Comments on: Goal Setting & Net Worth Updates

By: investorblogger

investorblogger — Thu, 15 Feb 2007 01:59:43 +0000

OK, I got it. They are different numbers! Still confusing.

Suggestions: include one set of numbers on the top right or BOTH sets of numbers.

Otherwise it looks like your comparing apples and oranges!

Best Wishes for Chinese New Year.

By: investorblogger

investorblogger — Thu, 15 Feb 2007 01:56:39 +0000

I noticed that your numbers for some pages on the top right seem a little odd:

# 10 Yr – Net Worth (2016) – $650,000 (details)
# 20 Yr – Retirement (2026) – $750,000 (details)

You’re only going to save $100,000 in 10 years!? yet you want to save $300,000 from now till then? Is that right? Or are you counting each number differently?

On this page: you state –
In 20 years (45):
Retirement accounts totalling $750,000 (revised from $500k)
Total net worth at $1,500,000 (revised from $1M)

Looks confusing to me…

By: jim

jim — Fri, 26 Jan 2007 12:45:47 +0000

Hi Willy, welcome and glad you’re enjoying it. I don’t plan on actually retiring at 45, I just merely set my goal to have that much in assets by the time I’m 45.

By: Willy Chin

Willy Chin — Fri, 26 Jan 2007 09:57:13 +0000

Hi, I just found this blog…and some interesting reading. Thanks.

I just want to know what you are planning on doing retiring at 45? I am there now and certainly can’t see being finished working whether I could afford it or not.

By: Personal Finance Blogger

Personal Finance Blogger — Thu, 02 Nov 2006 04:33:09 +0000

Twenty years is a long time. I’ve found that I didn’t really start earning good money until my 30s. Now, my wife and I are socking away a lot more than $15k a year. I’d say if you make your 10-year goals (which should be achievable) then your 20-year goals should come easily.

By: Jonathan Rainer

Jonathan Rainer — Sun, 01 Oct 2006 22:53:50 +0000

Jim, I see what you’re doing. Often it’s best to have stretch goals like the 650 in ten years. Jack Welch proved that as CEO of GE….you often get better results if you have a stretch goal as long as you don’t beat yourself up when it just doesn’t pan out. I know how tough it is to save a lot for retirement! Maybe you could consider the 650 a “challenge”. Spend time periodically thinking of ways to make some extra money through tranditional investments like real estate, but also by writing, an invention, etc. You never know if a hobby may turn into a serious money-maker. J.K. Rowling did it with Harry Potter. I also love the principles of the One Minute Millionaire, where their novela tells the story of a woman committed to making one million in 90 days. While that is a huge stretch goal, it is entirely possible for anyone who gives it a shot.

(btw, this is a suggestion for everyone! I have a goal of 1,000,000 in five years and I’m nowhere close!)

By: jim

jim — Thu, 28 Sep 2006 11:53:12 +0000

Hi Jonathan,
The 10 year goal of 650k is a total net worth target, the 750k ten years later is only for my retirement accounts. I think a 650k target retirement value is a little too aggressive considering my current accounts total around 60k.

By: Jonathan Rainer

Jonathan Rainer — Thu, 28 Sep 2006 05:33:03 +0000

I think your 20 year goal is low, particularly for retirement. If I understand your goals correctly, you’re going to aim for $650,000 in ten years, then only save another $100,000 the next ten years?

With the average market return for stocks, you’d double your savings in just over seven years. Why not shoot for a much higher number? I agree with other posters that you really need to look at passive income. It’s likely that blogs will only last so long before Web 3.0 comes out and shuts us all down. Real Estate will likely be the best investments for passive income and is something that you can sell in retirement to get some extra cash. However, try to buy it with a minimal mortgage, or you wind up negating part of your returns.

Also, when you look at inflation, you will likely need well over 2,000,000 in retirement to hold out at a decent income over 30+ years. Of course, Wal-Mart will probably still be around, so there’s always room for the front door greaters (which are more “Did you steal anything today?” greaters).

Good luck!

By: Ryan Cassidy

Ryan Cassidy — Thu, 24 Aug 2006 04:58:08 +0000

IF anyone is interested in having me diagnose thier current financial situation I would be more than willing to do so. I have been working at Morgan Stanley roughly 4 years now, and welcome anyone to a free asset scan and plan review. The worst case scenario, you walk away with something you didn’t know previously, and the best case scenario you actually implement something we found in the process. I can be reached at 415-444-1235. My name is Ryan Cassidy. Look forward to working with you.

By: Andrew

Andrew — Tue, 09 May 2006 21:50:23 +0000

Putting your money into a Roth and 401k are great for building your networth and retirement assets. I just want to bring up several things to be aware of. If you are planning to retire in 20 years at age 45 then I hope you will have other monies saved or a passive income source to live off. As I’m sure you know you will not be able to utilize the money in your 401k or Roth at the age of 45 without paying taxes and or penalties. There are of course some exceptions but by and large you can not access that money without some repercussions. You could save money in a Muni Bond Fund or other less tax beneficial liquid funds and use that money to live on. Or you can keep on writing a blog, assuming they are still popular in 20 years.

By: Financial Freedumb

Financial Freedumb — Tue, 04 Apr 2006 22:14:17 +0000

Jim, good luck on reaching your goals!

By: jim

jim — Fri, 31 Mar 2006 04:29:13 +0000

I only have retirement investments and they’re included into my networth targets. I have no appreciate assumptions for my assets. As for passive income, perhaps I’ll dabble in RE when the market cools off but realistically I won’t. I do generate income from the blogs and that flows into my liquid assets which is included my networth. Perhaps when my future wife is my wife, I’ll include her assets but currently I do not.

Thanks for the tip on rings… I’ll keep that in mind.

By: Making Our Way

Making Our Way — Fri, 31 Mar 2006 04:20:30 +0000

Jim,

I have a question for you.
What other assets and investments are you incorporating into your networth targets?
What are you appreciation assumptions for those assets?
Real estate, passive income leading from investment real estate, side businesses (blogs?), out of retirement investments?
What about your future wife’s assets and investments – would you count that too?

BTW, when buying an engagement ring, you really might find the best experts in NYC – the actual importers that bring the diamonds into the country. Find the right one and they can make a custom ring like no other found in a store. Also, they are much more knowledgeable than most jewelers. The key to dealing with them is knowing what you want and being able to clearly describe it. You’ll also want to know if they are GIA (gemnological institute of america).

Also NYC Money had a nice discussion of engagement rings at her blog.

Regards,

Making Our Way

By: denon

denon — Fri, 17 Mar 2006 07:40:48 +0000

Actually, after looking at dozens of stores, I bought my wife’s wedding ring at a “mall store” (Helzberg’s Diamonds). Anyone who tries shop for a wedding or engagement ring by looking for “good deals” is destined for a doomed relationship. For me, it was about looking at hundreds of rings in dozens of stores, until one practically jumped out of the case and said “here I am!”. I’ve been very happy with Helzberg’s .. skilled, helpful folks, nice quality product, and happy to do free regular cleanings (as all stores do), but without trying to sell you other crap.

By: Tim

Tim — Wed, 01 Mar 2006 23:04:30 +0000

Looks good. That’s about what I’m shooting for too. But I have a strong emphasis on building up my passive income, not just savings. LAmoneyguy really laid it out…that’s not too bad if you can sock away 15k per year. Once I’m out of college and working full time that should be cake.

Good luck.