Author Topic: Race from $2M to $3M.....and beyond!  (Read 80927 times)

ysette9

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Re: Race from $2M to $3M.....and beyond!
« Reply #650 on: January 28, 2019, 02:10:28 PM »
To be honest the taxes don't bother me. I moved here to Minnesota directly from the UK where the tax rates are pretty much the same, if not slightly higher.  Plus, Minnesota is pretty awesome!  Sure, the winter's are cold and snowy but that just adds to the variety of life!
I feel like it is easy for people to jump on the “move to where there are no taxes!”-train without stopping to ask what is paid for with taxes, and what you don’t get by living in places like that. What you should be looking at is where gives you the best total package of services and other quality-of-life improvements for your money.

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #651 on: January 28, 2019, 04:22:43 PM »
To be honest the taxes don't bother me. I moved here to Minnesota directly from the UK where the tax rates are pretty much the same, if not slightly higher.  Plus, Minnesota is pretty awesome!  Sure, the winter's are cold and snowy but that just adds to the variety of life!
I feel like it is easy for people to jump on the “move to where there are no taxes!”-train without stopping to ask what is paid for with taxes, and what you don’t get by living in places like that. What you should be looking at is where gives you the best total package of services and other quality-of-life improvements for your money.
Sing it, sister!

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #652 on: January 28, 2019, 06:02:19 PM »

I feel like it is easy for people to jump on the “move to where there are no taxes!”-train without stopping to ask what is paid for with taxes, and what you don’t get by living in places like that. What you should be looking at is where gives you the best total package of services and other quality-of-life improvements for your money.

That's for sure.  Last year I worked with this heavily right wing guy who moved from Illinois (high taxes) to Indiana (lower taxes).  He was raving about how much better it was to be in that land of lower taxes.  Not long after that I drove through some backroads in Indiana.  Potholes and filled potholes were abundant.  I kept asking myself why don't they repave these roads.  Then I recalled I was in Indiana and they are happier with the low taxes.

I would take Minnesota in a heartbeat, even a cold place like Ely.

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #653 on: January 29, 2019, 04:05:58 AM »

I feel like it is easy for people to jump on the “move to where there are no taxes!”-train without stopping to ask what is paid for with taxes, and what you don’t get by living in places like that. What you should be looking at is where gives you the best total package of services and other quality-of-life improvements for your money.

That's for sure.  Last year I worked with this heavily right wing guy who moved from Illinois (high taxes) to Indiana (lower taxes).  He was raving about how much better it was to be in that land of lower taxes.  Not long after that I drove through some backroads in Indiana.  Potholes and filled potholes were abundant.  I kept asking myself why don't they repave these roads.  Then I recalled I was in Indiana and they are happier with the low taxes.

I would take Minnesota in a heartbeat, even a cold place like Ely.




Like most states there is good and bad to them. I go to  Indiana all the time and by West Lafayette it is extremely nice, big college town with Purdue being there.  Indianapolis has come along ways and become a very nice city that offers pretty much everything.  Up by Gary yes its a shit hole but there are a lot of nice areas to live with low taxes in Indiana. I find that to be the same in my own state as well Wisconsin. Milwaukee though getting better the areas to live are mostly a shit hole, Madison is very nice and everything between the two is really nice. Northern Wisconsin is hard to beat but like Minnesota you better be into winter sports.

Car Jack

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Re: Race from $2M to $3M.....and beyond!
« Reply #654 on: January 29, 2019, 07:37:59 AM »
If you move to a "low tax" state, be sure you understand what the taxes are.  Living in Massachusetts, I know what the taxes are on and what they're not on.  I'm paying income and property taxes and exise tax on my cars (some states call this personal property tax) and sales tax on things excluding food and clothes.

To our north, New Hampshire glowingly holds itself out as charging no income or sales tax.  There are taxes like meals tax, which tends to be missed, but of course you could simply not eat out.  Property tax tends to be around double what it is in Mass.  And of course, a huge % of NH people work in Mass, so they're paying income tax to us (thank you very much).  There are different treatments for dividends and such, so just understand these.  I used to work in NH and my cube mate lived in a town where a new high school was being built.  His property taxes doubled in one year.  In Mass, there's prop 2 1/2, (like CA) which limits property tax increases which have to be voted in for a specific project (like a school).  MA tends to also fund a huge portion of school building from state funds, softening the blow to the town.

« Last Edit: February 05, 2019, 06:30:52 AM by Car Jack »

Car Jack

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Re: Race from $2M to $3M.....and beyond!
« Reply #655 on: February 05, 2019, 06:34:37 AM »
After an absolutely horrible 2018 both personally and financially, I finally see my balances stabilizing and moving slightly up.  Clicked into the $2.3M in investments.  Not having to pay $500 per hour lawyer bills makes the school and college bills look like chicken feed now.  I might actually make more money than I spend this year.  That would be nice.  Oh....and my younger son is taking one community college course as part of his high school senior program.  $700 cost and he applied for a scholarship there and got it for $500.  Nice to see!

itchyfeet

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Re: Race from $2M to $3M.....and beyond!
« Reply #656 on: February 05, 2019, 09:58:15 AM »
Yes, a good start to 2019 bit I am still a ways behind my peak NW back in September last year.

Until property prices in Sydney bottom out progress towards a full recovery of NW, and the growth beyond that, will be slow.

Sydney property Prices have dropped 15% from the peak in mid 2017. I am thinking another 5% to 10% and then prices will be back aligned with what people can borrow which will support prices. That is unless interest rates go up which would cause a sh&t show at this moment (so unlikely). The Autumn selling market will be interesting to follow.

As my properties are still quite leveraged, even a 5% drop in values is pretty noticeable to my NW. I am still plenty ahead on property over the long term so I can’t gripe too much though. And as we won’t be selling for at least 4 more years there’s plenty of time for some growth before then. 🤞

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #657 on: February 05, 2019, 11:18:49 AM »
After an absolutely horrible 2018 both personally and financially, I finally see my balances stabilizing and moving slightly up.  Clicked into the $2.3M in investments.  Not having to pay $500 per hour lawyer bills makes the school and college bills look like chicken feed now.  I might actually make more money than I spend this year.  That would be nice.  Oh....and my younger son is taking one community college course as part of his high school senior program.  $700 cost and he applied for a scholarship there and got it for $500.  Nice to see!

What happened to you in 2018 CJ.. If you're comfortable sharing?

Car Jack

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Re: Race from $2M to $3M.....and beyond!
« Reply #658 on: February 05, 2019, 01:59:48 PM »


What happened to you in 2018 CJ.. If you're comfortable sharing?

2 completely independent legal battles.  Settled both. 

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #659 on: February 05, 2019, 02:32:24 PM »


What happened to you in 2018 CJ.. If you're comfortable sharing?

2 completely independent legal battles.  Settled both.

Great.. Huge weight of your shoulders I'm sure!

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #660 on: February 05, 2019, 04:09:03 PM »


What happened to you in 2018 CJ.. If you're comfortable sharing?

2 completely independent legal battles.  Settled both.
Great.. Huge weight of your shoulders I'm sure!
@Car Jack, I wondered the same thing. I poked around in your posting history to see what I missed. I didn't find an answer, but I was impressed with the quality of your posts across the forum. Thanks for your contributions to the greater good here. I love it when people help others find their way to FIRE...and beyond. I hope "Settled both." was a good thing.

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #661 on: February 06, 2019, 03:57:26 AM »
Slowly creeping up but ways to go to get to last September. Not sure if will get there but never the less at least for a bit now the trend has been up. Probably jinxed it now. Oh well! is what it is.

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #662 on: February 06, 2019, 01:12:32 PM »
Slowly creeping up but ways to go to get to last September. Not sure if will get there but never the less at least for a bit now the trend has been up. Probably jinxed it now. Oh well! is what it is.

You DID jinx it!.. I "should" have been back in this club today (with just my investments) but NOOOO!... :)

Bateaux

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Re: Race from $2M to $3M.....and beyond!
« Reply #663 on: February 06, 2019, 01:29:27 PM »
I'd just started tipping the threshold of 2MM investments again.   No more big drops.

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #664 on: February 06, 2019, 02:11:25 PM »
We're all in it together. Let's enjoy the ride.

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Re: Race from $2M to $3M.....and beyond!
« Reply #665 on: February 06, 2019, 03:38:47 PM »
I'm just curious how you all calculate your NWs--specifically, houses and mortgages?  I don't include the value of my house, but I also don't subtract the balance of my mortgage.  My reasoning is that I don't know the exact value of my house, but (after paying down the mortgage for 12 years and seeing home values in my area improve at least somewhat from 2008) I know it's at least more than my mortgage, and I'd rather underestimate my NW than overestimate it. 
 
I'm just curious about what others do--I don't think there's wrong way. 

onlykelsey

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Re: Race from $2M to $3M.....and beyond!
« Reply #666 on: February 06, 2019, 05:01:14 PM »
I'm just curious how you all calculate your NWs--specifically, houses and mortgages?  I don't include the value of my house, but I also don't subtract the balance of my mortgage.  My reasoning is that I don't know the exact value of my house, but (after paying down the mortgage for 12 years and seeing home values in my area improve at least somewhat from 2008) I know it's at least more than my mortgage, and I'd rather underestimate my NW than overestimate it. 
 
I'm just curious about what others do--I don't think there's wrong way.
Because I know I am not living long-term in my Manhattan condo, I include its (conservative, non-zillow) value, subtract the value of my mortgage, and subtract another 50k for anticipated transaction costs on selling.

AlexMar

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Re: Race from $2M to $3M.....and beyond!
« Reply #667 on: February 06, 2019, 08:20:51 PM »
I'm just curious how you all calculate your NWs--specifically, houses and mortgages?  I don't include the value of my house, but I also don't subtract the balance of my mortgage.  My reasoning is that I don't know the exact value of my house, but (after paying down the mortgage for 12 years and seeing home values in my area improve at least somewhat from 2008) I know it's at least more than my mortgage, and I'd rather underestimate my NW than overestimate it. 
 
I'm just curious about what others do--I don't think there's wrong way.

I use Personal Capital to calculate my Net Worth.  It includes all of my accounts, which includes credit cards, mortgage, etc. etc.  For my houses, I did some pretty simple research on comps and put in the house at a realistic value minus an estimate of realtor fees.  In other words, my house should fetch $1.5M based on recent sales, conservatively, but I put it in at $1.35M.

Your house is absolutely a part of your net worth calculation, and so is the mortgage.

AlexMar

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Re: Race from $2M to $3M.....and beyond!
« Reply #668 on: February 06, 2019, 08:23:40 PM »
I'd like to join to help motivate me. Currently at $540k and hope to hit the big 1M in the next couple of years.

I made it to $748k! Keep saving everybody!!

I made it to $988k and was getting excited... and then taxes hit! Looks like it'll be another few months yet :(

I finally did it!! Crawled over the line to $1,000,330 today!  Feels pretty surreal. Never thought I'd actually be worth a million dollars. Now I guess I keep on saving towards the next million!

Currently at $1.11m.  Don't really have a goal number at this point. I love running my own business so just tryna ride it out as long as possible and "make hay while the sun shines" as they say.

Passed the half way point!  Somehow we have $1.535m. Not sure how long the next 0.465 will take but I'll report back if we get there!

It took a little longer than I’d hoped due to the market being a douchebag lately but we Just hit 2 million today! We’re officially multi-millionaires I guess! I crunched the numbers and I think our “fat fire” number is around 2.5-3M so I’ll probably keep trucking away till we hit that, then I’m not sure what I’ll do.

Can I join your thread?  We just hit 2M yesterday! And with the friendly market today we're up another 15k already!  I'm carrying over our progress from the race to 2M thread if that's OK as I like keeping track of it this way.

Felt like we got stuck around 2.3M forever but finally hit 2.5M today! Next stop 3M... and beyond!

Facing the same challenge.  I've been sitting at $2.5 for at least 2 years now.  Just a TON of investments into the business is killing my savings rate, plus a bunch of spending on the house (and another house).  Kept me stagnant and I hate it.  But this year is THE year to start funneling money away again.  $3M seems so far off but I think I can hit it in 12 - 15 months (hopefully).

By the way, your story sounds a lot like mine.  I'm 2 years older than you and around the same NW, but about 8 years ago I was earning only $45k/year and 6 years later was in the $2M+ NW category. I never thought it would happen.  It's really a wild ride.  Congrats!

Fortunately, I already have a good management team in place and can work when I feel like it, which is still rather often.  My goal is to continue building the business, make a ton more money, and sell it when I'm 45 - 50 (or leave it to my kids).   The thing with owning a business is that you can really FIRE but not "really" FIRE.  So you keep earning the same if not more money but feel like you aren't tied to the job at all.  So you don't get a strong desire to FIRE.  Which is why I'd rather wait.  I'm hoping with the sale of the business and future profits plus compounding, $20M.

Best of luck with your venture!  Some of these software companies sell for huge amounts.  So you may have a total gold mine when or if you unload it someday.
« Last Edit: February 06, 2019, 08:33:01 PM by AlexMar »

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #669 on: February 07, 2019, 04:35:47 AM »
Guess i did Jinx it yesterday but for the most part it was a sideways days. 5 days up I believe maybe some profit taking. Anyhow were in it for the long run so while it feels good running up gotta remind ourselves of that once in awhile BUT I'd rather be saying that back on the other side of 3M.

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #670 on: February 07, 2019, 09:02:56 AM »
Finally peeked at account balances yesterday. I think it was worth not looking for a while. We're not at last September's number, but it's not far off. Boy, a lot of potential stress avoided for the win!

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #671 on: February 07, 2019, 11:06:15 AM »
I'm having a little personal gloat cus I managed to rebalance at almosth the exact bottom in Dec and I rebalanced again on Monday.. Almost the exact top..

Should start shorting the market as clearly my track record is exemplary ..:)

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #672 on: February 09, 2019, 03:54:10 AM »
Finally peeked at account balances yesterday. I think it was worth not looking for a while. We're not at last September's number, but it's not far off. Boy, a lot of potential stress avoided for the win!



I'm with ya on that sentiment! Was good to to see the market wold its ground yesterday so maybe, just maybe we have a chance getting back to those September numbers and beyond but this political climate is not helping things.

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Re: Race from $2M to $3M.....and beyond!
« Reply #673 on: February 14, 2019, 01:19:03 PM »
Finally peeked at account balances yesterday. I think it was worth not looking for a while. We're not at last September's number, but it's not far off. Boy, a lot of potential stress avoided for the win!



I'm with ya on that sentiment! Was good to to see the market wold its ground yesterday so maybe, just maybe we have a chance getting back to those September numbers and beyond but this political climate is not helping things.
this is one of the (only) great things about still working and earning. despite the markets, we are still up about $300K since the lows in December due to consistent savings.

EscapeVelocity2020

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Re: Race from $2M to $3M.....and beyond!
« Reply #674 on: February 14, 2019, 01:49:05 PM »
Finally peeked at account balances yesterday. I think it was worth not looking for a while. We're not at last September's number, but it's not far off. Boy, a lot of potential stress avoided for the win!
I'm with ya on that sentiment! Was good to to see the market wold its ground yesterday so maybe, just maybe we have a chance getting back to those September numbers and beyond but this political climate is not helping things.
this is one of the (only) great things about still working and earning. despite the markets, we are still up about $300K since the lows in December due to consistent savings.

Yup, it's funny, I make so much more money in the 'modern era' (and get to keep much more of it due to tax reform) that I am happily pared back from taking risk in the markets.  I'm happy that we are back near S&P 2800, but I don't want to bite my nails around what Trump decides on signing legislation or what China wants to do with US bonds, etc.  Passive income no longer feels so passive, it feels like 'agreeing with things I disagree with' income.  Happy to earn good active income and feel good about what I do.

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #675 on: February 14, 2019, 02:05:54 PM »
You guys just wait till you're retired!..:)

It is a little nerve wracking seeing one investment dip (briefly) below $2M (even with pensions/rent that basically cover one baseline spending).

But heck.. First world problems.. get over myself..

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #676 on: February 15, 2019, 02:38:53 AM »
Finally peeked at account balances yesterday. I think it was worth not looking for a while. We're not at last September's number, but it's not far off. Boy, a lot of potential stress avoided for the win!
I'm with ya on that sentiment! Was good to to see the market wold its ground yesterday so maybe, just maybe we have a chance getting back to those September numbers and beyond but this political climate is not helping things.
this is one of the (only) great things about still working and earning. despite the markets, we are still up about $300K since the lows in December due to consistent savings.

Yup, it's funny, I make so much more money in the 'modern era' (and get to keep much more of it due to tax reform) that I am happily pared back from taking risk in the markets.  I'm happy that we are back near S&P 2800, but I don't want to bite my nails around what Trump decides on signing legislation or what China wants to do with US bonds, etc.  Passive income no longer feels so passive, it feels like 'agreeing with things I disagree with' income.  Happy to earn good active income and feel good about what I do.





Thats how i have felt lately and have found myself being a bit more defensive in things. Small adjustments like moving stuff out of VMMXX into CD's and T-Bills but never-the-less there is so much shit going on and its been a long run but it seems to always have been like this.  To your point the one good thing with me being fire'd and my DW two years ago deciding to go back to work after two years off we do save a bunch on Health Care and every dime goes into 401k, HSA etc.. that is left so that to helps us stay above water and she loves it which takes some of the guilt I was feeling since the bread winner all the years leading up to this. Were still up at least 15% from when I fire'd 4 years ago but thats playing a big part in it.

itchyfeet

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Re: Race from $2M to $3M.....and beyond!
« Reply #677 on: February 15, 2019, 03:03:55 AM »
I was playing around in my spreadsheets the other day and was a bit astonshied by how quickly the stash continues to grow if I am drawing down 4% but the stash is delivering a (perfectly possible) 6% real return.

With a conservative plan our futures should be bright despite all the political noise.

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Re: Race from $2M to $3M.....and beyond!
« Reply #678 on: February 16, 2019, 08:23:31 PM »
I've been covering my face a bit, but finally checked. At $3.45M (includes property value, minus mortgage), which is down from our October high of $3.85M. Property prices have dropped a bit, actually. Which in the Bay Area, is pretty unusual. But, not unexpected, from my side. I'm expecting a further dip before things stabilize.

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #679 on: February 16, 2019, 10:25:45 PM »
yeah I'm getting a little nervous about this rally. I am considering moving from 8/20 (80 stocks/20 bonds plus cash) to 72/25.

I would be quite happy with continued gains at the lower stock ratio, but and extra 5% in bonds that I could roll back into stocks if the market took another sharp correction would be quite nice.

Last year out WR was about 1.5% so its not like we need to take too much risk.

EscapeVelocity2020

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Re: Race from $2M to $3M.....and beyond!
« Reply #680 on: Today at 01:48:53 AM »
I don't calculate my net worth very often anymore since it involves currency fluctuations and interest rates, but this latest rally has been an unexpected surprise.  Not as exposed to it as I would have liked for my age, but I'm doing fine.  I think that the US is still seen as a stable store of value, but this battle over 8B and what a President can declare could put a damper on the market.  Or maybe China falls apart even more quickly than the US which makes us a good bet!  I just shake my head at what could have been possible had anyone other than Trump been elected :)

Bateaux

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Re: Race from $2M to $3M.....and beyond!
« Reply #681 on: Today at 06:09:48 AM »
I don't calculate my net worth very often anymore since it involves currency fluctuations and interest rates, but this latest rally has been an unexpected surprise.  Not as exposed to it as I would have liked for my age, but I'm doing fine.  I think that the US is still seen as a stable store of value, but this battle over 8B and what a President can declare could put a damper on the market.  Or maybe China falls apart even more quickly than the US which makes us a good bet!  I just shake my head at what could have been possible had anyone other than Trump been elected :)

Those of us in this thread are better off than 95 percent of the US households.   We'll weather most financial storms.   Trump has been more of a mental drain on me rather than financial.   We're holding about 250k in bond funds.  That could get us through several down years.  I'm buying more stock and bond funds as we're still working.  In a 50 percent market drop, we're still millionaires technically.   It's going to be ok.

blinx7

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Re: Race from $2M to $3M.....and beyond!
« Reply #682 on: Today at 07:03:38 AM »
Just for some context, though, I have an account that is mostly foreign stock that was over $200k this summer that is still $178k today.

So U.S. markets are at all-time highs but if you have a globally diversified portfolio you may still be under where we were in the summer. 

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #683 on: Today at 12:58:10 PM »
I don't calculate my net worth very often anymore since it involves currency fluctuations and interest rates, but this latest rally has been an unexpected surprise.  Not as exposed to it as I would have liked for my age, but I'm doing fine.  I think that the US is still seen as a stable store of value, but this battle over 8B and what a President can declare could put a damper on the market.  Or maybe China falls apart even more quickly than the US which makes us a good bet!  I just shake my head at what could have been possible had anyone other than Trump been elected :)

Those of us in this thread are better off than 95 percent of the US households.   We'll weather most financial storms.   Trump has been more of a mental drain on me rather than financial.   We're holding about 250k in bond funds.  That could get us through several down years.  I'm buying more stock and bond funds as we're still working.  In a 50 percent market drop, we're still millionaires technically.   It's going to be ok.

Yeah I think having a large pot is a form of hedonistic adaption.. I.e a heck of a good problem to have!

DW was asking me the other day (this is one of those "what do I do with all these funds if you get hit by a bus" conversations) what would we do if the market really tanked like it did in 2008?

without missing a bit a beat I told her.. I take my pension from the UK (OK doesn't work too well if I'm actually dead) and we tighten our belts ever so slightly.

The net result of this our WR would be zero, then we wait for the market to recover all the while still having a shit-ton of money to rebuild the house if the big earthquake happens on the left coast.

Its pretty amazing to step back from this situation realise we are all financially invincible.. almost..:)

JoJoP

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Re: Race from $2M to $3M.....and beyond!
« Reply #684 on: Today at 04:29:35 PM »
 I love it that we all have such different options.  Since our NW is 90% real estate, stock market fluctuations don't do much for our bottom line, better or worse.  If real estate tanks, or the rental market falters, then we're looking at a non diversified wealth portfolio, so to speak.   Losing a good tenant is my financial equivalent of a down day on the stock market-- something that's certain to cost me a couple of grand or more.  Ditching a bad tenant would be more like a bad quarter on the stock market.  A massive earthquake or fire storm would be my Black Friday. 

A couple of posts above, @blinx7 is down $22K since last summer, more than 10% of that account.  Ouch.  That would be about a year's loss of rental income on one of my rentals, which cost me about the same (200K ish purchase price, renting for $1900-2000 month, costing taxes and insurance, but no mortgage).   In my spread sheet, though, the income and the asset are distinct.  The asset is still there but the income is reduced.

Hearing most of you discuss the ups and downs of the stock market has given me the courage to rethink our RE-centric portfolio and get a little more cash into stocks and bonds.    From an outside perspective, I'd say ya'll rolled with the punches and bounced back pretty well.  None the worse for wear and tear!