Frank the Financially Savvy Atheist - The F.S.A.

Assets Part I
Assets Part II
Assets Part III
Liabilities

I've finished going through and now I stand at an estimated net worth of $2.4 million, a far cry from the $4.5 million that I wanted to obtain. Man, this looks like it's going to be harder than I thought. So I said to myself, "what will it take to get to that level". Since I have my spreadsheet set up, it was easy to tweak the variables, but still disappointing. Here's what I did:
- Ratcheted down salary growth so that my CAGR is now 4.49%.
- Increased my 401(k) contribution to 20%
- 401(k) and Roth IRA return of 10%
- Taxable Brokerage Account return of 10%
- 5% Real Estate Appreciation
- Other Misc Assets stayed the same
- Liabilities stayed the same

After all that, I had $4,680,764.29 in assets, and a net worth of $3,700,096.81. I'm still only 82% of the way there god damn it! I would need two more rental properties in order to get just shy of the $4.5 million mark (it would be $4.43 million). And that's with assumptions that I wouldn't be comfortable with. This is just great.

Key Takeaways
$4.5 million is an aggressive net worth goal. A more realistic goal would be $2 million, but it's been done :P. I think we will realistically strive for a net worth goal of $2.5 million with one rental property.

That being said, I will still keep that $4.5 million goal in the back of my mind, but I will keep it in perspective. In order to realistically achieve that goal, it will require one of many things:
- another source of income (no more god damn elmos or ps3s though)
- leverage (stock option strategies, here I come)
- starting my own business (hellooo hedge fund 2/20 baby)
- luck/chance/rich relative that passes away and bequeaths most of their fortune to us (a series of highly unlikely events)

I'm trying to keep this humorous because while I am disappointed, I'm not all that bummed out. As I've recently learned, money isn't everything in life. So trust me, I won't be losing sleep over the matter anytime soon. Plus, it was a helpful analysis to go through.

Thanks to Enough Wealth and LAMoneyGuy for prompting this analysis. Thanks also to everyone that left comments on the individual posts themselves. I appreciate the feedback and thoughtful criticisms.

Tags: personal finance retirement