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End of Year Net Worth

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  • Avatar Complete_newbie 
    Participant
    Status: Physician, Small Business Owner
    Posts: 804
    Joined: 01/03/2017

    32 yo – 6 month into being attending. Love the job!

    2016: -250 k (student loans)

    2017: – 900 k (home + student loans + personal loans)

    Focusing on income which went like this

    2016: 12.5 k/month (pre tax)

    2017: 52 k / month (pre tax); combined with wife ~ 70 k / month  <- starting roughly November.  😀 Revising goal to have sustainable 80 k / month by end of year

    Possibly deleverage in 2018? Will see.

    #94585 Reply
    Liked by rdo, Zaphod
    Avatar TotallyBroke 
    Participant
    Status: Physician
    Posts: 42
    Joined: 01/31/2017

    34 yo married to stay-at-home spouse with 3 kids:

    End of Fellowship Jun 2016: -$427K

    End of 2016: -$407K (paid large “stupid” taxes this year)

    End of 2017: -$322K

    #StillTotallyBroke

    #94628 Reply
    Avatar iradoc 
    Participant
    Status: Physician
    Posts: 68
    Joined: 11/10/2017

    I’m incredibly impressed by seeing how quickly the younger docs are crushing that debt down!

    #94635 Reply
    Liked by hatton1
    Avatar Physiciancouple.com 
    Participant
    Status: Physician
    Posts: 38
    Joined: 06/29/2017

    I agree. You guys are awesome. Our progress feels slow but we are gaining momentum.

    Please don’t go to a school that will indebt you 400k by the time you start residency unless you have no other choice. Dumb, dumb, dumb.

    #94648 Reply
    Avatar MidWestInternist 
    Participant
    Status: Physician
    Posts: 19
    Joined: 05/13/2017

    39 yr old Traditional Internist, employed W2 only, practicing for the last 10 years. Low COL town. Wife non physician

    Compounding really helps!! Almost 90% in stocks

    2011 – 426 K

    2012 – 531 K

    2013 – 746K

    2014 – 992K

    2015 – 1.18M

    2016 – 1.5 M

    2017- 2.2 M

    #94698 Reply
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 975
    Joined: 03/07/2016

    Zillow kills me with this.

    We bought a home in May 2016. In Jan 2017 per Zillow it was worth 80k more than purchase. Somehow it says it has dropped 150k in value since then (and this isn’t a 7 figure home).

    So if I use Zillow home value in my net worth, the home value drop wipes out a huge portion of my other gains. If I use my purchase price all the way through than my net worth is up 26%.

    I know I can’t just use the one that makes me feel better, but using the Zillow one sorta sucks. It probably overinflated my net worth from a year ago and maybe is more realistic now, but wild swings in home value when I have no plans to move or sell makes the Zestimate a bit less helpful.

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #94942 Reply
    Liked by Dicast, Zaphod
    Avatar Queue 
    Participant
    Status: Resident, Spouse
    Posts: 87
    Joined: 03/26/2017

    Just started tracking this year.

    2017: -210k

    #94948 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3486
    Joined: 01/21/2016

    Zillow kills me with this.

    We bought a home in May 2016. In Jan 2017 per Zillow it was worth 80k more than purchase. Somehow it says it has dropped 150k in value since then (and this isn’t a 7 figure home).

    So if I use Zillow home value in my net worth, the home value drop wipes out a huge portion of my other gains. If I use my purchase price all the way through than my net worth is up 26%.

    I know I can’t just use the one that makes me feel better, but using the Zillow one sorta sucks. It probably overinflated my net worth from a year ago and maybe is more realistic now, but wild swings in home value when I have no plans to move or sell makes the Zestimate a bit less helpful.

    Click to expand…

    Why not just ignore it for a while? Look at it again in five or ten years or when you are thinking about moving. Realistically, if you are staying put, the zestimate, plus or minus $250k probably does not really matter that much.

    I am at a different stage, but I do not include it (or cars) in net worth. I figure I am always going to live somewhere, and in the end, someone else will probably end up with the property.

    #94949 Reply
    Liked by hatton1
    Avatar FIREshrink 
    Participant
    Status: Physician
    Posts: 1026
    Joined: 01/11/2017

    Yeah I use my purchase price for that reason. Definitely too low for our rental, may be a little high or about right for our primary… It evens out.

    #94950 Reply
    Avatar LizOB 
    Participant
    Status: Physician
    Posts: 322
    Joined: 06/05/2017

    33yo, 3 years out of residency. Just started getting serious about tracking net worth this year.

    2014: About zero, I think. Got married that year and I believe my student loans were balanced out my his 401k which had already been compounding for 8 years (thanks engineering job with decent pay starting right out of college) and his home equity.

    2015: ? I was aggressively paying off loans, as well as maxing out 401k contributions, so it must have moved in the right direction

    2016: ~300k. Included salary hit from maternity leave

    2017: 550k. Polished off the student loans!

    I agree that zillow is not very accurate with their estimates. This year we built a house and sold the townhouse. Zillow thinks our new house is worth 200k more than what we paid, and thought the townhouse was worth about 50k less than what it sold for (at the time it sold). Haven’t really decided how I will adjust for home equity moving forward- this year it was easy because I’m using purchase price as the home value

    #94965 Reply
    Liked by q-school
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 975
    Joined: 03/07/2016
    Why not just ignore it for a while? Look at it again in five or ten years or when you are thinking about moving. Realistically, if you are staying put, the zestimate, plus or minus $250k probably does not really matter that much.

    Click to expand…

    I have a separate net worth calculation that excludes home, vehicles, the new DAF (which is a tiny % and I know should probably be excluded from any type of calculation since it’s no longer “mine”), and the “kids” money (529s and a small amount in savings).  My “adjusted” net worth went up 27%, but certainly a good deal of that is from the market.

    I have no plans to move so I know the home value is irrelevant from a practical standpoint, I just want the #’s to look as good as possible and am annoyed that the value has fluctuated (and dropped).  🙂

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #94966 Reply
    Avatar csciora 
    Participant
    Status: Small Business Owner
    Posts: 86
    Joined: 08/17/2016

    There’s so many assumptions in any net worth calculation. It’s not like you can ever write a check for that amount.

    Zillow’s opinion doesn’t really matter unless its making an offer on your house. Use the purchase price, use the purchase price with appreciation, get a BPO, leave it out entirely. Whatever makes the most sense for you. Any estimate of a single asset that wildly fluctuates AND is a significant portion of your net worth isn’t particularly useful for planning purposes or financial analysis. If you owned a business or two, it would be even sillier since the low to high valuations would end up being at least 3x different depending on the appraiser, the buyer, phase of the moon, high tide, etc.

    I use the purchase price plus a historical annual increase of 6%. Close enough for me.

    It’s a nice straight line and makes the net worth graph look pretty.

    #94981 Reply
    Avatar MochaDoc 
    Participant
    Status: Physician
    Posts: 239
    Joined: 08/25/2016
    Earnest refinancing bonus

    2015: ~ -$70,000

    2016: $95

    2017: $126,000

    “Money is numbers and numbers never end. If it takes money to be happy, your search for happiness will never end.”

    ― Bob Marley

    #94987 Reply
    Liked by adventure, hatton1
    Avatar Dicast 
    Participant
    Status: Physician
    Posts: 415
    Joined: 01/09/2016

    For net worth I have used the purchase price of our home. Zillow has been widely variable. I think it is important to have a net worth that tracks the same things every year for internal comparisons.

    Looking at everyone’s net worths so far I find it very encouraging to see such good progress. I hope to one day have the savings of the “old” crowd around here.

    Get outside of your bubble.

    #94999 Reply
    Liked by hatton1
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1498
    Joined: 12/07/2016

    Using a Zestimate vs using your purchase price can be equally inaccurate.  Sometimes and in some markets, Zestimates are very accurate.  In other places, as likely happened in Rogue Dad’s situation, it is wildly inaccurate.  However, to just assume that the purchase price of your home is somehow more accurate is not correct either.  This is just the nature of real estate in my opinion.  Using your home in your net worth calculation is going to cause some variation in your net worth.  That’s one of the reasons I don’t like having so much of my net worth tied up in my home.  However, over time as my home value becomes a smaller percentage of my net worth, I probably won’t care as much.

    #95029 Reply

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