Friday, July 20, 2018

Net Worth Report (UPDATE) - JULY 2018

We originally set out to provide just annual Net Worth updates and then eventually started to do quarterly updates.  Now that we have significantly slowed the pace of our posts, I think we will like just pop in once or twice a year simply to let everyone know how we are doing and to keep ourselves honest and looking forward to our ultimate goal of early retirement and/or Financial Independence!  

Also, in case you have not come across it, we are part of an active list of bloggers who provide their net worth on Rockstar Finance's page - The Ultimate List of Blogger Net Worth.

With that said, at the end of the first quarter, our family net worth is as follows:

Retirement Savings:                      $ 537,932
P2P Lending Accounts:                   $    5,743
Dividend Stock Accounts (DSA):     $   84,028
DSA - Surplus Cash:                      $  18,677
College Savings Accounts:              $  78,840
Cash and Savings:                         $  50,338

GRAND TOTAL
$775,558
(Increase of $14,201 since January 2018)

Although we do not count it as part of our Net Worth,
it is still nice to know that our Home Equity is:
$607,970*
(Increase of $47,939 since January 2018)

Although we don't consider our home equity as part of our Net Worth, we understand that some people do.  So for those who include home equity in their Net Worth, our family's net worth would be considered: $1,383,528 (Increase of $62,140 since January 2018).  It's a pretty awesome figure when you include the home equity but until we can accumulate 7 figures without our home equity, I refuse to consider myself a millionaire. 

* Although others do consider home equity, and even cars, collections, etc. as part of their net worth, it is our opinion that since these items are not very liquid and the value of these items is highly dependent on what others are willing to pay for them (at the present time), we have decided not to consider these type of assets as part of our family's recognized net worth.

13 comments:

  1. AFFJ -

    Great listing here, closer and closer to the 7 digits. You are so far ahead of where I am, something to chase!

    -Lanny

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    1. Thanks Lanny, cant wait to finally reach 7-digits one day. Meanwhile, a little friendly competition can't hurt right!? Best wishes on narrowing the gap. :) AFFJ

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  2. Excellent work AFFJ, you've made it to a really nice total and it's cool seeing such a nice increase in one month!

    Mr DDU

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    1. Thanks DDU, the gains were actually from 6 months. It's been rough trying to grow the net worth on just one income and two growing kids. :( But we'll certainly take a positive over a negative number any day!

      Thanks for visiting. Regards, AFFJ

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  3. Impressive net worth AFFJ. I noticed that you had $5k in P2P lending. How has that been working out for you? I'm thinking about putting a couple thousand into Lending Club and seeing how it goes. I didn't pull the trigger months ago, but I might do so soon.

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    1. Yes, we actually had money invested in both Prosper and Lending Club. At one point it was over $15K and we thought we wanted to grow it to $25K but we found it harder and harder to find quality notes paying enough interest to justify the risk. Both use to be so much better! Maybe things have slowly returned to those glory days with interest rates creeping back up. We might consider growing that pot again one day but for now, we only maintain a Prosper account.

      Good luck if you decide to try it out. My only advice is to have a plan and stick to it. Best wishes. AFFJ

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  4. There so much good in this posting.

    First off - great job guys. Your net worth is way, way better than average.

    Yes, I've been drawing down my money from Prosper.com as well. Both Prosper and Lending club have moved away from their actual peer to peer focus. They've both shifted to a model where they sell loans to larger institutional investors. Its probably out of necessity, but it does certainly seem less democratic.

    Looks like most of your wealth is in equities. I'd love to know if its mostly mutual funds, or what the composition is there. Got any particular companies that are returning gangbusters for you guys?

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  5. Thanks James. We live in California so unfortunately the money doesn't go as far here as I may in other parts of the US. Even with what we have, not sure we are on target to retire in roughly 9 years.

    I agree with Prosper and Lending Club, both cater to institutional investors so good loans are hard to find these days. Its not like it was 4-5 years ago when the P2P market was still in its infancy. Oh well, time to find the next good thing. We've been looking into real estate crowd funding and may try that next. Wish us luck!

    Yes, most of our money is in indexed mutual funds that are managed by Edward Jones. My mother-in-law works for them. :) The dividend stocks account is merely my attempt to the pros! haha For the most part, we plan to hang onto the stocks in our dividend stocks account and will use the dividends to further supplement our retirement. We love the thought of only taking the dividends and the remainder of the account is left for future generations.

    As for a company that has gone gang busters, I can't pinpoint any one stock but we bought Canadian banks (RY and BNS) about a year to two years ago and both have done very well for us.

    Appreciate the visit and engagement in our journey. Best wishes and success on your personal journey! AFFJ

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  6. Nice job growing the net worth. I been also slowly removing my investment in lending club too. I been seeing to many default loans for my liking. I'm invested in Fund rise but still pretty cautious, its not to bad. I just hope it doesn't go in the direction of lending club. So I don't want to invest to much money in it now. Keep up the good work.

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    1. It seems to be a common theme among investors of P2P lending, the defaults, lower interest environments, and complexity of taxes just doesn't make it worthwhile to invest in their notes.

      I'm looking into Fund Rise and others, I think we will choose one before the years end but will be cautious like you.

      Thanks for stopping by and sharing. Best wishes and success in your journey! AFFJ

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  7. Very good diversified stocks is the reason for this good yield. Some REIT will add some more value in portfolio.

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    1. Thanks Invest4income, we hope to continue adding more shares of both dividend growth stocks and REITs. We are a little concerned with the rising interest rate environment making it harder for REITs and investments tied to real estate to profit though. We like our current exposure to real estate and don't mind adding more but will try not to tip the scale to far.

      Thanks for stopping by, best wishes and success! AFFJ

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  8. Nice work!

    We approach our net worth in a very similar fashion, as we do not count our home equity or physical items such as cars, jewelry, etc. We don't count the college savings either as we expect that to be depleted--once our boys are done with school, we may count anything that remains (should we be so lucky).

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