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Thursday, December 22, 2005

Liquid Net Worth

My Liquid Net Worth is calculated based on the money I have at disposal, excluding retirement funds and primary homes. I'm not including retirement funds in my Liquid Net Worth because it's money I won't touch until I retire. I'm excluding my house as well, because I don't know it's current value, and mainly because I'm not planning to sell it.
I'm holding most of my parents' money in savings because I'm afraid of risking their retirement savings. Sadly, I have more in liability than assets, but that's because I took out $30K for down payment and that is not included in this net worth.


At 12/24/2005 12:30:00 PM, Anonymous Nick said...

Why do you consider your parents' retirement savings part of your liquid net worth, if your own retirement savings aren't? If I was your parents, I wouldn't be too happy about that.

At 12/24/2005 05:35:00 PM, Blogger Smarty said...

That's a good question. I would normally left it out but I had to show why I have a negative net. Their money is sort of mixed into mine right now. Once I move all their money into their dedicated accounts, I would exclude them in my future charts.

At 12/26/2005 09:40:00 PM, Blogger Stockcoach said...

Best of luck to you. I also track my investments on my blog, but so far I have very little exposure to real estate. It seems the real estate market is overpriced in my opinion.

At 1/26/2006 12:13:00 AM, Anonymous SmartCapitalist said...

You said that you have your parent's money in savings because you are afraid of the liability, but have you looked into at least bonds, or cds? Surely a savings account with 50,000 is not the best way to go about things?

At 1/26/2006 01:02:00 AM, Blogger Smarty said...

Bonds are a good idea. CD rates are not that attractive.


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