Milestone reached...

[txex86]

OP is 34 years old so I'm not really sure how that's relevant to this thread.

I agree that where you have your assets matters depending on your age and stage of life and when you plan to start spending them.

It will be relevant one day to the OP and it could be relevant to others reading this thread. You know nothing about the OP and what their financial goals are. Perhaps they want to retire early, where advice about looking at net worth would be entirely relevant. So it really isn't up to you to decide what is or is not relevant.

If this is truly a forum to discuss ideas, then it isn't necessary for you to try to police its threads.

[disneysteve]

If this is truly a forum to discuss ideas, then it isn't necessary for you to try to police its threads.

Sorry, I wasn't trying to "police" anything. I was just trying to understand your point.

OP was simply stating his net worth. That's a common measure by which people judge their progress. I totally agree with you that net worth is on paper and can change, up or down, based on the performance of your holdings. No argument there. OP even acknowledged the same thing when talking about the bull market and speculating on the future growth.

[txex86]

Sorry, I wasn't trying to "police" anything. I was just trying to understand your point.

OP was simply stating his net worth. That's a common measure by which people judge their progress. I totally agree with you that net worth is on paper and can change, up or down, based on the performance of your holdings. No argument there. OP even acknowledged the same thing when talking about the bull market and speculating on the future growth.

It sure seemed like you were when you stated that my comment wasn't relevant.

[disneysteve]

It sure seemed like you were when you stated that my comment wasn't relevant.

My apologies.

[Nutria]

Our July EOM net worth was just north of $680K, and the 4 year linear trend line is $5300/month.

[Nutria]

It sure seemed like you were when you stated that my comment wasn't relevant.

Well, saying "your net worth might drop by 50% tomorrow" isn't relevant to what OP's net worth is today, because:

1. that's not the topic of the thread, and
2. we're all fully aware that paper assets have no intrinsic value.

[disneysteve]

saying "your net worth might drop by 50% tomorrow" isn't relevant to what OP's net worth is today

That was the point I was trying to make but just didn't state it clearly. Thanks, Nutria.

[txex86]

Well, saying "your net worth might drop by 50% tomorrow" isn't relevant to what OP's net worth is today, because:

1. that's not the topic of the thread, and
2. we're all fully aware that paper assets have no intrinsic value.

The topic of the thread is "milestone reached," and the discussion of said net worth. Pointing out it's only worth something when you "cash in" is definitely relevant. And no, not everyone is fully aware of "paper losses" or there wouldn't be so many untimely decisions made regarding stock/mutual fund selling.

[disneysteve]

The topic of the thread is "milestone reached," and the discussion of said net worth. Pointing out it's only worth something when you "cash in" is definitely relevant.

I guess I don't quite understand your point.

Net worth is a very common measure of progress. Are you saying people shouldn't use that calculation because it's only on paper?

[Nutria]

I guess I don't quite understand your point.

Net worth is a very common measure of progress. Are you saying people shouldn't use that calculation because it's only on paper?

Heck, even hard assets can crash in value...

[txex86]

I guess I don't quite understand your point.

Net worth is a very common measure of progress. Are you saying people shouldn't use that calculation because it's only on paper?

The benefit of such a calculation is minimal when it is "paper." Just because some decide to determine their net worth doesn't mean it is of much value.

[james.hendrickson]

The benefit of such a calculation is minimal when it is "paper." Just because some decide to determine their net worth doesn't mean it is of much value.

Txex, can you say more here? I'd like to understand your point better.

[disneysteve]

The benefit of such a calculation is minimal when it is "paper." Just because some decide to determine their net worth doesn't mean it is of much value.

Txex, can you say more here? I'd like to understand your point better.

Me too. If you don't use net worth to measure progress, what do you use? As far as I'm concerned, the best way to see where things stand is to look at the current value of what we have. By comparing that to the value at an earlier point in time, I can see what has changed since then. I'm not sure how else to do it but I'm interested in hearing your method.

[Nutria]

Me too. If you don't use net worth to measure progress, what do you use? As far as I'm concerned, the best way to see where things stand is to look at the current value of what we have. By comparing that to the value at an earlier point in time, I can see what has changed since then. I'm not sure how else to do it but I'm interested in hearing your method.

Maybe he compares the current size of his basement stash of gold, bullets, 5 gallon pails of nitrogen-packed wheat and beans, and Ron Paul memorabilia with last month's size of his basement stash of gold, bullets, 5 gallon pails of nitrogen-packed wheat and beans, and Ron Paul memorabilia.

[disneysteve]

Maybe he compares the current size of his basement stash of gold

I know you were being sarcastic, but even that wouldn't make sense. The value of the gold fluctuates daily, sometimes dramatically. It's still only "on paper" until you sell the gold.