| This will be a "all-over the place" entry.
First, let's discuss general net worth. My goal has, for some time, been to accumulate $10MM in net worth, and last month I crossed the $6MM threshold.
Statistics on wealth is interesting to me because it seems that so many have so much, but the reality is quite different. I think it's important to remember whenever comparing yourself to others (financially) which this site is obviously all about.
That said, I found the following from an article on CNBC.com very interesting:
A new report from Credit Suisse shows that 1.7 million of the 1.8 million millionaires added to the ranks in the past year were created in the U.S., which now boasts 13.2 million millionaires.
Credit Suisse estimate that, globally, more than 2 million people are worth between $5 million and $10 million, and that 98,700 people are worth $50 million or more. It estimates that 33,900 are worth $100 million or more.
http://www.cnbc.com/id/101099732
Based on these statistics, I'm among the "top" .06% percent of the population in real wealth accumulation and I am genuinely grateful.
I recognize there's a big difference between living like you're wealthy and being wealthy, which is why I usually do not spend much on frivolous items or personal consumption (no jewelry, buy clothes second-hand, no first class flights, etc). That leads me into my second issue . . .
Second, let's discuss the new vehicle. Notwithstanding my sensibility to avoid needless consumption, I bought a '97 Land Rover Defender with 52,000 miles this month for $53,000.
Over the years I've bought and sold many of these vehicles (1997 D90s), usually making about $5,000 per vehicle, just for fun. They've become collector cars since LR stopped importing and building NAS ("North American Spec") models (left-hand drive) due to the air bag laws in the United States. The vehicles were sold on the dealer floor for about $35,000 brand new in 1997.
Here's a list of a few that I've bought and sold over the years, all are 1997 D90s:
2000: Blue HT with 52,000 miles. Bought for $32,500, sold for $40,000.
2000: Black ST with 12,000 miles. Bought for $40,000, sold for $46,000.
2000: Yellow ST with 37,000 miles. Bought for $38,250, sold for $43,000.
2000: Green ST with 29,000 miles. Bought for $38,500, sold for $39,000.
2001: Yellow ST with 30,000 miles. Bought for $37,000, sold for $37,000
2007: Black ST with 107,000 miles. Bought for $30,000, sold for $35,000.
2008: Red ST with 57,000 miles. Bought for $30,000, sold for $36,000.
Obviously I paid more for this one than I ever paid for any other D90 and, notably, I paid more for this one than I'd ever sold a D90 for . . . that said, there was one very similar to the one I just bought that sold on eBay this week for $41,000, but it had 102,000 miles and no removable fiberglass hardtop (that alone is with about $2,500 or more).
It's hard to know if I've overpaid for the vehicle since there are others out there with similar pricing, but either way: I just wanted it and it's certainly a vehicle that will hold some value over time. Not the smartest move financially, but part of "letting go" a little and enjoying -- and I do like that my kids are super-excited for it as well.
Third, I revised the real estate values, again using 94% of highly conservative values. My psychological goal in using conservative values it to trail the fair market value sufficiently so that I never have to lower values and have a smooth increase over time rather than ride the rails up and down.
And fourth, I am once again not taking full advantage of the stock market which has, in my view, defied all odds and is hitting new highs every day. This is really amazing given the federal Government shutdown this month and, especially, the debt ceiling debacle which threatened to undermine the US credit rating and got everyone so worked up earlier this month. And yes, it's political theater, but it's amazing to me how forgiving the markets are to this type of thing -- to me it shakes my confidence. |