Our Money

Monday, May 05, 2008

Milestone reached: net worth of over $250,000

The last net worth milestone we published was back at $150,000 which was over a year ago. Since then things have been pretty much on auto pilot where we haven’t been diligently tracking our progress as we had in the past. So it feels very refreshing to get to talk about passing another milestone, this time being a quarter of a million dollars. Interestingly, it was about this day two years ago when we finally surpassed the $100,000 mark.

posted by Brian at 12:11 PM

9 Comments:

  • Nice! It's a big one.

    By Anonymous Dave, at 5/07/2008 3:51 PM  

  • I don't mean to be the bearer of bad news, but you can't cash out on your house or your used cars (questionable value) as these aren't income producing assets. Therefore, your true net worth (money that produces additional income for retirement) is much less.

    I think you are doing well, you're math is just a bit overly optimistic (you need some place to live and aren't likely to cash in on your house to retire on).

    Also, your lack of international investments in your IRA's and 401k's is beyond puzzling to me.

    By Anonymous Anonymous, at 6/05/2008 11:46 AM  

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    By Blogger Laura, at 9/10/2008 3:33 AM  

  • Sorry, anonymous, but no one that I know or read agrees with your definition of net worth. There's near universal agreement that net worth equals all your assets minus all your liabilities.

    Failure to include home equity in a net worth calculation would foolishly penalize home owners by overlooking a significant asset. To the extent that home ownership avoid a rental expense, they are indeed income producing.

    And people optimize their living arrangements all the time to power their retirement ... it's called downsizing and relocating.

    So ... you may personally find it useful to invent a new net worth metric, but you're on your own with this one.

    By Anonymous Anonymous, at 9/18/2008 7:51 PM  

  • Still, including home equity in your net worth is questionable at best if your intent is to retire. It's not like you can sell your home and live on the street.

    Also, the reality of the matter is most don't downsize in retirement. They prefer to keep up or increase their standard of living, including housing. Home equity pays no dividends, and actually sucks up funds if you have a mortgage. For retirement calculations, this should not be used at all.

    By Anonymous Anonymous, at 12/12/2008 3:27 PM  

  • will there be any updates soon?

    By Anonymous Anonymous, at 2/25/2009 4:21 AM  

  • Where'd you go? :(

    By Anonymous Anonymous, at 3/15/2009 5:40 PM  

  • Did you get fired or divorced?

    By Anonymous Anonymous, at 3/30/2009 11:52 AM  

  • Congratulations. Not even close to you.

    By Anonymous Finance Advisory Stop, at 6/22/2009 3:42 AM  

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