How bad was your year - moneywise?

[thyme4change]

Every year I do a simple net worth statement, and it is all in one file, so I have our net worth going back to the end of fiscal 2009 (plus a random one from the end of 2006). What I don't have in these statements are how much of our investment increases are organic returns, and how much is the money we put in. The lowest years we have had is a gain of 3.5% and a gain of 9% - both of those years we did a lot of work on the house. I use Zillow as our valuation - so any work did not make a bit of difference. 2009 - 2021 is a pretty good run! But - it is over.  This year, between funding my both kids going to college, the stock market falling apart and me quitting my job, our first loss - and it was a doozy 13.9%! 


But, the good news (and the reason I love that this old file) is that we are up from 2020 by almost 12% (real) and if we do an average (CAGR) since 2019 we are up 11% per year (I think - I have had problems with the "# of years" part of that formulation.)


So really - 2021 and 2022 together aren't that bad. 2021 was unreasonably profitable, and 2022 was really a correction.       

[minnesotapaintlady]

I have a similar net worth spreadsheet and just looking at the December numbers from every year I'm up 17% from 12/20 to 12/22.  Of course, a good chunk of that (probably half) is contributions and debt paydown, but still...it's nice to step back and see that the big picture going in the right direction.

[resolution]

I am down 9% from 12/21 and up 17% from 12/20.

That is a lot better than I expected, considering we bought a house in 12/20 and have dumped over 100k into renovations over the past two years. A lot of that was offset by the rise in real estate values, but now that real estate is on the way back down I am expecting to see my net worth continue to decline. I have about 40% of our net worth tied up in real estate, which wasn't the smartest decision that I've made.

[pooks]

We are down 2% this year, but up 24% from 12/20.  This year has sucked.  Retirement accounts are down, Real Estate is down, income was down.  Finally getting paid interest on savings, but it is hard to find any other bright spot.  

[haapai]

I'm not organized enough to answer that question.  Relief checks and inheritances that I have directed toward retirement accounts have thrown things off quite a bit.  The raw balances don't look that bad. 

The real damage that has been done to me might be in the form of what my eventual social security check is worth.  I dinked around, earned little, and basically lived on air during most of my twenties and early thirties.  I had some hopes of replacing twelve of those lousy-income years (adjusted for inflation) with something like what I am earning now.  I don't think that I can do that now and it has nothing to do with the condition of my body or my parents' health.  I'm just pretty certain that my employer will never increase wages at anything like the rate that the cost of living, or my cost of living, is going up. 

If you look at gross wages or AGI, 2020, 2021, and 2022 were probably some of my best years.  If you apply the same inflation coefficients that SSA uses, my wages peaked in 2013. 

[Deleted]

My Internal rate of Return was -16.7%. What that means is that if I'd had what I had at 1/1/2022 in a savings account with the withdrawals that I made during 2022, and had the balance that I did at 12/31/2022, the bank account interest rate would be MINUS 16.7%. From 2011 through 2022, though, the annual average is 6.4%, which isn't too awful.

One metric I watch is the average annual percentage change in total investments since I retired in mid-2014, and that's 1.7%/year. I find that encouraging even though the number has been higher in better markets. In theory that number could be a small negative and I'd still be safe since I'm not going to live forever.

And hey, I'm up for the year in 2023 already.

[countrygirl2]

We are ok, not gaining like others, but we are very conservative in investments, but real estate has gone up and in selling now will realize the gains. We are waiting to see if there is still a closing tomorrow on the little farm. Not sure about that yet. I'm starting to wonder about that, just called the title company and she said she didn't have it scheduled?? Starting to wonder about that guy. 

We really don't want to sell another house this year because of taxes and possible medicare premium increases, if we also close on the farm. But the farm sale may not be a given, hummm.

But we are ok, we are in good condition financially, no debt, and things in good shape. So looking forward to this year no matter what it brings.

[azucena]

2022 401k -16%

2020-2022 +7% so I like how Thyme thinks

[Bonny]

By the seat of my pants I would have guessed that we were down by about 20% between stocks/mutual funds and real estate equity. Checked our Fidelity account and it's actually not that bad...yet.  Harder to estimate the real estate equities.

I don't worry about it too much. We have enough and I figured everything after Covid was basically funny money anyway.

Now what is fun is to look at our 10 year projection when we first did our retirement planning. I have an old spread sheet projecting our 2022/22 net worth. We are double that despite drawing on funds (including remodels and buying cars) and not working for 10 years. Doing our planning in 2010 led us to some really conservative projections...1% growth and inflation.

[tractor]

I don't track net worth, but I sold an "extra" house in the up market last year, took my profits and paid off all my debts (except my primary house), and still hold considerable cash in my emergency fund. This is a position I have never been in before, and it's nice knowing I have a buffer in case all hell breaks out. I also had both my kids get jobs and move out, and received a 30% pay increase.

If things continue, I should be in a great financial position by the end of 2023. Only 10 more years until retirement 😊

[Regis]

Most equity funds that we hold were down about 15-17%.  Through other accounts that we regularly contribute to, we ended the year down 11.3%.  We've been keeping track of our accounts since 2006, and our average is +12.8%.  With just a couple of years until retirement, I'd like to get back to that!  Similar to others, we're up 11.0% since the end of 2020.

[Deleted]

My Ulta stock was up 18%

Keep on buyin' them eye shadow palettes.

[The Walk of the Penguin Mich]

Jan 6, 2023 8:04:27 GMT -5 @athena53 said:

My Ulta stock was up 18%

Keep on buyin' them eye shadow palettes.

I know!  I think I’m up about 30% in Ulta.  TD said it hit a peak yesterday.

[❤ mollymouser ❤]

My husband retired from the military as of June 1, 2022.
He started collecting his military pension in July, 2022.
He started a corporate job in mid-February, 2022.
Because of the, our 2022 income was significantly higher than 2021 (and earlier) ... so I expect our taxes will be, too. I expect 2023 income will be lower than 2022 since he will have just the one paying job. I will have to wait and see (and add up) his pension, his VA disability, and his corporate job.

His retirement is in the TSP, in its no-risk G-Fund until the market is less volatile. So, no losses in 2022 and a small gain.

We're debt free.

[Rukh O'Rorke]

Jan 4, 2023 15:30:33 GMT -5 thyme4change said:

Every year I do a simple net worth statement, and it is all in one file, so I have our net worth going back to the end of fiscal 2009 (plus a random one from the end of 2006). What I don't have in these statements are how much of our investment increases are organic returns, and how much is the money we put in. The lowest years we have had is a gain of 3.5% and a gain of 9% - both of those years we did a lot of work on the house. I use Zillow as our valuation - so any work did not make a bit of difference. 2009 - 2021 is a pretty good run! But - it is over.  This year, between funding my both kids going to college, the stock market falling apart and me quitting my job, our first loss - and it was a doozy 13.9%! 


But, the good news (and the reason I love that this old file) is that we are up from 2020 by almost 12% (real) and if we do an average (CAGR) since 2019 we are up 11% per year (I think - I have had problems with the "# of years" part of that formulation.)


So really - 2021 and 2022 together aren't that bad. 2021 was unreasonably profitable, and 2022 was really a correction.       

so on the networther thread, I reported a loss of about 1 million or 48% (IIRC)...so was pretty brutal!!! 

Let me try it your way.....

2020 up 115%
2021 up 24%
2022 down 48%
20 through 22....up 38% overall, nearly 13% averaged annually.....


guess that seems pretty good, generally speaking....

I got real used to that 2 mil however!!! and i want it back!!

[Rukh O'Rorke]

Jan 4, 2023 16:58:24 GMT -5 pooks said:

We are down 2% this year, but up 24% from 12/20.  This year has sucked.  Retirement accounts are down, Real Estate is down, income was down.  Finally getting paid interest on savings, but it is hard to find any other bright spot.  

Sometimes, you have to take pleasure in the little things. Good book, cup of tea, curled on the couch......

Hopoe you can find a few of those today.

[Rukh O'Rorke]

Jan 4, 2023 18:13:40 GMT -5 haapai said:

I'm not organized enough to answer that question.  Relief checks and inheritances that I have directed toward retirement accounts have thrown things off quite a bit.  The raw balances don't look that bad. 

The real damage that has been done to me might be in the form of what my eventual social security check is worth.  I dinked around, earned little, and basically lived on air during most of my twenties and early thirties.  I had some hopes of replacing twelve of those lousy-income years (adjusted for inflation) with something like what I am earning now.  I don't think that I can do that now and it has nothing to do with the condition of my body or my parents' health.  I'm just pretty certain that my employer will never increase wages at anything like the rate that the cost of living, or my cost of living, is going up. 

If you look at gross wages or AGI, 2020, 2021, and 2022 were probably some of my best years.  If you apply the same inflation coefficients that SSA uses, my wages peaked in 2013. 

ouch!

Can you change companies?

[pooks]

Jan 18, 2023 14:09:40 GMT -5 Rukh O'Rorke said:

Jan 4, 2023 16:58:24 GMT -5 pooks said:

We are down 2% this year, but up 24% from 12/20.  This year has sucked.  Retirement accounts are down, Real Estate is down, income was down.  Finally getting paid interest on savings, but it is hard to find any other bright spot.  

Sometimes, you have to take pleasure in the little things. Good book, cup of tea, curled on the couch......

Hopoe you can find a few of those today.

I think I am going to get a dog. I can't be unhappy around a new dog. 

[jerseygirl]

Down about $250000
Not happy but feeling this will improve in time

[haapai]

Jan 18, 2023 14:14:34 GMT -5 Rukh O'Rorke said:

Jan 4, 2023 18:13:40 GMT -5 haapai said:

I'm not organized enough to answer that question.  Relief checks and inheritances that I have directed toward retirement accounts have thrown things off quite a bit.  The raw balances don't look that bad. 

The real damage that has been done to me might be in the form of what my eventual social security check is worth.  I dinked around, earned little, and basically lived on air during most of my twenties and early thirties.  I had some hopes of replacing twelve of those lousy-income years (adjusted for inflation) with something like what I am earning now.  I don't think that I can do that now and it has nothing to do with the condition of my body or my parents' health.  I'm just pretty certain that my employer will never increase wages at anything like the rate that the cost of living, or my cost of living, is going up. 

If you look at gross wages or AGI, 2020, 2021, and 2022 were probably some of my best years.  If you apply the same inflation coefficients that SSA uses, my wages peaked in 2013. 

ouch!

Can you change companies?

Changing employers might not help as much as you'd think. 

I'd almost certainly lose a lot of paid time off benefits as well as the generous unpaid time off that I currently have access to.  My parents are in their eighties and one is deaf and the other is dotty.  So far, I haven't had to use a whole lot of time off, paid or unpaid, caring for them, but that time is coming. 

Changing employers would dramatically increase my transportation expenses.  I currently work a mile from home and can walk or bike to work whenever I need to.  If my partner needs to use our shared car, I can get to work or back under my own power.  Changing employers would almost certainly necessitate getting a second car and the annual expense of that would probably decrease my retirement contribution by 50% or more. 

I am not married.  My partner is a few years older than me and is on Medicaid.  Marrying him would mean adding him to my insurance at about $6K (pre-tax) a year, which is unimaginable.  Let's just say that there is no chance of us getting married before he qualifies for Medicare and that he's unlikely to live to 75.  Survivor benefits or drawing on the other's earning history are just not in the cards for us. 

If I took any kind of reduction in earnings in order to, eventually, at the end of my working life, earn more than my current employer is likely to pay me at that time, it will absolutely bite me in the butt if I stop working full-time before full retirement age and possibly even if I make it.  This assertion is hard to explain.  You'll almost have to take my word that I've been staring at spreadsheets that display my inflation-adjusted earning record and that they have spoken to me.  They are telling me that replacing three years of inflation-adjusted earnings of under $10K and another four years of earnings under $20K as soon as possible with the highest numbers possible is much more important than ending my working years making slightly more by changing employers. 

[bookkeeper]

I keep a spreadsheet of our net worth each year on December 31.  2021 was a crazy jump in value, so this past year has wound some back.  We are down $150,000 or so from last year.  We also took on new mortgage debt when we bought a third house by our grandkids.  That mortgage is at 3.5%, so I feel pretty good about that debt.  This year we need to shore up our cash position.  We blew most of our cash on the downpayment for that house.  We really like the house and being so close to the twins, so there are things more important than numbers on a spreadsheet.