Wednesday, July 9, 2014

2014 Mid Point Net Worth Check

I keep track of our net worth semi-regularly, and use the information as a directional guide for how we're doing. Lately it's been all about paying down our mortgages, while increasing our retirement savings. I consider us in the wealth accumulation stage of our lives - we have no debt other than our mortgages, and have a large retirement portfolio. That said, we live in/near San Francisco, and a starter house in our neighborhood is $2.5M, so we may never buy here ;-) It's all relative, I suppose. We have a decade left until our kids are out of the house, and we're starting to consider whether it makes sense to tie up SO MUCH equity in an expensive house that we will not need for very long. . . More thoughts on that later.

  • At the end of 2013, we were at $1.2M. 
  • At the beginning of June, we were at $1,411,000
  • As of July 1st, our net worth is at $1,439,000. So, a small increase, but we're moving in the right direction. Our property values have remained stable, and we continue to pay down our mortgages and max out our 401Ks. The stock market gains have also benefitted us, given the size of our portfolios. 
-$904,000 (property loans). 

+Seattle house value - $1,180,000
+Vacation house value - $400,000
+Retirement savings - $760,000
+Cash - $3,700
Total assets = $2,343,000

Assets - Liabilities = $1,439,000

I don't count either of our current stock equity packages in our net worth, as it's dependent upon us staying with our employer. We currently have about $475,000 worth of stock equity vesting over the next five years (pre-tax, and we're taxed at the 50% rate for these), but I think it's highly unlikely either of us will be there for that long. We'll recognize those assets towards our net worth once the stock has been converted into cash (or, another asset).

I also don't count the kids college accounts in our net worth, but we're about 50% of the way done with saving for tuition (does not include room & board). We're technically at 46%, so would like to see us hit 50% by the end of this year. We're buying tuition credits, which have gone up pretty drastically over the past few years, so we need to focus if this is going to happen.

That's pretty much it! Do you regularly track your net worth? What are you focusing on for 2014 - increasing retirement, paying down mortgages, reducing debt? 


  1. Hey, I can officially say that I know a millionaire :) Just kidding!! We don't regularly check our net worth but we strive to work on increasing it all the time.

  2. I'd not buy a house where you are now, especially if you don't plan on staying there after the kids move away. I know it's all relative and your income is quite large but if I saw I had almost 1 mil tied up in mortgage debt I'd probably have a stroke. lolz

    Good job on increasing that net worth!

  3. Wow! Your net worth has really grown. I would not pay $2.5M for a house. If there is another market correction in the housing market there, I would think that is too much exposure.

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