Comments on: How Does Your Net Worth Compare? http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: share tips expert http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-437423 share tips expert Mon, 31 Aug 2009 09:59:43 +0000 http://allthingsfinancialblog.com/?p=1231#comment-437423 We all get bombarded every day with mails, morning briefs as to which stock we should pick and how will be the market trend today. Every time the brokerage houses will send the <a href="http://sharetipsexpert.com/reports.aspx" rel="nofollow">stock market tips</a>> as if we all are playing a gamble and need the tricks as to how we can win it. And anticipating as to how to do stop loss and at least will make smaller profits. What most of the investor do is they consider short term trading as the long term investment and believe as to how it can be doubled in a day. Buying a stock just because the price is low and some stock market tip you received that this will boom in the market today. What most of us do is that we all trade with money which we can’t afford to lose but the market always says that invest only that money which is in excess to you. All of these are the big mistakes which we commit every day in spite of being reminded every time that we should complete our home work for the next day. Things to Remember when invest in <a href="http://www.sharetipsexpert.com" rel="nofollow"> stock market: expert</a>>  We believe that the fundamental says invest in those company about which you know completely , but that doesn’t mean you fall in love with a company and a particular stock just because you are familiar with it or it create news in the stock market every time. Most of us just try proving our fundamentals are right and for that we apply too many technical indicators on that stock. It’s not true that the stock will go according to its fundamentals and technical, many stocks behave opposite to their indicators, thus they do not guarantee as to whether it will go up or down.  Investors jump to penny stocks as they immediately boom in the market due to rumors what need to understand is that the Penny stocks are very risky , and on this basis make your strategy as to which one to pick from that lot and how much to invest . The portfolio of the investor should be constructed in such a manner that it allots weight age to different sector and the sizes of the stocks so that the diversification is there and the risk can be mitigated. Therefore the weight age of penny stocks in one‘s portfolio should not be more that the 15%. This is to minimize the losses and to accumulate the profits also.  Keep a watch on the industry of the particular stock. Most of the stock behaves according to their industry trend. Thus if in the budget the government committed to play large role in the infrastructure sector , all the stocks will go react as per the budget and the whole sector recorded the jump of 12% on the next day. But it might be the case that the industry is booming and the stock is going down, therefore along with Industry, Company information is also vital.  Past performance of any company doesn’t not hold true or affect its future performance. Many of the Indian stocks which were heavy weight in the past few years and were considered the blue chip companies in this market are either bankrupt or have become extinct in the market. Thus continuous performance analysis and evaluation is important. <a href="http://www.sharetipsexpert.com" rel="nofollow">STOCK MARKET TIPS </a>> || <a href="http://www.carrotinvestment.com" rel="nofollow"> TIPS FOR STOCK MARKET </a>> || <a href="http://www.derivativestock.com" rel="nofollow"> STOCK MARKET IDEAS </a>> We all get bombarded every day with mails, morning briefs as to which stock we should pick and how will be the market trend today. Every time the brokerage houses will send the stock market tips> as if we all are playing a gamble and need the tricks as to how we can win it. And anticipating as to how to do stop loss and at least will make smaller profits. What most of the investor do is they consider short term trading as the long term investment and believe as to how it can be doubled in a day. Buying a stock just because the price is low and some stock market tip you received that this will boom in the market today. What most of us do is that we all trade with money which we can’t afford to lose but the market always says that invest only that money which is in excess to you. All of these are the big mistakes which we commit every day in spite of being reminded every time that we should complete our home work for the next day.
Things to Remember when invest in stock market: expert>
 We believe that the fundamental says invest in those company about which you know completely , but that doesn’t mean you fall in love with a company and a particular stock just because you are familiar with it or it create news in the stock market every time. Most of us just try proving our fundamentals are right and for that we apply too many technical indicators on that stock. It’s not true that the stock will go according to its fundamentals and technical, many stocks behave opposite to their indicators, thus they do not guarantee as to whether it will go up or down.
 Investors jump to penny stocks as they immediately boom in the market due to rumors what need to understand is that the Penny stocks are very risky , and on this basis make your strategy as to which one to pick from that lot and how much to invest . The portfolio of the investor should be constructed in such a manner that it allots weight age to different sector and the sizes of the stocks so that the diversification is there and the risk can be mitigated. Therefore the weight age of penny stocks in one‘s portfolio should not be more that the 15%. This is to minimize the losses and to accumulate the profits also.
 Keep a watch on the industry of the particular stock. Most of the stock behaves according to their industry trend. Thus if in the budget the government committed to play large role in the infrastructure sector , all the stocks will go react as per the budget and the whole sector recorded the jump of 12% on the next day. But it might be the case that the industry is booming and the stock is going down, therefore along with Industry, Company information is also vital.
 Past performance of any company doesn’t not hold true or affect its future performance. Many of the Indian stocks which were heavy weight in the past few years and were considered the blue chip companies in this market are either bankrupt or have become extinct in the market. Thus continuous performance analysis and evaluation is important.

STOCK MARKET TIPS > || TIPS FOR STOCK MARKET > || STOCK MARKET IDEAS >

]]> By: Al http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-431492 Al Fri, 24 Jul 2009 02:36:10 +0000 http://allthingsfinancialblog.com/?p=1231#comment-431492 Don, My wife and I have more or less the same net worth, both retired very early (55), I've been retired for about 9 years and we're having a ball. We put both kids through private university (and one through flight school afterward) years ago, they're both doing very well, no worries on that front. We travel extensively (one kid's an airline captain which really helps on that front), enjoy our extended family and friends no end, and have to pinch ourselves sometimes--we're so grateful for our situation. We did plan well, investing regularly and heavily (and boringly) for all our working lives. We are fortunate that we both have DB pensions, along with Social Security to form the basis for cash flow. We take only small draws from other retirement accounts and don't touch our other investments. We've lived in the same house since 1972, although we have put on two large additions. With your net worth, you ought to be able to set yourself up with cash flow to meet your needs if you want to retire early. The only thing I see about your situation is that you might be too heavy in real estate, and may need to move some of that into something more liquid and more diversified. If you haven't already, I'd find a superb financial planner, and set up a specific plan to get you where you want to go. You seem to have the financial firepower to let you do this. Don,

My wife and I have more or less the same net worth, both retired very early (55), I’ve been retired for about 9 years and we’re having a ball.

We put both kids through private university (and one through flight school afterward) years ago, they’re both doing very well, no worries on that front.

We travel extensively (one kid’s an airline captain which really helps on that front), enjoy our extended family and friends no end, and have to pinch ourselves sometimes–we’re so grateful for our situation.

We did plan well, investing regularly and heavily (and boringly) for all our working lives. We are fortunate that we both have DB pensions, along with Social Security to form the basis for cash flow. We take only small draws from other retirement accounts and don’t touch our other investments. We’ve lived in the same house since 1972, although we have put on two large additions.

With your net worth, you ought to be able to set yourself up with cash flow to meet your needs if you want to retire early. The only thing I see about your situation is that you might be too heavy in real estate, and may need to move some of that into something more liquid and more diversified.

If you haven’t already, I’d find a superb financial planner, and set up a specific plan to get you where you want to go. You seem to have the financial firepower to let you do this.

]]> By: Sean http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-429793 Sean Sun, 12 Jul 2009 03:02:30 +0000 http://allthingsfinancialblog.com/?p=1231#comment-429793 I'm 31, NW of ~225K which I think is ok. I work for the city, I save the max deduction every year and live frugally in Manhattan (with a 10 year old car). Besides that I have a life, great friends, a 6 year old son (with a sweet college fund) and I am able to work out every day and get away every summer. People, it's just money, save some, but live your life. You'll soon look in the mirror and wonder how you got so old, and the only thing you'll have is money if you forget to live. I’m 31, NW of ~225K which I think is ok. I work for the city, I save the max deduction every year and live frugally in Manhattan (with a 10 year old car). Besides that I have a life, great friends, a 6 year old son (with a sweet college fund) and I am able to work out every day and get away every summer.

People, it’s just money, save some, but live your life. You’ll soon look in the mirror and wonder how you got so old, and the only thing you’ll have is money if you forget to live.

]]> By: Don http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-429783 Don Sun, 12 Jul 2009 00:24:54 +0000 http://allthingsfinancialblog.com/?p=1231#comment-429783 Although the recent economic downturn has had a pretty significant impact on my net worth (as for most of us I would imagine) my net worth is still about $2.5M if if I include my home equity and the current value of several rental properties. I'm currently 55 (my wife is 60) and I've recently left my career position in medical devices due to a reorganization. I'm considering moving into a retirement mode and utilizing my investment income (mostly stocks/mutual funds and my rental properties as my source of income. We have pretty frugal lifestyle - do like to travel but not into new cars, fancy clothes and dinners and that kind of crap except once in a while. Anyone in a similar situation that can share their perspective? Although the recent economic downturn has had a pretty significant impact on my net worth (as for most of us I would imagine) my net worth is still about $2.5M if if I include my home equity and the current value of several rental properties. I’m currently 55 (my wife is 60) and I’ve recently left my career position in medical devices due to a reorganization. I’m considering moving into a retirement mode and utilizing my investment income (mostly stocks/mutual funds and my rental properties as my source of income. We have pretty frugal lifestyle – do like to travel but not into new cars, fancy clothes and dinners and that kind of crap except once in a while. Anyone in a similar situation that can share their perspective?

]]> By: bill http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-428929 bill Mon, 06 Jul 2009 20:13:14 +0000 http://allthingsfinancialblog.com/?p=1231#comment-428929 I for one think this comments section is absolute nonsense. Instead of blabbing about your lust for riches and gushing how your poop turns to gold, go help someone in need - homeless shelter, soup kitchen, etc. I for one think this comments section is absolute nonsense. Instead of blabbing about your lust for riches and gushing how your poop turns to gold, go help someone in need – homeless shelter, soup kitchen, etc.

]]> By: dahkillah http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-424841 dahkillah Wed, 10 Jun 2009 14:53:13 +0000 http://allthingsfinancialblog.com/?p=1231#comment-424841 Hi Greg S. First of all, congrats on your success. I'm 36 this year, and have a family (wife and I) NW of 750k with house, 350k without. We're almost debt free. I know that we ARE in the RAT RACE, and without your type of HARD WORK, it's hard to get out, especially if you have 2 kids. So, seeing your progress, I think you have done tremendously well. However, I think that we will be able to retire reasonably early (55ish), and by retirement means we have the choice to work or not. We would be completely debt free by then, and our 2 kids should have graduated or soon to graduate from whatever higher learning education they endeavor to. The key though, is that they find their direction in live, and that they can find happiness, in whatever situation they live in. So, for us, as parents, we should have no financial debts to worry about. We should have about 2M (optimistically) in network by then, and should be rather financially in good shape. Would I want more...YOU BET YOUR ASS. But the point is not just NW. Sure, that is important, but is that the most important thing in the world? Will $$ truly make you happy? At the end of the day, when you reach your 2M NW at 35yrs...will you finally not be bitter? Finally not curse those that are less fortunate then you? You are already SO RICH and WEALTHY in comparison to 99% of the world population. Those 99% people all around the world will look at you and wonder, "why are you so stressed, why are you so bitter about your situation, about ppl around you"? Have you ever have to walk 5miles everyday (each way), just so you can get some "drinkable" drinking water, that is clean enough that won't kill you quickly (but can still kill you over time? How wonderfully blessed we are, and yet we toil for more. You complain about those flipping burgers, and for what? Because they don't have the work ethic to get out of the trenches, or at least the ideology that they are in a shit hole? What about those in 3rd world countries, that we born into their situations? There personal risks to will they live one more day? So, how happy are you Greg? Will you only be happy when you hit 2M? 5M? What happens when you do hit it? I say all these things, not because I am some kind of wonderful, who is judging you. I say all these things because I see the same kind of bitterness, ungratefulness, and fear in you as I see in me. I also HAVE your sense of uncertainty and insecurity. But does money really cure all problems? Can it? Will it? Greg S, you really need to learn to be grateful (I, that me need to learn to be grateful). Be grateful for your health, the fact that you are living in a expensive urban city (99% of the population do not), that you have the smarts to increase your NW so much over the last couple of years, in an economy where many (especially in NA) are struggling to find $$ to pay for their rent, next meal etc... Be grateful that someone cares enough to write this stuff down. Because, I need to be grateful for what I have too. I hope this helps. Hi Greg S.

First of all, congrats on your success. I'm 36 this year, and have a family (wife and I) NW of 750k with house, 350k without. We're almost debt free. I know that we ARE in the RAT RACE, and without your type of HARD WORK, it's hard to get out, especially if you have 2 kids. So, seeing your progress, I think you have done tremendously well.

However, I think that we will be able to retire reasonably early (55ish), and by retirement means we have the choice to work or not. We would be completely debt free by then, and our 2 kids should have graduated or soon to graduate from whatever higher learning education they endeavor to. The key though, is that they find their direction in live, and that they can find happiness, in whatever situation they live in. So, for us, as parents, we should have no financial debts to worry about. We should have about 2M (optimistically) in network by then, and should be rather financially in good shape. Would I want more…YOU BET YOUR ASS. But the point is not just NW. Sure, that is important, but is that the most important thing in the world? Will $$ truly make you happy? At the end of the day, when you reach your 2M NW at 35yrs…will you finally not be bitter? Finally not curse those that are less fortunate then you?

You are already SO RICH and WEALTHY in comparison to 99% of the world population. Those 99% people all around the world will look at you and wonder, "why are you so stressed, why are you so bitter about your situation, about ppl around you"? Have you ever have to walk 5miles everyday (each way), just so you can get some "drinkable" drinking water, that is clean enough that won't kill you quickly (but can still kill you over time? How wonderfully blessed we are, and yet we toil for more. You complain about those flipping burgers, and for what? Because they don't have the work ethic to get out of the trenches, or at least the ideology that they are in a shit hole? What about those in 3rd world countries, that we born into their situations? There personal risks to will they live one more day?

So, how happy are you Greg? Will you only be happy when you hit 2M? 5M? What happens when you do hit it? I say all these things, not because I am some kind of wonderful, who is judging you. I say all these things because I see the same kind of bitterness, ungratefulness, and fear in you as I see in me. I also HAVE your sense of uncertainty and insecurity. But does money really cure all problems? Can it? Will it?

Greg S, you really need to learn to be grateful (I, that me need to learn to be grateful). Be grateful for your health, the fact that you are living in a expensive urban city (99% of the population do not), that you have the smarts to increase your NW so much over the last couple of years, in an economy where many (especially in NA) are struggling to find $$ to pay for their rent, next meal etc… Be grateful that someone cares enough to write this stuff down. Because, I need to be grateful for what I have too.

I hope this helps.

]]> By: BullRider http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-424087 BullRider Fri, 05 Jun 2009 20:15:56 +0000 http://allthingsfinancialblog.com/?p=1231#comment-424087 We recommed to keep buying on dips in markets as markets have a huge surprise for investors in coming weeks <a href="http://www.bullrider.in" target="_blank">Share Tips, Stock Tips</a> <a href="http://www.bullrider.in/perf_nifty.html" target="_blank">Free Nifty Tips, Intraday Nifty tips</a> We recommed to keep buying on dips in markets as markets have a huge surprise for investors in coming weeks

Share Tips, Stock Tips

Free Nifty Tips, Intraday Nifty tips

]]> By: Greg S http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-423721 Greg S Wed, 03 Jun 2009 03:40:01 +0000 http://allthingsfinancialblog.com/?p=1231#comment-423721 ...So now its 2009. Many months since my last post. I've worked really really hard, made some tough choices, and had some lucky breaks. The bulk of my NW dodged the bulk of that nasty stock market fall of late 2008. I made the $200k in earnings I was estimating. To make $200k I had to go balls to the wall. I'm talking 18hr days during the busy holiday season. And significant personal financial risk. I was buying and selling and making a market in products I know. When I work that hard and risk that much to make $200k, I get a little irritated at the office types who make that much and a whole lot more taking no personal risk and often doing nothing or sometimes worse than nothing. Then I put the bulk of my money in stocks and gained $250k. As such, my NW has risen to $950k. I've upped my expenditures. I am no longer renting for $550, now its $1200. (For $1200 I rent a place that would cost $2000+ monthly to own.) But I'm still driving a 10 year old vehicle. I live frugally, but enjoy some nice things/experiences too. I hate spending $50 or $100 or more on a fleeting night out, but I have done it 5 or more times already this year. Received $100s in parking tickets and other preventable losses/expenditures. I feel with this modest success I have adopted some lazy ways. But I want to get back on my game. I want to feel the hunger I felt when I had only $50k to my name. Why? Because I know $1m is not enough. It doesn't get you a nice house + nice lifestyle in a big city. In fact if you try to live off the interest you'll be stretching to live like an average unemployed average dolt. And because with a little bit of smarts, means, and willingness to take risks the potential for big money is seemingly limitless for anyone with those attributes. I am willing to take educated calculated risks with my money. But now I'm not itching to RISK IT ALL back like I felt with $500k. I really want $2m by age 35 (three years from now) and I am going to do pretty much whatever it takes (all legal means) to freggin get it. Anything more than $2m I will consider icing on the cake. If I don't get to the $2m I will just make do. Wish me luck, or wish me doom. Or better yet, give me some good big money making tips. I'd love to hear from entrepreneurs or speculators because I don't think the office path is going to get me there. …So now its 2009. Many months since my last post. I've worked really really hard, made some tough choices, and had some lucky breaks. The bulk of my NW dodged the bulk of that nasty stock market fall of late 2008. I made the $200k in earnings I was estimating. To make $200k I had to go balls to the wall. I'm talking 18hr days during the busy holiday season. And significant personal financial risk. I was buying and selling and making a market in products I know. When I work that hard and risk that much to make $200k, I get a little irritated at the office types who make that much and a whole lot more taking no personal risk and often doing nothing or sometimes worse than nothing. Then I put the bulk of my money in stocks and gained $250k. As such, my NW has risen to $950k. I've upped my expenditures. I am no longer renting for $550, now its $1200. (For $1200 I rent a place that would cost $2000+ monthly to own.) But I'm still driving a 10 year old vehicle. I live frugally, but enjoy some nice things/experiences too. I hate spending $50 or $100 or more on a fleeting night out, but I have done it 5 or more times already this year. Received $100s in parking tickets and other preventable losses/expenditures. I feel with this modest success I have adopted some lazy ways. But I want to get back on my game. I want to feel the hunger I felt when I had only $50k to my name. Why? Because I know $1m is not enough. It doesn't get you a nice house + nice lifestyle in a big city. In fact if you try to live off the interest you'll be stretching to live like an average unemployed average dolt. And because with a little bit of smarts, means, and willingness to take risks the potential for big money is seemingly limitless for anyone with those attributes. I am willing to take educated calculated risks with my money. But now I'm not itching to RISK IT ALL back like I felt with $500k. I really want $2m by age 35 (three years from now) and I am going to do pretty much whatever it takes (all legal means) to freggin get it. Anything more than $2m I will consider icing on the cake. If I don't get to the $2m I will just make do. Wish me luck, or wish me doom. Or better yet, give me some good big money making tips. I'd love to hear from entrepreneurs or speculators because I don't think the office path is going to get me there.

]]> By: Greg S http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-423720 Greg S Wed, 03 Jun 2009 03:39:15 +0000 http://allthingsfinancialblog.com/?p=1231#comment-423720 It's Greg here. I've been busy and now I'm back! I just reread all of my old posts and all of the posts from others. The cool thing is that this is kind of a community financial diary open to comments. Back 1-2 years ago I was bemoaning my sub-$500k net worth and HOPING to be worth $600k plus by early 2009. Well I want to apologize in advance to anyone upset by someone complaining about having only a few hundred thousand. I know there are a lot of people out there in America who have little or no net worth. I see them everyday, in fact in my urban neighborhood, like most urban neighborhoods, I am surrounded by people with little to no NW. But this fact DOES NOT in anyway stop me from believing that I can and should have a positive multi-million net worth while I am still young enough to enjoy it. Most people who are smart or at least conscientious about money would agree with a statement that "most people in america are financial idiots." You see all the leased ESCALADE/NAVIGATOR/HUMMER,ETC gas guzzlers. You see the fivolous spending. You see all the silly means that people use to flaunt whatever spending power they may have regardless of net worth. So with all the stupidity of the average person, why on earth would you want to compare yourself to the average or median fool in America? MILLIONS of people in america are either working at Walmart or flipping burgers. Do you really think they set a good baseline. Of course they don't. Yet they are well represented in those median and mean numbers. It is a tragedy to slave away in a miserable job just so you can accumulate a couple million at age 60 or higher by miserly scrimping. Then perhaps give it all up to a nursing home that is going to bleed you dry and hopefully not abuse your old butt. This is why I told myself I want to be wealthy, and I don't to wait decade after decade, and maybe wait a whole lifetime. This is why I seek information and want to read about people - including those on this blog - who have made it. Why? Because I want to make it. I need inspiration. And I want to know how. I want to make it right freggin now! By right now, I mean over the next few years, because lets be realistic I know it doesn't happen OVERNIGHT, but it DOES happen over a couple or few years. Now you may think that I sound like a bratty toddler, saying I want $ now. But consider that I've spent 8.5 years on post high school education, and have now been in the real work force for 10 years. I worked at went to grad school simultaneously after undergrad. I'm 32. All this time I been mostly prudent with money. I invested prudently in my education got decent scholarship money, decent grads, got a good job fresh out, and now I can't afford a decent house without stretching. Now I can't afford even the slightest mishap that lands me in a net-worth zeroing hospital. Can't afford a stay at home wife like past generations. Being smart prudent and saving gets you to be comfortable provided nothing goes wrong, but it does not get you SECURITY and FREEDOM. That is what we all really want. So if i'm going to make it at all chances are its going to be in the next few years or never. I hope to live to 100, but statistically I'd probably be lucky to break 80. Continued... It's Greg here. I've been busy and now I'm back! I just reread all of my old posts and all of the posts from others. The cool thing is that this is kind of a community financial diary open to comments. Back 1-2 years ago I was bemoaning my sub-$500k net worth and HOPING to be worth $600k plus by early 2009. Well I want to apologize in advance to anyone upset by someone complaining about having only a few hundred thousand. I know there are a lot of people out there in America who have little or no net worth. I see them everyday, in fact in my urban neighborhood, like most urban neighborhoods, I am surrounded by people with little to no NW. But this fact DOES NOT in anyway stop me from believing that I can and should have a positive multi-million net worth while I am still young enough to enjoy it. Most people who are smart or at least conscientious about money would agree with a statement that "most people in america are financial idiots." You see all the leased ESCALADE/NAVIGATOR/HUMMER,ETC gas guzzlers. You see the fivolous spending. You see all the silly means that people use to flaunt whatever spending power they may have regardless of net worth. So with all the stupidity of the average person, why on earth would you want to compare yourself to the average or median fool in America? MILLIONS of people in america are either working at Walmart or flipping burgers. Do you really think they set a good baseline. Of course they don't. Yet they are well represented in those median and mean numbers. It is a tragedy to slave away in a miserable job just so you can accumulate a couple million at age 60 or higher by miserly scrimping. Then perhaps give it all up to a nursing home that is going to bleed you dry and hopefully not abuse your old butt. This is why I told myself I want to be wealthy, and I don't to wait decade after decade, and maybe wait a whole lifetime. This is why I seek information and want to read about people – including those on this blog – who have made it. Why? Because I want to make it. I need inspiration. And I want to know how. I want to make it right freggin now! By right now, I mean over the next few years, because lets be realistic I know it doesn't happen OVERNIGHT, but it DOES happen over a couple or few years. Now you may think that I sound like a bratty toddler, saying I want $ now. But consider that I've spent 8.5 years on post high school education, and have now been in the real work force for 10 years. I worked at went to grad school simultaneously after undergrad. I'm 32. All this time I been mostly prudent with money. I invested prudently in my education got decent scholarship money, decent grads, got a good job fresh out, and now I can't afford a decent house without stretching. Now I can't afford even the slightest mishap that lands me in a net-worth zeroing hospital. Can't afford a stay at home wife like past generations. Being smart prudent and saving gets you to be comfortable provided nothing goes wrong, but it does not get you SECURITY and FREEDOM. That is what we all really want. So if i'm going to make it at all chances are its going to be in the next few years or never. I hope to live to 100, but statistically I'd probably be lucky to break 80. Continued…

]]> By: Al http://allfinancialmatters.com/2006/10/09/how-does-your-net-worth-compare/comment-page-2/#comment-419326 Al Fri, 08 May 2009 04:09:34 +0000 http://allthingsfinancialblog.com/?p=1231#comment-419326 Well, I wonder if Greg S. is still around. Back in late 2007 he told us his story of making only $200k a year and having a net worth of $330k. For the life of him, he couldn't imagine making $200k beyond 2007, because he was selling stuff on e-bay, and killing himself doing it. He was bemoaning the fact that he could never forsee himself accumulating more than about $2 million, which he claimed was only twice the "average" for the older age brackets shown in the 2004 data at the head of this string. Of course, he shouldn't have been looking at the average (mean), because the really heavy hitters always skew the means in these kind of financial tables. The median (as many above as below) numbers are far more telling, indicating that as many people have a net worth of less than a quarter million at retirement than have more. So if he were right about his potential $2M, he'd be at 8 times the median at 65. Of course, we didn't factor in inflation, but then Greg probably didn't either. But, lo and behold, near the end of 2008, Greg was back with another $200k income. Apparently he managed to maintain that very respectable income level despite his misgivings. He'd made a monumental rookie investing mistake: putting far too much money in a single stock, then getting greedy when it rose, missing the top, and riding back down to the cellar. Too many people learn the hard way that successful investing in individual stocks means being right twice about each security, not just once. Very few people can do that. But hey, not to worry, because Greg is doing great: he expected his net worth to have grown to $600k by the first of 2009, increasing his net worth by some $270k in a little more than a year. Which is truly noteworthy considering an income of $200k a year, massive stock losses in a single stock, a massive downturn in stock and real estate markets overall, crummy interest rates, a tanking economy, and an e-bay business that seems unaffected across a period of sluggish retail sales. Greg, I think you're a bloody genius. Tell us how you did it buddy, because frankly, the numbers just plain don't seem to add up. Well, I wonder if Greg S. is still around. Back in late 2007 he told us his story of making only $200k a year and having a net worth of $330k. For the life of him, he couldn’t imagine making $200k beyond 2007, because he was selling stuff on e-bay, and killing himself doing it. He was bemoaning the fact that he could never forsee himself accumulating more than about $2 million, which he claimed was only twice the “average” for the older age brackets shown in the 2004 data at the head of this string.

Of course, he shouldn’t have been looking at the average (mean), because the really heavy hitters always skew the means in these kind of financial tables. The median (as many above as below) numbers are far more telling, indicating that as many people have a net worth of less than a quarter million at retirement than have more. So if he were right about his potential $2M, he’d be at 8 times the median at 65. Of course, we didn’t factor in inflation, but then Greg probably didn’t either.

But, lo and behold, near the end of 2008, Greg was back with another $200k income. Apparently he managed to maintain that very respectable income level despite his misgivings. He’d made a monumental rookie investing mistake: putting far too much money in a single stock, then getting greedy when it rose, missing the top, and riding back down to the cellar. Too many people learn the hard way that successful investing in individual stocks means being right twice about each security, not just once. Very few people can do that.

But hey, not to worry, because Greg is doing great: he expected his net worth to have grown to $600k by the first of 2009, increasing his net worth by some $270k in a little more than a year. Which is truly noteworthy considering an income of $200k a year, massive stock losses in a single stock, a massive downturn in stock and real estate markets overall, crummy interest rates, a tanking economy, and an e-bay business that seems unaffected across a period of sluggish retail sales.

Greg, I think you’re a bloody genius. Tell us how you did it buddy, because frankly, the numbers just plain don’t seem to add up.

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