| What a month.
First, the US loses its AAA credit rating and people finally figure out Europe is in huge trouble, both causing the stock markets around the world to plunge. So my retirement account took a hit.
Second, I am purchasing a beach house (duplex) in SoCal, although it is not reflected in my net worth figures yet because it has not closed. I've determined it is a good investment and got a great price. Based on the down payment, my annual return is 4%-6% on the income alone, plus it will be available for me to use during the summer. Adding in the accumulated equity from paying down the mortgage, and the return is double those figures (6%-12%). And if the place appreciates, then extra bonus.
And third, I took a distribution from the partnership this month.
As I rapidly approach 40 years of age, and my goal of $4.0 million by 40, I've started to consider the next goal: $10.0 million by 50. It's certainly within my reach and, with 10 years to multiply my net worth 2.5 times, it's abundantly realistic. In fact, I have it penciled out to $12.0 million by 50, but whatever.
The thing that I'd like to see even more at 50, however, is a $10.0 million net worth figure that is independent from the "other assets" category (my law partnership equity) which currently occupies 42% of my overall net worth and is not liquid.
So, anyway, I'd love to see that happen. |