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Old 01-03-2013, 07:49 AM   #61
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How do people determine the value of their homes for this calculation? Are sales and other costs considered?
We estimate the net value of our house, and have included the cost of selling as well as the revaluation of real estate. Two years ago we reduced the asset value by 25%, although that was a little steep for our area.

Once we get beyond portfolio value, we also look realistically at the value of other personal property and assets. Thus, our small annuity is calculated at surrender value, jewelry at about 20% of insurance value. On a personal basis, for our macro calculations, we ignore the value of miscellaneous goods, cycles, boats, electronics, and household furniture and appliances, even though in total, the replacement value would be substantial. From experience, watching others in our senior community liquidate their household goods, we realize that conversion of belongings, to cash, is problematical.
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Old 01-03-2013, 07:55 AM   #62
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Originally Posted by audreyh1 View Post

If you had saved all of the $350,000 you received in SS (i.e. not spent any of it) then it would definitely show up in your net worth. But money already spent or borrowed is not part of one's net worth.
Perhaps you missed the point I was making about "income"... which along with net worth, often gets into our discussions, in a confused manner.
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Old 01-03-2013, 08:17 AM   #63
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Old 401k from megaconglomocorp, the bulk of my investments, up ~11%.

NW, who knows...
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Old 01-03-2013, 08:28 AM   #64
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I think that is why it is not that useful to talk about net worth changes instead of just looking at liquid investments gain and loss in just getting a more precise, although incomplete, sense of how the last year went. It is almost impossible to figure precisely the value of the house, the car, jewelries, electronics and other personal effects and their inclusions will just muddy up the computation.
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Old 01-03-2013, 08:29 AM   #65
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Perhaps you missed the point I was making about "income"... which along with net worth, often gets into our discussions, in a confused manner.
I didn't understand your comment about some people not counting SS as income. I understand that some folks who are not receiving SS may not add it into future calculations, but once you are receiving, it is income, how can it be otherwise?
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Old 01-03-2013, 08:39 AM   #66
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I don't own any real estate, so my NW is the value of my investment portfolio.

This is a very useful exercise, and I thank frayne, and this forum in general, for encouraging these types of assessments. I'm finding it useful for ignoring the "noise" that occurs from following market movements on a frequent basis.

This was the first full year that I have been withdrawing from my portfolio (and not adding to it), and it still managed to increase in value by 9.67% which I find quite encouraging.
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Old 01-03-2013, 08:40 AM   #67
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How do people determine the value of their homes for this calculation? Are sales and other costs considered?
I use value as computed by Zillow. I've found their info to be more timely and 'accurate' than the assessment that the county uses for tax purposes. Their methodology also seems to be more consistent.

Quicken shows my NW up 12.7% for 2012.
2012 was my last year of employment. I retired early on January 1, 2013 and have already received my first pension payment.
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Old 01-03-2013, 08:42 AM   #68
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Quicken shows my NW up 12.7% for 2012.
2012 was my last year of employment. I retired early on January 1, 2013 and have already received my first pension payment.
Feels good, doesn't?

Congratulations on your retirement
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Old 01-03-2013, 08:50 AM   #69
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Liquid net worth up 33.69% for the year. It was my last year working and I had an unexpected repayment of a large personal loan that I had treated as a gift, so I probably won't see that kind of increase again.
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Old 01-03-2013, 08:55 AM   #70
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I do view the equity in my weekend house (and maintenance costs) as a potential bailout source of funds if things go south. But otherwise, the houses are just a source of annual expenses.
+1

I occasionally entertain the idea of selling my 2 homes, then drive off in my RV with 1/2 of the proceed in gold coins, the other 1/2 in a triple-leveraged ETF. Yeah, a two-position portfolio! Don't they call that a barbell strategy? No more messing around, and fewer things to maintain.

Wife would not be for it. But then, I am now learning to do more cooking, and just made chili jelly for the first time, and also different types of terrine. It's hard to do that in the cooking space of a 25' RV, which also has no room for my stash of booze, which may be growing as my rate of acquisition far exceeds my consumption rate. So, my boondocking fantasy may never get realized.

Just joking!

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Heh. A "net worth calculation" thread and the year is only three days old.

Anyone want to lay odds on when the first "pay off the mortgage early" or "take SS at 62 or wait" threads will show up?
I did try to add variety like music, food, drink, and travel topics. Come on, my fellow geezers retirees! Retiring, early or late, should be about more than money!
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Old 01-03-2013, 09:06 AM   #71
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I didn't understand your comment about some people not counting SS as income. I understand that some folks who are not receiving SS may not add it into future calculations, but once you are receiving, it is income, how can it be otherwise?
Yes... that's what I meant... Often, in the same thread, discussions about "income" in retirement get mixed up, with one person talking about an income, (for instance) of $50,000/yr, while another person includes SS and quotes $65,000/yr. When planning our retirement, if we had not taken Social Security into account, I would have continued to work the extra three years... to age 65. As it turned out, with inflation staying low, it was the right decision.

I feel badly that so many younger people look at the future as if SS will not exist when they retire.

Of course, almost all discussions here seem to look at SWR as cast in stone... and that appears to be safer. We chose to plan on the decrement of capital, rather than a continued income stream. Perhaps a nuanced calculation, but one that we feel comfortable with.
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Old 01-03-2013, 09:12 AM   #72
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Originally Posted by Lagniappe View Post
Liquid net worth up 33.69% for the year. It was my last year working and I had an unexpected repayment of a large personal loan that I had treated as a gift, so I probably won't see that kind of increase again.
Hey, definitely a "lagniappe" - the unexpected repayment of the large personal loan. Thanks to you, I learned the meaning of that word. Nice to hear from you and congrats on the retirement and lagniappe!
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Old 01-03-2013, 09:15 AM   #73
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Yes... that's what I meant... Often, in the same thread, discussions about "income" in retirement get mixed up, with one person talking about an income, (for instance) of $50,000/yr, while another person includes SS and quotes $65,000/yr. When planning our retirement, if we had not taken Social Security into account, I would have continued to work the extra three years... to age 65. As it turned out, with inflation staying low, it was the right decision.

I feel badly that so many younger people look at the future as if SS will not exist when they retire.

Of course, almost all discussions here seem to look at SWR as cast in stone... and that appears to be safer. We chose to plan on the decrement of capital, rather than a continued income stream. Perhaps a nuanced calculation, but one that we feel comfortable with.
Gotcha, and agree.

I always counted in SS once I started ER planning about age 40
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Old 01-03-2013, 09:16 AM   #74
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also has no room for my stash of booze, which may be growing as my rate of acquisition far exceeds my consumption rate. ..

I did try to add variety like music, food, drink, and travel topics. Come on, my fellow geezers retirees! Retiring, early or late, should be about more than money!
Yeah!!!... side note.... One of my expectations was joy in the "consumption" part. Was not to be... Falling asleep before finishing the second beer, is more like it.

shouldn't "geezer" be capitalized?
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Old 01-03-2013, 09:18 AM   #75
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Wife would not go for it. But then, I am now learning to do more cooking, and just made chili jelly for the first time, and also different types of terrine. It's hard to do that in the cooking space of a 25' RV, which also has no room for my stash of booze, which may be growing as my rate of acquisition far exceeds my consumption rate. So, my boondocking fantasy may never get realized.

Just joking!
That's what I missed most when I was full time RVing - a real kitchen (and oven). I did make up for it somewhat by learning how to do some really nice cooking outdoors.

Now that I have a non-wheeled home, I enjoy the kitchen very much. But I also indulged in a large grill for the patio - a size I would never be able to store in my RV.
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Old 01-03-2013, 09:23 AM   #76
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Of course, almost all discussions here seem to look at SWR as cast in stone... and that appears to be safer...
I do not know about others, but as an aerospace engineer who is accustomed to control systems of large transport civilian aircraft with triply and even quadruply redundant systems, I want the comfort of mucho safety. See, even with those expensive backup systems, aircraft do crash once in a while.

So, I do not count out SS at all, but that is gravy right now. Lots of tasty gravy like I do make myself (by deglazing the pan with brandy), but it's still gravy. And if I have to, I will spend principal, but not without a sunken heart. For I am scroogy.
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Old 01-03-2013, 09:24 AM   #77
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1/1/2012
Retirement (401K + Roth): $97,010.39
Equity (Zillow - Mortgage): $34,443.26
Emergency Fund: $38,000
Kids College Fund: $10,000

1/1/2013
Retirement (401K + Roth): $159,877.87
Equity (Zillow - Mortgage): $72,106.43
Emergency Fund: $24,000
Kids College Fund: $18,000

Retirement funds did have a good year. Growing about 22%. The rest is maxing contributions mixed with paying back a 401K loan. Net Cash flow in of about $40,000

Equity in house grew because housing is coming back local, but more so because of a refinance we did putting some cash from emergency fund into the house to get the best rate.

Total Net Worth:
1/1/2012: $179,453.65 (without house: $145,010)
1/1/2013: $273,984.30 (without house: $201,877)

Change: +52.7% (without house: +39.2%)
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Old 01-03-2013, 09:27 AM   #78
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That's what I missed most when I was full time RVing - a real kitchen (and oven). I did make up for it somewhat by learning how to do some really nice cooking outdoors.

Now that I have a non-wheeled home, I enjoy the kitchen very much. But I also indulged in a large grill for the patio - a size I would never be able to store in my RV.
No self-respecting home owner (and even RV owner!) would do without a gas grill! You can have a large one, or a small one, but you must have one.

I also do deep frying on a gas burner outside to prevent cooking odor inside the home. And also an electric cooktop with a sink in the covered patio. Wife even regretted not having another oven out there!
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Old 01-03-2013, 09:39 AM   #79
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Still working and paid off my condo this year. I was making double payments so I instead invested all that many in 2012. I had my best year ever in terms of total dollar increase in Net Worth as I was able to save just over 50% of my Net Take Home Pay (after taxes and deductions).

Net Worth = +43.5%
Investment Portfolio earned 17% excluding new contributions.
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Old 01-03-2013, 09:40 AM   #80
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No self-respecting home owner (and even RV owner!) would do without a gas grill! You can have a large one, or a small one, but you must have one.

I also do deep frying on a gas burner outside to prevent cooking odor inside the home. And also an electric cooktop with a sink in the covered patio. Wife even regretted not having another oven out there!
Definitely no self-respecting RVer will be without some sort of outdoor cooking apparatus.

It took me about a year to get with the program, until I finally decided that a Weber BabyQ was compact/portable enough and still good enough. Clearly DH was too busy chasing things with his camera in the late afternoon light, so the onus fell on me to master the mystique of outdoor RV cooking. Once I got going, I totally fell in love with the outdoor grilling experience* - well, mainly the delicious results. My repertoire and enthusiasm increased by leaps and bounds. So when we got the house and had more space, I "rewarded" myself with a full-sized Weber grill plumbed into the house's natural gas.

*We had a grill at the house before we RV'd, but we didn't use it that much (probably work and sailing interfered too much with daylight grilling hours), and when it finally rusted away, we switched to an indoor panini type electric grill.
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