Author Topic: What's your net worth?  (Read 2720 times)

duanemark

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What's your net worth?
« on: June 05, 2015, 03:23:29 PM »
I am 37, my husband is 42.  Our combined net worth is $3.1 million.  $2 million is in real estate (2 different properties).  $1M in 401K and stocks/mutual funds.  Is my net worth even $3.1 million if the majority of it is in real estate?  If we liquidated both properties, we'd pay huge capital gains tax (would qualify for $500K exemption for only property). 

We have not FIREd though we can...we just can't pull the trigger.  I also happen to like (not love) my job as a lawyer.  Knowing we could retire if we wanted to has really put me in a different place pressure/stress/office politics-wise.  Knowing I can walk away if I ever wanted to really helps.  Just can't pull the trigger though. 

TN_Steve

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Re: What's your net worth?
« Reply #1 on: June 05, 2015, 05:14:45 PM »
Yes, your net worth would be 3.1 if you own the properties free and clear and have no other debt.    Just assets less liabilities.

"Effective net worth" is somewhat less, given capital gains hits and fact that some of the $$ are in tax deferred accounts.  But you can control the tax rate to a certain extent, even for the Real estate--think 1031, or possibly selling the one eligible for 500K exclusion, then moving into the other (if a house).  Plus, if income-producing property, holding it after retirement can be an effective method of financing your life.

Finally, don't forget, you always need someplace to live; that's why many retirement analyses will exclude all or some of the value of your house.

SMCx3

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Re: What's your net worth?
« Reply #2 on: June 05, 2015, 05:27:51 PM »
Well on your way to winning the game.

zoltani

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Re: What's your net worth?
« Reply #3 on: June 05, 2015, 05:41:11 PM »

marty998

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Re: What's your net worth?
« Reply #4 on: June 05, 2015, 06:22:45 PM »
I am 37, my husband is 42.  Our combined net worth is $3.1 million.  $2 million is in real estate (2 different properties).  $1M in 401K and stocks/mutual funds.  Is my net worth even $3.1 million if the majority of it is in real estate?  If we liquidated both properties, we'd pay huge capital gains tax (would qualify for $500K exemption for only property). 

We have not FIREd though we can...we just can't pull the trigger.  I also happen to like (not love) my job as a lawyer.  Knowing we could retire if we wanted to has really put me in a different place pressure/stress/office politics-wise.  Knowing I can walk away if I ever wanted to really helps.  Just can't pull the trigger though. 

Exhibit A: How to make others feel like shite.
« Last Edit: June 05, 2015, 06:47:08 PM by marty998 »

Midwestache

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Re: What's your net worth?
« Reply #5 on: June 05, 2015, 06:29:47 PM »
Nice job! Curious how your net worth is so heavily invested in real estate? Did you get lucky buying at the low in a HCOL area like the bay area? It would seem odd to put so much into real estate and forgo the more liquid assets such as 401K, taxable accounts, Roth IRA.


Maya

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Re: What's your net worth?
« Reply #6 on: June 05, 2015, 07:26:54 PM »
Yeah, not close. Wish I'd discovered MMM a bit earlier. Could have been a bit further a head. We're about 1/3 of the way to FIRE