Net Worth 2007

[Nords]

Quote:

Originally Posted by wab I might actually have to increase my stock allocation to keep up with you guys (or go down in flames with you, as the case may be).

Dude, it's not a competition and everyone's a winner.

[justin]

Definitely a fair share of 20- and 30-somethings that are just getting out of college or in the middle of starting a family/buying a house/cars, etc. I'm one of them (at 26 years old) but I've managed to move from near zero NW into the "<$250k" category in 2.5 years (with a $100k increase in net worth last year alone!).

[kaudrey]

Yes, I messed it up too. Just did my investments. Add in the home equity and the pension calc, and I go from the "<500K" group to the "<$1.8M" group.

Karen
Single (divorced), no kids, still working at 37.

[wabmester]

Quote:

Originally Posted by Nords Dude, it's not a competition and everyone's a winner.

I see. So, you're saying size doesn't matter.

Yes, everyone here is above average, just like at Lake Wobegone, but that doesn't mean we should rest on our laurels.

While it's true that many of us left the rat race because we had enough (in more than one sense), that doesn't automatically neuter our competitive drive. Nor should it.

Go China! (Ugh, FXI is *down* 4% today. What happened?)

[Texas Proud]

Quote:

Originally Posted by kaudrey Yes, I messed it up too. Just did my investments. Add in the home equity and the pension calc, and I go from the "<500K" group to the "<$1.8M" group. Karen Single (divorced), no kids, still working at 37.

Hey Karen.... if you are 'cute'.... let's get together and move up a couple of slots

BTW... I am NOT cute or metro or any of the other 'in' ways for a guy...

[DRiP Guy]

Quote:

Originally Posted by wab Go China! (Ugh, FXI is *down* 4% today. What happened?)

Thanks for ruining my day, as a co-holder*... but, hey the day is still Yung, so there is time for a rally (we are talking about China, after all)

Maybe we should have read this as 9:37 today and sold?

Quote:

Beware Big Drops in Foreign Markets By Doug Kass Street Insight Contributor 1/4/2007 12:42 PM EST This column was originally published on Street Insight on Jan. 4 at 9:27 a.m. EST. Something to keep an eye in the year ahead is the action in foreign markets, which had a banner year in 2006 and might due for a selloff. ... I am considering shorting the iShares FTSE/Xinhua China 25 Index (FXI - commentary - Cramer's Take) -- that's the China market ETF.

http://tinyurl.com/y8qryl


*(All kidding aside, I am a long term buy-n-holder, so this is of no concern whatsoever to me, of course)

[SLC Tortfeasor]

Quote:

Originally Posted by justin Definitely a fair share of 20- and 30-somethings that are just getting out of college or in the middle of starting a family/buying a house/cars, etc. I'm one of them (at 26 years old) but I've managed to move from near zero NW into the "<$250k" category in 2.5 years (with a $100k increase in net worth last year alone!).

Similar situation for me. Started my legal career 4.5 years ago with only $7,500 in student loans. Now I can see I'm definitely on track for FI, but it's a long, long, long track.

It will be interesting to see if this forum is even around by the time I make it to $1M in about 20 years. For that matter, will the Web even be the same? If so, I hope someone digs this post out of the archives and posts it again in 2027. By that time maybe my post count will finally be high enough to move me beyond "recycles dryer sheets."

[ZMAN]

Tortfeasor: DW and I are both in the biz. 25+ of practice and ready to FIRE. Key is public schools, no clubs, cash for cars and invest or bank the raises as they come along. Two lawyer incomes and both on the same financial page a real plus.

A lot of lawyers get sucked into extravagant lifestyles they cannot afford or which eats up what they can afford. You can still look the part with Joseph Bank suits, Honda Accords and good public school neighborhoods without breaking the bank.

Good luck!

[jerryo]

Hmmm....I'm not quite sure how I acquired my net worth (<$5 million, including pensions, < $4 million without); just plugging away, I guess. I'm a widower (6 years), mid-50's. Split career between university and gov't. Maxed out IRAs and 401k's. Small inheritance (parents); moderate life insurance from wife (mostly spent on private college tuition for two kids) and small survivors annuity. Fairly successful investments in stocks and real estate....(10%+/year for 30 years). Expect to retire in a couple of years.....

[LEX]

When I worked I was a mining lawyer. The legal track I took was in mining and mineral ventures. I left Private Practice decades ago when I realized my income was tied to the number of hours I billed and not the value of the deals. Once I left the practice and focused on the business side the numbers became quite compellling. My suggestion is to use the training as a tool on the business end and enjoy the ride.

[windsurf]

Another lawyer here. 25 years in practice on the defense side (hourly billing, no mammoth contingent fees). At 45, told my wife 10 more years. At 55, I put in my two year notice with my partners. Lots said they wish they could do it but most have an addiction to clubs, bmw's, and the need to hang onto the professional image. Some in their fifites also have new wives and young kids. Hope to not have to touch my mil until it's, hopefully, 2 mil in 10 years. The house may or may not have market value beyond what I have in it but at least it's all mine. My advice to ayoung lawyer. Maintain impeccable ethics, always overprepare, find some things to feed your soul that don't have anything to do with practice, and keep sight on your goal of FI. It will help you fend off the impulse to spend your way into conformity.

[Gumby]

..

[Nords]

[
It's still a heckuva long way from the bottom rack, the midwatch EOOW, and the weekend duty... but those experiences are what give you the sense of perspective to stay in the same house and to drive a 14-year-old car.

[justin]

It's a recurring theme among my 20- and 30-something coworkers. Pretty much all of them either just sold their houses and built/bought new (much larger more expensive) homes, or they are planning on it soon. I think the thought process is "I can do it, why not? A house is a great investment, right?". They live in their old house 3-5 years, pay down the mortgage a little (maybe make some extra payments), the house appreciates a bit, and all of a sudden they are sitting on $50000-75000 in equity. This equity is viewed as prime material for a downpayment on the next house. After all, with that kind of money, you can get a $250000-375000 house with 20% down. Around here that gets you a nice house (on the low end) or a McMansion on the high end of the range.

[kcowan]

Both dad and mom were frugal. Dad had 5 cars during my lifetime. Same house and cottage. RE was their best (only) investment. But over 55 years, the annual returns were modest.

As the youngest son, I had the benefit of a Masters degree and a great job with a successful US multinational. Four houses (relocation paid by the company) until last one. 7 cars (plus DW at 6).

I had bigger houses (and mortgages) and fewers cars, toys and memberships than my peers. We get our identity out of who we are not what we have. I think this is the one apsect that can enable FIRE.

[Jake46]

Zman, Lex & Windsurf offer good advice to young lawyers. I practiced for 15 years as a partner with a heavy litigation practice. I made great money and spent all I made trying to emulate the lifestyles of my partners. I had a hard time leaving the confrontational lifestyle at the office and was divorced. 10 years ago, I re-married and moved in-house as general counsel of a Fortune 1000 company. I spend a heck of a lot more time with my family, live well below my means and saved the proceeds of stock options . I will be retiring in a few months at 60.

[mickeyd]

I think that there should be a metric that measures all of your assets, but not your residence, its contents, nor your automobiles. This, I believe , would indicate a more realistic way to measure if your spendable assets increased and by how much (ever the bull, I never think it can go down).

Maybe there is such a metric and I am just not aware of it.

[Moemg]

I'm an R.N.. Top salary $55,000 .My six years as a single Mom taught me to save ,save ,save .
Have always lived below my means . Retired two months ago with a seven figure net worth.

[wabmester]

Quote:

Originally Posted by mickeyd I think that there should be a metric that measures all of you assets, but not your residence, its contents, nor your automobiles. This, I believe , would indicate a more realistic way to measure if your spendable assets increased and by how much (ever the bull, I never think it can go down). Maybe there is such a metric and I am just not aware of it.

You could start another poll to measure "liquid net worth" if you want, but I figure all assets are available if you really need to liquidate. And downsizing is certainly popular, which frees up a bunch of home equity. Of course, you could always pull a Nords -- borrow against your home equity to invest in stocks.