i rolled the net worth odometer over again!

[knucklehead 61]

i rolled the net worth odometer numbers over again today with a nice milestone of $2,000,513.20 (excludes personal property, cars, harleys, tractors, excavators, tools, machinery, guns, etc.).
the real estate holdings are down at least 500k from their collective peak, but slowly inching their way back.
we just re-fied our shack at 4.5% & a duplex at 5.625% which will save us well over a grand a month!
mabey life does not suck so much after all!
once i get the odometer to click over $3m i will quit my job & move to our property in oregon to retire early, hopefully by the time i am 47 or younger.

 

[Koolau]

Knucklehead 61, I feel your 'gain'! Congrats!

Now that I'm retired, guess my "odometer" will never hit the big 3 Ohhhhhh. Still, I'm happy for you. Hope you hit it sooner rather than later.

 

[calmloki]

i rolled the net worth odometer numbers over again today with a nice milestone of $2,000,513.20 (excludes personal property, cars, harleys, tractors, excavators, tools, machinery, guns, etc.).
the real estate holdings are down at least 500k from their collective peak, but slowly inching their way back.
we just re-fied our shack at 4.5% & a duplex at 5.625% which will save us well over a grand a month!
mabey life does not suck so much after all!
once i get the odometer to click over $3m i will quit my job & move to our property in oregon to retire early, hopefully by the time i am 47 or younger.

the tractors, excavators, and dozen or so old scooters don't get you half way to the next goal?

 

[Steve O]

Congrats

Your now a bigger target for the TAXMAN...

Get ready to do your part in "Spreading the Wealth"...

 

[Spanky]

once i get the odometer to click over $3m i will quit my job & move to our property in oregon to retire early

Why wait for $3m?

 

[Rambler]

Why wait for $3m?

'Cuz $2m ain't what it used to be...

.R

 

[audreyh1]

Knucklehead 61, I feel your 'gain'! Congrats!

OMG! I'll have to remember that line! That's really funny

Audrey

 

[audreyh1]

Congrats

Your now a bigger target for the TAXMAN...

Get ready to do your part in "Spreading the Wealth"...

Well - the nice thing about investments is that you don't have to pay taxes until you realize gains! And you don't need to realize gains until you want to use some of them. Appreciation is not enough!

Audrey

 

[Rambler]

Well - the nice thing about investments is that you don't have to pay taxes until you realize gains! And you don't need to realize gains until you want to use some of them. Appreciation is not enough!

Audrey

Ah, but we never know. France and some other countries have an asset tax...It would not surprise me if the US started taxing our wealth (not just our income) sometime down the road. I personally know at least 3 people who have left their home countries in Europe for another in order to avoid that tax. They were all filthy rich (billions, not millions), but there are a lot of people in the US who think "filthy rich" starts at about a million. Most of us here will need to watch out, if this happens.

R

 

[free4now]

I am taking some college courses in my early retirement. I was curious if I would quality for financial aid since my income is so low now, so I filled out the federal financial aid form. I was mildly amused that the web financial aid form wouldn't allow me to enter my net worth as it only allowed 6 digits in that field!

Once I entered $999,999 as my net worth they calculated my yearly contribution towards my education as $99,999. With education costs through the roof, I wouldn't be surprised if there are some situations where private schools cost more than that. Our government sure is stingy with digits; there's probably a law somewhere fixing the field sizes until Obama can pass an overhaul.

 

[jebmke]

Well - the nice thing about investments is that you don't have to pay taxes until you realize gains!

And if you tax loss harvested on the way down you can use those losses to suck up the gains if you need to take some for liquidity.

 

[knucklehead 61]

the tractors, excavators, and dozen or so old scooters don't get you half way to the next goal?

i can't wait to build a dam to create a pond out of a stream on our property with the equipment. they are fun toys to play with but don't generate income.
they have value, but i don't want to sell any of them. well some of them anyway.
i wish i still had a bakers dozen old harleys. i sold a few here & there & only have 8 now.

 

[knucklehead 61]

Why wait for $3m?

we will not have any health insurance when i bail out & i want to be sure we are able to live comfortably for the rest of our lives. plus our rottweilers need to be spoiled with tons of toys, love, food, & proper pet health care. buying pet health insurance has saved us thousands of dollars over the last few years!

 

[smjsl]

And if you tax loss harvested on the way down you can use those losses to suck up the gains if you need to take some for liquidity.

How so? TLH lowers your basis, so I am not sure it helps in this case...

Example: you had a stock at $100 and you tax loss harvested it at $40. Now, when you sell at $150, sure you have those $60 carried forward (if you had not used any), but your gain now is also $110 instead of $50...

 

[Westernskies]

but there are a lot of people in the US who think "filthy rich" starts at about a million.

and 47% of those folks aren't paying any income taxes at all...

I remember a quote (?) - "Democracy is lost when 51% of the people figure out how to get the other 49% to support them."

As someone who has worked hard all my life, lived conservatively, invested my earnings, paid my bills, and played by the rules, this worries the crap out of me.

 

[DivinDave]

Congratulations !

It's nice to watch those numbers roll over. but not exactly the kind of thing you can shout from the rooftop

 

[knucklehead 61]

i found this old thread & figured an update was in order.
NW is now close to 4.2m
we ran a ton of numbers through our spreadsheets & determined that 3m was way too low. i am now confident that 4.3-4.5m is the right number for us & am very close now.
we sold our house in san jose 2 weeks ago & moved into an apartment above a shop/garage building behind one of our other rentals & use the kitchen in our motorhome parked in the backyard. this is saving us about 4k per month! we took the 471k we netted from the house sale & paid off 2 loans & are buying a few more rentals in oregon (all cash) which will generate another 37k income / year.
i plan to keep w**king for about 6 months then we will move to oregon.
our apartments are selling & set to close on april 30th & we will 1031 the $ into more oregon rental properties next month. at that time i can finally say officially that i am FIRE.

 

[EastWest Gal]

Congratulations!

 

[TimSF]

Way to go. Do you have an ER date in mind?

 

[38Chevy454]

Congratulations on the nice increase over past few years. It sounds like you will have no worries to keep busy in retirement. Between your old HD's and the rentals you have no issues with stuff to do in retirement. From financial point of view you should be fine shape.

I have my old hot rods to keep busy, but have thought an old HD knucklehead or flathead would be a lot of fun for just cruising around. Did a lot of motorcycling in my younger days college and 10 years out, but now just have the 8 old cars and trucks. Once retired I plan to do a lot more garage time! Approx OMY for me, think about it every day.

I lived in SF bay area and am happy to be out of there myself. I always knew it would never be my retirement place, but moving out has moved my retirement date up a good amount. Not to mention I am happier out of CA, although some love it, that state is not for me. Have fun in Oregon.

 

[Options]

...

I lived in SF bay area and am happy to be out of there myself. I always knew it would never be my retirement place, but moving out has moved my retirement date up a good amount. Not to mention I am happier out of CA, although some love it, that state is not for me. Have fun in Oregon.

+1
Am leaning heavily toward Oregon or PNW myself. Grew up in the SF bay area, did undergrad in SF, and still have family up there. Don't intend to ever return to SF. If not for family would never return to the bay area. Currently live in SoCal and it's equally as bad. Horrendous traffic, from LA to San Diego, unbelievably expensive, and as about as ugly as a place to live can get. Even if you live in the beach cities, you're trapped because getting out in any direction is a traffic nightmare.

Once I leave here in 5 years, I'll never return to SoCal, either. I know some people love it in this state--and good for them--but I'm personally pretty much over California.

 

[mathjak107]

Congrats

Your now a bigger target for the TAXMAN...

Get ready to do your part in "Spreading the Wealth"...

oooh man don't remind me. we sold off most of our real estate holdings over the years and some of the sales were so big and the taxes brutal .

when we first started selling i thought about how much we may end up with when it was all sold.

boy was i wrong. almost 40% went for taxes , between the amt taxes , state and local taxes and hitting every phase out and surcharge there is i was way off base. .

i guess paying taxes means you are making money but ooooh they can be painful.

i think we started out pretax with assets in the 5 million range with about 4 million of it in real estate in manhattan . when the smoke cleared we were down to about 3 million which is what we are entering retirement with .

but being in queens in nyc the cost of living here is very high.

 

[Gill]

How do you get your net worth to the penny when real estate is involved?
Bruce

 

[mathjak107]

you can ball park it at best

 

[Gill]

you can ball park it at best

That;s what I meant. The OP is showing is net worth to the penny but yet he is obviously ball parking the real estate. I'd round it off to about the nearest hundred thousand, not the penny.
Bruce