Net Worth update - June 2007: Up 7.4%

As of the end of second quarter, 2007, our Net Worth was $612,603.

This was a very good quarter for us. Our Net Worth increased by $41,952 (or 7.4%) in this quarter. Of this, $17,534 is new contributions we made to our accounts (including employer match in 401k accounts), $2,526 is from increase in home equity due to mortgage payments we made, and the rest ($21,892) is due to investment income and unrealized gains in our accounts.

Our Net Worth exceeded the $600K mark for the first time this quarter.

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Anonymous said...

Good attempt to catalog and monitor your networth. I would suggest that whenever you include your 401(k) and IRA accounts in your net worth, reduce their current portfolio balances by an estimated tax rate (say, 25%), because these are pre-tax balances.

Similarly for real estate, I would suggest adjusting the current market value down by about 5% to account for sale comissions.

Doing the above will give you a more accurate (and conservative) picture of your net worth.

Nigel said...

Thanks for the suggestions. I like the idea about marking down real estate by 5%. I am actually using the city-assessed value, which tends to be below market values in our area, so I may be OK there.

About retirement accounts, it is hard to estimate what the tax rate would be, especially since we may be paying foreign taxes as well. Our IRAs are Roth or non-deductible, so they are not pre-tax money.