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Net Worth Change 2016

December 31st, 2016 at 12:28 pm

Overall, my net worth is up $17,213 (3.79%) for the year, from 454,015 at the bginning of the year to 471,228 at year end. The change is due approximately to a 7K increase in assets and a 10K decrease in liabilities.

I'd set a goal of 92.5K total debt in my sidebar near the beginning of the year, and I'm ending the year with 94.4, so that's somewhat close to my goal and a significant decrease in any case (9.86%)

My retirement balance increased even though I used some of my beneficiary RMD to pay down debt rather than just taking it, paying the tax, and contributing to a Roth, which is what you would *ideally* do with with that kind of account. But it's what helps get the debt down.

I still have $28.628 in non-mortgage debt, which I estimate will take me until January 2019 to pay off, if I take part of the RMD and put it to debt reduction at the beginning of eatch year. But the amount that requires grows steadily less, so after this next draw, I'll be able to roll part of the RMDs over to a Roth.

(And if the company does well and I get a full bonus next year, I might even be able to use the bonus rather than the RMD to reduce the debt.)

I was able to add over 10K to my retirement accounts (about 8K on my own and 2K employer match). That helps balance out the RMDs, though the draws still exceed the contributions. It's net growth, though, because of income generated by the assets in the account. I like to look ahead to the point in a couple of years where I'll just be able to roll the beneficary RMDs to a Roth and it will be all contributions--that will definitely help my retirement balance--as long as I manage to still stay employed, knock wood!

4 Responses to “Net Worth Change 2016”

  1. Amber Says:

    Way to go on increasing your net worth while reducing your debt. Hope 2017 is just as prosperous for you as well

  2. snafu Says:

    I'm so impressed with the progress you've made since deciding to change careers. 'Creating good financial habits' is a theme I so wish I could persuade people I care about to try.

  3. fern Says:

    You're doing well. Yep, just hang onto that job and keep plugging along with your debt payments. If you were licensed in CT I would step up as a client. I think you know my finances pretty well at this point and you've given me lots of good advice.

  4. rob62521 Says:

    Wonderful news on increasing your net worth! Bravo! Keep up the good work. You have really worked hard to reduce your debt as well as increase your net worth.

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