6 Replies Latest reply on Jul 13, 2013 4:13 PM by Sharon

    What's your Net Worth - liquid vs. assets

    cyber888
      What's your net worth - and what portion is liquid (cash, 401K, 403b, IRA) and what is portion are hard assets (house, real estate, land).    I saw a discussion which said you may diversify your net worth, even to include stuffs like painting, art, antiques, collections and other real assets, because of how stocks can be too volatile.
        • Re: What's your Net Worth - liquid vs. assets
          MyR Community Manager
          cyber888,
           
          Thank you for creating a new discussion thread! We appreciate and enjoy  your participation in the MyRetirement.org online community and look  forward to your future contributions. 
          • Re: What's your Net Worth - liquid vs. assets
            TroutBum
            My assets are distributed about 40% in homes and real estate, 40% in various retirement investments, 10% in vehicles, furnishings and personal property, and 10% in what I consider liquid assets; cash, CDs, MMs, etc.
            Throughout my 40 year working lifetime I have never allowed myself to think of any retirement investments as liquid assets, and have never borrowed or withdrawn from any of them.
            • Re: What's your Net Worth - liquid vs. assets
              TomB
              I can't say exact percentages, but our home property has suffered and still does from the real estate crash. We own really old, but well cared-for cars, we have a few antiques and some artwork that has no value in the market because it is of the family. So, most wealth is in traditional IRAs and Roths now, my guess is about 80%, and currently growing nicely.  We live on our Social Security and federal "annuities" (pensions), mine from 34+ years' and my wife's from 20+ years' service. So we are not touching our IRAs until required. We also have other savings that we amassed over the last 20 years and were able to help our professional couple children buy a home in Maryland because they have another in Michigan that won't sell  because of the local economy despite it's attractiveness. So if we sold our house, cars, tractor, tools, all household effects; and then moved to a tiered-care senior village we might be able to pay our keep for several months, no more! So, we're staying put as long as we can so we can see our grandchildren educated.
              • Re: What's your Net Worth - liquid vs. assets
                JerryD
                Our bigger-than-we-need home (chosen for the pretty lot and house in a relatively cheap real estate market) is less then 20% of our assets and our cars, though pretty new, are thought of as at least 10 year items. The last old one was 14 years old when we traded it in this month due to the high cost of fuel and lack of all wheel drive - multi-year zero percent financing didn't hurt either. We have been living off of early SS and dwindling savings and will soon start receiving RMD's from IRA's while converting as much as savings and taxes allow from IRA's -> Roth's. Bottom line is that retirement assets represent close to 75-80% of our assets. We have worked very hard at maximizing our total sheltered retirement assets, converting to tax-free Roth's and living frugally but not miserly. We're not looking for glorious retirement years just a very enjoyable and doable life style. It takes years of discipline, sacrifice and hard work, but I highly recommend it due to the added peace-of-mind when you finally retire. 
                • Re: What's your Net Worth - liquid vs. assets
                  sktn77a
                  cyber888 said...
                  What\'s your net worth - and what portion is liquid (cash, 401K, 403b, IRA) and what is portion are hard assets (house, real estate, land).    I saw a discussion which said you may diversify your net worth, even to include stuffs like painting, art, antiques, collections and other real assets, because of how stocks can be too volatile.

                  Well, if you own a home, you are "invested" in real estate.  Likewise the other assets that you own.  Some, eg cars, are not really considered assets as they depreciate rapidly (50% in the first 3 years) and have maintenance costs, so you might want to consider them liabilities!
                  • Re: What's your Net Worth - liquid vs. assets
                    Sharon
                    Having retired early and not by choice, our assets have changed.
                    Even with our house not worth as much as pre 2007, it is still about 60% of our net worth. Investments, annuity, social security income, IRA and TIAA CREFF money is the other 40%.  We were lucky to have a home in California that is worth a million dollars..so when we sell and downsize, that will be a big chunk of our investment money to fund our future years.