Net worth goal reached

[cypher1]

As of this afternoon, I reached my financial goal for net worth of 500K by age 40 (aka by March 2021). It looks like I'm at 509K after checking all my accounts and using conservative number for value on house vs the overvalue amount in Zillow.

Don't get me wrong, with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events. But I'm proud to say I hit that goal, even if it's temporarily.

I didn't start contributing to a 401K till age 27, bought a house at 28, found this forum at 29. Roths didn't start till 34, with more serious investing and upping contributions till I was 36. So it's been quite a ride within the last 12 years, but I still have a ways to go.

Thanks again for everyone on this forum! When I read others' accomplishments, it only encourages me to stay on track with goals (next one 1 million). I hope this inspires beginners as well, and to realize you just need to start small but remain consistent and focused.

[disneysteve]

Congrats. That's great. It's always nice to hit those milestones.

[scfr]

[james.hendrickson]

As of this afternoon, I reached my financial goal for net worth of 500K by age 40 (aka by March 2021). It looks like I'm at 509K after checking all my accounts and using conservative number for value on house vs the overvalue amount in Zillow.

Don't get me wrong, with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events. But I'm proud to say I hit that goal, even if it's temporarily.

I didn't start contributing to a 401K till age 27, bought a house at 28, found this forum at 29. Roths didn't start till 34, with more serious investing and upping contributions till I was 36. So it's been quite a ride within the last 12 years, but I still have a ways to go.

Thanks again for everyone on this forum! When I read others' accomplishments, it only encourages me to stay on track with goals (next one 1 million). I hope this inspires beginners as well, and to realize you just need to start small but remain consistent and focused.

Totally outstanding cypher.

[srblanco7]

Excellent. Congratulations!

[LivingAlmostLarge]

congratulations! What an accomplishment

[bjl584]

nice
Congrats on the milestone

[QuarterMillionMan]

Keep in mind the net worth numbers using the "unrealized gains" is different from the actual "realized gain" net worth. For example I had a $245,000 one-bedroom condo in Hawaii which I just sold. After realtor commissions, taxes, title fees, etc. My check was $202,000. Hawaii takes out the taxes immediately. At the end of the year, I will have to pay the IRS capital gains taxes on $245,000. I estimate that I'll end up with $150,000 out of the $245,000. Very different amounts.

[cypher1]

Keep in mind the net worth numbers using the "unrealized gains" is different from the actual "realized gain" net worth. For example I had a $245,000 one-bedroom condo in Hawaii which I just sold. After realtor commissions, taxes, title fees, etc. My check was $202,000. Hawaii takes out the taxes immediately. At the end of the year, I will have to pay the IRS capital gains taxes on $245,000. I estimate that I'll end up with $150,000 out of the $245,000. Very different amounts.

Agreed with discussion of unrealized gains vs realized gains. In regards to hitting a net worth goal, that is simply a number at the end of the day or a snapshot moment for peak. That number could take a huge drop today or tomorrow and i'd still be fine with it. Since I'm not looking to sell my home, or dip into my funds anytime soon. That's partially why I'm not rewarding myself or splurging (besides $50 for a gaming mouse over the weekend). At the end of the day, hitting a certain goal is another reminder to staying the course of an ongoing long-term financial journey.

As for selling your home, I'm not as familiar with capital gains tax with selling a home, but would you still have to pay taxes on those gains even if that was your primary residence of at least 2 years? Again, correct me if I'm wrong.

[QuarterMillionMan]

You are correct. If I lived in the home as opposed to renting it prior to selling the capital gains tax would be greatly reduced. I'm not sure the exact numbers but could be half the amount. I live in Los Angeles and sold the condo in Hawaii so I could not take advantage of residing in the Hawaii condo before I sold it but I'm okay paying the higher tax.

https://www.irs.gov/taxtopics/tc701

[cypher1]

Since it's been awhile since I've been on the site, I decided to revisit my post, which coincidentally is exactly a year ago. Given how crazy the markets have been this year, (and a ridiculously overvalued home) I just hit my net worth of 750K.

Keep in mind I take these paper numbers with a grain of salt, since the markets could drop tomorrow. But feels good knowing I'm still on the right track, no matter how the market is going.

So while the home value was the biggest factor, I was able to start maxing 401K last March, and dumped a lot of my cash into Taxables right after the election. The moral of the story: stay the course.

[srblanco7]

Since it's been awhile since I've been on the site, I decided to revisit my post, which coincidentally is exactly a year ago. Given how crazy the markets have been this year, (and a ridiculously overvalued home) I just hit my net worth of 750K.

Keep in mind I take these paper numbers with a grain of salt, since the markets could drop tomorrow. But feels good knowing I'm still on the right track, no matter how the market is going.

So while the home value was the biggest factor, I was able to start maxing 401K last March, and dumped a lot of my cash into Taxables right after the election. The moral of the story: stay the course.

Congrats Cypher. Great progress. Stay the course indeed!

[riverwed070707]

That’s a huge jump in a year! $1M by 42?!

[cypher1]

That’s a huge jump in a year! $1M by 42?!

I'd love to hit that goal but with the markets these days, who knows. LOL

[bjl584]

As of this afternoon, I reached my financial goal for net worth of 500K by age 40 (aka by March 2021). It looks like I'm at 509K after checking all my accounts and using conservative number for value on house vs the overvalue amount in Zillow.

Don't get me wrong, with the market value possibly being in a bubble, I don't expect these investment numbers to stay this high based on current events. But I'm proud to say I hit that goal, even if it's temporarily.

I didn't start contributing to a 401K till age 27, bought a house at 28, found this forum at 29. Roths didn't start till 34, with more serious investing and upping contributions till I was 36. So it's been quite a ride within the last 12 years, but I still have a ways to go.

Thanks again for everyone on this forum! When I read others' accomplishments, it only encourages me to stay on track with goals (next one 1 million). I hope this inspires beginners as well, and to realize you just need to start small but remain consistent and focused.

congrats!