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End of Year Net Worth

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  • #31
    Reading all the posts has been somewhat educational because it highlights the varied, and occasionally controversial, ways of calculating one's net worth. I'm a bit surprised some use Zillow estimates (Zestimate) for their home's value simply because they're notoriously incorrect but, short of a formal appraisal, I guess it's the next best thing.

    This thread, and the exercise of calculating net worth got me thinking about my own personal finance inflection point this year and I'd have to say everything turned around when I started to track my income, assets, expenses and liabilities in excel. People often say you need a budget but I suspect simply seeing where you are financially month after month would be adequate motivation for all the rest, e.g., budgeting, organizing spending priorities etc., to fall into place. Was this the case for most of you?

    That preamble aside, my revised 2016 net worth is approximately $60,000 when I take my home's Zestimate into account.

     

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    • #32
      A whole bunch of bloggers post their net worth on a regular basis, and you can view them here @ Rockstar Finance.

      If I posted my numbers, I'd be #4 / 264.

      Happy New Year!

      -PoF

      Comment


      • #33




        A whole bunch of bloggers post their net worth on a regular basis, and you can view them here @ Rockstar Finance.

        If I posted my numbers, I’d be #4 / 264.

        Happy New Year!

        -PoF
        Click to expand...


        Well that is an entertaining website.  I clicked on a few of the sites towards the top...I'm not sure I'd consider myself a "Commando" or "Retired" with a 529 that could only cover a semester of school, but I suspect my priorities could be different.

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        • #34




          A whole bunch of bloggers post their net worth on a regular basis, and you can view them here @ Rockstar Finance.

          If I posted my numbers, I’d be #4 / 264.

          Happy New Year!

          -PoF
          Click to expand...


          I'm kind of embarrassed that I'd be # 2 and I'm still not FI! I bet the top 50 people on the list probably do consider themselves FI!

          Seems kind of interesting to take personal finance advice from the folks on the bottom half of the list. I mean, it's great they're learning right along with you, but when I want to learn how to be skinny I think I'd rather learn from skinny people not people who think it would be cool to be skinny. Lots of people do know a lot about personal finance despite not being rich yet (shoot I think I was pretty smart back with a 5 figure net worth), but it carries a little more weight if you've been there and done that.

          Regarding Zestimate, it's quick and easy and if you consistently use it, it's probably accurate enough for my purposes. I can't imagine it's off by more than $100K. The house across the street just sold for $30K less than it's got my home listed at and I have the view lot.
          Helping those who wear the white coat get a fair shake on Wall Street since 2011

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          • #35




            WCI

            Your success is well deserved.  Your site has saved docs tons of time, money and aggravation.  May the new year be even kinder to you.

             

            CrazyRoadDublin
            Click to expand...


            Yea, but it's problematic. I mean, I'm still working shifts right alongside of everyone else, but it can't possibly feel like I still struggle with the same financial issues that a doc making the average of $200-250K struggles with. It's not quite as bad as Mr. Money Mustache's problem though (where he blogs about living on $25K while running a blog making $400K+.)

            On a good note, it helps me relate a lot better to some of the very business savvy specialists out there. I'm always impressed when I get an orthodontist, periodontist, plastics guys, ortho guy etc with a clinical income of $1-2M. And there are plenty of specialists in the $500K-$1M range. It's amazing how wide the income range is for physicians and dentists.
            Helping those who wear the white coat get a fair shake on Wall Street since 2011

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            • #36




              A whole bunch of bloggers post their net worth on a regular basis, and you can view them here @ Rockstar Finance.

              If I posted my numbers, I’d be #4 / 264.

              Happy New Year!

              -PoF
              Click to expand...


              I love the creativity of their names.

              Nice to have such a list in one place.

              Comment


              • #37







                A whole bunch of bloggers post their net worth on a regular basis, and you can view them here @ Rockstar Finance.

                If I posted my numbers, I’d be #4 / 264.

                Happy New Year!

                -PoF
                Click to expand…


                I’m kind of embarrassed that I’d be # 2 and I’m still not FI! I bet the top 50 people on the list probably do consider themselves FI!

                Seems kind of interesting to take personal finance advice from the folks on the bottom half of the list. I mean, it’s great they’re learning right along with you, but when I want to learn how to be skinny I think I’d rather learn from skinny people not people who think it would be cool to be skinny. Lots of people do know a lot about personal finance despite not being rich yet (shoot I think I was pretty smart back with a 5 figure net worth), but it carries a little more weight if you’ve been there and done that.
                Click to expand...


                I completely agree. It would be like having a pre-med college student teaching me how to embolize a GI bleeder (or whatever). I randomly clicked on the "Quityourdayjob101" link, and the dude advising me to retire has a net worth of $89k, including the depreciated value of his car.

                My pet peeve is the category of personal finance blogger who works a few years out of college or grad school, quits the day job, travels the globe year round and professes that just about anyone can do it. I guess that it is theoretically true, but add a spouse, a couple kids, and a dog or two to the mix, and I feel like I do not live on the same planet as that person!

                As far as my "ranking", add #1 and #4 together, and it's a little north of that, but I am much closer to the finish line than most of the participants here.

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                • #38
                  I would be number 118.  Finally made it to a positive net worth.  I also added the value of my home to net worth which I wasn't doing but after reading some more threads I decided you probably should, plus that seems to be what the majority does anyway.  I also calculated up my savings rate and found I'm saving 70% of my net income.  I was pretty excited about that.  Happy New Year everyone.

                  Also as a side note I do add in the 529 plans because I also think they are an asset even if there is a penalty to use it.  Obviously I don't plan on using it for anything except my kids education though.

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                  • #39
                    Between the student loans, rental house, and house we are minus 2 commas. Here's to 2017!

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                    • #40
                      You can potentially learn something from everyone you meet/blog site you visit. Regarding personal finance bloggers, sure it's nice to look to higher net worth individuals for guidance as they've "made it" but the newbies may very well know about newer approaches to old methods or completely novel methods that you could still benefit from. Ally Bank and other HYSAs come to mind. Furthermore, it's nice to know about donor-advised funds but if you're deeply net negative it's more beneficial to look to the slightly net negative to net positive bloggers as they're closer to where you are and their lived and written experiences may be more helpful to you.

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                      • #41
                        (double post)

                         

                         

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                        • #42










                          I’m hearing interesting things from folks with 529s that use it in a way that saves on taxes and to the benefit of the contributing parent as oppose to the student kid? One individual has a daughter who is in grad school with a full ride and apparently a 529 surplus of funds. This person took out the amount that would of covered the grad school tuition and went on a month long European vacation penalty and tax free? Another one bought a rental property near the college area where the student lives in the rental property and pays the monthly rent/mortgage using 529 funds? The latter sounds more legitimate to me… thoughts? My kids are 8-10 years away from college but never too early to plan ahead
                          Click to expand…


                          I have a friend who is overfunding his 529 plans because he plans to take university-sponsored courses in retirement–say, a photography course in Rome, for example. There are probably lots of games you can play, and lots of ways to get caught. I do not have interest in cheating the system or have the appetite for that kind of risk. The 529 program, at face value, is a great way to save money for college. Let’s just leave it at that.
                          Click to expand…


                          Thanks Vagabond!  I apologize as this is the wrong thread for this discussion but I brought it up as I do include it in my net asset.  Im not sure if I would call this cheating the system but as G stated.. legally keeping every penny and not paying any extra in taxes which ultimately leaves more to us and our family and less to the IRS.  Does paying market rent using 529 funds by the student who is attending an approved educational institution for rental property you own and appropriately accounted for as a rental income considered cheating the system?  I see it as potentially defensible if audited and probably no different than the intention of a backdoor Roth.  For high income earners.. we’re not allowed to directly contribute to the Roth but we all do so indirectly through a loophole.  Where’s the ethics in that game…?
                          Click to expand...


                          I dug this up a short while back for a friend who had ethical issues with the backdoor roth:

                          https://www.nytimes.com/2014/07/13/magazine/accounting-principles.html

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                          • #43


                            Also as a side note I do add in the 529 plans because I also think they are an asset even if there is a penalty to use it. Obviously I don’t plan on using it for anything except my kids education though.
                            Click to expand...


                            I include the 529s in my net worth, but not in my retirement assets for obvious reasons.

                            Lower net worth, and even negative net worth bloggers can be good reads. If @Zaphod started one, I'd be a regular reader.

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                            • #44
                              I am also similar to Vagabonds position of adding 1 plus 4.  I like to read some of these types of personal finance blogs because some of them are so interesting.  Some are very well written.  Occasionally I learn something.  In the real world talking about your net worth and asset allocation is not something that I do.

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                              • #45
                                I find people criticize Zillows estimates for being inaccurate, but at least in my location they are consistently very accurate. One of the known issues is it can have a lag if sentiment changes as the zestimates will be based off old data, but so will comps. Thats just part of knowing the market. As someone who has visited and followed RE in our area for several years now, its basically as dead on as you can get. We have 100% transparency in Cali so you end up knowing what the home sold for so maybe that makes it more accurate than say Texas where its not as readily available.

                                Its a very good guide for the range, its never truly valued until you get a written offer anyway. Both homes I purchased this year were bought within 1% of their zestimate at the time.

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