When calculating net worth you need to include the value of your home. Proper net worth accounting adds up all assets and subtracts all debts. Primary homes are assets, and debt secured by primary homes is debt. Adding Homes to Net Worth: Confusingly Controversial Although including primary home equity in net worth is correct, this […]
Over the Thanksgiving weekend, I decided to play around with Morning Star’s X-Ray tool. The tool takes your entire portfolio and analyzes the asset allocation by geography, by risk level, by asset class as well as by type (growth vs. value, etc.). Here is what my current asset allocation across my portfolio is (asset type): […]
It’s the time of the year for New Year’s resolutions and an assessment of how 2013 went for myself. Financially, it was a good year for the market, with the S&P 500 returning ~31% with dividends. I did a little better in my 401k at 34% so I must say without a shadow of a […]
The issue of the declining in America has been mentioned as one of the ways in which the younger generations are falling behind economically. The caused massive deleveraging in America which increased the savings rate, but most of it was due to consumers reducing and liabilities as opposed to building assets. There could be many causes of this, but to name one: in times of uncertainty, consumer tend to brace themselves for a more hazy future by building as quickly as possible. A decrease in stock prices and eliminated much of the buildup of household assets which needed to be counteracted by an increase in savings. Also, credit standards have tightened, which has further compounded the problem and increased the deleveraging among American households.