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End of Year Net Worth

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  • #46




    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.
    Click to expand...


    Happy to hear that Zestimates are pretty good for most of you. Maybe the Zillow execs heard all the grumbling about inaccurate estimates and decided to address that issue.

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    • #47







      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.
      Click to expand…


      Happy to hear that Zestimates are pretty good for most of you. Maybe the Zillow execs heard all the grumbling about inaccurate estimates and decided to address that issue.
      Click to expand...


      It will depend on your area. Like I mentioned texas does not report as openly and its not as useful, in cali its all reported so they have better data. Every state is probably different and thus a wide range of experiences I bet.

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      • #48




        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.
        Click to expand...


        I wonder if the general knowledge and acceptance of the validity of Zillow, at some point, becomes self-fulfilling. I have not purchased property in the Zillow era, but if I were to do so, I would certainly look up the property on Zillow, and the Zestimate would be a logical starting point, or at the very least a data point, for the discussion of valuation.

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        • #49




          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.
          Click to expand...


          I do not disagree. That said, I would be more likely to go to the cardiologist who has done a thousand caths than the one who has read extensively about caths and has a lot of great, new approaches to them, but very little first hand experience. Or, to take the procedural aspect out of the discussion, go to the cardiologist who has been specializing in cardiomyopathy disorders for 10 years for my (hypothetical) cardiomyopathy evaluation, rather than someone who has little experience but a lot of novel ideas or approaches, at least for the first pass.

          I think that there is some threshold of experience that gives one credibility. I once was introduced to a financial planner to potentially manage my account as part of my group's retirement plan. She was a young woman, very smart and personable, but clearly very inexperienced, and it was quite obvious that her questions and conclusions were not appropriate or realistic. (I think the projected that we would retire with a $60M nest egg, but might only be $45M if our children, then under 5, went to private college vs. state college, so we better decide quickly...).

          Finally, I have been reading financial books, forums and blogs for 20+ years, and while there are occasionally actionable nuggets of information that may benefit me, usually to a minor degree, it's mostly for entertainment and to reinforce the same, age-old lessons, over and over again. Ultimately, it comes down to human behavior and math, and the principles are evergreen (https://en.wikipedia.org/wiki/The_Richest_Man_in_Babylon_(book) ).

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          • #50
            The exactness of those blogger numbers is amusing. One of my mentors with a NW in the hundreds of millions once mentioned "If you can calculate your net worth, you're probably really not that rich." His point was there's so much guesstimating in establishing values along with daily swings, etc. that Zillow-like estimates were the best case scenario. Privately (and in a good mood), he might give a range of +/- $50M for himself on any given day.

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            • #51


              think the projected that we would retire with a $60M nest egg, but might only be $45M if our children, then under 5, went to private college vs. state college, so we better decide quickly…
              Click to expand...


              That $15 Million dollar upcharge those private schools add on can be a real buzzkill.  

              Comment


              • #52
                More positive than last year!

                Comment


                • #53
                  January 2015 (when we started tracking): -450,417

                  End of December 2015: -334,153

                  End of December 2016: -165,733

                   

                  My husband is starting his first "real" job after fellowship next summer. I started my first "real" job in October 2014 but have been commuting an hour each way so have only worked 4 days per week, no call which was a significant pay cut. However, that is the only way we were able to put a dent in our student loans which still total 447,000 . Oh, and we have 3 kids with 2 nannies to cover our odd hours so our childcare bill is >50k each year.

                  Looking forward to June, when we will move closer to my current job (which I love), my husband will be starting at the same hospital as me in August, we will be getting an au pair (so much cheaper!), and our income will be >600k combined so we can finally start really paying things off....

                  This time next year our goal is a positive net worth. If we are not there, things have gone very very wrong!

                  Comment


                  • #54




                    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...


                    The problem with net worth of bloggers is that one does not know how much of that money came in from the blogging (ads) and how much was the blogger getting from other sources, not related to the blog itself.

                    I could start a blog that no one will read and it might have a negative return, yet my financial net worth will probably rank me as number One of all bloggers. Highly misreading that would be.

                    Comment


                    • #55







                      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…


                      The problem with net worth of bloggers is that one does not know how much of that money came in from the blogging (ads) and how much was the blogger getting from other sources, not related to the blog itself.

                      I could start a blog that no one will read and it might have a negative return, yet my financial net worth will probably rank me as number One of all bloggers. Highly misreading that would be.
                      Click to expand...


                      I don't see anything misleading about it. If you have a personal finance blog, are transparent with your net worth and income sources, you could rightfully be at the top of the list.

                      There's no implication that the money was made blogging, or that they have good ideas or information. It's simply a list of all bloggers who regularly publish net worth updates, posted in numerical order from highest net worth to lowest. There are bloggers with a net worth that would put them near or at the top, but only those that publish their net worth in a blog post are on the list. Tim Ferris eats $3 million for breakfast, but he doesn't publish his data. One of the top guys has most of his net worth wrapped up in the valuation of his business. The assets are usually broken down by the bloggers who share their data.

                       

                       

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                      • #56
                        If I include zestimate I crossed the 1m mark! Although most of this is house (yay vhcol areas!) that could come down in a major quake so it doesn't feel as awesome as one might hope it would....

                        Comment


                        • #57
                          2011  -242,600

                          2012  - 228,602

                          2013  -150,601

                          2014   -15,170

                          2015   218,696

                          2016   419, 541

                           

                          This includes house but not cars...

                          Comment


                          • #58
                            One-hunnit-thousand-aires!

                            Doesn't really feel like an accomplishment though since it's all automatic payments on debt and whatnot.

                            Edit:  if we included our "zestimate" we'd be two-hunnit-thousandaires!   :lol:   I think it's a little generous in our area.

                            Comment


                            • #59




                              This includes house but not cars…
                              Click to expand...


                              Why not?  They are worth something.  Or are they upside down in a loan?

                              Assets (house, cars, cash...) less liabilities (home loan, auto loan, stu loan...) = net worth.

                              In my figure I guestimate that I can liquidate even personal property for a few cents on the dollar.

                              Comment


                              • #60




                                The exactness of those blogger numbers is amusing. One of my mentors with a NW in the hundreds of millions once mentioned “If you can calculate your net worth, you’re probably really not that rich.” His point was there’s so much guesstimating in establishing values along with daily swings, etc. that Zillow-like estimates were the best case scenario. Privately (and in a good mood), he might give a range of +/- $50M for himself on any given day.
                                Click to expand...


                                That's just something you say to show off.  All of valuation is a guess.  Even right after a sale, after the auctioneer slams down the gavel, it's a debate what something is actually worth.

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