Tuesday, November 3, 2015

How are we doing with our net worth?

Although I don't post about it as much as I used to, I still track our net worth every month. Included in our liabilities are our mortgages on two homes (vacation & rental house in Seattle). On the assets side, we have: savings accounts, investment accounts, & retirement accounts. I still don't include our employer stock options until they are vested, as anything can happen with those, specifically mine, as I'll be walking away from an enormous amount of stock when I leave the company.

It's been a slow few months, including last month when our net worth was up, but by the smallest amount I've ever measured (around $2,000). This was due to a decline in the market in our 401Ks. We've now recovered this month, and things are looking good again.

Here's where we stand:
Our net worth is up 38% from a year ago, which is exciting progress. The majority of our net worth continues to be in our 401Ks, contributing 42% of  our net worth and our properties, with our savings adding just a small sliver to those numbers.

A visual breakout:

As you can see, we're not keen on having a lot of money in our savings account. We prefer all of the money to be working for us (retirement account, heavily invested in the stock market) or invested in the real estate market. Our savings account is actually growing, as a result of my plan to stockpile savings before I leave my job.  

And, that's it for our net worth update. Do you track your net worth? How is your net worth faring? 
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3 comments:

  1. Nicole in MichiganNovember 4, 2015 at 5:14 AM

    I've been tracking our net worth for a few years, we broke $1M for a bit this year, then our stocks adjusted a bit, we bought a house, spent some money on furniture, etc that I don't include in our net worth, so we are below the $1M mark. Really hoping to cross the mark and stay there by the end of the year.

    My thoughts are that when we get $2M in net worth, we could have a comfortable retirement or at least go down to part time. This would be quite an early retirement, as we will both be under 50, more like 45 when we reach this goal. We would downsize and when we travel we'd live like more like locals than tourists. I love compound interest and dividend income!

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    1. Hawaii PlannerNovember 4, 2015 at 10:23 AM

      That's great progress! We live in a very expensive area (Bay area), so we're at that mark, but are still renting, not yet ready to buy. However, we are planning for me to move to a far less lucrative career soon. Mostly because as one career grows, we need to make tradeoffs. Compound interest is absolutely my friend! :-)

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  2. Hawaii PlannerNovember 4, 2015 at 10:21 AM

    Thanks! Sometimes it feels like a long slow slog, so it's good to step back & understand the bigger picture. ;-)

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