Are You Better Off Now Than You Were Four Years Ago?

[tapper]

This question has been bouncing around the media lately and I was wondering if the members of the ER forum have similar financial experiences over the past four years.

Are You Better Off Now Than You Were Four Years Ago? - US News and World Report

My investments are up about 34% since September of 2008 and as the closer we get to November that number will probably continue to go up because my investments were taking the nose dive towards the end of 2008. This also includes consuming over $100K of our investments because my contracting wife was unable to find a position for over 12 months during the past four years.

I quit working back in the spring of 2008 while my wife has continued to work. We are now within about two years of meeting the 100% success rate noted by Firecalc. I keep informing my wife that not working anymore could probably happen at anytime but she chooses to continue working. Extroverts are so strange.

 

[scrabbler1]

I am much better off today than I was 4 years ago.

My story is similar to yours, Tapper. I ERed in late 2008 when the markets were falling a lot and that was a great aid to my finances. I am up about 20% from where I was at this time 4 years ago, and like you that figure would rise if the comparison is done using a lower starting point when I actually ERed at the start of November. This is despite not working any more and spending a lot of my investment income instead of reinvesting it.

 

[MichaelB]

Let's see. DW and I are still alive and in good health. Two grandchildren. Kids are employed and living their lives. Brothers and sisters on both sides also all in good health. Mom is hanging in and we see each other often. Still ER'd. Life is good and we are fortunate.

 

[Meadbh]

On paper I am about $700K better off than 4 years ago (based on my NW spreadsheets) but I have less human capital left. A quick calculation (assuming a retirement age of 60) on the QWEMA calculator suggests that I've lost about $700K in human capital during the last 4 years. So the answer is neutral. Of course, if I were already retired, there would be no need to discount the human capital.

 

[skipro3]

I think the question should be;
Are you better off now than you were 4 years ago in spite of, or, because of the current administration?

Considering all of my assets, and only on a financial level, no. My home's value has depreciated by $500,000 putting my total worth below what it was 4 years ago.

And perhaps another better question is;
Is your quality of life better now than it was 4 years ago?
In my personal situation, yes. I will retire this year and have enough income to do what I want and since I'm not planning to move anyways or tap the equity in my home, the home's value isn't really meaningful to me right now.
But I don't think the quality of life for younger Americans is better today than it was in the past. I meet too many young people who are so much further behind the curve than I was at their age; no home, no career job, no savings, etc.

 

[Meadbh]

I think the question should be;
Are you better off now than you were 4 years ago in spite of, or, because of the current administration?

That would change the question from an economic to a political one. If it was meant to be political in the first place, I completely missed the point. But then I am not a USian.

 

[steelyman]

I think this thread has a high probability of seeing Goodbye Porkpie Hat, but my answer is a two-thumbs Yes.

 

[FIREd]

Two-thumbs yes for me too.

 

[frayne]

Net worth is essentially the same as what it was four years ago, so I would have to answer yes. Could I be better off, yes, could I have been a lot worse, you bet, in light of the financial crisis of 08. There is much to be said for investing in index funds and staying the course.

As MichaelB so succinctly stated, family is all doing good, no major health or job issues, plus two wonderful grandkids both healthy and doing good in school. That is the true measure as if you are better off or not.

 

[skipro3]

That would change the question from an economic to a political one. If it was meant to be political in the first place, I completely missed the point. But then I am not a USian.

The link in the OP's post was political so I took it as a political question.

The first sentence under the link's title article was;
"The Romney-Ryan campaign says the economy has gotten worse than it was four years ago when President Barack Obama took office"

 

[Alan]

I am much better off than 4 years ago. September, '08, 2/3rds of the site had been shut down, 200 or so contractors laid off, salary freeze, no bonus paid in 08 or 09.

Today I am ER'ed, investments doing great, my old site is now back at full capacity, with a big expansion in the works, lots of "welcome new employees" in the last 2 quarterly magazines I've received.

 

[REWahoo]

The link in the OP's post was political so I took it as a political question.

The first sentence under the link's title article was;
"The Romney-Ryan campaign says the economy has gotten worse than it was four years ago when President Barack Obama took office"

From bad to waaay bad.

The mods will be along shortly to mop up...

 

[easysurfer]

I think the answer depends on the interpretation of "better off."

Financially?

Health?

As a family?

etc. etc.

As a country? (oops, do I smell bacon?)

 

[MichaelB]

I think the answer depends on the interpretation of "better off."

Financially?

Health?

As a family?

All of the above

As a country? (oops, do I smell bacon?)

as Yoda would say: Strong the smell of bacon is ..

 

[Alan]

and other election politics thread is closed....

Queen - 'Another One Bites the Dust' - YouTube