HFWR
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Re: Your Current Net Worth
Pile of what
I don't want to know how big a pile you've made.
Pile of what
I don't want to know how big a pile you've made.
Have Funds said:Pile of what
The net worth of the typical American household is $35,000 today.
Households in the $5 million category number about 328,000; with 38,000 enjoying at least $10 million worth of comfort.
According to this years edition of the World Wealth Report conducted by Merrill Lynch and Capgemini, the number of millionaires worldwide increased by 600,000 to 8.3m in 2004. The report defines a millionaire as an individual who has assets worth more than $1m excluding their primary residence.
The combined wealth of all these high net worth individuals (HNWI's) exceeds $30 trillion. At a regional level, Australia, India, Singapore, and Hong Kong were the strongest performers - Australia added 47 new millionaires a day throughout 2004, whilst India added almost 25 a day.
The following is a regional breakdown:
North America: Number of millionaires grew by 9.7%; total wealth grew 10.2%.
Asia-Pacific: Number of millionaires grew by 8.2%; total wealth grew 8.5%.
Europe: Number of millionaires grew by 4.1%; total wealth grew 3.7%.
Latin America: Number of millionaires grew by 6.3%; total wealth grew 7.9%.
Middle East: Number of millionaires grew by 9.5%; total wealth grew 28.9%.
wabmester said:Hmm, time for a new poll....
Apocalypse . . .um . . .SOON said:Hey, Dan, how 'bout an a*s poll? Excuse me, how about a lower GI poll?
--Greg
wabmester said:....Once you pull the plug, the size of your pile doesn't matter as much as burn rate, lifespan, and investment returns.
Here it is, wab:wabmester said:This whole millionaire thing is overrated. Once you pull the plug, the size of your pile doesn't matter as much as burn rate, lifespan, and investment returns.
Hmm, time for a new poll....
Ben, maybe you need to evaluate your priorities.ben said:Ps. and WHO is that with 5M+? If you are female and single send me a PM!
DanTien said:I don't want to know how big a pile you've made.
Nords said:If they're worth $5M+, is gender & marital status relevant?
retire@40 said: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.
That calculation will probably overestimate your net worth -- but it depends on the assumptions you want to make. Remember the 4% rule assumes that your expenses increase with inflation each year. Unless your pension is indexed to inflation, the $50K loses real value each year.Patrick said:If we do it this way, what value do we assign to our pensions? I.E., if I get a $50K per year pension, what net worth does that represent, since it's already "harvesting" for me? $50K/4%=$1.25M?
Patrick said:Do you mean pile of . . . . money?
DanTien said:Patrick -
I want it to mean whatever you want it to mean....
DanTien
Patrick said:OK, Krugerrands, then!
Zorba said:Something doesn't add up. We seem to have a large fraction of people in this
group with net worth in the area of $2 million and yet when discussing living expenses
in ER we see numbers quoted in the $50-100/day range. Thats a SWR<2%.
Are people really using such a low SWR - a depressing prospect for us wannabees,
or maybe RE living expenses for the millionaires is higher than $50-100/day?
Zorba
ex-Jarhead said:Zorba: The only two actual retirees that I am aware of on this board that report the middle range of 50-100 a day would be Unclemick and John Galt. There a a few others that are living in other countries that may fall into that range.
Anyway, it's really beside the point regarding what somebody else spends. We all have different obligations and lifestyles. Whatever works best for you is what's important.
Does that make sense? Hope so.