New Improved 2005 ER Forum Current Net Worth Survey
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Jay_Gatsby
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
We've got someone in the $8-9MM range?
We've got someone in the $8-9MM range?
frayne
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Right and they are on dial up too !
Jay_Gatsby said:We've got someone in the $8-9MM range?
Right and they are on dial up too !
cube_rat
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Geez Louise DT, how long did it take you to create this long a$$ list?
DanTien said:
Geez Louise DT, how long did it take you to create this long a$$ list?
MasterBlaster
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Do you include your principal residence in your net worth or not ?
Maybe a definition of net worth would be appropriate first.
Do you include your principal residence in your net worth or not ?
Maybe a definition of net worth would be appropriate first.
Re: The New Improved 2005 ER Forum Current Net Worth Survey
Standard definition of net worth is the value of all assets less liabilities.
It is not just income producing assets. And future potential tax liabilites are not typically deducted either.
Standard definition of net worth is the value of all assets less liabilities.
It is not just income producing assets. And future potential tax liabilites are not typically deducted either.
HFWR
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
assets - liabilities = net worth, in my case
assets - liabilities = net worth, in my case
Re: The New Improved 2005 ER Forum Current Net Worth Survey
We include our home equity in our net worth, but that seems pretty silly at today's prices...
As far as WE can tell, sure. Yeah, that's it.Jay_Gatsby said:We've got someone in the $8-9MM range?
We include our home equity in our net worth, but that seems pretty silly at today's prices...
Jay_Gatsby
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Housing equity attributable to actual payments made against mortgage principal might be a more "fair" way of looking at things. Then again, the appreciation in real estate is really no different than the appreciation in stocks...except that you can't live in stocks (well maybe you can, but living in those kind of stocks raises a more kinky issue).
Housing equity attributable to actual payments made against mortgage principal might be a more "fair" way of looking at things. Then again, the appreciation in real estate is really no different than the appreciation in stocks...except that you can't live in stocks (well maybe you can, but living in those kind of stocks raises a more kinky issue).
MasterBlaster
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
OK - More issues...
For a stream of income payments like a pension or your money sharking operation, Do you add in the net present value of those payments to your net worth ?
How do you account for medical benefit(s). Are they part of your net worth ?
OK - More issues...
For a stream of income payments like a pension or your money sharking operation, Do you add in the net present value of those payments to your net worth ?
How do you account for medical benefit(s). Are they part of your net worth ?
maddythebeagle
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Yes, the 2 folks that I know that have finance degrees argue excessively about home equity, but neither of them have a house, so I wonder.....
Yes, the 2 folks that I know that have finance degrees argue excessively about home equity, but neither of them have a house, so I wonder.....
Re: The New Improved 2005 ER Forum Current Net Worth Survey
Over the course of a bowl of cheerios and chatting with wife about how The Minneapolis Institute of Arts where she is a docent is getting ready to open the new Michael Graves designed wing and how much deep **** they are in because they have a looted vase from Italy, who are now putting a Getty honcho on trial in Rome for multiple instances of same...about 1 hour :
cube_rat said:
Over the course of a bowl of cheerios and chatting with wife about how The Minneapolis Institute of Arts where she is a docent is getting ready to open the new Michael Graves designed wing and how much deep **** they are in because they have a looted vase from Italy, who are now putting a Getty honcho on trial in Rome for multiple instances of same...about 1 hour : 
brewer12345
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
There wouldn't be much of an argument. Every first year MBA can offer you a calculation of the PV of a stream of cash flows. Easy-peasy.
Nords said:
There wouldn't be much of an argument. Every first year MBA can offer you a calculation of the PV of a stream of cash flows. Easy-peasy.
Re: The New Improved 2005 ER Forum Current Net Worth Survey
Still, I think it is rare that net worth calculations include the present value of a pension. Instead, you need less net worth because you have a pension. But then again, the present value of an annuity is generally considered part of net worth. . .
This is my banker client talking.
Still, I think it is rare that net worth calculations include the present value of a pension. Instead, you need less net worth because you have a pension.
But then again, the present value of an annuity is generally considered part of net worth. . .This is my banker client talking.
SteveR
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
WoW, over 50% (so far) have $1M plus and 10% have $4M or more.
The person with $8-9M better be retired and living on a tropical island or I am really going to lose my respect for that kind of money.
WoW, over 50% (so far) have $1M plus and 10% have $4M or more.
The person with $8-9M better be retired and living on a tropical island or I am really going to lose my respect for that kind of money.
thefed
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
WOO-HOO...IM THE LOWEST SO FAR ON THE TOTEM POLE...MAYBE THE YOUNGEST TOO...
WOO-HOO...IM THE LOWEST SO FAR ON THE TOTEM POLE...MAYBE THE YOUNGEST TOO...
retire@40
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Streams of income, even at net present value are not part of your net worth. Neither are medical benefits.
Net worth = Assets - Liabilities
Streams of income and benefits are not assets.
MasterBlaster said:
Streams of income, even at net present value are not part of your net worth. Neither are medical benefits.
Net worth = Assets - Liabilities
Streams of income and benefits are not assets.
retire@40
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Just to add to the discussion, even though net worth is the difference between assets and liabilities, that may not be the net worth definition that applies to what you need for FI.
Instead, your net worth definition may be:
Useable Net Worth = Assets that will provide a stream of income - Liabilities
Your house and the pencil on your desk are both assets, but neither may provide a stream of income in the future to you unless you sell or rent the pencil or house.
Just to add to the discussion, even though net worth is the difference between assets and liabilities, that may not be the net worth definition that applies to what you need for FI.
Instead, your net worth definition may be:
Useable Net Worth = Assets that will provide a stream of income - Liabilities
Your house and the pencil on your desk are both assets, but neither may provide a stream of income in the future to you unless you sell or rent the pencil or house.
Jay_Gatsby
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
Agreed, but you could say the same thing about your stock portfolio. In that case, only the dividend paying stocks would count. Likewise, in the case of real estate, only property that you're renting would count.
FI shouldn't be so restrictive. The whole point of FI is that you have the assets to give the world the finger if you choose. Your definition applies to the RE part of the equation.
retire@40 said:
Agreed, but you could say the same thing about your stock portfolio. In that case, only the dividend paying stocks would count. Likewise, in the case of real estate, only property that you're renting would count.
FI shouldn't be so restrictive. The whole point of FI is that you have the assets to give the world the finger if you choose. Your definition applies to the RE part of the equation.
tryan
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Re: The New Improved 2005 ER Forum Current Net Worth Survey
... house is "in"; pension (and SS) is out ... would be another .5M if "in" (using Bogle's formula of 14 X annual payment).
Sounds like Bogle's formula figures you'll only collect for 14 years (on average). This makes sense to me.
BTW, a graph (line/bar) would be nice when the dust settles)
... house is "in"; pension (and SS) is out ... would be another .5M if "in" (using Bogle's formula of 14 X annual payment).
Sounds like Bogle's formula figures you'll only collect for 14 years (on average). This makes sense to me.
BTW, a graph (line/bar) would be nice when the dust settles)
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