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|Subject: Re: Fire Update 2012||Date: 1/18/2013 8:07 PM|
|Author: whyohwhyoh||Number: 4974 of 5144|
Some FIRE rambling...
Nice 5% tech gain so far this year, so when I just dumped 2%NW in company stock, I'm right back at 9% company stock in NW (post tax). I have to wait until May to dump another big chunk, then again in October, which I plan to do.
When calculating net worth I multiply all my company stock by 0.65 since when I sell, it will get hammered down (fed+state tax).
There was a comment on whether or not to include unvested stock in net worth calcs.... I do include them. It is actual money on paper, and I pretty much always sell once vested so I do realize the gain. I have stock vesting continuously and nothing is more than 3 years out. Including it in NW gives a better picture of where I'm headed.
Paying down the mortgage.... with rates so low I don't. Maybe as I get closer to being able to make a decent move on it, I will. When I refi, I do pay it down a little, opposite of what most do I presume. If I refi again this year (rates still dropping) I'll probably throw more at it to reduce the initial loan balance.
My house is an investment, I include it in net worth calcs. I plan to sell the house some day and realize all the gains. It has 6 bedrooms, 4 bathrooms, in an expensive neighborhood, we don't need that when we FIRE. I am constantly doing small upgrades, sweat equity, on the house each year to help it sell some day.
Right now to calculate what my house is worth, I have been recently using a conservative 2%-3% yearly increase, and multiply by 0.93 to account for costs to sell. For comparison, Zillow is showing 10% year over year for past 2 years for my home and my zip code. Silicon Valley is in full rebound over the past 2 years. Apple and Google probably have a lot to do with it. Traffic is much worse now... my other economic indicator. If I get some good neighborhood comps, I might adjust upward, but I like to remain conservative in my assessment.
I consider my house investment as protection against inflation.
I-bonds look decent right now for fixed income category of my networth. I'm thinking of putting a bunch into I-bonds. I have been using FNBO for many years now, which is 0.85%APR savings at the moment.
How to help FIRE.... I have a 2007 Honda with 86k miles on it, $17k new (out the door). My wife drives a 2007 Subaru... we bought it with 40k miles for $11k. We'll drive these to the ground.
I don't mind spending money.... I just hate wasting it!
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