have a LONG time until 70.
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Old 11-12-2014, 03:04 PM   #152
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Congrats on a house coming with the wife, unclemick!
Yep. Not only is she way better than I deserve her taste in housing (!922 Craftsman Airplane Bungalow) exceeds mine by a mile(1960 3 bedroom, 1 bath ranch).

heh heh heh - Speaking of Thousand Oaks thru my career every Aerospace engineer I met who spent time in CA either lived in or spent time in Thousand Oaks (1960's, 70's).
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