Here is my updated net worth for February 2020. Covid has the market in a panic as it shuts down China and other manufacturing areas, so the market is definitely feeling it. I’m just wondering how bad it will be and are we entering a recession at this point? Net worth was unfortunately down this month after the recent positive run.
Net Worth for February 2020:
Only my savings account and HSA were positive this month, with all my market accounts really tanking things here. I’m hoping we have a recovery by next month and that things don’t end up being as bad as some people are saying. I’m not going to panic and will keep contributing to my retirement accounts at the same pace I have been.
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.
$2929 average spending last 12 Months * 12 Months = $35,148 spending in a year
$189,640 net worth / $35,148 spending per year = 5.40 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 $902 a month for 30 years which is 30.1% of my average monthly spending.
Photo by Chongming Liu on Unsplash
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