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-   -   NW since FIRE (http://www.early-retirement.org/forums/f28/nw-since-fire-22876.html)

tryan 08-30-2006 10:44 AM

NW since FIRE
 
Always wondered how the FIRE'd NW has survived the test of time.

Only having been FIRE'd since Oct ... we're ABOUT EVEN.


REWahoo 08-30-2006 11:03 AM

Re: NW since FIRE
 
We're only 15 months into both being retired but after withdrawing at a rate of 4.5%, NW is up 5%.

Nords 08-30-2006 11:25 AM

Re: NW since FIRE
 
Quote:

Originally Posted by tryan
Always wondered how the FIRE'd NW has survived the test of time.

We started in June 2002 so the burn rate has been more than compensated for by the recovery.

Sam 08-30-2006 11:37 AM

Re: NW since FIRE
 
Quote:

Originally Posted by tryan
Always wondered how the FIRE'd NW has survived the test of time.

Only having been FIRE'd since Oct ... we're ABOUT EVEN.

The NW should be adjusted for inflation.* That's implied, correct?

I'm still working, so no vote from me.

Nords 08-30-2006 11:39 AM

Re: NW since FIRE
 
Quote:

Originally Posted by Sam
The NW should be adjusted for inflation.* That's implied, correct?

Let's not start up with that crap again.

Everybody just pick two freakin' numbers, no matter whether it accounts for GAAP's version of net worth or your own, even including the NPV of your beaver-cheese futures, and cast your votes.

tryan 08-30-2006 01:48 PM

Re: NW since FIRE
 
Quote:


The NW should be adjusted for inflation. That's implied, correct?

If you feel better keeping it "real" ... go for it. With the brackets swinging in 25% intervals can't imagine too many will be affected (unless you've been FIRE'd for 10+ years).

haha 08-30-2006 02:15 PM

Re: NW since FIRE
 
I am more than double, but I had the good fortune to retire into a what may turn out to be the best bull market of our lifetimes.

And no, I have no current plans to spend more.

Ha

Sam 08-30-2006 03:50 PM

Re: NW since FIRE
 
Quote:

Originally Posted by Nords
Let's not start up with that crap again.

???* I don't understand?* Why is it crap?

On this board, everyone is constantly reminded of the effect of inflation.* Am I missing something?

Nords 08-30-2006 04:08 PM

Re: NW since FIRE
 
Quote:

Originally Posted by Sam
???* I don't understand?* Why is it crap?

I'm referring to the board's never-ending ability to nitpick a topic's vocabulary to death, including our perpetual inability to agree on a single definition for financial calculations.

I think the OP was just wondering what our qualitative feel was for our financial situation after ER as opposed to ER. I don't think we were intended to get into an analysis of whether we should use CPI-U, CPI-W, or some other personal definition of inflation. Or net worth. Or expenses. Or volatility. Or duration. Or... but you get the idea.

JohnP 08-30-2006 06:31 PM

Re: NW since FIRE
 
I retired three years ago;* our nestegg has appreciated approximately 66% since that time.* Part was due to the large increase in market since Feb 2003 and part due to our still stashing cash into retirement savings while DW continues to work - just one more year for her work!

JohnP

unclemick 08-30-2006 06:43 PM

Re: NW since FIRE
 
Hmmm

Net worth up almost five fold in 13 yrs. Good old 'time in the market' AND the 90's were a great decade for both stocks and bonds - aka balanced index.

heh heh heh

IHateCNBC 08-30-2006 08:01 PM

Re: NW since FIRE
 
My networth increases are not keeping up with expenses.

I have a burn rate of about 3.8%.*

However, I was not counting on the lowest interest rates in decades in my retirement planning.* *???

My networth is up so far this year by 11.5% but I am talking on a lot more risk then I am comfortable with.* *:P

But my expenses are rising at a rate of about 12%.* (Biggest expense gainers;* health insurance (32%), dental insurance (29%), property taxes (14%) and electric (8%)). Car repair is up 82% I had to replace all four tires but hopefully that was a one time thing.

Danger Will Robinson Danger.* *:laugh:

TromboneAl 08-31-2006 09:34 AM

Re: NW since FIRE
 
Perhaps a poll on the annualized change in NW would tell us more. A NW that doubles in one month tells a different story from one that doubles in 10 years.

haha 08-31-2006 12:43 PM

Re: NW since FIRE
 
Quote:

Originally Posted by TromboneAl
Perhaps a poll on the annualized change in NW would tell us more.* A NW that doubles in one month tells a different story from one that doubles in 10 years.

Absolutely. If you are retired and your net worth doubled in one month, you took it all to a roulette went and went black.

OTOH, if it doubled in 10 years, you are doing OK.

Ha

SecondCor521 08-31-2006 02:11 PM

Re: NW since FIRE
 
Quote:

Originally Posted by Nords
Let's not start up with that crap again.

Everybody just pick two freakin' numbers, no matter whether it accounts for GAAP's version of net worth or your own, even including the NPV of your f*zzy-b*nny futures, and cast your votes.

Not to add flame to the fire...

My graduate level accounting PhD instructor last night strongly suggested that for personal financial planning purposes, the proper way to do a net worth statement was to add a line at the very bottom for the tax liability that would be incurred if one liquidated all of one's assets and had to pay taxes (including 10% early withdrawal penalties on IRA's, federal and state taxes, etc.). Personally I'll do the work for the class to figure it out, but I think it's next to useless. I've never heard of a business calculating their enterprise value that way.

2Cor521

Nords 08-31-2006 02:51 PM

Re: NW since FIRE
 
Quote:

Originally Posted by SecondCor521
My graduate level accounting PhD instructor last night strongly suggested that for personal financial planning purposes, the proper way to do a net worth statement...
I've never heard of a business calculating their enterprise value that way.

Me either, but he'd fit in well with this crowd.

I wonder if GAAP has ever heard of your instructor.


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