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2015 Wrap Up and Net Worth Report

measuring assets and liabilites

Looking back, it’s been well over a year since I did a net worth update. Part of the reason is because it feels a bit like going out in public wearing only underwear. While I don’t feel totally comfortable being transparent; posting financial stats, good or bad, has always helped us grow. Here’s to hoping that trend will continue.

Cash and Retirement Assets

Cash: $43,041. I had hoped to whittle this number down to around $20,000 because cash in a savings account isn’t much better than cash under the mattress, but we do have about $12,000 in property and income taxes coming up in the next month or so. With our rental properties always being wild cards and a possible bathroom remodel happening later this year, it makes us feel better to have a good stash of cash. If we decide to forgo the remodel, we’ll find a better place to invest.

Retirement Accounts (401k, IRA’s, 403b): $271,338

HSA: $19,841

Non-Retirement Investments: $11,896

Daughter Net Worth

Technically this is still our money but will go to fund college or other worthwhile expenses for our daughter someday.

Daughter 529 plan: $13,476

Daughter Roth IRA: $11,423

Daughter Brokerage Account: $275

Real Estate Assets

Home: $375,000

Residential Rental Property $80,000

Commercial Rental Property: $275,000

Four Plex Rental Property: $250,000

Real estate estimates are based on Zillow and comps in the area, although Zillow says they cannot locate two of our rentals.

Other Assets

Business Loan: $269,067. I’m not sure where to classify this. When I sold my practice, we did seller financing, so essentially, I am the bank for the life of the loan. This is the principal balance, but it does earn interest as well. I guess as this balance lowers it will rise in other areas when we invest the income. If the buyer  defaults, my business returns to me as well, so I guess it is an asset.

Vehicles: $40,000 We recently replaced Jim’s aging Toyota Tacoma with a new to us 4Runner. Since we replaced our other car earlier in the year, I expect us to be done with vehicle shopping for at least a decade. This is our only asset guaranteed to decline in value.

Total Assets: $1,665,408

Liabilities:

Home mortgage: $123,005

Residential Rental Mortgage: $44,451

Commercial Rental Mortgage: $138,692 (Less than four years left until paid off!)

Four Plex Mortgage: $145,612

HELOC: $98,194. We used this account to pay for part of our last rental property purchase and remodel. I don’t enjoy seeing the balance, but it is at a low rate for the time being. After the commercial rental is paid off, this will be the next debt to conquer.

Total Liabilities: $549,954

Net Worth: $1,115,454.  Up 24% from April 2014

Well, I guess we’ve finally crossed the line into the millionaire’s club. It’s funny how being worth a million dollars as a family doesn’t really seem that special. After all, only $43K is liquid. We’d have to take on some stiff penalties and taxes to crack our retirement money or wait a long time to sell off real estate investments if we wanted to cash out.

The stock market wasn’t that generous this year, but by plugging away at paying down real estate debt while continuing to invest, we still came out with a net worth increase. There is always work to do, but I’m really happy with where we are at this stage of the game and can’t wait to see those red numbers diminish over time.

If you’d like to check your net worth or see how good or bad your retirement picture is looking, sign up for a free account at Personal Capital. Even if you’re in the red, knowing where you stand is half the battle.

How did your net worth turn out last year? What financial area do you hope to improve this year? 

 

Snipon

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Snipon is owned and run by a small team who love to find deals on a dime along with the best sweepstakes and giveaways out there. We’re always scrolling the internet for the latest offers to share them with our community. Sign up for our weekly newsletter so you don’t miss another freebie!
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