I have a terrible LNW 15% compared with a better TNW. Although my TNW brings in $16k in residual income each month.
I have focused on mostly paying towards a $1.4MM (.3M loans) rental empire that has a capitalization rate of ~14%.
With that being said I started seeing TNW/LNW on the race to 1MM and 2MM threads.
TNW 1.40MM / LNW 215K (15%)
I am only now changing direction. The interest paid off on the investment property are pretty much written off due to operating costs. Plus the profit (income - interest - most expenses) capital gains taxes on my investments is 20%.
******************I quoted another thread with the following adding small tweaks ***********
LNW == Liquid Net Worth (short-term investments, savings, retirement accounts, etc.)
TNW == Total Net Worth (LNW + home equity, business equity, and other assets that aren't easily converted to cash very quickly)
******************I quoted another thread with the following adding small tweaks ***********
This is the start of my race to 50% LNW