Net Worth Update (+1.9%)

by iam1percent on May 2, 2012 · 22 comments

Click here to see my current net worth.  Overall, a jump in net worth of $20,425 since my last update early April.

Major growth drivers include:

This month was a bit of a roller coaster from a stock market perspective, but the market ultimately ended flat from the beginning of the month.  We used a significant portion of our cash reserves to refinance our mortgage and bring it down from a jumbo loan to a traditional loan.  We also filed our taxes and owed a large amount in federal and state taxes.  I’m overall pleased with the results considering the turbulent month with the market, refinance, and taxes due. 

 

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{ 22 comments… read them below or add one }

Michelle April 2, 2012 at 2:52 pm

Great job! I look forward to future net worth updates.
Michelle recently posted..Spending, Life, Income and Food Updates… 4/2/2012My Profile

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Leigh April 2, 2012 at 3:13 pm

Sounds like a good month! March was pretty calm for me financially, which was nice after the last few months.
Leigh recently posted..March 2012 net worth update (+1.5%)My Profile

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Christopher @ This That and The MBA April 2, 2012 at 4:17 pm

Looks like you had a good month. Our month was so so but it is much better now having 2 incomes. We are on track to pay down some debt and get back into the black!
Christopher @ This That and The MBA recently posted..Tips that will make you flip! 5 Tips to a Good Credit ScoreMy Profile

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Nick April 2, 2012 at 7:23 pm

Nice seeing the consecutive positive months. I’ve been helped a bunch by the market movement too.

And congrats on the student loans, too!
Nick recently posted..2012 Goals UpdateMy Profile

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Financial Samurai April 4, 2012 at 1:36 pm

You’ll feel fantastic once you pay off all the student loans. Trust me on this, no matter how low the interest rate!
Financial Samurai recently posted..Corporate Greed By PG&E Killed My Friend’s Family And My Credit ScoreMy Profile

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iam1percent April 4, 2012 at 5:23 pm

Thanks! It does feel good not having that hanging over my head…

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MyMoneyDesign April 6, 2012 at 1:04 pm

Good job on the student loans and on the investment up-swing! My retirement accounts have also fluctuated 5 figures due to the recent run-up with the stock market. I think things will slow down for a while, but I do expect them to climb in the next 1-3 years.
MyMoneyDesign recently posted..Do You Fake It?My Profile

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iam1percent April 6, 2012 at 9:22 am

Thanks! I’m already down 20k since the update above because of the taxman :(
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Paul May 2, 2012 at 9:09 am

I have a question. Could you clarify how exactly you guys are in “the 1%”?
You don’t actually mention much objective data other than “working hard” and getting paid less then pharm reps.

According to the chart on mean net worth
http://upload.wikimedia.org/wikipedia/commons/e/e8/MeanNetWorth2007.png

You seem not to be even in the top 10% of net worth.

Nothing is mentioned of whether you make over the $500,000 that both
Washington Post (http://www.washingtonpost.com/blogs/ezra-klein/post/who-are-the-1-percenters/2011/10/06/gIQAn4JDQL_blog.html) and the
Wall Street Journal (http://blogs.wsj.com/economics/2011/10/19/what-percent-are-you/) define as the income of a 1% household.

So how exactly is this blog about people who are in the 1%?

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iam1percent May 2, 2012 at 1:30 pm

That chart from wikipedia is skewed. It highlights net worth in 2007, at the peak of the housing bubble, when most of people net worth was “equity” in their homes.

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Paul May 2, 2012 at 9:19 am

Can someone explain to me which households make over $500,000 and have a net worth of well above $4,000,000?

Because that’s what being in 1 percent is. If you don’t make half a mil a year or have well over $4mil in assets, you’re not the 1 percent.

You’re the 99%.

Maybe this blog should be called:
Iamonmywaytoonedaybecomeonepercent.com

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iam1percent May 2, 2012 at 1:29 pm

As mentioned in my “about” page, I am considered to be in the 1% of income earners in America. This is based on the 2009 IRS data which shows that it takes a household income of $343,927 to be considered the 1%. See following links:

http://www.kiplinger.com/features/archives/how-your-income-stacks-up.html
http://www.bankrate.com/finance/taxes/top-1-percent-earn.aspx
http://money.cnn.com/2011/10/20/news/economy/occupy_wall_street_income/index.htm

Net worth is not a good metric because that is highly dependant on age. An 80 year old making no income with a net worth of $1M doesn’t mean they’re richer than a 30 year old with an income of $250k or vice versa.

This site is about 1 percent of income earners.

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Paul May 2, 2012 at 9:26 pm

Thanks for the clarification.

So it seems that YES,

By (2009 IRS) standards of the greatest recession since the Great Depression – a household making a combined income over $343,927 would in fact qualify to be in 1%. I wonder who was in the 1% in 1929-World War II …

But then so would ANY * AVERAGE * oncologist, urologist, gastroenterologist, anesthesiologist, cardiologist, radiologist or orthopedic
(http://www.medscape.com/features/slideshow/compensation/2012/public) PLUS a median income ($50,000) spouse.

I’m wondering whether we’re massaging the numbers a bit. But by strict definitions I guess this blog would qualify.

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iam1percent May 3, 2012 at 8:26 am

How is using IRS data massaging the numbers? That doesn’t make sense. Even if you use 2010 IRS data, the top 1% earned $380,354 (http://www.financialsamurai.com/2011/04/12/how-much-money-do-the-top-income-earners-make-percent/). What number should I use? A rolling 10 year average of the top 1% of income?

You make it seem like anyone can be in the top 1% during a recession, but that is a mathematical impossibility…think about it. During the great depression, only the top 1% made the top 1%. During this recession, only 1% of income earners made the top 1%. Its impossible for more people to be in the 1% by definition.

And yes, most doctors in your example would be in the top 1% now if they make over $380,354. So yes, we qualify.

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PB May 3, 2012 at 11:42 am

You seem somehow offended that the “average” oncologist etc can be part of the 1% and make is sound like the average oncologist, urologist, etc. is an average person. However, they have much more than the average amount of schooling and training, and I think they should be paid accordingly. Plus, its not like the everyone is a doctor, let alone in the highest paid specialities. It is an elite group of people.

Second, how in the world is using IRS data to define as the metric for defining the top 1% of income earners massaging the data?

we all just paid 2011 taxes, and I would be shocked if the IRS has such great turn around that the cutoff for top 1% of earners in 2011 is available.

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iam1percent May 3, 2012 at 12:54 pm

I don’t care who is in the 1%, just as long as I’m a part of it.

2011 taxes have not cleared yet and no data is yet available for 2011, so until that becomes available, the best data we have is from 2010.

PB May 3, 2012 at 2:09 pm

iam1percent- I tried to reply to Paul, not you. I in no way believe you care who is in the 1% and agree that 2010 data is the best currently availab.e

Lance @ Money Life and More May 2, 2012 at 1:56 pm

Congrats on the increase. I normally do my net worth mid month. So much of the swings have to do with the market so unless you are an active trader you just have to ride with the roller coaster.
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iam1percent May 2, 2012 at 2:32 pm

Exactly…I just roll with the punches of the market.
iam1percent recently posted..Net Worth Update (+1.9%)My Profile

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Nick May 2, 2012 at 4:01 pm

Very nice month. I had a roller coaster April (heavily invested in the market) but eeked out a 1.75% gain. Lowest month of the year, but I’ll take it.
Nick recently posted..2012 Goals UpdateMy Profile

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iam1percent May 3, 2012 at 3:19 pm

Gotcha..I just re-read your comment and it was very supportive…apologies!

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