Your Current Net Worth - 2005
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retire@40
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Re: Your Current Net Worth
Don't forget that there are two kinds of net worth:
There's the classic: Total assets - Total liabilities (which is what I assume you ask in your poll)
And there's the "harvestable" net worth I use to determine how much I need to be FI. This net worth only takes into account those assets that will generate income to me, like my mutual funds, bonds, and bank CDs. For example, your home counts as part of your net worth, in the classic sense. However, if your only asset is a $1mil home with no mortgage, you will not be able to be FI unless you plan on tapping the equity by selling it, getting a reverse mortgage, renting it, etc.
The harvestable net-worth is more meaningful to me since I don't plan on generating any income from my home nor some of my other assets like my wedding ring and the pencil on my desk.
Don't forget that there are two kinds of net worth:
There's the classic: Total assets - Total liabilities (which is what I assume you ask in your poll)
And there's the "harvestable" net worth I use to determine how much I need to be FI. This net worth only takes into account those assets that will generate income to me, like my mutual funds, bonds, and bank CDs. For example, your home counts as part of your net worth, in the classic sense. However, if your only asset is a $1mil home with no mortgage, you will not be able to be FI unless you plan on tapping the equity by selling it, getting a reverse mortgage, renting it, etc.
The harvestable net-worth is more meaningful to me since I don't plan on generating any income from my home nor some of my other assets like my wedding ring and the pencil on my desk.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Re: Your Current Net Worth
NYDB, if you get my drift...
REW
DanTien said:
NYDB, if you get my drift...
REW
T
TromboneAl
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Re: Your Current Net Worth
Good idea for a poll. I suggest that we use the classic net worth formula.
I predict that for this forum, the top slot will be $1-$3M, with the next lowest bin close behind.
For the general population, the first two bins would probably win.
Good idea for a poll. I suggest that we use the classic net worth formula.
I predict that for this forum, the top slot will be $1-$3M, with the next lowest bin close behind.
For the general population, the first two bins would probably win.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Re: Your Current Net Worth
None of Your Damn Business....
Your Damn Business Is Your Damn Business...
REW
LL said:
None of Your Damn Business....
Your Damn Business Is Your Damn Business...
REW
dex
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Re: Your Current Net Worth
I think you should have broken out the $1m to 3$m out a bit more - maybe in 250k increments
I think you should have broken out the $1m to 3$m out a bit more - maybe in 250k increments
Mr._johngalt
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Re: Your Current Net Worth
I'm a classic.
JG
DanTien said:I'm a classic man myself.
YDBIYDB
DanTien
I'm a classic.
JG
Re: Your Current Net Worth
I'm not going to answer either, but I do fall into one of those categories
I've done a bit of reading lately on the number of "rich" people in the country...seems the $1M+ category (excluding residence) is not a very exclusive club anymore, something like a few million folks fall into that category...
Also, a new term I learned UHNWI...Ultra-High-Net-Worth-Individual......someday I want to be in that category (there is no consensus definition on the term, but the last article I read was $30M+)...now there is a much more exclusive club to belong to...something like 70K people worldwide, about 30K in the US....I think I may need to take on a new challenge Wonder how many of those folks are first generation (self-made)UHNWI, and how many were more-or-less born into it?
I'm not going to answer either, but I do fall into one of those categories
I've done a bit of reading lately on the number of "rich" people in the country...seems the $1M+ category (excluding residence) is not a very exclusive club anymore, something like a few million folks fall into that category...
Also, a new term I learned UHNWI...Ultra-High-Net-Worth-Individual......someday I want to be in that category (there is no consensus definition on the term, but the last article I read was $30M+)...now there is a much more exclusive club to belong to...something like 70K people worldwide, about 30K in the US....I think I may need to take on a new challenge
Wonder how many of those folks are first generation (self-made)UHNWI, and how many were more-or-less born into it?Michael Moore
Recycles dryer sheets
Re: Your Current Net Worth
How do you classify those with retirement financed by pensions instead of other investments? It seems like you'd want to figure out what amount of money would generate income sufficient to equal the pension. But then we usually can't liquidate our pensions as we could other assets.
cheers,
Michael
How do you classify those with retirement financed by pensions instead of other investments? It seems like you'd want to figure out what amount of money would generate income sufficient to equal the pension. But then we usually can't liquidate our pensions as we could other assets.
cheers,
Michael
Re: Your Current Net Worth
Interesting point Michael. I don't have a good answer to get at a present value of a future payment.
Probably someone in the collective brain trust has one though.
The bottom line for this poll is what slot are you in and would that theoretical value (how long will you live) push you into the next one.
DanTien
The Other Michael said:
Interesting point Michael. I don't have a good answer to get at a present value of a future payment.
Probably someone in the collective brain trust has one though.
The bottom line for this poll is what slot are you in and would that theoretical value (how long will you live) push you into the next one.
DanTien
maddythebeagle
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Re: Your Current Net Worth
What I have done for pensions is take the money collected over the avg. life expectancy - as a rough estimate. I suppose you could add a cost of living adj. maybe and figure if your state taxes pensions. I suppose if you have a corporate pension, you could estimate a little down in case the guart. ben. corp. takes over.
What I have done for pensions is take the money collected over the avg. life expectancy - as a rough estimate. I suppose you could add a cost of living adj. maybe and figure if your state taxes pensions. I suppose if you have a corporate pension, you could estimate a little down in case the guart. ben. corp. takes over.
ronin
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Re: Your Current Net Worth
I find these kind of comparisons crass. I will say that I bet my dantien is bigger than yours.
I find these kind of comparisons crass. I will say that I bet my dantien is bigger than yours.
haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Re: Your Current Net Worth
Are you kidding?
One of the favorite passtimes on this board has been asserting unlikely IQs.
Ha
ronin said:I find these kind of comparisons crass. I will say that I bet my dantien is bigger than yours.
Are you kidding?
One of the favorite passtimes on this board has been asserting unlikely IQs.
Ha
Re: Your Current Net Worth
Anonymous poll is a good way to ask this question. I don't think it is crass done this way.
I did my net worth the old fashioned way asset-liabilities. Did not include cars (no debt outstanding), household goods, jewelry (not much anyway!) etc. I did not count my pension which is future dollars (20 years from now). I did include what we paid for the house, not market value...
Anonymous poll is a good way to ask this question. I don't think it is crass done this way.
I did my net worth the old fashioned way asset-liabilities. Did not include cars (no debt outstanding), household goods, jewelry (not much anyway!) etc. I did not count my pension which is future dollars (20 years from now). I did include what we paid for the house, not market value...
Mr._johngalt
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Re: Your Current Net Worth
You find discussion of NW comparison "crass"? Today's posts are full of intimate
details of people who had had a hose snaked up their ass.
JG
ronin said:I find these kind of comparisons crass. I will say that I bet my dantien is bigger than yours.
You find discussion of NW comparison "crass"? Today's posts are full of intimate
details of people who had had a hose snaked up their ass.
JG
Re: Your Current Net Worth
In response to how to calculate the present value of a pension, how about the following...
On the Retire Early Home Page website, intercst uses a 4% drawdown as a safe annual withdrawal rate. Using this thinking in reverse...an annual pension amount multipied by 25 would give you its 'net worth value'.
So, as an example, if you are getting (or will get) an annual pension of $10,000, it is worth $250,000 in terms of your net worth.
omni
In response to how to calculate the present value of a pension, how about the following...
On the Retire Early Home Page website, intercst uses a 4% drawdown as a safe annual withdrawal rate. Using this thinking in reverse...an annual pension amount multipied by 25 would give you its 'net worth value'.
So, as an example, if you are getting (or will get) an annual pension of $10,000, it is worth $250,000 in terms of your net worth.
omni
maddythebeagle
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Re: Your Current Net Worth
That sounds like a pretty good rule of thumb to use x25.
That sounds like a pretty good rule of thumb to use x25.
