Here is my updated net worth for April 2020. Talk about a quick turnaround in the markets with pretty much everything rebounding over the course of last month. I’m not sure it actually matches reality with so many businesses closed and covid still ramping up, but that’s how it is going currently.
Net Worth for April 2020:
I did manage to still save some money, so cash flow was good this month. I’d say that’s about the only positive across my accounts this month, but also the only thing I can really control when the market is down this much.
So let’s see how far my assets would actually take me at this point in time. I’m going to calculate that using my average spending over the last 12 months. I’ll then multiply that result by 12 months to get the total spending for the year, and then divide my total net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$2990 average spending last 12 Months * 12 Months = $35,888 spending in a year
$190,491 net worth / $35,888 spending per year = 5.31 years worth of spending
I also thought it would be cool to see the opposite, how much would I be able to withdraw each month? I set the rate of return at 4% as a conservative guess, and the retirement time period would be for 30 years.
I’d be able to withdraw $906 a month for 30 years which is 30.3% of my average monthly spending.
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