Net worth change since 1-1-2012, the real question !

[NW-Bound]

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.

 

[EvrClrx311]

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%)

 

[NW-Bound]

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!

 

[skyvue]

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.

 

[audreyh1]

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.

 

[Koogie]

Finally a thread like this I can reply to since I'm not an investor.

Net worth was up 16.3% in 2012. (It was a good year for the business).
No debts, no real estate. 95% cash.

 

[NW-Bound]

Finally a thread like this I can reply to since I'm not an investor.

Net worth was up 16.3% in 2012. (It was a good year for the business).
No debts, no real estate. 95% cash.

Surely, you are an investor. You just put all your effort in your business, while most people here like myself are passive investors.

Definitions of "to invest" found on the Web:

1. to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

2. to use, give, or devote (time, talent, etc.), as for a purpose or to achieve something.

As part of my diversification in retirement, I have been investing more time and money into appreciation of food and drink. And as I have found out, I cannot eat nor drink all that much, so it really takes more time than money in this pleasure pursuit. And a retiree has lots of time!

 

[Bestwifeever]

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?

But if you pay off the mortgage, shouldn't you stop counting the house as an asset in you net worth because you no longer have the corresponding liability of the mortgage?

 

[NW-Bound]

Ah, as this thread title is about one's networth, and I was mentioning some other "investment activities", I should have added that people do not call these "life enrichment" activities for nothing.

These pursuits, whether involving travel, cooking, or gardening, can add to one's life richness, yet do not have to cost that much if one knows what he's doing. I keep mentioning some RV'er blogs as an example of how their lives have an intangible richness compared to mine. See, it's not all about money. How do I compare my net worth to theirs, when we add life experiences to the material possessions?

 

[audreyh1]

But if you pay off the mortgage, shouldn't you stop counting the house as an asset in you net worth because you no longer have the corresponding liability of the mortgage?

Oooooooo! BWE - cut it out!

 

[Shabby]

17% here, but I am still w**king as I race to FIRE

 

[Meadbh]

But if you pay off the mortgage, shouldn't you stop counting the house as an asset in you net worth because you no longer have the corresponding liability of the mortgage?

Only if the house goes "poof!" when the mortgage is paid off.

 

[Original Wally]

26% but still working and investing. And this doesn't include real estate, so very happy about our investing progress since leaving Ameriprise.

Lisa899 - I have to take you to the woodshed... I noticed you used the "w" word (see above). Please refrain from using curse words.

 

[Original Wally]

2012 was my last year of employment. I retired early on January 1, 2013 and have already received my first pension payment.

Welcome to the club. Retirement is the best damned j*b I've EVER held.

 

[PatrickA5]

Overall Net Worth was up 12%.

Earnings on retirement portfolio (without contributions) was 13.7%.

Net worth should have gone up signifcantly, but we made some really large home improvements that probably didn't increase the home value all that much - but we enjoy them. This year will be about spending less money.

 

[FUEGO]

Forget about should you include home value in net worth. What about the more pressing issue of whether we should pre-pay the mortgage at FIRE time or keep the mortgage and invest what we would use to pay it down? After all, that impacts your assets AND liabilities, so it could mean a huge difference to your net worth, however defined. What do you guys think about this more important question?

(yes, I include my house in my net worth, but not in my "portfolio value" to determine how much I can withdraw).

 

[samclem]

Net worth: How about including our share of government debt ($53,000 per person and climbing) on our individual balance sheets? (Multiply as required to determine your household amount.) This doesn't count the unfunded liabilities of government, just the stuff on the books.

 

[HFWR]

Net worth: How about including our share of government debt ($53,000 per person and climbing) on our individual balance sheets? (Multiply as required to determine your household amount.) This doesn't count the unfunded liabilities of government, just the stuff on the books.

I'll pay my share right now if will absolve me from any future liability...

 

[samclem]

I'll pay my share right now if will absolve me from any future liability...

Hey, that's not a bad idea. It's clear the government is looking for money right now even if it means less revenue later (ref the recent expansion of 401K-to-Roth 401K rules), so maybe this idea would sell.

Most folks would rather delay payment, but the typical delayed-gratification ER type might see the advantages of paying now to avoid later pain.

You'd have to find taxpayers willing to believe the promise of absolution from future liability. Methinks that will be a tough one.

 

[NW-Bound]

I'll pay my share right now if will absolve me from any future liability...

How 'bout we letting you just walk away without paying that $53K, but in return you will also forgo your part of the future liability?

I mean no SS, and no Medicare for you free man! My children will thank you.

 

[Sesq]

I am up 38% for the year, 15% from market returns, the rest from savings and debt repayment. The total bump was a good bit over 6 figures, which was the first time I've grown my NW that much in a year.

I take that back. In 2009 I was a bit over 100K bump in a year, but given that I was down 75K in 2008 I guess there was no sense of hedonism. Still w&%king.

 

[clifp]

How do people determine the value of their homes for this calculation? Are sales and other costs considered?

I just go by what the county assessor office says unless there is strong evidence that it is wrong. You also could also you a source like zillow.com or
trulia.com. These aren't perfect but they aren't bad. I just ran zillow on the 5 properties I ran they all were reasonable estimates.

I don't include transaction cost although you could certainly make the case that for real estate it makes a material differences.

 

[panhead]

Up 20%, hoping I can do even better next year! Still w*rking and saving.
(had to edit this, I also included the swear word..!)

 

[audreyh1]

I'll pay my share right now if will absolve me from any future liability...

Um - I think I'm already paying that share for 2012!!!!

 

[MichaelB]

If you are asking whether to include the costs associated with selling your house - no, just like you don't include the costs associated with selling your liquid assets (taxes, etc.). That's not how net worth is calculated. Costs associated with owning/maintaining a home are part of annual expenses, and aren't counted until they are spent.

Of course, the key is "net" worth. Mutual funds and equities are liquid and selling cost are minimal. If a house is 15% of total net worth and selling cost is 6%, that means net worth is overstated by as much as 1%.
I do agree that for change in net worth, sales and other costs are not meaningful.