Quote:
Originally Posted by Amnorix
So the concept I'm using it for is to (1) keep track of everything, and (2) see progress over time. I don't bother with including vehicles or other illiquid items that in theory add to net worth (other than the house), but you certainly could if you wanted (offset by any vehicle loan).
Anyone who has credit card or student loan debt should have it on the spreadsheet. You can also input what the interest rates are for the various debt, to help you visualize what debt you should prioritize getting rid of first.
In theory, if you had a baseball card collection or some other kind of collectible, you could include that, but it's pretty much YMMV there. Most types of collectibles aren't exactly a great way to plan for retirement unless it's your actual business, and even then it's risky for your heirs. Usually they need to be sold at firesale prices to convert to cash if anything goes wrong.
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I'd really recommend doing a balance sheet at FMV.
Assets = Liabilities + Equity.
Organizing it any other way can lead to material misstatement.
Quote:
Originally Posted by Amnorix
I was a kid and remember interest rates that high.
Now imagine the flip side -- mortgages at like 18+ percent, because that was real too.
I could go on and on about how Fed Chairman Volcker had to do it to break "stagflation", but it also broke the Carter presidency (not that he was good, anyway, but alot of people blame Carter for stuff that he had no control over that came out of the oil embargo crisis etc.), but trust me when I say you don't want to get me started.  |
Yeah my dad was on the other side of that. I'm not sure if he had any land loans, but I know he had an operating note.
I asked him a couple years ago how the hell he managed to survive that. His answer was legitimately, "I don't know."