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Net Worth Apr ’17

I know what most of you are thinking, how could you lose $80k of net worth in a single month without a significant market crash or correction?  This my all apart of financial strategy for a tax-free retirement.  Stay tuned for the revealing post.

 

LIQUID ASSETS

Checking – cash purposed for managing day-to-day and monthly expenses

  • +$5,993.18 increase is due to month-end timing of salary payment and paying off credit cards

Savings – cash purposed for the next 3-5 years (wife’s tuition, house down payment, emergency etc)

  • -$3,330.23 school tuition payment for wife’s new career and pay off her credit cards

Life Insurance – cash (surrender) value of policies purposed for strategic investment opportunities 

  • -$38,921.54 $40k loan from existing cash value to fund 2 new policies, offset slightly by from monthly premiums, dividend interest and loan repayments (this is part of my tax-free retirement strategy)

Stocks

  • +$7.89 flat market movement

Real Estate Earnings – PeerStreet monthly interest earnings

  • +$0.78 flat with consistent monthly interest earnings 

NON-LIQUID ASSETS

Retirement  – 401(k), IRAs, Pension

  • +$638.79 market movements

Other – represents my cost basis in illiquid investments such as PeerStreet principal investment, Mrs. Church’s wedding rings, apartment security deposit, and an outstanding loan receivable

  • -$499.38 Loan receivable payment

LIABILITIES

Credit Cards – two cards with great rewards

  • +$3,470.75 stupid spending, nothing more to say about that

Other – life insurance policy loans used to fund strategic investment opportunities

  • +$39,940.49 loan increased due to opening of two new policies 

2 comments

  1. I’m confused how you can just “erase” 80k. It looks like you pulled 40k from the policy, and 40k from generic debt, and invested it in a “strategic opportunity”, but one that has a value of 0? Why isn’t the expected value of that investment included in your net worth?

    • Hi Matt, thanks for the great question. I am actually impressed you read in such detail!

      $40k comes out of my cash value (decrease in assets) and a $40k liability is recognized accordingly (increase in liabilities).

      The reason you are not seeing a $40k assets that represents an investment is that the money is spawning another policy. As you may well know, the first couple of years of a policies has little to no value.

      I have not shown the future guaranteed values because I thought I should be conservative, but am now rethinking to build up to the guaranteed value. This way when you net the cash value (asset) and the loan (liability) it equals the surrender value.

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