Here is my updated net worth for November 2019. Another awesome month, that’s two in a row! It’s another net worth record as my retirement accounts just keep trucking along.
Net Worth for November 2019:
Another month of market momentum kept my net worth headed in the right direction. Cash accounts were basically flat with a very small increase, but my Roth IRA and 401k really boosted me this month. That’s the power of compound interest at its best!
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.
$2816 average spending last 12 Months * 12 Months = $33,792 spending in a year
$185,081 net worth / $33,720 spending per year = 5.49 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 $880 a month for 30 years which is 31.3% of my average monthly spending.
Photo by Riccardo Trimeloni on Unsplash
Leave a Reply