Comments on: July ‘08 Net Worth Monthly Review

By: Lorrie

Lorrie — Tue, 02 Sep 2008 01:31:59 +0000

Hey Stephanie –
Wegmans is my favorite store!

By: Stephanie PTY

Stephanie PTY — Mon, 01 Sep 2008 18:51:34 +0000

Hahaha, I guess I went waaaaaaay beyond typos there! That’s what I get for not re-reading my posts before submit them!

By: jim

jim — Fri, 29 Aug 2008 14:59:06 +0000

I’ll remember for next time that’s it’s Lake second and name first.

Where is Lake Canadandaigua?

By: Stephanie PTY

Stephanie PTY — Fri, 29 Aug 2008 14:35:24 +0000

Uh… one thing I forgot… it’s Canadandaigua Lake, not Lake Canandaigua, just for reference Some with Seneca – it’s Seneca Lake.

By: Stephanie PTY

Stephanie PTY — Fri, 29 Aug 2008 14:34:25 +0000

Late comment, but…

WHOA was I surprised to see a you mention Canandaigua! Not to reveal TOO much personal information, but that’s pretty darn close to my hometown (the grocery store we frequented when I was growing up was the Canandaigua Wegmans).

Small world much?

By: Matt

Matt — Sat, 09 Aug 2008 20:21:30 +0000

As a fellow contractor for several years, I have a policy of setting 35% aside in a separate savings account. This allows for an easy net worth calculation by eliminating the figure entirely, as well as acting as a “psychological IRS withdrawal” meaning I’m never tempted to touch this money.

I also cycled this money through short term CD ladders to solve the low savings rate problem, so that I can earn as much interest as possible for donating my hard earned funds to my favorite charity – the IRS (sarcasm of course).

By: Start-Up

Start-Up — Thu, 07 Aug 2008 16:51:20 +0000

You’re right about the 25% being too low. Since I’m planning on putting all of my self-employed income into a solo 401K I didn’t stop to think about what percent to actually use, but you do have to pay both sides of the Social Security and Medicare. Isn’t there a salary barrier that once you surpass you no longer pay Social Security, or your Social Security payments do not increase?

As for reporting net worth I would take a suitable percentage (33% maybe) and remove that portion of your self-employed income before adding it to your assets. Although in the end of the tax year you will have to adjust to compensate for the difference due to estimation. I suppose adjusting once a year is better than four times. Although you could stick to the asterisk method and just comment or make a note that the values haven’t fully taken into account taxes.

By: Todd A

Todd A — Thu, 07 Aug 2008 02:05:57 +0000

To follow up on the prospect of pet ownership, I have to put in my plug for owning a dog. I believe there is no pet like a dog to comfort/console/and love you unconditionally. Man has been domesticating dogs for over 15,000 years, and, at this point, a domesticated dog interprets a human’s gestures & facial expressions more accurately than some of our closest animal relatives (apes, etc.). But, don’t expect a dog to be cheap. Besides the initial acquisition cost, there are annual vaccinations, food, haircuts (!), etc.. But, no pet will deliver on that investment like a dog.

By: jim

jim — Wed, 06 Aug 2008 21:23:43 +0000

The net worth figure is on assets, so do I just discount the cash flow by 25%? Also, 25% is low considering you have to pay both sides of Social Security and Medicare; just for your own records anyway.

By: Start-Up

Start-Up — Wed, 06 Aug 2008 20:56:48 +0000

I have self-employed income, however, it is not my sole (and is definitely not the majority) source of income. I plan on opening a solo 401k and depositing all of my self-employed earnings so I don’t have to worry about making quarterly payments or adjusting my net worth. I think removing 25% of your income for each month when reporting net worth is sufficient.