Net Worth Update – October 2021

October was a much better month, as I saw my net worth trend in the opposite direction of September. Cash was decreasing again as I paid off medical expenses again. I also took a vacation which caused the increased expenses for this month. The market recovered quickly after the dip in August/September but I wouldn’t be surprised to see it go back and forth a few more times. I think a lot of it depends on if covid stays under control this Fall and Winter.

Net Worth for October 2021:

The market did all the heavy lifting this month, as my cash accounts took a big hit.

So let’s see how far my assets would take me at this point. I will 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.

$3094 average spending last 12 Months * 12 Months = $37,128 spending in a year

$317,489 net worth / $37,128 spending per year = 8.55 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 $1510 a month for 30 years which is 48.9% of my average monthly spending.

Photo by Volker Repke on Unsplash

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