Wanderingwheelz wrote: ↑Sun May 08, 2022 1:19 pm
I just came here to say congrats to the folks who are approximately flat due to home value and new contributions offsetting investment declines. That would be nice.. plus I’d be 15 years younger and have more hair. Triple nice.
I remarked to one of my aides the other day that the comb I was using was probably the last I would ever need!
Sad, but true.
Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
59Gibson wrote: ↑Sun May 08, 2022 3:47 pm
The housing mkt is going to be fascinating to watch moving forward. If the stock and bond mkt continues/stays down and economy slows, this along with much higher interest rates and possibly higher inventory would be a concern.. Seems to me a lot of potential head winds. But who knows.
Agree. While stocks and bonds can turn on a dime, the housing market is as slow as a decelerating or accelerating train. Higher rates could be a signal, longer sell times, less over list bids. It would really be a whammy if housing not only decelerated, but leveled off, or worse. The Fed selling MBS starting next month will definitely make some sort of dent in the prices of MBS.
59Gibson wrote: ↑Sun May 08, 2022 3:47 pm
The housing mkt is going to be fascinating to watch moving forward. If the stock and bond mkt continues/stays down and economy slows, this along with much higher interest rates and possibly higher inventory would be a concern.. Seems to me a lot of potential head winds. But who knows.
Agree. While stocks and bonds can turn on a dime, the housing market is as slow as a decelerating or accelerating train. Higher rates could be a signal, longer sell times, less over list bids. It would really be a whammy if housing not only decelerated, but leveled off, or worse. The Fed selling MBS starting next month will definitely make some sort of dent in the prices of MBS.
Right. The housing mkt is not as obvious.
People get cold feet and drop out due to payment increase.
People get FOMO and list their house
People refuse to acknowledge they may not get what their neighbor got 4 mos ago. Properties languish.
Interest rates
Reduced Wealth effect from stock/bond market drop.
I'm not saying RE is on the verge of collapse, but the post Covid hysteria is over, at least in the zip codes I follow.
I retired July 2021, so the current downturn is not due to COVID etc., it’s because I retired. Not counting our modest house, we had a NW of about $1.1 million on January 1st. We are now just barely over $1 million. Our AA is 50-50, with a stable value fund and a 3% guaranteed interest account along with Total Bond for the “safe” part of our accounts. Not panicking yet and I haven’t changed anything. Of course, we haven’t had to dip into any retirement savings yet, so that could be why. It felt better when the accounts were going up, but oh well. My kids on the other hand are pretty much stuck in their apartments for the foreseeable future. There are few houses for sale in our state, which is supposedly one everyone is moving out of, and they are not in professions that pay 6 figures. My husband and I could die and that would certainly help with a sizable down payment, but I don’t like that option.
Tamalak wrote: ↑Fri May 06, 2022 1:42 pm
I was a millionaire for exactly one day, January 4th
Sorry to hear... we are in a similar place. While our Net Worth is above $1M and should stay there, our goal of having $1M just in retirement accounts was finally met in December and has since fallen back below that target thanks to the 2022 market drop. We just keep contributing and looking forward to the recovery and the nice returns on the assets we are purchasing "on sale" right now.
We've crossed the two comma boundary for our portfolio so many times in the last six months that we've gone from Mumm to malt liquor for the celebration.
Before today I was still up for the year due to an energy tilt to my portfolio (From company RSUs) and putting a healthy bonus in around the March nadir. After today, I will be slightly down but with slightly better liquidity. I have not adjusted my home value as I believe my housing sub-market is pretty stable.
Retired 13 years, down $299k (about 13 percent) at end of April from year end on my nonretirement and retirement accounts at approximately 75/18/7. But my federal pension covers all of my annual expenses with some left over, so I am continuing to simply hold awaiting the (hopefully) recovery, whenever it may occur in future.
Down about $320,000 in investments (I don't count cash or home equity as I'm focused on long-term retirement-tappable assets), offset by about $65,000 in contributions, for a net of $255,000. Hopefully about 8 years out from retirement so the timing of this may be pretty good for us. Although I suppose if there is a quick recovery now we'll be about due for the next one...
KESP wrote: ↑Sun May 08, 2022 9:17 pm
I retired July 2021, so the current downturn is not due to COVID etc., it’s because I retired. Not counting our modest house, we had a NW of about $1.1 million on January 1st. We are now just barely over $1 million. Our AA is 50-50, with a stable value fund and a 3% guaranteed interest account along with Total Bond for the “safe” part of our accounts. Not panicking yet and I haven’t changed anything. Of course, we haven’t had to dip into any retirement savings yet, so that could be why. It felt better when the accounts were going up, but oh well. My kids on the other hand are pretty much stuck in their apartments for the foreseeable future. There are few houses for sale in our state, which is supposedly one everyone is moving out of, and they are not in professions that pay 6 figures. My husband and I could die and that would certainly help with a sizable down payment, but I don’t like that option.
Do you have pensions? Are you able to keep investing (something)?
"The day you die is just like any other, only shorter." |
― Samuel Beckett
My investment portfolio is about $300k right now. Was down but I have been added about $30k so far this year and that has likely made the drop seem smaller.
My house value has went up about 12% so I guess I am about even, if not up.
Total about $650k right now if I include the paid off house. Way behind but I am hoping to continue investing during these declines.
I don't know what ours is now, but I know we've hovered right around $1m net worth for a while because as our investments have dropped in value, we've been adding more new income to our investments, so we're just kind of stuck in place at the moment. I'm not saying market losses are fun or anything, but for all the talk of stock market volatility, until we see a really big crash, I feel like just continuing to buy into the market does a lot to smooth out volatility. I have no idea when it'll be, but whenever the market recovers to all-time highs again, I'm expecting our net worth to shoot up quite rapidly. Of course, there could be a lot of pain on the way.
KESP wrote: ↑Sun May 08, 2022 9:17 pm
I retired July 2021, so the current downturn is not due to COVID etc., it’s because I retired. Not counting our modest house, we had a NW of about $1.1 million on January 1st. We are now just barely over $1 million. Our AA is 50-50, with a stable value fund and a 3% guaranteed interest account along with Total Bond for the “safe” part of our accounts. Not panicking yet and I haven’t changed anything. Of course, we haven’t had to dip into any retirement savings yet, so that could be why. It felt better when the accounts were going up, but oh well. My kids on the other hand are pretty much stuck in their apartments for the foreseeable future. There are few houses for sale in our state, which is supposedly one everyone is moving out of, and they are not in professions that pay 6 figures. My husband and I could die and that would certainly help with a sizable down payment, but I don’t like that option.
Do you have pensions? Are you able to keep investing (something)?
Yes, we both have pensions that together gross about $60,000 a year. We are very fortunate. My post was very tongue in cheek. Right now going through a big time YOLO feeling. Getting some travel in while I am still healthy. Husband already is not and will likely require at least at home assistance in the future. We should not have to touch our retirement accounts until that time. Any extra cash I will likely keep in cash.
That doesn’t include home equity. The house we bought in Aug ‘20 for $490k (an absolute steal, still can’t believe it) is now (supposedly) worth $850k+. I say supposedly because it doesn’t matter, we aren’t selling and will be here for 15+ years.
Retirement Accounts
January 1: $246k
February 1: $237k
March 1: $232k
April 1: $242k
May 1: $226k
Net Worth
January 1: $539k
February 1: $535k
March 1: $544k
April 1: $577k
May 1: $573k
It's my house value that's been keeping my net worth in the black, going from $369k on January 1 to $413k on May 1, according to Zillow. But it's really irksome that the stock market fell right before I could reach a quarter million invested. Seems like it's always inordinately difficult to break through milestones.
I’ve gone from being able to buy roughly 33 used cars (if I liquidated everything) to roughly 25 used cars. On the other hand, I can buy a lot more Yen.
My 3 fund portfolio is down 9.7% from it's high on 1/3/2022. I'm approximately 40% equities, 50% bonds, and 10% cash equivalents. Retired for 15 years, and 95% of my portfolio is in taxable. I don't count the value of my house.
I don't rebalance.
Little_Carmine wrote: ↑Fri May 06, 2022 10:49 am
I’ve noticed the “share your net worth progression” thread becomes oddly quiet during times of market declines.
Thought this thread could be used to talk about “regressing” (aka, net worth decreasing) to keep net worth discussion going.
Even if your net worth decreased for reasons other than the market tanking, you can share that as well.
We are up about 15%, mostly because of house/real estate investment property appreciation and our businesses (real estate and manufacturing) up substantially.
Remember all those "real estate investment diversification" threads this time last year? Seems like a majority were poo-pooing real estate....I wonder if these same people have a different feeling now.
In retirement decumulation phase, I am down about 12% since November. What hurts is my 40% anchor in bonds has been hit almost as hard as equities. Fortunately, in good shape with a withdraw rate of 2%, so no panic yet.
Below is for investable assets/cash ONLY. I also do own a home that has appreciated some during this timeframe perhaps, but Chicago market still is stingy in appreciation compared to nationwide, so hasn't been that great.....I've owned for 6 years and annualized returns on home value are not that much. I have also increased income/received decent-sized bonuses/major contributions to markets during this timeframe so numbers aren't as bad as they would be if those didn't occur, of course.
Nov 2021: $1.60M
Dec 2021: $1.58M
Jan 2022: $1.51M
Feb 2022: $1.49M
Mar 2022: $1.54M
April 2022: $1.56M
Now: $1.43M
5.5 months --> down ~$200k on investable assets (Taxable and retirement)
My "untouched" retirement accounts (ones that I haven't contributed to during this timeframe) are down 13% to 18%. They are at around the same levels they were in November/December of 2020.
Definitely doesn't feel great losing this much, but I'm not changing my strategy. My April 22 to May 10, 2022 (today) fall is about half the amount (on a $$ perspective) that I experienced during March-April 2020 (COVID crash). My typical "net worth check" is in the 20s days, so I we'll see where things land in about 12 days....
I don’t track the numbers when things are down, except as needed to TLH, so it’s a rough guess. Portfolio is down 2-3 x my annual gross earned income so far this year. Home price is presumably up, but I don’t track that either.
In 21st year of retirement.....Financial assets down $565k from Y/E (8%). RE, 2 houses up $250k. Basically, we are back to where we were at the end of 2020. Have 14x expenses in cash so no real worry. This is nothing like 2008-9.
Our net worth based on non-housing assets is equivalent to mid-2021. That includes all expenses, debt, etc. included. What is believed to be a reasonable estimated housing increase since purchase three years ago would bring net worth to sometime after January 1, 2022.