What’s your net worth per year of adulthood?

Let me Edit what I wrote previously. I miss read the part about calculating from 18 years.

I would say the amount for me would be
$25-37.5k as a household
or 12.5k - 18.75k as an individual.

 

LOL old indeed... Been called a nosey Parker for almost 30 yrs now!

 

Are you saying you don't look like your Avatar?

 

No, I look EXACTLY like my Avatar. I just hold my age well.

 

I thought so....

 

With my stunning youthful looks, and your amazing head of hair, people will be drawn to us at the next meetup, like moths to a flame.

 

I think the longer you are investing the higher up the run it would be.

29 (bought first house 25) it makes it very slow. However in the next 5 years I would think that would change significantly let alone 10-20 years.

 

Back to this old thread. I just had a think of what my number came out to be and the value of my total net assets/years of adulthood figure is more than my annual take home income from my full time work (if I had the normal income taxes etc deducted). Mindblown...

I guess my next goal then is to have it higher than my total gross salary, without taxes...
I have to thank the huge Sydney boom, all the people I have learned from, and some excellent work (taking action) on my part!

 

Maybe we can work out the average net worth of members.
Middle of the most common 26-50k bracket would be 38k.
From this recent age poll from Somersoft - What age are you now? - Somersoft Property Investment Forums
Exactly 2/3rds were 40 years or less, leaving 1/3rd 41+
Considering this, the average age could be something like 35, difficult to calculate exactly with limited information due to some really old members skewing the averages

Ave net worth of members, (earnings since 18 years old) = $646,000
Realistically, the average would be higher because some of the big dogs would crush this, like Handy Andy, age helps....

 

Given that I'm old (51 in truth), do I include my super and what I will inherent from elderly parents and in-laws?

In all honesty, I see my children as the real benefactors of my legacy and that of their grandparents.....and that is thanks to the baby boomer generation.

Like Ted Cruz .......a US Presidential Republican candidate said today.......the current times are shifting so fast, economies are changing, job are changing in a blink of an eye rather than the decades and centuries of previous generations.

Money can be lost and gained........only if you can keep up.

As I said yesterday, debt provides you with only an illusion of your worth. At the end of the day, everything can be swept away by just one negative events that noone anticipated.

You want to truly calculate your net worth - than you have to deduct all negative impacts on your wealth. Don't include in your calculations the potential for you losing your job, and then your ability to serve your living expenses and then debt. Don't include events like 9/11, economic downfalls......all the things that are out of your control.

If we want to talk about net personal value........we have to take out all potential risks........and then we can talk about a level playing field of comparisons.

 

I'm sending/forcing my children to attend Google bootcamp. I have already warned them that I expect payback for being a good mum.

 

But you're going great guns now

 

Net worth @ 2 - 2.2 Million property equity (depending on valuations) and about half as much again in cash, sitting in offsets and company accounts. Total Net @ 3-3.2 Million.
By the end of this financial year and assuming zero growth, 2 - 2.2 million equity and the same ( or a smidge more) in cash. Total Net @ 4-4.2 Million

42 years old. so today, @ 125K per year since the age of 18. In 12 months, at 43, @ 160K per year .

But net worth is a fairly silly barometer to me. I'm comforted far more by the fact my portfolio is CF+ to the tune of 100K per annum for at least the next decade due to the smart use of NRAS, and with over 2.5 Million sitting in company accounts ( after tax) by the end of this financial year, a loan book generating a handy little trailing income and built exclusively around NRAS/10 year plans, I can pay myself salary 180-200K per annum for the next 13,14,15 years or more, pay no tax on it ( because of the deductions generated by my portfolio) and effectively earn earn pretty close to 300k tax free ( because of the 100K of after tax CF+ income from the NRAS) for the next decade . That money will clear the significant majority of the debt I carry, leaving me with a strong post NRAS cash flow and early retirement if I choose. I'd take that any day over Net Worth - unless the net worth was in excess of $6-8 million. Then I might feel differently, as I could use 200K per year for 30-40 years with 6-8 million.

I still drive a 10 + year old car. It's a silver Honda Accord Euro ( hence my nickname ... inventive I know! ) and still live in a humble little 4 bed clad 1950's house in Sydney's western burbs which I bought years back - although I did recently gut the old garage and did quite a nice granny flat / bathroom/ laundry conversion with all the necessary smart wiring so I can either house the in laws when they visit, or move my home office out there if required...

But I have a plan... and it is taking effect, and it is working very very nicely. Money gets reinvested into debt reduction first and foremost, and then more properties are purchased, expanding the footprint. My PPOR mortgage is paid in full, all my debt is fully deductible and I have built a portfolio impervious to rates, price drops and economic calamity. Net worth is nice, but it is not cash flow. I cant eat net worth, without eating into it. I cant buy petrol from net worth without burning it. For me, cash flow is king. But cash flow reinvested is empire building.

 

I'm doing OK

BTW when I said 5m in my earlier post, I meant 5m per year.

 

I'm from Brisbane - of course my net wealth will be 1/200 of Sydneysiders.

 

congrats! the bolded bit strongly echoes what 3 separate, highly successful people i know have said to me.not a single one of them would ever own a negatively geared buy and hold resi property unless there was some long term plan for the site or whatever. not one.

they all firmly believe once you get to a certain amount of wealth it's all about cashflow/income and like you said reinvesting it. i remember talking to someone who makes over $3m a year in rent on comm properties he has been accumulating for a long time now, he lives well but nothing overly lavish and he said to me "even an idiot could keep growing it, there's no way i can go through anywhere near this amount". he sold a business around 15/20 years ago for a pretty tidy sum and invested a significant majority of the proceeds into these income producing assets.

year on year his wealth and income grows and grows. that's the longterm plan for me too, having good passive income like that so that i can keep pursuing my business passions but from a very secure base.

 

Geeze, no negative option?
Mostly everything I have is put back into IP's at the moment.

 

Seems I'm running about average with the rest of PC. That surely can't be a bad thing considering the quality of the company here

 

I just bumped myself up a bracket.... Thankyou Sydney property market!
Ps. Yes some of Sydney may drop but I have faith in my areas.

And I think CBA announcing that they'll move 10,000 jobs to Australian Technology Park in 4-5 years time.... well, I did say how I thought the Central to Eveleigh area was one of the better places to invest here:

NSW - Glebe/Pyrmont vs Waterloo/Alexandria vs Newtown

And originally on Somersoft here:
Sydney: Central to Eveleigh development - Somersoft Property Investment Forums

Australian Technology Park is within a 10 minute walk to one of my IPs.... CBA wont move in for another 4-5 years, but its a great long term spot regardless.
I wrote this way back in May on Somersoft...

It would just be icing.... the area isnt considered the CBD at the moment. But if they do the development at Central down to Eveleigh it will expand the CBD southwards towards these areas.... plus throw in bright and shiny new buildings and I'll call it a winner... this is near unis and near the CBD... The area is already very desirable and I can only think it would become even more desirable if these developments were to occur.

I feel like I hit a jackpot.

Happy I chose a 1 bedder in Darlington over a 2 bedder in Parramatta.
And my pick of Redfern and Alexandria near Redfern still stands in the PC post I wrote in the first link.

 

Sash, what do you mean avatar? This is a selfie.