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Nice looking growth in your net worth there Greg. Hopefully that trend will continue!

I find NetworthIQ to be a really simple and easy to use utility to track personal net worth. You can even add comments to each statement to help you remember what events took place over time.

Here's mine https://www.networthiq.com/people/KrisKross
 

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Just signed up for this.... very cool idea, especially the graph feature.

Not sure how I feel about sharing my profile publicly on a forum yet though... :eek:

Quite honestly, I am suprised at how forthcoming people on this board are about sharing their financial particulars. Pretty cool, but it feels a bit voyeuristic at times. :p
 

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Quite honestly, I am suprised at how forthcoming people on this board are about sharing their financial particulars. Pretty cool, but it feels a bit voyeuristic at times. :p
I know this topic came up in another thread. I can't speak for others, but I'm still so close to the start line (less than a year of "real" work) that my personal financial details don't feel that personal yet (If I may make a bad analogy, it's more like how much money you have after one or two turns in Monopoly - No. I didn't buy Baltic ;).) If anything, my personal financial statement tells you how I got to the start line.
 

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I notice you have to sign up to run the numbers. Are you sure this site isn't just trolling for potential HNW clients? Why would you need to register?

Sounds a bit flaky. Why would you not simply read your monthly brokerage statement, bank account, loan statement and property tax assessment?
 

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I notice you have to sign up to run the numbers. Are you sure this site isn't just trolling for potential HNW clients? Why would you need to register?

Sounds a bit flaky. Why would you not simply read your monthly brokerage statement, bank account, loan statement and property tax assessment?
I'm sure you need to register to be able to track you profile on an ongoing basis. If not you can just tally it up yourself but you wouldn't have the fansy graph's and other features.

As you can see on the site some of the profiles go back a few years which I think provides a good overall view of the bigger picture.

It also allows you to see how you compare to your peers in similar age groups, education, location, etc.
 

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I signed up for this a few weeks ago... embarrassed to say that I had never really calculated my net worth before. Comparing myself to dozens of other mid-30 somethings I was pleasantly surprised to see that I am doing quite well thank you very much. :D
 

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I joined and compared their calculations to mine. I still don't feel my net worth is really a true reflection of what it is. I think my home is artificially inflating the number, but hey, its a nice number!
 

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I was going to come into this forum and suggest NetWorthIQ--I've been using it for well over two years.

You can see my progress here:

https://www.networthiq.com/people/thatdaveguy

I haven't really anything to hide from an anonymous message board... so why not? I've never really understood being secretive about ones finances in general, especially if it's a semi anonymous forum,
 

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I'm considering using this too, but I'm curious how do people value their home? I can get an idea based on similiar mls listings around the neighbourhood, and I have spoke with a Realtor who told us how much she would list it for (higher than I'm sure what it's worth however!!). I'm curious if there's a better way to estimate the market value of your home?
 

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I have a completely different take on NW... the BQ.

The Burger Quotient (BQ) is a number which indicates that maximum lifestyle (after tax, after inflation) which, if sustained, will (just) take you out to age 95, at which point your capital runs out. It takes not only your existing capital (reg/nonreg/equity/txfree), but it includes your 'salary capital'... your career as represented by paychecks coming at you over time, as well as any future windfall revenue, selling the cottage, any inheritance you reasonably might expect.

In order to make it uniform, you have to artificially 'sell' your residence now, and pay off any loans.

The beauty of this measure, as opposed to NW, is that it is determined irrespective of age.... you can be just starting out, nearly retired or fully retired.

The only thing that needs to be standardized is that you need to set a horizon age, a rate of return and an inflation rate. (age 95, 6%, 2%, say)

Much more meaningful, IMHO.
 

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Steve: does your model assume constant rates of withdrawal? ISTM a person's longevity risk aversion would impact their spending rate (and thus their "Burger Quotient").

That is, a rational, utility-maximizing spender (the "econ" in Thaler and Sunstein's Nudge) would spend more in the early years of retirement and less as they age - because it is irrational to equally weight consumption at age 95 when you have a much smaller probability of actually reaching 95 than you do the next year of life.

I'd be interested in your thoughts...
 

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It could. The BQ is more of a concept.... it assumes a constant ATI (in today's $) lasting out to some arbitrary age. It could just as easily be refined further to include such a 'step-down'.... say a 75% reduced lifestyle at age 75.

So the BQ could be standardized as 6%, 2%, age 95, 75/75.

Meaning, that ATI which will just take your capital out to age 95, but with a 75% reduction at age 75.

I only offer it because this is exactly the computation that RRIFmetic does.

Also, in the interest of being truly anal, you could specify the province you were talking about.

Further... there is no concept of 'constant rate of withdrawal'.... the withdrawal trajectory varies in a 'ragged' manner depending on all the other non-investment entities which come in and out of play over time. These entities include, salary, cpp/oas, tax.... etc. In fact, the withdrawal is (generally) negative during that period when you are still working. I don't differentiate between pre and post retirement... if the money coming in the door such as salary, selling the cottage, is greater than what is needed for sustaining the BQ/lifestyle, the program saves. When there is insufficient money coming in, the program withdraws from saving. The program has absolutely no data element called retirement age. You could be working, plan to take a sabbatical in 5 years for a time, then come back into the workforce at a reduced or greater salary. What would you define retirement age to be in that case?
 

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The reason it has more meaning than pure NW is that it tells you what your lifestyle, and by inference, how much you should be saving (if still working) or drawing down (if retired). In other words it directly relates to how you should be budgeting.
 
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