• 03:05:32 am on December 16, 2008 | 10
    Tags: , , ,

    Baggage Inspection

    Hmmm … one of my challenges will be working out how to help a 60 year old ‘semi retired’ preacher find his way through the income, debt, and investment mazes. Fortunately, Lee is very quick at picking things up and seems to be pretty committed and enthusiastic to me. Luckily, he has case studies like Ray Kroc (of McDonalds fame) and ‘Colonel’ Sanders (of KFC fame) to draw from …. 60 is the new 30!

    _____________

    One of the most difficult parts of travel for me is the fact that I have to always double check again and again to make sure that I haven’t packed something that will get me in trouble at the airport baggage check.  I’m always fearful that they take away my after shave or manicure set.  But this is the first time I’ve been more concerned about making sure that I have backed everything I need.

    When at the airport returning from an overseas trip I’m asked if I have anything to “declare”.  Being a “preacher” I have to bite my tongue to not be seen as some kind of wise guy using this opportunity to further my cause.

    Regarding my 7m7y journey I do have something to declare.  So let me unpack my bags to show you what I’ll be traveling with.  Oh by the way you’ll notice it’s a small bag:)

    First I declare that my net worth can be found at http://www.networthiq.com/people/topekac1 this declaration includes what I have in savings 🙂 🙂 🙂  I’m sorry but that’s something that I’ve never had other than a Christmas Savings when I was a kid.  Please excuse my laughter.

    Secondly I declare my current income as being less then desirable. While my wife still works and makes approximately $35,000 a year I am semi retired meaning that I started receiving retirement funds from an annuity last year at age 60 and that figure was factored into my net-worth figure.

    Thirdly I declare that my Final Number was rounded off to $3,000,000.  The Date to reach that was in 11 years.

    Fourthly I declare that my Annual Compound Growth Rate is approximately 42% which if I did the math correctly is again approximately $272,000 a year.

    WOW the baggage for this trip is larger that I thought.  There are more comments regarding this journey to be found at http://www.shareyournumber.org/profile/LeeMartin go navigate around the site and check out some of the other travelers.

    Finally I declare that this is not a trip that I’m taking lightly.  I’m carefully moving forward praying all along the way making sure that everything I do does not violate my personal beliefs of damage my witness to other who might be watching.

    If you have something that you think me on my journey I would appreciate hearing from you, just click “comment” below and tell me what you think.

     

Comments

  • Scott 6:54 am on December 16, 2008 | #

    Well Lee, it looks to me like you may be ready to venture straight into Money Making 201 from here. It will be a pleasure and inspiring to me to watch you succeed across this journey and I look forward to learning all I can from you.

  • Diane 11:34 am on December 17, 2008 | #

    It was definitely a pleasure reading this post, Lee. I like that you have to bite your tongue at customs when they ask if you have anything to declare (I’m a great fan of Grace Burns, if not another Gracie. I love exploring and answering the other meanings of things people say and don’t realize they’re saying such.)

    What are you next immediate plans?

  • Diane 11:37 am on December 17, 2008 | #

    Lee, I also assume you are paying down your mortgage some – rather than just interest – is that so? If so, then your net worth may be going up 😉

  • Adrian 12:42 pm on December 17, 2008 | #

    @ Diane – Nice idea, but it doesn’t work that way 😦 Paying down your mortgage does NOT change your Net Worth … it just reduces both your CASH and MORTGAGE balance columns in your NWiQ profile … your total of Assets – Liabilities (hence, your Net Worth) remains the same. I’ll accept any opposing views, anybody? We’re all here (including me) to learn …

  • Scott 3:28 pm on December 17, 2008 | #

    @ Adrian – I completely agree about the mortgage. As long as you are living in your home, it is a liability and costing you money if anything.

    That is, unless you are prepared to tap into that home’s equity and use that money to invest.

  • Diane 8:29 pm on December 17, 2008 | #

    Adrian, I assume he is applying income to his net worth and that is NOT reflected in the assets/debt columns of the networth calculations – it’s future cash for the most part (those who have incomes ;)) — or did I miss how else the income is reflected other than as a header above (along with our education)???

  • Diane 8:32 pm on December 17, 2008 | #

    How do you calculate your earning potential in your networth? It feeds the total bottom line (source of water) – only spending it will keep it even (think balanced budget) or overspending it (as I am doing with no incoming income, but savings only now) then networth goes down. ?

  • Adrian 9:36 pm on December 17, 2008 | #

    @ Diane – It’s what you ‘save’ from your income (i.e. after expenses) that goes into improving your Net Worth regardless of whether you use it to build up your bank balace, pay down debt, or – as Scott suggests – buy a new asset.

  • Diane 6:54 pm on December 18, 2008 | #

    So, if he applies $ from his income to his mortgage and thereby improves the equity he has there, his networth goes up by that amount unless he downgrades the value of his home on resale (which is only now coming into play). If his home value stayed/stays constant, his networth improves. What I don’t see in Lee’s NetworthIQ “pictures” is a change to the equity in his house.

  • Adrian 10:47 pm on December 18, 2008 | #

    Diane – It’s enough to say “if he applies his income (in any way other than spending it), his net worth goes up by that amount”. When you save money, your Net Worth automatically goes up by the amount that you have saved. This is an important concept that you raised, so I will be posting your question, soon. Thanks!

    Now, Lee’s home equity may have gone down (due to market conditions) and also gone up (due to repayment of mortgage) … net result, no change. But, I’m just guessing … Lee?


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