How much has your net worth decreased due to the economic changes?

[ahurtt]

Originally posted by: blackangst1
Amazing the stupidity in this thread. For example people telling posters who probably have more than 10 years to retirement...selling everything is the best post on the board? So buy high sell low is good advice now? Man you guys are stupid.

Couldn't agree more. I just gave my company payroll department hell last week because the additional 401K deductions I specified 10 days before the next upcoming pay period were not reflected in my next paycheck. Now is time to double down and buy on the cheap if you have a long time yet to go before you will be drawing on you retirement funds.

 

[palehorse]

Originally posted by: Craig234

Originally posted by: palehorse
Our 401k's are each down 40+ %, and they are each in low/moderate risk categories. Luckily, we have ~30 years to recover those losses.

Our home value has decreased roughly 10%, but that's just a best guess based on only one sale of the same model in my neighborhood -- IOW, I have no clue where we really stand there.

Overall, I really can't complain... yet. My wife and I are very responsible with our funds and we both have fairly stable jobs, so we should be OK. Worst case scenario is that I leave the Reserves and go active duty again in the Army. Doing so would get us through any rough times, together, which is all that really matters to me...

It's too bad for everyone, even you, that the harm the military sometimes causes others isn't important to you, too, so that you thought twice about serving it.

Go fuck yourself.

 

[PrinceofWands]

Originally posted by: CADsortaGUY

Originally posted by: PrinceofWands

Originally posted by: CADsortaGUY

Originally posted by: PrinceofWands

Originally posted by: CADsortaGUY

Originally posted by: PrinceofWands
0. Only people who are invested are affected by market changes (except in things like costs of goods of course).

Or home owners since net worth includes your assets.

Mine probably lowered a tad but it really doesn't matter since little of my "net worth" was liquid anyway so it's not like I see it. 401K - yeah, it's down a bit but it's all paper money anyway until I get close to taking it out. House, probably lost some value in the last year but it's still worth way more than I paid for it 3 years ago.

I don't really buy that though, for two main reasons. First because the home value increases were entirely speculative, and should NEVER have been remotely as high as they were. Second, a HOME (ie the only place of residence you own) is not an asset in the economic sense. If it's your only house, then it's not an investment; it's your caretaker as much as you're its. It's a part of the family, a spiritual place, etc. Now, for those that own more than one, yes, you can call it an investment or an asset...but in such cases you deserve whatever you get as it's one of the primary causes of the unnatural increases in real estate prices anyway.

Since when is a house not an asset? Even by Kiyosaki?s definition it could be considered such.

Well, it is a bit I guess, but not the way it's perceived today. First of all it's given an inflated worth in order to drive prices higher than actual worth or cost. Second, the 'worth' of a home is mostly mental/emotional, and the rest physical needs (shelter). Viewing the home as an economic asset gives it a liquidity it should not have. It's not money to be spent - it's the place you live. It's YOUR private property,and defines your borders, and it's unlike any other possession in that way. It's the one thing a person always must have, before anything else, and after everything else is gone. The home is the absolute center of the individuals world. It's importance cannot be overstated.

Mostly though, it has no financial value or meaning if it's not going to be sold, and most homes should never be sold. Yes, if you 'trade up' there's reason to examine it as a dollar value - but only until that money is put into the new home. Trying to use the value of that home for anything else is a dangerous gamble that just isn't worth it, except in the rarest of emergencies. My house is nearing 200k in worth (though thankfully we've forced the city to reassess and values should be dropping back to the 150k mark by next year), but that's absolutely pointless since it will NEVER be sold. No matter what. Any increase in value only hurts me as I have to pay higher taxes. It would be far more useful to me, and improve my life more, if it decreased in value every year.

Living in a home that is owned, and that nothing is owed on, is the single most calming, reassuring, psychologically stabilizing thing a person can experience. That's the 'asset' of a home.

Sure, but the problem comes in with the fact that other things don't fit such a rigid "asset" definition either. 401K or other retirement funds aren't liquid and would only be "assets" if realized. A car isn't an "asset" either as it isn't an "investment" since they depreciate(minus exotics or collectors).

Like I said, it kind of is, but I see people thinking of it in economic terms a VERY dangerous thing that has led us to significant harm. If we just change our thinking about it, our treatment of it immediately follows. I will never view a home as an asset, or in any financial terms.

 

[First]

Originally posted by: Craig234

Originally posted by: palehorse
Our 401k's are each down 40+ %, and they are each in low/moderate risk categories. Luckily, we have ~30 years to recover those losses.

Our home value has decreased roughly 10%, but that's just a best guess based on only one sale of the same model in my neighborhood -- IOW, I have no clue where we really stand there.

Overall, I really can't complain... yet. My wife and I are very responsible with our funds and we both have fairly stable jobs, so we should be OK. Worst case scenario is that I leave the Reserves and go active duty again in the Army. Doing so would get us through any rough times, together, which is all that really matters to me...

It's too bad for everyone, even you, that the harm the military sometimes causes others isn't important to you, too, so that you thought twice about serving it.

Wow, diaf.

 

[wyvrn]

My wife lost probably 20% in her 401k. I stopped investing as much in aggressive funds (didn't sell the assets, just didn't contribute any more to them).

I chose to do real estate instead. My homes have depreciated about 1/2 percent b/c of where we live. But given the other benefits of real estate, we are up this year on those investments.

I used some of that money for repairs, and the returns are good so far.

Hopefully the economy holds up and people don't lose their entire investments.

 

[TallBill]

Not many people are answering the OP's question.

 

[charrison]

Investments are down.
House value is still way up and I expect it to drop much
my salary is up.
Total income is way down as my wife stays at home with our daughter now.

Not to worried about the current situation as I am still a long way from retirement.