Author Topic: 306k net worth at 32 accurate for me?  (Read 1216 times)

kevj1085

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306k net worth at 32 accurate for me?
« on: October 10, 2017, 02:52:33 PM »
I use the mint app and have calculated in our 2 cars, our rental, and our house. It says our house is worth 305k, rental 213k, truck 8.5k, and Prius 4.5k. we have around 15k in the bank, have 91k left on our rental, and 140k left on our home. The only debt we have is our 2 mortgages and our monthly credit card which gets paid fully every month. It says our total accounts show us in the positive to 306k ish. This of course fluctuates anywhere from 303k-309k depending on payments we make.

We are both elementary school teachers in our 10th year of work. I assume this is decent?

Lady SA

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Re: 306k net worth at 32 accurate for me?
« Reply #1 on: October 10, 2017, 03:03:40 PM »
as teachers, do you have access to 403bs? Are you utilizing them? I dont see those listed in your assets.
https://www.earnest.com/invite/lillian2 --> Use this referral to refinance your student loans with Earnest and get a $200 bonus!

v8rx7guy

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Re: 306k net worth at 32 accurate for me?
« Reply #2 on: October 10, 2017, 03:35:59 PM »
Your net worth is pretty heavily skewed by your real estate holdings.  Do you have any of your net worth in stocks at all?

makinbutter

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Re: 306k net worth at 32 accurate for me?
« Reply #3 on: October 10, 2017, 04:55:14 PM »
I use the mint app and have calculated in our 2 cars, our rental, and our house. It says our house is worth 305k, rental 213k, truck 8.5k, and Prius 4.5k. we have around 15k in the bank, have 91k left on our rental, and 140k left on our home. The only debt we have is our 2 mortgages and our monthly credit card which gets paid fully every month. It says our total accounts show us in the positive to 306k ish. This of course fluctuates anywhere from 303k-309k depending on payments we make.

We are both elementary school teachers in our 10th year of work. I assume this is decent?

I'm going to read into this bolded question above.  The fact that you're asking this means - to me - one of two things.

1) You don't really understand the maths behind this whole early retirement thing.
2) You are still comparing yourself to the Joneses, in which case you'll never truly be happy (hell, on this forum alone there are teacher couples who are millionaires... cough cough ARS cough).

'Decent' is a value-loaded term.  Are you on trajectory to retire at your desired age and at your desired level of affluence?  Then you're doing 'decent.'  Are you spending frivolously and not tracking your spending?  Then you're not doing so 'decent.'

I will say, just for some perspective, that you could take that 300k TODAY and go move to pretty much 50% of the rest of the world and live like a damn rock star for the rest of your days.  So yes, you're doing pretty darn decent. :)

Now, if you have no desire to live in, say, Thailand or the Philippines or Ecuador... keep at the grindstone, keep socking away some dough, and get that 300k up to whatever-number-it-is-that-you-need-for-your-desired-life.  Kick some ass, good luck!

ixtap

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Re: 306k net worth at 32 accurate for me?
« Reply #4 on: October 10, 2017, 06:27:00 PM »
1) Do you have any tax advantaged retirement accounts?
2) How much are you spending? Your savings only really matters as a function of your spending.
3) Related to #2, how many months worth of expenditures does your $15k represent? Is that your fund for fixing whatever at the two properties, as well?


lexde

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Re: 306k net worth at 32 accurate for me?
« Reply #5 on: October 11, 2017, 08:38:38 AM »
Counting cars in net worth is kind of risky. But I do it, too.

Do you have retirement accounts? Taxable accounts? Putting all of your eggs in a real estate basket means your number can fluctuate a lot rather quickly. I'd want to focus on building a retirement stash.

kevj1085

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Re: 306k net worth at 32 accurate for me?
« Reply #6 on: October 11, 2017, 03:29:52 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

v8rx7guy

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Re: 306k net worth at 32 accurate for me?
« Reply #7 on: October 11, 2017, 05:07:50 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

makinbutter

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Re: 306k net worth at 32 accurate for me?
« Reply #8 on: October 11, 2017, 07:48:37 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

martyconlonontherun

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Re: 306k net worth at 32 accurate for me?
« Reply #9 on: October 12, 2017, 02:54:58 AM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

I'm not sure why that is hard to believe. White collar probably puts above 60% alone as most people just don't have the income. Add in they took their income and put it into investment properties. Then assuming they bought the properties at 24-25, they probably bought when the market was look and raised steadily. Finally they don't have any retail debt. It is extremely rare for a couple to 1. Have good jobs, 2. Had capital to invest early, 3. Got lucky in timing 4. live a frugal lifestyle. 2 of the four will make you above average. 3 out of the 4 will put you 75%, and 4 out of 4 is pretty rare.

Villanelle

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Re: 306k net worth at 32 accurate for me?
« Reply #10 on: October 12, 2017, 05:30:49 AM »
It's correct for your net work.  Actually, your NW would technically also include what you could get if you sold your TV, your computer, your furniture, your entire wardrobe, all your kitchenware, your dog, etc.  Everything you own.

But that number means very little when looking at retirement.  If you own a $10million home, you have a very high net worth, but if you plan to live in that home until you die, you can't use that money for anything (setting aside HELOCs or reverse mortgages for the moment), so you are in more or less the same situation as someone who plans to live in their $200k home, even though their NW is 1/5 of yours. 

Around here "net worth" seems to be used to mean both actual net worth (the value of everything one owns if it was all sold) but also something more like "assets I will use to live on in retirement", or "stache", in Mustachian terms.  That's just the money in investment and savings accounts for most people.  Some people may count part of the equity in their home if they plan is to sell and downsize, or they might count the value of rental properties.  But it is basically the money they will use for all spending in retirement. 

martyconlonontherun

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Re: 306k net worth at 32 accurate for me?
« Reply #11 on: October 12, 2017, 06:16:45 AM »
It's correct for your net work.  Actually, your NW would technically also include what you could get if you sold your TV, your computer, your furniture, your entire wardrobe, all your kitchenware, your dog, etc.  Everything you own.

But that number means very little when looking at retirement.  If you own a $10million home, you have a very high net worth, but if you plan to live in that home until you die, you can't use that money for anything (setting aside HELOCs or reverse mortgages for the moment), so you are in more or less the same situation as someone who plans to live in their $200k home, even though their NW is 1/5 of yours. 

Around here "net worth" seems to be used to mean both actual net worth (the value of everything one owns if it was all sold) but also something more like "assets I will use to live on in retirement", or "stache", in Mustachian terms.  That's just the money in investment and savings accounts for most people.  Some people may count part of the equity in their home if they plan is to sell and downsize, or they might count the value of rental properties.  But it is basically the money they will use for all spending in retirement.
QFT
Net Worth is for pride and comparison
Stache (Retirement accounts, other investments) is a more practical and useful number for most of us here planning FIRE.

v8rx7guy

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Re: 306k net worth at 32 accurate for me?
« Reply #12 on: October 12, 2017, 08:59:54 AM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

I was just guessing based on the thread that was posted a few weeks ago using this link:

https://www.shnugi.com/networth-percentile-calculator/

It looks like my wild ass guess was about right as $306,000 puts a 32 year old in the 92nd percentile.

makinbutter

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Re: 306k net worth at 32 accurate for me?
« Reply #13 on: October 12, 2017, 01:45:19 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

I was just guessing based on the thread that was posted a few weeks ago using this link:

https://www.shnugi.com/networth-percentile-calculator/

It looks like my wild ass guess was about right as $306,000 puts a 32 year old in the 92nd percentile.

Minor quibble, but the OP is writing for a couple, so by that calculator you'd probably need to take half off.  150k puts a 32 year old around 80%.  Still not shabby by any means.

MrMoogle

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Re: 306k net worth at 32 accurate for me?
« Reply #14 on: October 12, 2017, 02:09:34 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

I was just guessing based on the thread that was posted a few weeks ago using this link:

https://www.shnugi.com/networth-percentile-calculator/

It looks like my wild ass guess was about right as $306,000 puts a 32 year old in the 92nd percentile.

Minor quibble, but the OP is writing for a couple, so by that calculator you'd probably need to take half off.  150k puts a 32 year old around 80%.  Still not shabby by any means.
Actually those are household networths:
Quote
Use the percentiles to compare your net-worth to US households using data from 2016.
So 300k is the correct amount to use.

v8rx7guy

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Re: 306k net worth at 32 accurate for me?
« Reply #15 on: October 12, 2017, 02:10:02 PM »
I'm seeing what you are all saying, I was just wondering if that was technically the definition of net worth since I see a lot of people posting on threads discussing how they've gained 100k of net worth whereas it seems I have over 300 w out much effort. Not bragging, obviously, just inquiring if this is the definition of net worth. My wife and I are both in the pension system and currently that's where our retirement source is primarily coming from. I've used our retirement website calculator and it suggests together we should have about $5-5500/month coming in combined by age 52. No real desire for either of us to retire before then as our jobs are both rewarding and offer plenty of time off to feel semi retired (working 180 days a year). Also if we keep the rental property that can eventually be sold for a decent amount, and we should have 15 years of being able to save around 35k/year from work alone once our 2 kids are out of daycare (currently $1500/month for them) and our house is paid off in 5 years ($1500/mo). I'm not really posting this as a question out of worry for our future, I actually enjoy work and what we do feels more like giving than work, so that's not a problem. I'm more just curious I guess if by average, this net worth is considered good by this age.

Yes, that is your correct net worth... All of your assets minus all of your liabilities.  It is not, however, a good indicator of how close you are to Financial Independence... which is one of the main goals of this forum.  You are probably in the 90-95 percentile for your age group for net worth, so that's pretty good all things considered.

300k net worth for two white collar professionals at age 32 is in the 90-95% percentile??  That seems... dubious.  Some random calculator I found online says that a 30-34 year old with a 150k net worth is in the 82% range.  (Wow.  We suck @ teh savings)

I was just guessing based on the thread that was posted a few weeks ago using this link:

https://www.shnugi.com/networth-percentile-calculator/

It looks like my wild ass guess was about right as $306,000 puts a 32 year old in the 92nd percentile.

Minor quibble, but the OP is writing for a couple, so by that calculator you'd probably need to take half off.  150k puts a 32 year old around 80%.  Still not shabby by any means.

I thought about making that distinction, but my interpretation is that a married couple is one single net worth.  A "household" net worth.