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 How much is your net worth?, gauging your financial performance.

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Phoeni_142
post Sep 7 2011, 01:12 AM

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QUOTE(wongmunkeong @ Sep 2 2011, 05:18 PM)
blush.gif not as high as can be bro (hitting 40s soon) due to:
a. younger & dumber days activities
b. divorce.. yeouch! effectively more than 60% gone there due to pay out & rebuilding a new home for myself & my little girl
c. worker ant / lemming

Worried "someone" (no, NOT ah longs - worse) is looking here as i used my real name (and try pressing me for more) , thus, if i may give U an idea (but not exact figures) + percentages of asset allocation biggrin.gif

a. My current net worth is less than yours if U keep growing it at such rate until U reach my current age tongue.gif
Assuming U've been in biz for 5 years to create your net worth posted earlier, U'll definitely reach my current net worth by the time you're 38 rclxms.gif
If U've been in biz for less than 5 years (say 1 to 3), holy smokes - U'll cross my current net worth in about 5 to 6 years.  notworthy.gif

b. Aim to hit >$3M in real assets (ie. excluding cars, furniture, etc.) by the time i chose to retire - achievable all else being samey samey (ie. markets up/down, no pay increase, no bonus increase, nada).
Lala-land Aim: to hit >$6M and leave at least $3M to charities and family.

c. Asset Allocation held currently.
Pls note that this is NOT my planned allocation - i allocated resources to buy assets via VALUE (buy good Companies' stocks during fear) or PROGRAMMATIC (every quarter using DollarCost + ValueCost averaging) but somehow it's all stuck in bonds & FD since mid 2010 tongue.gif.
Thank God since now it's a dip - mega sales coming soon.
[attachmentid=2416115]

If U want more details and discussions (i'm all ears to learn from a biz person's perspective - btw, i'm also in the systems and solutions line BUT auto industry - worker mar), "private message" me  brows.gif .
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Interesting thought process....You remind me of some other forumer I know....I mean that in a good way.

I'm curious....you have no properties in your portfolio, if I followed your posts correctly.... Care to share why?

Phoeni_142
post Sep 7 2011, 11:17 AM

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QUOTE(wongmunkeong @ Sep 7 2011, 08:10 AM)
My thought processes are definitely "interesting" to say the least, sometimes frighteningly bizarre too (think happy grass psychedelic colors trip)  tongue.gif

On a more serious note - got ar, but
only 1 "full fledged" investment property
+ "semi-fledged" investment property (renting out rooms of my home - think of it as live-in landlord tongue.gif) paying more than 50% of my mortgage
+ REITs (office, plantation and retail/education/office mix) which i consider equivalent to properties without leverage (yeah yeah - property game's turbo-boosts is leverage but i'm very mindful of my D/E ratio, chicken lar)
Reason for being a chicken - banks / financiers may "call upon the full sum anytime" if i read my mortgages correctly. Ya ya - "never" happened before, same in US until 2007-2008  cry.gif

I'm an advocate of Asset Allocation across at least 3 classes - Fixed Income, Equities (biz) & Land (properties & REITs). I only post what i'm doing from my own reasoning, thus i'm definitely in properties too biggrin.gif.


Added on September 7, 2011, 8:11 am
Good lord bro Monsta2011 - U have memory like an elephant.  notworthy.gif
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Interesting.....very interesting....could u share how many % of your networth is allocated towards properties?

do u find that your potential returns could be a lot higher if u use the power of good leverage?

seems to me that most of your portfolio was constructed using pure hard earned cash? pls correct me if I'm wrong.
Phoeni_142
post Sep 7 2011, 12:02 PM

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QUOTE(wongmunkeong @ Sep 7 2011, 11:37 AM)
Bro Propetjul - may i "main tikam", $14K+/-? biggrin.gif


Added on September 7, 2011, 11:46 am

My % of net worth in properties is about 28% held and 33% held + allocated $ to buy in.

IMHO, yeah - leverage is good up to a point and depending on the buy, whether good value or main tikam.
More than that point - i'm very very worried if my D/E is like 2 tongue.gif

Yup yup, mostly blood & sweat $ saved used for investment. Thus, i'm a firm believer in basic $ management first, THEN risk mgt & investment. Without the basic $ management, forget the rest coz sooner or later, big kaka will happen.
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well, using your lingo - u seem to be very well versed in money management & personal finance 101

I would think that u r more than ready to dwell deeper into the arena of leverage, to increase your wealth exponentially, no?




Phoeni_142
post Sep 7 2011, 02:33 PM

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QUOTE(wongmunkeong @ Sep 7 2011, 12:12 PM)
Oo i do leverage for that full fledged property but up to a point lar bro.

I'm waiting for kaka to hit the fan (not IF, but a matter of WHEN - for sure to happen tongue.gif) OR inflation STARTING to go nuts before utilizing more leverage, and again, up to a point of my personal comfort level (D/E up to 1 max)
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if u dabble into leverage / real estate - D/E wouldn't really be a concern, no?

at most - it should be D/I

plus - depending on your real estate portfolio strategy - your D would constantly be offset by I's coming in from rental / cash flow plays.

m2c.
Phoeni_142
post Sep 7 2011, 04:46 PM

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QUOTE(wongmunkeong @ Sep 7 2011, 02:49 PM)
hehe - my personal gauge (to manage my life biz) is similar to companies/biz i'd invest in.
ie. ROE >=20% consistently for several years,
generally D/E<=0.5  unless REITs <=0.8 or special circumstances, but no matter what D/E <=1
Cash flow +ve consistently

IMHO, only looking more at D/I than D/E is dangerous for me in the sense that the I may not be consistent.
eg. rental where there may be breaks in the contract every 2 to 3 years
OR worse, running off (yar yar, filter for good renters, kaka can still happen)

Heck - look at the good ol US of A.
They kept stating that their debt is sup sup water compared to their GDP until... tongue.gif

No right/wrong yar - i'm just more chicken shit in this sense  blush.gif UNTIL i can learn and have better proven methods biggrin.gif
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well, I think u r "comfortable" with your own methods.....and i've dabbled in both equities and real estate....so....hmmmmm

There is always a method to overcome issues like vacancy factors, tenant management, refinancing, yield mgmt, cashing out on your equity etc. Your cocr from RE plays can also be decent - at least 20% consistently, not including any capital gains. And i'm not interested in speculative plays. Old school lah.

wealth should be shared. knowledge should be shared. u seem interesting. if u have time, pls do log on to propertywtf.com.my

no, i don't own the website, and i'm not vested in it. but it's a good place to read up on some new things if u r interested.

cheers.

This post has been edited by Phoeni_142: Sep 7 2011, 04:47 PM

 

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