CNN.com reports that the number of millionaires has hit a new high. Which got me thinking, because this survey of millionaires excludes their primary homes in the asset count.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
5 comments:
Sam,
One reason that "net worth" often excludes primary homes is that the surveys that ask about net worth are being done for financial advisers and brokerage firms who want to know your "investable assets." It is unlikely that you will sell your home to invest with them, so they want you to exclude this information.
Here's a question I saw in a survey today:
"What is the value of your personal investable assets, excluding employer-sponsored retirement accounts (401(k), 403(b), 457 plans) and your home and other real estate value?"
Just because THEY aren't interested in that doesn't mean that the equity you have in real estate or the money you have in retirement accounts isn't part of your net worth. It's just not liquid enough to interest them.
So, if the value of your real estate equals the amount of equity you have in the properties, by all means count it.
That having been said, I was raised to believe that bragging ("not too shabby") about your income or net worth was really tacky.
Thank you for sharing. Exciting to hear about this new goal!
P.S. I really enjoy your blog and you are not bragging! Your blogs are inspiring.
Sam, I appreciate the open sharing you do, we all learn from your experiences along your journey. I too don't see it as bragging at all. Keep up the great work, and please return to adding to your blog soon.
Regarding the home value, if you look at the SEC's definition of an "Accredited Investor", they leave out the value of the home also in satisfying the $1M net worth requirement to quality for many risky non-marketable investments. RE LLC's, start-up's etc will require their investor's to be accredited and suitable for the risk they are taking on. See http://www.sec.gov/investor/alerts/ib_accreditedinvestors.pdf
Sam, I miss your regular Blog postings. I hope you return to it soon. Take Care.
Sam, hope things are all good over there and that you get back to posting regularly soon. I find your blog inspiring!
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