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Reached the (fake) two comma milestone
Old 05-25-2018, 02:57 PM   #1
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Reached the (fake) two comma milestone

I just checked the balances today and I've quietly reached the two comma milestone However, I'm designating it as fake because it includes equity (not value) in the primary residence

Probably not worth posting about it but since I can't tell anyone in real life a little virtual gloating is in order
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Old 05-25-2018, 03:06 PM   #2
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It's OK. With RE equity included, it's net worth and not investable assets. It's not fake.

Now, if you go out to celebrate, will the restaurant bill cause you to lose that 7th digit?

I hope you have a better margin than that, because the market can knock off tens of thousand off your stash in a single day easily.
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Old 05-25-2018, 03:16 PM   #3
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Probably not worth posting about it but since I can't tell anyone in real life a little virtual gloating is in order
Itís a big achievement and worth celebrating, especially amongst forum friends who understand and appreciate what it takes to get there.
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Old 05-25-2018, 03:17 PM   #4
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Keeping track of both "net worth" and investments that can be/are being used for income is a good thing. Don't ever think that the NW 2 comma club is a fake number. It is real, and your milestone achievement should make you feel good. So, "CONGRATULATIONS!"

I too, have nobody but my wife to celebrate such milestones with. If the others only knew!
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Old 05-25-2018, 03:17 PM   #5
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Congrats (not fake). Others here might accuse you of fudging (or worse). The brick (or wood, stucco, etc) pile might not be part of your portfolio, but it's fair to consider it part of your net worth. In our case, it (the house) is earmarked, if needed, for LTC payment for DW. I have an alternate plan for me that precludes any LTC costs.

In either case, great news onthe 2 comma milestone!
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Old 05-25-2018, 03:49 PM   #6
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Now, if you go out to celebrate, will the restaurant bill cause you to lose that 7th digit?
Ha! Good point, I'd better celebrate at TacoBell just to be safe

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It’s a big achievement and worth celebrating, especially amongst forum friends who understand and appreciate what it takes to get there.
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Keeping track of both "net worth" and investments that can be/are being used for income is a good thing. Don't ever think that the NW 2 comma club is a fake number. It is real, and your milestone achievement should make you feel good. So, "CONGRATULATIONS!"

I too, have nobody but my wife to celebrate such milestones with. If the others only knew!
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Congrats (not fake). Others here might accuse you of fudging (or worse). The brick (or wood, stucco, etc) pile might not be part of your portfolio, but it's fair to consider it part of your net worth. In our case, it (the house) is earmarked, if needed, for LTC payment for DW. I have an alternate plan for me that precludes any LTC costs.

In either case, great news onthe 2 comma milestone!
Thanks everyone! This forum has played a big role in helping me get to this point. When I joined the forum my total NW was about $350k. The plan for the residence is to sell it and use the equity to pay cash for a house in a LCOLA.
The equity (on edit) stands at $370k right now. Of course, it's all just paper money- equity and equties both so any market fluctuation can affect the current NW in either direction but it was kinda cool to see the two commas for the total NW for the first time.
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Old 05-25-2018, 04:02 PM   #7
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We have to add our separate 401ks together to get to 2 commas. I hope that counts!
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Old 05-25-2018, 04:14 PM   #8
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Congrats on your achievement. The 2nd mil gets easier. lol
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Old 05-25-2018, 04:27 PM   #9
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Congratulations!

It's important to distinguish between net worth and FIRE stash for obvious reasons, but that home equity is still valuable from a FIRE standpoint, because eventually, with a paid-off house, you can spend less money to get the same standard of living because you don't have to come up with the cash flow for the mortgage payment. That lower cash flow need can also unlock some nice tax benefits, such as ACA tax credits, child tax credits (which had stricter income limitations before this year), etc.
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Old 05-25-2018, 05:22 PM   #10
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We have to add our separate 401ks together to get to 2 commas. I hope that counts!
If you are roommates then no. If married then yes.
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Old 05-26-2018, 11:56 AM   #11
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Congratulations.

I served 20-years on Active Duty in the US Navy, right before they forced me onto pension. I got to playing with the numbers, ... for a 401[k] to give me a monthly income equal to my pension, how much would I need to have in that 401[k]?

At that time, I also owned Rental Real Estate [a Triplex] that gave us a reasonable monthly income. We knew the assessed value of that Triplex. But that would have been the same if it was a Single-Family residence with zero monthly income.

So I went back to the idea of sizing a 401[k] that would provide the same monthly cash flow.

The way I looked at it, I was also in the 'two comma' crowd when I retired from the Navy.

That was back in 2001. We have since sold that Triplex property and we bought a farm where we have been living. 2 years ago we bought a commercial building, with two store front businesses as tenants, and we have been remodeling the upstairs. Next month we will have one additional retail space [the lease ink is drying], and eleven residential apartments. No debt and the monthly income will be a great deal more than my Navy pension.

I wish you luck
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Old 05-26-2018, 12:06 PM   #12
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Congrats! Isnít the feeling awesome?
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Old 05-26-2018, 12:59 PM   #13
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Congrats! Just don’t let on to any in- laws.
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Old 05-26-2018, 02:09 PM   #14
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Bravo!

Your post inspired me to check Zillow. Looks like you got me beat by months. If I include RE equity and subtract DW’s car loan, I’m only at $0.92MM. Still, that’s a little closer than I thought I’d be.
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Old 05-26-2018, 02:55 PM   #15
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Oh yeah, nothing fake about home equity. If you don't move around a lot a home just rocks.

Residential real estate here rents for ~ $1/sq-ft/month. My house would rent for $1400/mo or about 17 grand a year. It's worth $400,000 and at 1%/yr maintenance would be 4 grand a year.

That's 13 grand of dough to blow -
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Old 05-26-2018, 05:29 PM   #16
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Let's hope that if it goes back below it comes back quickly...


I went over barely years ago and then the crash... was WAY down for years...



Do celebrate as it is an achievement...
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Old 05-26-2018, 05:39 PM   #17
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Let's hope that if it goes back below it comes back quickly...


I went over barely years ago and then the crash... was WAY down for years...



Do celebrate as it is an achievement...
Unless the celebration takes him under...
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Old 05-26-2018, 05:48 PM   #18
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Very nice.
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Old 05-27-2018, 02:32 AM   #19
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It's OK. With RE equity included, it's net worth and not investable assets. It's not fake.
I agree. Net worth means nothing until it generates cash at your FIRE. Will you be cashing in your home equity at that time? If not, then the 2 commas are nice, and you should be proud of them. But invest able assets & the income they generate are what makes the world go round when you no longer want to work, IMO.
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Old 05-27-2018, 08:24 AM   #20
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We have to add our separate 401ks together to get to 2 commas. I hope that counts!
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Originally Posted by bw5972 View Post
If you are roommates then no. If married then yes.
Agreed, it counts if you see yourselves as partners in life. Congrats!

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Originally Posted by SecondCor521 View Post
Congratulations!

It's important to distinguish between net worth and FIRE stash for obvious reasons, but that home equity is still valuable from a FIRE standpoint, because eventually, with a paid-off house, you can spend less money to get the same standard of living because you don't have to come up with the cash flow for the mortgage payment. That lower cash flow need can also unlock some nice tax benefits, such as ACA tax credits, child tax credits (which had stricter income limitations before this year), etc.
Great point, thank you

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Congrats on your achievement. The 2nd mil gets easier. lol
Thanks. With my luck who knows but I sure hope so!

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Originally Posted by Offgrid Organic Farmer View Post
Congratulations.

I served 20-years on Active Duty in the US Navy, right before they forced me onto pension. I got to playing with the numbers, ... for a 401[k] to give me a monthly income equal to my pension, how much would I need to have in that 401[k]?

At that time, I also owned Rental Real Estate [a Triplex] that gave us a reasonable monthly income. We knew the assessed value of that Triplex. But that would have been the same if it was a Single-Family residence with zero monthly income.

So I went back to the idea of sizing a 401[k] that would provide the same monthly cash flow.

The way I looked at it, I was also in the 'two comma' crowd when I retired from the Navy.

That was back in 2001. We have since sold that Triplex property and we bought a farm where we have been living. 2 years ago we bought a commercial building, with two store front businesses as tenants, and we have been remodeling the upstairs. Next month we will have one additional retail space [the lease ink is drying], and eleven residential apartments. No debt and the monthly income will be a great deal more than my Navy pension.

I wish you luck
Thanks and what a great success story!

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Congrats! Isnít the feeling awesome?
Thanks. Honestly it hasn't really hit me I guess but it sure is nice to log into Personal Capital or Mint and see those two commas

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Congrats! Just donít let on to any in- laws.
Ha! no in-laws anymore...if it wasn't for the divorce my 2 commas would be the real 2 commas by now

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Originally Posted by cooch96 View Post
Bravo!

Your post inspired me to check Zillow. Looks like you got me beat by months. If I include RE equity and subtract DWís car loan, Iím only at $0.92MM. Still, thatís a little closer than I thought Iíd be.
Yeah, the prop values are back to being pretty high here...kinda scary but hey the ups and downs are all part of the journey and we should celebrate little milestones in life.

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Originally Posted by RobbieB View Post
Oh yeah, nothing fake about home equity. If you don't move around a lot a home just rocks.

Residential real estate here rents for ~ $1/sq-ft/month. My house would rent for $1400/mo or about 17 grand a year. It's worth $400,000 and at 1%/yr maintenance would be 4 grand a year.

That's 13 grand of dough to blow -
Haha! Thanks Robbie. Yeah Central CA is getting up there in value too.

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Originally Posted by Texas Proud View Post
Let's hope that if it goes back below it comes back quickly...

I went over barely years ago and then the crash... was WAY down for years...

Do celebrate as it is an achievement...
Thanks...and yeah I totally agree.

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Unless the celebration takes him under...
Haha, the celebration only happened in my head and here. DD's too young to tell and no one else I want to let in on it. A bit sad but...meh

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Very nice.
Thanks!

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Originally Posted by brucethebroker View Post
I agree. Net worth means nothing until it generates cash at your FIRE. Will you be cashing in your home equity at that time? If not, then the 2 commas are nice, and you should be proud of them. But invest able assets & the income they generate are what makes the world go round when you no longer want to work, IMO.
I completely agree, hence my cautionary 'fake' title to this
I'll sell the house in FIRE and use the equity only to buy a property (hopefully with some acerage) in a LCOLA. However, the way I see it is, hey no one else bought the house for me, many people around here would love to own a place but can't afford it. I pay a good chunk of my paycheck every month to keep it so I'm going to have a small celebration for the NW achievement in life. There was a time when my NW was $0
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